REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART III:
requirement for compulsory implementation in the companies listed on Macedonian Stock
Exchange. At the end, our aim is to give recommendation for Macedonian companies
and regulatory bodies how to achieve full compliance with European Union accounting
regulation that will contribute to easier and faster economical collaboration and
integration with the European Union. This is also in accordance with the strategy of the
Government of Republic of Macedonia in the Country Action Plan for development of
accounting profession in Macedonia.
Key words: financial reporting, harmonization, European Union Directives, regional
collaboration, economic integration, International Financial Reporting Standards
INTRODUCTION
Fast technological changes in all industries, especially in manufacturing industries
and information technology are result of the international trade growth and worldwide
expansion. This, have implication on the capital market expansion which influences the
growth of the international companies. Mentioned growth is accompanied with increased
movement of capital, labor force and market of products and services. According to this,
highlight is placed on the importance of the accounting and international financial reporting
harmonization. Accounting and financial reporting system have different development in
each country. Because of that, efforts are made for financial reporting harmonization on
local, regional and world level.
In this paper we will try to present basic efforts of the Republic of Macedonia for adjusting
its financial reporting with the financial reporting in the European Union. This is in line
with the country’s strivings to become European Union member.
1. The process of regional cooperation and economic integration
On 26 of May, 1999, European Commission suggested new form – Process of Stabilization
and Association for Bosnia and Herzegovina, Croatia, Serbia, Montenegro, Macedonia and
Albania, as a way of strengthening the existing regional approach of Western Balkan toward
European Union. One step in this process is signing of the Agreement for Stabilization and
Association.
The process of stabilization and association is special type of regional approach of the
Western Balkan countries in the European Union. This countries gained possibility for the
first time, on the basis of their own adjusted approaches, to become members of the Union.
This process of stabilization contains stimulations as different programs, but also imposes
certain political and economic conditions to be fulfilled. Requests which were imposed to
countries from Central and Eastern Europe are also imposed to countries from the Western
Balkan. According to the criteria which were defined by the European Council on the
summit in Copenhagen (1993), countries from the Western Balkan are obliged to direct their
political, economic and institutional development towards values and models on which EU
is founded: democracy, human rights respect and market economy. These requirements
were also imposed on Macedonia and, in general, we succeed to fulfill them.
Regional approach understands defining and realizing of the European Union policy
towards certain neibour regions. EU has special goals and interests towards certain
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