Tag Archive | "financial reporting"

Development of Accounting in Kosovo: A Historical Perspective and Future Implications

Qualitative and reliable financial information is a key element in the decision making process, and the availability of such information is particularly important for the business management and public interest in general.

The road towards ensuring qualitative and reliable financial information is challenging and requires the use of multiple mechanisms to put in function the implementation of high quality standards and best practices, including these of financial reporting, accounting (also the international public sector accounting standards), professional education and ethical standards, in order to provide quality preparation and presentation of the information.

Accounting has the key role in the whole process, which enables the fulfillment of the need for accurate monitoring of the performance of the entity through credible and rigorous registration of all economic events that are part of its business.
Accounting promotes and supports business growth and development by facilitating strategic management, operational and financial management, as well as enables the protection of the interests of owners as investors particularly and also for other users of business information generally.

This paper presents an overview of the current situation of accounting in our country, reflecting the historical context and analysis according to the chronological flow that have influenced the development of this field in our country and the level of its use to provide relevant and accurate information, and meet the need for stronger public accountability and increased public participation in decision making.

The nature of accounting legal regulation and its implementation, the level of implementation of international accounting and financial reporting standards and the structure of education of accounting professionals are part of the analysis in this paper in order to see the development and evolution of the role of accounting in Kosovo.

  Development of Accounting in Kosovo: A Historical Perspective and Future Implications (542.6 KiB, 598 hits)

Posted in Economics, Information Technology, Knowledge Management, Volume VII, Issue no. 1

Importance of the Application of International Accounting Standards in Kosovo Businesses

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, 1,366 hits)

Posted in Economics, Volume IV, Issue no. 2

Albanian Accounting Trends in Accordance With EU Standards

A lot of work has gone to standardize the financial accounts of insurance and requirements of reimbursement ability. These projects are made by various international organizations. This will alter the way the insurance companies keep their accounts and how they design strategies. All this work in accounting is being done to increase transparency and provide the most realistic accounts of insurance. This is an indirect form to protect the policyholders. Even the regulation on repayment ability is a method of protecting policyholders. Accounting is the process of collecting and reporting financial information about entity or about a group of units. Accounting practices are developed over time and they reflect the traditional national accounts. With the development of EU and increased activity of insurance companies or other companies outside the national borders, finding of a common way to present financial data of companies is becoming more critical. In connection with commercial enterprises, accounting information users include managers, investors, potential investors, lenders, investment analysts, regulators and consumers. The accounting changes outlined here, will be mandatory for insurance companies listed on stock exchange. However it is expected that other companies will adopt these rules as they aim to clearly present the true situation of the company, critical for managing a company.

  Albanian Accounting Trends in Accordance With EU Standards (761.1 KiB, 1,913 hits)

Posted in Economics, Volume II, Issue no. 5