Download Institute for Accounting and Auditing of FBiH

USAID/IBTCI- PSARP
Accounting
and
Auditing
in BiH
Senad Pekmez – Senior Accounting Consultant
USAID/IBTCI – Private Sector Accounting Reform Project
Bosnia and Herzegovina
USAID/IBTCI- PSARP
STATE STRUCTURE
BOSNIA AND HERZEGOVINA
-
UNDER DAYTON AGREEMENT COMPOSED
OF TWO ENTITIES:
1. FEDERATION OF BIH and
2. REPUBLIC OF SRPSKA
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
FEDERATION OF BIH
Responsible Institutions:
1. Institute for Accounting and Auditing of FBiH
(Government Institution)
2. Association of Accountants and Auditors of
FBiH (Private Sector)
3. Securities Commission of FBiH
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in FBiH
1. Law on Accounting (from 1995 amended in 1998)
- 32 Accounting Standards in a force from 1999 (IAS)
- New Chart of Accounts
- New Format of Accounts (Set of Financial Statements)
2. Law on Auditing (from 1995 amended 1998)
- Auditing Standards
- Translation of:
IFAC International Standards on Auditing and Related
Services (1998 edition)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in FBiH
3. Law on Enterprises:
- Every shareholding company should have audited
financial statements, subject of approval of
annual shareholdes assembly
4. Requirements issued by the SEC of FBiH
- By Law on contents, way and standards of disclosure
of financial reports and other information concerning the
activities of shareholders company (OECD rules)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
REPUBLIC OF SRPSKA
Responsible Institutions:
1. Association of Accountants and Auditors of
RS (Private Sector)
2. Securities Commission of RS
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in RS
1. Law on Accounting
- 33 Accounting Standards published in 2000 (IAS)
- New Chart of Accounts
- New Format of Accounts (Set of Financial Statements)
2. Auditing Standards
- Translation of:
IFAC International Standards on Auditing and Related
Services (1998 edition)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in RS
3. Law on Enterprises:
- Medium and large shareholding companies should
have audited financial statements, subject of
approval of annual shareholdes assembly
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Tasks and Goals
of Profession and Project in Accounting Reform
1. Building the Audit Profession
- To have audit firms in each entity capable of auditing in
accordance with ISA and reporting on financial statements
in accordance with IAS
- Current activities – organizing Audit Case Study training
for 300 auditors. Each participant will be expected to agree to
a post-training on-site visit by an experienced “international”
auditor to review workpapers, discuss audit issues and assist in
the application of sound audit practice.
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Tasks and Goals
2. Modernizing University Curricula Reform
- To have BiH universities adopt a modern accounting and
auditing curriculum fully in accordance with UNCTAD and
IFAC guidelines.
- Seven BiH Universities signed MOA for implementing new
curricula.
-translating, publishing and delivering new accounting,
auditing, cost accounting and financial management
textbooks to students and professors.
-Organizing Summer 2003 training for University professors
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Tasks and Goals
3. Enterprise Assistance in Applying IAS
- private enterprises to improve their competitiveness,
profitability, and access to foreign and domestic capital
through modernizing their financial reporting and
management accounting
- present courses on financial reporting (IAS) and
managerial accounting to enterprise accountants,
- implement program of on site assistance to enterprises
- train and subcontract local accounting and audit firms in
the provision of assistance to individual enterprises
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Tasks and Goals
4. Support to Professional Associations
- A professional associations of accountants and auditors,
with nationwide representations, made suitable, and becomes
a member of IFAC
- The AAA of FBiH and the AAA of RS are in negotiations
regarding the Charter for State Level Association of
Accountants and Auditors.
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Tasks and Goals
5. Legal & Regulatory Reform
- to have a nationwide law on accounting and auditing that
fully embraces International Accounting Standards and
International Standards on Auditing
6. Other Activities
- work closely with SEC on preparing and issuing the rules
which regulate accounting and auditing for the players in capital
market (brokers, dealers, PIF’s, MC, listed shareholding companies
etc.)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Tasks and Goals
Build a stronger relation between responsible institution:
MF, IAA, AAA, and SEC
in a both entities and nationwide
- To have better control and monitoring of applying
IAS and ISA in financial reporting and auditing.
- To have accurate, fair and true financial reporting and
disclosure of information for users of financial statements
in capital market
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