REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART III:
presentation of assets, liabilities, equity, income and expenses. They choose the most
appropriate measures in their national environments for policy of recognition, measurement,
consolidation and presentation of financial statements. In every country annual financial
report provides information for financial position and financial results. Differences in
financial reporting between countries derive from different environmental, culture and
other influences. Reasons for differences were examined and harmonization of accounting
is started as a result of the business globalization worldwide.
The process of financial reporting harmonization in accordance with the European Union
regulation is especially important for Republic of Macedonia as a candidate member.
Therefore, Republic of Macedonia has responsibility to adjust its laws with the European
Union laws, understanding adjustment in the field of accounting and financial reporting.
It contains adjustment of accounting principles and rules in accordance with Fourth and
Seventh Directive of EU as well as implementation of IAS and IFRS. Most of these
requirements are fulfilled in Macedonia and we can confidently say that Macedonia is
not at the end on the list of European countries referring to accounting harmonization.
There are countries member of European Union with investments in Macedonia that have
bigger gap between their national accounting and accounting in accordance with 4 th and
7 th European Union Directives and International Accounting Standards and International
Financial Reporting Standards. Even Fourth and Seventh European Union Directives are
not fully complied with IFRS. Because the Fourth and Seventh EU Directives were rather
broad and permissive, significant differences in accounting policies and practices in the 25
European countries exist.
In the Republic of Macedonia, efforts are made for unification of financial reporting with
the EU, having in mind processes of globalization and regional integration which is in
line with activities of the WTO and other international and regional organizations for
enhancing movement of goods, services, capital, capital market, rational management of
the companies which act in international level, etc. This is in accordance with the strategy
of the RM Government stated in the national action plan for development of accounting
profession. But, at the end we cannot expect full or near-full comparability. We should take
a step back and suggest IFRS to become more principle-based and less complex. With this
we are going to avoid a situation in which CFOs do not understand their own financial
statement.
REFERENCES
Borbely, Katalin, Evans Lisa: A Matter of Principle: Recent Developments in Hungarian
Accounting Thought and Regulation, Accounting in Europe, Vol. 3, 2006
Cairns, David: The Use of Fair Value in IFRS, Accounting in Europe, Vol. 3, 2006
Corrado, L. et al.: Identifying and Interpreting Regional Convergence Clusters across
Europe, Economic Journal, Vol. 115 (502), 2005
David Alexander et al.: International Financial Reporting and Analysis, Thomson Co.,
Ltd, 2005
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