REGIONAL COOPERATION AND ECONOMIC INTEGRATION
REGIONAL COOPERATION AND ECONOMIC INTEGRATION REGIONAL COOPERATION AND ECONOMIC INTEGRATION
Minovski Zoran, PhD, Associate Professor Ss Cyril and Methodius University Faculty of Economics – Skopje Macedonia Serafimoska Marina, MSc, Teaching Assistant Ss Cyril and Methodius University Faculty of Economics – Skopje Macedonia SOME ASPECTS OF TRADE STATISTICS AND REPORTING Abstract HARMONIZATION OF FINANCIAL REPORTING IN THE REPUBLIC OF MACEDONIA AND EUROPEAN UNION IN FUNCTION OF REGIONAL COLLABORATION AND ECONOMIC INTEGRATION Besides other factors important for economic development of one country, very important pre-condition is the existence of efficient capital market. Companies, especially companies from emerging countries, in order to draw attention to foreign investors must have standardized financial statements. In this paper we are focused on Macedonia and we will put accent on unification of financial reporting in Macedonia with financial reporting and regulation in European Union. Multinational corporations in Macedonia are enforced to comply with IAS/IFRS from January 1, 2005 but still they are not fully harmonized and have some problems with the implementation of international standards and fully compliance with them. Important contribution to financial reporting in European Union has the acceptance of the European Directives (4, 7 and 8) related with accounting, with final aim: harmonization of financial reporting in all countries members of European Union. Directives regulate the form and content of financial statements, preparing consolidated financial statements, auditing of financial statements as well as harmonization of accounting education. In accounting regulation of European Union special contribution has Decree of Council of Europe from 2002 related to preparing of consolidated financial statements for the companies listed on European Stock Exchanges. Also EFRAG in 2002 recommends EC endorsement of all existing International Accounting Standards. EFRAG has reviewed all 41 standards and concluded that there are “no actual inconsistencies between IAS 1 to 41 and the last versions of the 4th and 7th Directives”. In this paper we are going to analyze issues that companies in European Union have in implementation of IAS/IFRS and to fix the level of implementation of these standards in European Union countries. Also we are going to present the current situation in Macedonian companies about implementation of IAS/IFRS, four years after their translation and the 193
PART III: requirement for compulsory implementation in the companies listed on Macedonian Stock Exchange. At the end, our aim is to give recommendation for Macedonian companies and regulatory bodies how to achieve full compliance with European Union accounting regulation that will contribute to easier and faster economical collaboration and integration with the European Union. This is also in accordance with the strategy of the Government of Republic of Macedonia in the Country Action Plan for development of accounting profession in Macedonia. Key words: financial reporting, harmonization, European Union Directives, regional collaboration, economic integration, International Financial Reporting Standards INTRODUCTION Fast technological changes in all industries, especially in manufacturing industries and information technology are result of the international trade growth and worldwide expansion. This, have implication on the capital market expansion which influences the growth of the international companies. Mentioned growth is accompanied with increased movement of capital, labor force and market of products and services. According to this, highlight is placed on the importance of the accounting and international financial reporting harmonization. Accounting and financial reporting system have different development in each country. Because of that, efforts are made for financial reporting harmonization on local, regional and world level. In this paper we will try to present basic efforts of the Republic of Macedonia for adjusting its financial reporting with the financial reporting in the European Union. This is in line with the country’s strivings to become European Union member. 1. The process of regional cooperation and economic integration On 26 of May, 1999, European Commission suggested new form – Process of Stabilization and Association for Bosnia and Herzegovina, Croatia, Serbia, Montenegro, Macedonia and Albania, as a way of strengthening the existing regional approach of Western Balkan toward European Union. One step in this process is signing of the Agreement for Stabilization and Association. The process of stabilization and association is special type of regional approach of the Western Balkan countries in the European Union. This countries gained possibility for the first time, on the basis of their own adjusted approaches, to become members of the Union. This process of stabilization contains stimulations as different programs, but also imposes certain political and economic conditions to be fulfilled. Requests which were imposed to countries from Central and Eastern Europe are also imposed to countries from the Western Balkan. According to the criteria which were defined by the European Council on the summit in Copenhagen (1993), countries from the Western Balkan are obliged to direct their political, economic and institutional development towards values and models on which EU is founded: democracy, human rights respect and market economy. These requirements were also imposed on Macedonia and, in general, we succeed to fulfill them. Regional approach understands defining and realizing of the European Union policy towards certain neibour regions. EU has special goals and interests towards certain 194
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Minovski Zoran, PhD,<br />
Associate Professor<br />
Ss Cyril and Methodius University<br />
Faculty of Economics – Skopje<br />
Macedonia<br />
Serafimoska Marina, MSc,<br />
Teaching Assistant<br />
Ss Cyril and Methodius University<br />
Faculty of Economics – Skopje<br />
Macedonia<br />
SOME ASPECTS OF TRADE STATISTICS <strong>AND</strong> REPORTING<br />
Abstract<br />
HARMONIZATION OF FINANCIAL REPORTING IN THE<br />
REPUBLIC OF MACEDONIA <strong>AND</strong> EUROPEAN UNION<br />
IN FUNCTION OF <strong>REGIONAL</strong> COLLABORATION <strong>AND</strong><br />
<strong>ECONOMIC</strong> <strong>INTEGRATION</strong><br />
Besides other factors important for economic development of one country, very important<br />
pre-condition is the existence of efficient capital market. Companies, especially companies<br />
from emerging countries, in order to draw attention to foreign investors must have<br />
standardized financial statements. In this paper we are focused on Macedonia and we will<br />
put accent on unification of financial reporting in Macedonia with financial reporting and<br />
regulation in European Union. Multinational corporations in Macedonia are enforced to<br />
comply with IAS/IFRS from January 1, 2005 but still they are not fully harmonized and have<br />
some problems with the implementation of international standards and fully compliance<br />
with them.<br />
Important contribution to financial reporting in European Union has the acceptance of the<br />
European Directives (4, 7 and 8) related with accounting, with final aim: harmonization<br />
of financial reporting in all countries members of European Union. Directives regulate<br />
the form and content of financial statements, preparing consolidated financial statements,<br />
auditing of financial statements as well as harmonization of accounting education. In<br />
accounting regulation of European Union special contribution has Decree of Council<br />
of Europe from 2002 related to preparing of consolidated financial statements for the<br />
companies listed on European Stock Exchanges. Also EFRAG in 2002 recommends EC<br />
endorsement of all existing International Accounting Standards. EFRAG has reviewed all<br />
41 standards and concluded that there are “no actual inconsistencies between IAS 1 to 41<br />
and the last versions of the 4th and 7th Directives”.<br />
In this paper we are going to analyze issues that companies in European Union have in<br />
implementation of IAS/IFRS and to fix the level of implementation of these standards in<br />
European Union countries. Also we are going to present the current situation in Macedonian<br />
companies about implementation of IAS/IFRS, four years after their translation and the<br />
193
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