Posted on 15 April 2014. Tags: financial reporting, International Accounting Standards, Kosovo Accounting Standards, Kosovo Financial Reporting Council
The adoption of International Accounting Standards (IAS) is an example of accounting standardization among countries with different institutional frameworks and enforcement rules. IAS, though, create a common language for defining, interpreting and publication of financial statements in the whole world. Furthermore, their aim is “to provide a standardized and coherent sight of the companies to the shareholders and investors”. After the war in Kosovo has been a positive move towards the development of accounting. Accounting system based on IAS cannot be avoided by Kosovo as part of the European and international transactions.
However, financial reporting situation of businesses in Kosovo continues to be unsatisfactory. Implementation of accounting requirements among businesses remains a challenge and there was little improvement in recent years. The Kosovo Financial Reporting Council (KCFR) as a regulatory body that sets accounting standards has neither the human nor the technical capacity to meet its responsibilities.
The purpose of this paper is to provide a clearer picture on the financial reporting environment in Kosovo, the challenges facing Kosovo in terms of financial reporting and the importance of adopting International Accounting Standards in Kosovo businesses.
Importance of the Application of International Accounting Standards in Kosovo Businesses (204.7 KiB, 2,131 hits)
Posted in Economics, Volume IV, Issue no. 2
Posted on 15 December 2011. Tags: CBK, insurance industry, solvency
The purpose of this assignment is to provide a research that will be used further during the dissertation. The research is focused at benefits of the Solvency II and possibilities that would follow its implementation in the insurance industry in Kosovo.
This assignment will briefly explain how it is can be applied on to the Solvency I regime that exists in the insurance industry in Kosovo and potential for the insurance industry of Kosovo when Solvency II is implemented. For both of these methods of the Solvency I and II we tried to offer proper solutions.
For this research we prepared a questionnaire for the top managers of the insurance companies and experts in this field. The questions focused on their perspective of the implementations of Solvency II on the insurance industry in Kosovo. We also have interviewed the director of insurance supervision at the Central Bank of Kosovo (CBK). The responses to the questionnaire are summarized in the following part of this research.
Solvency II an opportunity or challenge for insurance industry in Kosovo (663.7 KiB, 4,475 hits)
Posted in Economics, Issue no. 7
Posted on 15 August 2011. Tags: Benefits, Cost, Euro, German Mark, Kosovo economy
Since January 1st 2002 in compliance to UNMIK (United Nations Mission Interim in Kosovo) regulation no.1999/4, EURO (‘’EUR’’) is adopted as legal currency in Kosovo and it became the de facto currency of the country. All client accounts held in Central Bank of Kosovo (CBK) and in other commercial banks were converted in EUR by un-converted exchange rate of DEM 1,95583 for a EUR. Consequently, in practice, since Euro has legal tender (which means that a payment in Euro cannot be refused) and since accounts are kept in this currency, almost all the transactions made in Kosovo are denominated and paid in Euro. Utilization of a sustainable currency was important in maintaining macroeconomic stability and played a key role in the reestablishment of people’s trust in the financial sector. On the other hand, CBK is not a money emission bank and in this way does not perform monetary and exchange policies. The currency regime that Kosovo has adopted might be very challenging given the absence of traditional monetary and exchange rate instruments. The key concern, therefore, remains on whether the right policies (such as fiscal and structural policies as well as those related to the financial sector) will support this regime. The objective of this paper is to present the costs and benefits brought to the Kosovo economy by the utilization of Euro as its main currency in circulation, and to what extent are the costs acceptable compared to the advantages that were brought by the introduction of Euro in the Kosovo economy.
How Acceptable are the Costs Compared to Benefits Brought by Euroisation of Kosovar Economy (832.9 KiB, 3,236 hits)
Posted in Economics, Issue no. 5
Posted on 15 August 2011. Tags: Banking Sector, Central Bank of Kosovo, Insurance Companies, Micro-finance Institutions, Pension Funds
The financial sector in Kosovo after 1999 was almost non-existent. At that time there were no banks functioning. On the 15 November on the same year has been established the Central Bank of Kosovo entitled as the Banking and Payment Authority of Kosovo (BPK). Now there are ten years past from the establishment of the Central Bank of the Republic of Kosovo and the initial functioning of Kosovo financial system. With the development of Kosovo economical environment in general and its financial system development in particular, the need for enlargement of objectives and functions of this institution showed up. As a result of this on August 24 of year 2006, BPK was transformed into Central Banking Authority of Kosovo – CBAK, through which functions were increased, contemporaneous governing was applied and “Kosovarization” process was made possible on CBAK governance. After the declaration of independence on the 17 February, by entering into force of the Kosovo Constitution on the 15 June 2008, the law on Kosovo Central Bank of Republic of Kosovo became effective, by ensuring full functional, operational, financial and personnel autonomy, by having one of the main objectives: Foster the soundness, solvency and efficient functioning of a stable market based financial system, encouraging market emergence of safe financial instruments. The objective of this paper is to explain the role of the Central Bank of the Republic of Kosovo in the establishment and the development of the ten year old post-war Kosovo financial system, how and what should be the mission and vision of CBK in function of further development of Kosovo financial system.
Role of Central Bank in the Establishment and the Development of Financial System in Post-War Kosovo (921.2 KiB, 3,059 hits)
Posted in Economics, Issue no. 5