REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART III:
it refers to adjusting of accounting principles and rules in accordance with Fourth and
Seventh Directive of EU as well as implementation of IAS and IFRS. Due to the previously
mentioned, IAS and IFRS are accepted and implemented in the big companies as well
as companies who are listed on the Macedonian Stock Exchange. Also, International
Standards on Auditing and Code of Ethic issued by International Federation of Accountants
(IFAC) are accepted and implemented. The IAS/IFRS implementation must be result of
cost-benefit analysis, and in Macedonia although implementation of IAS/IFRS imposed
immense costs for companies (to engage consultants for IAS implementation and to invest
in young and well educated employees, or even to change accounting software), the benefit
of IAS/IFRS implementation is great and important for overall Macedonian economy:
attracting foreign capital. Now in the Macedonia are in progress activities related with
translation of the last versions of IAS, IFRS and ISA as well as Code of Ethics of IFAC
and is expected that these pronouncements in Macedonian language will be issued at the
beginning of 2010 in the Official Gazette. Until now in Macedonia are in force IAS, version
from 1995, translated in Macedonian language and published at the end of 2004. This last
version of IAS significantly varies with the latest version of Standards and, consequently,
companies are faced with the issue which standards are valid for them: the latest one issued
in Macedonian language, or the one that is latest published by the Standard Committee.
Also, Macedonian regulatory bodies have planned translation of International Accounting
Standards for Small and Medium Size Companies.
A step further in the process of harmonization of accounting profession is in the field of
accounting education. Part of this harmonization of the accounting education is The Faculty
of Economics – Skopje and its Department for accounting and audit. The Department has
changed its syllabus and adjusts it in accordance with IAS, IFRS and ISA as well as rules
and codes of ethics of international accounting bodies (IFAC, ACCA, and CIMA). Many
students after their graduation at the Faculty are enrolling ACCA studies, international
certification of accountants. Students from this Department are exempt of the first five
exams, out of 14. Even more, the Institute for Certified Auditors of Macedonia this year
starts the activities of certification auditors with the program in accordance with the one
of ACCA. This internationally recognized certification allows mobility of accountants and
auditors and their ability to do accounting in accordance with international standards. Such
internationally certified accountants will be able to prepare comparable financial statements
in accordance with international standards and EU regulation as well as auditors will be
able to perform audit in different countries as employees of any big four’ auditing firms.
Big companies listed on Macedonian Stock Exchange are obliged to use IAS and IFRS in
order to protect interests of the financial statements’ users and to attract potential investors,
as well as it is a valuable source for the decision makers in the same companies. On that way
straightforward and clear information are provided for the users of financial information
with acceptable costs for their preparation. It is also an objective which is desired during
the process of defining appropriate system of accounting and financial reporting. But,
there are intensive activities for solving accounting problems referring to harmonization
and increasingly important requirements for equal systems for financial reporting on
international level. In spite of the individual characteristics of developed countries, there is
a need to be considered specific characteristics for their operations in transition countries
such as Republic of Macedonia.
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