Enhancing Quality of Financial Reporting Project

Despite recent reforms in the business regulatory framework, Albania needs to continue modernising its business environment. The government has taken measures to improve the overall business climate in the country by streamlining business procedures through e-government reforms and by undertaking comprehensive structural reforms to both improve relevant legislation in a variety of sectors and lower the fiscal burden on companies. Hand in hand with these reforms the government aims at stengthening the quality of financial reporting data, to increase confidence in financial reporting and to ensure the reliability of financial information.

Overall, the project aims at improving the accountability and transparency of corporate financial reporting, by aligning Albania’s statutory and institutional framework with the relevant EU legislation.

The project will strengthen the capacity for accountancy and audit professions.

It will increase the public availability of companies’ financial information.

And it will improved monitoring and evaluation by regulators of the quality of financial reporting.

Expected results:  

Strengthened capacity of universities to implement the accountancy curricula compatible with international good practices- improved understanding and application of relevant accounting and auditing standards by practitioners.

Enhanced capacity of the tax authority to better understand financial reporting standards and reconcile differences among reporting for tax purposes and general purpose reporting.

Improved capacity of the public audit supervisory institutions and financial regulators in monitoring and enforcing higher quality of financial reporting based on IFRS prepared by financial institutions- increased technical capacity of Public Oversight Board to lead and oversee the performance of the quality assurance system for the audit profession.

Strengthened capacity of the National Registration Centre to provide reliable, timely and easy access to the public of financial statements of corporate entities.

Improved reform management capacity of the National Steering Committee.

Results from previous phases:  

- Gaps between the relevant Albanian legislation and the EU acquis were identified and a road map for legal improvements and for strengthening of the public oversight system was endorsed by the government.

- The capacity of the national standard setter - the National Accounting Council - to set standards and update the translation of IFRS as enhanced.

- The public oversight system for independent auditors was established- the Chamber of Auditors was equipped with regulations and tools- and a fully-fledged online register was develped.

- Accounting and auditing curricula were improved.

- The reform capacity of the government in the area of corporate financial reporting reform was strengthened and the ability of the National Steering Committee to manage the reform agenda improved.

Phase 2 01.12.2014 - 31.12.2019   (Completed)