Implementation of IFRS in Kosovo : effect on the quality and relevance of financial reporting

Purpose: Kosovo’s legal framework requires from businesses to implement IFRS when preparing financial statements. Based on this, the study aims to reflect the current situation regarding the recognition of IFRS by the accountants and the level of their implementation when preparing the financial statements, their attitudes and opinions regarding the effect they have on the quality and relevance of financial reporting for business directors and for all users of accounting information. Design and Methodology: The study was carried out with data collected from 264 businesses with turnover of over 1 million € selected as a research sample and processed through descriptive statistics and the quantitative analytical method. The design of the study involves two essential steps. The first step was a secondary data survey whose purpose was to research and analyze the framework of financial reporting of businesses. Meanwhile, the second step is the primary research conducted through questionnaires filled out in businesses and addressed to accountants (one employee in each business, a total of 264 accountants interviewed). Findings: The research results showed Kosovo's economic reality as far as financial reporting is concerned, which implies that businesses prepare accounting information according to the IFRS and publish it through publicly available financial statements under the regulatory requirements for accounting, financial reporting and auditing. In addition, the study highlights the level of awareness of accountants that the IFRS affect the quality and relevance of accounting information that will be used by third parties for economic decisionmaking. Practical Implications: Recognition of IFRS by accountants and their full implementation provides a qualitative and transparent financial information, useful to all users of that information, as well as to business executives. Unification of accounting language exceeds group interests by penetrating the capital market in and out of the country. The Significance of The Study: This study presents a clear picture of the level of implementation of IFRS in Kosovo and the identification of factors affecting this level. In this respect, the study has raised the importance of enforcing standards by professionals, contributing to the improvement of financial reporting.peer-reviewe

The Role of Capital Requirements on the Stability of Kosovo Banking Sector

After the failure of the Bretton Woods system, it was more than necessary to create a stable, acceptable and strong banking system. The way to achieve this was to form the Basel Committee on Banking Supervision. The committee has set a number of requirements that banks should fulfil in order to be a part of the banking sector. These rules have been adopted by many countries on an individual basis; one of the countries which has adopted the Basel regulations on banking supervision is Kosovo. Based on the committee’s regulation on capital adequacy, the Central Bank has created the Local Capital Regulation. The aim of this adoption is to completely integrate the Basel regulation in the near future. The major harmonisation was performed in 2012, when the new law on banking supervision was enforced. This paper provides us information on the impact of the new law requirements on capital adequacy ratios.&nbsp

Does Credit Risk Management affect the Financial Performance of Commercial Banks in Kosovo?

This study analyses the impact of credit risk management on financial performance of commercial banks in Kosovo, and comparing the relationship between the determinants of credit risk management and financial performance by using CAMEL indicators. Panel data of 85 observations from 2008 to 2012 of ten commercial banks was analysed using multiple regression model. Findings through multiple regression analysis are presented in forms of tables and regression equations. The study also elaborates whether capital adequacy, asset quality, management efficiency, earnings and liquidity have strong or weak relationship with financial performance of commercial banks. The study concludes that CAMEL model can be used as a system of assessment and rating of credit risk management by commercial banks in Kosovo

Amiodarone induced myxedema coma presenting with cardiogenic shock and junctional rhythm

We describe the case of an elderly female, with no prior history of thyroid dysfunction, who presented with facial swelling and worsening fatigue. She was found to have myxedema coma, with thyroid-stimulating hormone (TSH) 98.90 uIU/mL and free thyroxine (fT4) 0.8 ng/dL, following two months of amiodarone therapy for paroxysmal atrial fibrillation. The patient developed cardiogenic shock and received liothyronine, levothyroxine, stress dose steroids, inotropic and vasopressor therapy while in the intensive care unit (ICU). She was weaned off vasopressors and switched to oral levothyroxine with a gradual steroid taper. Two months following hospital discharge, the patient remained asymptomatic while on oral levothyroxine. Literature lacks cases of amiodarone-induced myxedema coma and to our knowledge, myxedema coma secondary to amiodarone use has never been reported in patient on treatment for as short as two months. This case demonstrates the significance of early diagnosis and prompt treatment for rapid progression of signs and symptoms of amiodarone-induced myxedema coma to optimize outcomes. Although transient changes are seen while on amiodarone therapy, continuous monitoring is essential to examine for apparent thyroid dysfunction. Thyroid function testing prior to initiation of amiodarone and in cases of cardiac dysrhythmias or cardiogenic shock can help to avoid potentially fatal complication of hypothyroidism

The Role of Capital Requirements on the Stability of Kosovo Banking Sector

After the failure of the Bretton Woods system, it was more than necessary to create a stable, acceptable and strong banking system. The way to achieve this was to form the Basel Committee on Banking Supervision. The committee has set a number of requirements that banks should fulfil in order to be a part of the banking sector. These rules have been adopted by many countries on an individual basis; one of the countries which has adopted the Basel regulations on banking supervision is Kosovo. Based on the committee’s regulation on capital adequacy, the Central Bank has created the Local Capital Regulation. The aim of this adoption is to completely integrate the Basel regulation in the near future. The major harmonisation was performed in 2012, when the new law on banking supervision was enforced. This paper provides us information on the impact of the new law requirements on capital adequacy ratios

Literature Review on Historical Development of Accounting

Accounting as a practice has existed since the earliest times of humanity. The first simple accounting records are found in the writings of Babylonian, Chaldeans, Assyrians and Sumerians in Mesopotamia. The time of theoretical accounting recognition is considered to be the year 1494, when Venetian mathematician Luca Pacioli published a book titled ―Summary of arithmetic, geometry, proportions and proportionality‖. In addition to mathematical knowledge, Pacioli also wrote about the dual registration method and the accounting process. Despite Paciolli‘s writing, there is still much discussion regarding the issue of dual accounting origin. In reviewing the literature, it is noteworthy that accountancy history is scarcely addressed; there are only a small number of books and works that cover the topic. Therefore, the purpose of this paper is to take a historical look at accounting development from ancient periods to the present. This study, based on historians‖ records and archaeologists like Denise Schmandt-Besserat, has successfully described the origins and development of accounting from 3350 BC until today