Under the framework of the “Enhancing the Quality of Financial Reporting” (EQFinRep) project, Deloitte Albania presented the findings of two surveys regarding the users and preparers of financial reports in the country.
These findings were presented in an event that took place at the Rogner Hotel on Wednesday, the 26th of September. Representatives from the Ministry of Finance and Economy, international institutions such as the World Bank, SECO, Bank of Albania, as well as business representatives and accounting experts participated in the event.
As part of the continuous efforts for enhanced accounting standards, this event helped to define the challenges that accountants and enterprises in Albania face daily.
According to the survey of users, 44% of users of financial reports indicate that the lack of risk and explanatory information is one of the most accentuated gaps in financial reporting. However, according to the accounting experts, this is a positive indicator which shows that entrepreneurs are eager to have qualitative financial reporting. This is an incentive for more details to be used in financial statements, and it encourages further improvements in financial reporting.
The accounting standards in the country align well with the business environment and the size of a company’s assets. However, there is still need for improvement in the implementation phase of these standards.
The Deputy Minister of Finance and Economy, Mr. Elton Haxhi, stated that the reform in financial reporting is a precondition to a steady improvement of the country’s economy and it will encourage a competitive business environment.
Introducing the Findings of the National Survey on “The Importance of Financial Reporting in Albania”
Members of the discussion panel included Mr. Maksim Caslli (Deloitte Albania & Kosovo Country Leader), Mr. Marc Crawford (President of the American Chamber of Commerce), Mr. Dritan Fino, (Ministry of Finance and Economy), Mr. Deniz Deralla, (Bank of Albania), and Mr. Keler Gjika (World Bank Financial Sector Specialist).
Mr. Caslli emphasized in his talk that “the separation of management from ownership in an enterprise will help increase the quality of the financial statements. The fact that there is an increasing trend in acquisition transactions means that there is an improvement in the financial statements of the enterprises”.
Mr. Marc Crawford, President of the American Chamber of Commerce, mentioned that financial statements are important to the entrepreneurs and stakeholders of enterprises.
The “Enhancing the Quality of Financial Reporting” project is executed by the Ministry of Finance and Economy, and it is supported by the World Bank, with the financial contribution of the Swiss Government (State Secretariat for Economic Affairs SECO). Sigita Stafa, SECO representative, confirmed the ongoing support that the Swiss Embassy offers towards this project and the reform.
In the meantime, the World Bank’s support in this direction started in 2005. This support also helped to initiate a national action plan. The World Bank has implemented and supported two projects in this direction.
The increase in public awareness, as well as the increase in awareness of users and the preparers of these reports, is a focal point for this project, which will continue until the end of 2019. Gerti Boshnjaku, the founder of New Media Communications, also presented the communication strategy that will be executed for more than one year.