Kosovo
- National Professional Organisation Website: Society of Certified Accountants and Auditors in Kosovo (SCAAK)
- Response to IFAC Member Body Survey on Standard Setting and Regulation
- World Bank ROSC Accounting and Auditing Report
Financial Reporting Framework in Kosovo
UNMIK Regulation 2001/30 on the Establishment of the Kosovo Board on Standards for Financial Reporting (KBSFR) and a Regime for Financial Reporting in Business Organizations (the Law on Financial Reporting) establishes the regulatory structure for accounting and auditing in Kosovo.
The Law requires the KBSFR to issue Kosovo Accounting Standards (KAS) that comply with IFRS after taking into consideration the business environment in Kosovo.
The Law requires all corporations (except small corporations), publicly-owned enterprises, and socially-owned enterprises to prepare their financial statements in conformity with KAS or IFRS. "Small corporations" and micro entities apply tax-based rules.
Banks and insurance companies are required to prepare financial statements in compliance with IFRS and the accounting requirements set forth by the Banking and Payments Authority of Kosovo (BPK).
In October 2001 the KBSFR issued 19 KAS which were simplified versions of the equivalent IFRS at that time. However, since donor support was not prolonged and a sustainable standard setting process had not been established, the KBSFR has been unable to update the KAS as changes in IFRS were made by the IASB and Kosovo's economy developed.
Moreover, since no mechanism currently exists for enforcing compliance with accounting and financial reporting requirements by business organizations there is widespread non-compliance with both IFRS and KAS.