This regional workshop in Kyiv aimed to increase understanding of European Union (EU) accounting requirements for micro, small and medium-sized enterprises (SMEs).

Building on previous Accounting and Auditing Standards Communities of Practice (A&ACoP) events, this workshop was organized by the World Bank Centre for Financial Reporting Reform (CFRR), as part of the “Strengthening Auditing and Reporting in the Countries of the Eastern Partnership” (STAREP) program.

Increasing understanding of EC Accounting Directive (2013/34/EC)

Over the course of two days, accounting policymakers from the EU’s Eastern Partnership countries increased their understanding of specific aspects of the European Commission’s Accounting Directive (2013/34/EC) that pose particular challenges. This Directive focuses on SMEs and aims to improve the clarity and comparability of companies' financial statements within the EU. The workshop also explored a range of issues relevant to financial reporting and disclosure requirements for SMEs which are not classified as public interest entities.

Deputy Minister of Finance of Ukraine opens workshop

During his opening remarks, Eugeniy Kapinus, Deputy Minister, State Secretary of the Ministry of Finance of Ukraine, stated: “Recently, Ukraine initiated important reforms in the accounting and audit areas, which are aimed at provision of financial reporting transparency, and approaching Ukraine to the EU relevant standards and good practices.”

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Keeping Financial Reporting Relevant: Focus on Micro, Small and Medium Enterprises

Minister Kapinus went on to say that: “The STAREP regional program provides valuable input into the development of an efficient and sustainable accounting and audit framework in compliance with international standards and EU acquis communautaire. We appreciate the multifaceted support that CFRR colleagues provide within the STAREP program aiming to efficiently adjust to a new legislative basis, providing helpful advice to local regulators and professional accounting organizations, as well supporting improvement of education standards for accountants and auditors at the university level.”

Jarett Decker, Head of the CFRR, told participants: “Cost-effective financial transparency is important for all sectors of the economy, especially for micro enterprises and SMEs. It is key to addressing common impediments to their growth, including access to finance. This workshop highlights the particular challenges of promoting financial transparency without undue burdens and costs for these vitally important enterprises, which are key to economic growth.”

Learning from the experiences of Croatia and Estonia

Presentations and discussions included the experiences of Croatia and Estonia in aligning their corporate financial reporting frameworks with the EU acquis communautaire, any challenges they encountered during the transposition process, and solutions that they identified. Participants informed the organizers that learning from the experiences of Croatia and Estonia was extremely useful and interesting.
As always, the workshop provided a forum for representatives from accounting and auditing communities of practice to interact with experts involved in promoting similar reforms in their respective countries.