2010年-世界发展银行全球_Bosnia_and_Herzegovina___Accounting_and_Auditing_41页_963kb

Summary of the Report on the Observance of Standards and Codes (ROSC) for Bosnia and Herzegovina

Core Content

This report, prepared by the World Bank, evaluates the state of accounting and auditing practices in Bosnia and Herzegovina (BH), focusing on the alignment with International Financial Reporting Standards (IFRS), International Standards on Auditing (ISA), and the European Union (EU) acquis communautaire. It highlights the progress made since the 2004 ROSC and outlines recommendations to improve the quality of financial reporting and audit practices in the country.

Main Abbreviations and Acronyms

Country Context

• Bosnia and Herzegovina, a middle-income country with a population of 3.8 million, has a complex governance structure established by the 1995 Dayton Peace Agreement, which includes a State level Council of Ministers, two Entities (Federation of Bosnia and Herzegovina and Republika Srpska), and the autonomous District of Brcko.
• The country's economy is vulnerable due to its small, open nature and has experienced a recession in 2009, with GDP dropping by 3 percent.
• The Government has entered into a USD1.6 billion Stand-By Arrangement with the IMF to address the economic crisis.
• Bosnia and Herzegovina signed the Stabilization and Association Agreement with the EU in 2008, aiming to align its legal and institutional framework with EU standards.

Institutional Framework

• The institutional framework for accounting and auditing has improved since 2004, but challenges remain in fully aligning with the EU acquis communautaire.
• The application of "full" IFRS for all business entities, including SMEs, is not in line with EU Directives, which allow for different accounting frameworks based on company size.
• Both Entities have introduced common requirements for accounting and auditing, such as harmonized definitions of SMEs and alignment with EU Directives.
• The availability of IFRS translations in local languages (Bosnian, Croatian, Serbian) is limited, with only partial translations available in FBH and RS.

Accounting and Auditing Standards

• The compliance gap with IFRS remains significant, particularly in the enterprise and financial sectors of both Entities.
• External quality assurance systems have been established, but their implementation is still in early stages.
• The External Quality Assurance Systems need to develop inspection strategies and operating manuals, as well as provide staff training.
• The requirement for audit firms to publish transparency reports is not yet fully met, especially for public interest entities (PIEs).

Financial Reporting Quality

• The quality of financial statements published by PIEs does not meet IFRS standards, with many non-compliance issues detected.
• The Securities Commissions in FBH and RS do not systematically monitor the quality of annual financial statements, only conducting ad-hoc reviews for capital changes.
• Regulatory agencies in the financial sector tend to focus on prudential requirements rather than the quality of financial statements.

Policy Recommendations

Short Term (Less than 18 months)

1. Adopt a financial reporting framework based on IFRS for SMEs, aligned with EU Directives, to reduce the burden on SMEs.
2. Ensure that accounting and auditing professional bodies continue to provide translations of IFRS and ISA.
3. Review and update the accounting curricula and professional education programs to align with current needs.
4. Allocate adequate financial resources and personnel to the Securities Commissions to enhance monitoring and enforcement.
5. Develop inspection strategies and operating manuals for the External Quality Assurance Systems.

Medium Term (18 months to 3 years)

6. Harmonize corporate financial reporting formats across both Entities.
7. Align filing deadlines for consolidated financial statements with EU requirements.
8. Ensure appropriate disclosure and public correction of material misstatements in financial reports.
9. Promote the establishment of audit committees to comply with the Statutory Audit Directive.

Next Steps

• Governments should design Country Action Plans based on the findings and recommendations.
• Coordination mechanisms between the two Entities are necessary to ensure consistent implementation.
• Relevant State-level authorities should be informed and supported to facilitate access to external assistance for capacity development.

Key Information

• Bosnia and Herzegovina has a complex governance structure with two Entities and one autonomous district.
• The economy experienced strong growth from 2004 to 2008, but was severely impacted by the global financial crisis in 2009.
• The country has made progress in aligning with EU standards but faces challenges in full implementation.
• IFRS compliance is lacking, particularly in SMEs and regulated financial sectors.
• External quality assurance and public oversight systems are in place but require further development and support.
• Professional bodies have gained IFAC recognition, but training and education programs need improvement.