The connection between accounting and taxation from the perspective of preparing the financial statements

Business organizations apply international and national accounting standards to construct publicly available financial statements and financial reporting, but the respective goals, principles and requirements of accounting and taxation are not always the same. Based on this fact, this paper aims to address important issues related to the presentation of the economic reality in Kosovo, where the existence of the accounting-taxation relationship when preparing financial statements produces its effects depending on the degree of intensity that characterizes this relationship. Using research results, this paper provides an overview of the reporting regulatory framework in both reporting areas and points to the correlation between financial and fiscal reporting in the preparation of financial statements, classifying this relationship in one of the five categories recognized in international literature.peer-reviewe

An overview on the development of internal control in public sector entities : evidence from Kosovo

Purpose: The development and implementation of Public Internal Financial Control (PIFC) in the management processes plays an important role in providing sound financial management, transparency, efficiency and effectiveness in the public sector entities. Design/Methodology/Approach: In this paper we have analysed the annual reports on the functioning of the PIFC system in the public sector of Kosovo for the 2014 – 2017 period. The analysis has been completed even more, based on the annual reports of National Audit Office, progress reports published by the European Commission, showing the progress achieved under the EU directives as well as the data from the monitoring reports of SIGMA (Support for Improvement in Governance and Management). Findings: The findings show that the implementation of rules and procedures for internal control in budget organizations lags behind the development of the overall framework. Practical Implications: Continuous improvements in the field of Public Internal Financial Control are important steps in the process of European integration, while Kosovo has made considerable efforts to develop the control environment and implement the PIFC principles, particularly by establishing the appropriate legal, and institutional framework to support the PIFC system. Originality/Value: PIFC development is a continuous process and is part of the public administration reform, hence this paper contributes in identifying possible gaps and weaknesses in the system of internal control in Kosovo and provides recommendations for their improvement.peer-reviewe

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

A COMPARATIVE OVERVIEW OF REGULATION OF ACCOUNTING IN KOSOVO COMPARED WITH REGULATION ACCORDING WITH IAS/IFRS

Kosovo already is in an important stage, because we have just lying the foundations of the formation of the new state. Therefore, it is very important to our country to open it’s doors to the developed European countries and beyond.. To achieve this we must work hard and sacrifice by all, while as in order to reflect an economic and social development in all areas, it’s very important among the development of the accountancy profession, which provide opportunity for a quality financial reporting and acceptable to all. A weak financial reporting and limited, has an effect on the making economic decisions with low quality by decision makers, reduces the possibility of foreign investment and capital spilling. As result, the universal language of the financial report that is understood by all users of accounting information, no matter where they are not used.In addition it is important to note that if we remain limited in the construction of financial statements under accounting rules inherited from the past than opportunities for global development of the economy as a very important pillar for the development of a country are closed, the needs for capital are not fulfilled , foreign investors reluctant to do investments etc. These components are defined and discussed in the paper, while a law on accounting and finantial statement which could define better and more closed the main directions of accounting regulatory authorities are proposed as necessary

Role of Accounting Information in Decision-Making Process, the Importance for its Users

Overall economic development of the country, beside it, requires adequate information, reliable and important for economic decisions from investors, managers, administrators of state, etc. Along with other economic development and management, also and development of an accounting system, able to provide the necessary information and reliable in decision-making, is an important factor. Qualitative and reliable financial information is a key element in decision-making process, while the availability of such information has special importance for business management and is public interest with priority in general. The role of this information is important, not only for foreign investors or large businesses, but even for those small and medium because it provides important information about the phases of decision-making, such as planning, control and evaluation. The aim of this study is to provide an overview of developments and knowledge on accounting information and the influence that it has on decision-making, needs that management has for information and how they are realized currently, in order to see accounting information as one of the important directions of increase of efficiency on decision-making of direction of economic units (entities) and users of accounting information. Through descriptive statistical analysis the importance of high quality accounting information and its impact on decision-making by its users will be presented. We conclude that the information is an indispensable resource for the development of successful and efficient business. The information communicated by accounting is very important for its users, because it will affect on making an economic decision. This information must meet the qualitative characteristics, so we have to be accurate, valid and useful so that users trust its quality and authenticity. An exact information will reflect in a reliable financial reporting and this will result in strengthening the financial position of the entity, will identify risks and will manage them on time , will enable the attraction of investments, then decisions will be taken on the basis of strong economic information. This work is licensed under a&nbsp;Creative Commons Attribution-NonCommercial 4.0 International License.</p

The impact of accounting information system on the effectiveness of public enterprises : the case of Kosovo

Purpose: The aim of this paper is to measure the impact of the accounting information system on the effectiveness of public enterprises in Kosovo. Design/methodology/approach: The study ensured primary data using survey methods by a considerable representative sample of public enterprises in Kosovo. The collected data, were analyzed by descriptive statistics, correlation and multiple linear regression analysis. Findings: The analyzed results provide an overview of significant impact of accounting information system on effectiveness of public enterprises in Kosovo. The effectiveness of public enterprises has been expressed through quality of financial reporting, decision-making process, control system, performance and facilitation of transactions in general. Practical implications: The findings emphasize the importance of the accounting information system towards increasing effectiveness in public enterprises, respectively providing support for quality of financial reporting, decision-making process, control system, performance and facilitation of transactions process. Originality/Value: The study results encourage and provide opportunities to increase the quality of the accounting information system, taking into consideration his importance on effectiveness at public enterprises.peer-reviewe

Role of Accounting Information in Decision-Making Process, the Importance for its Users

Overall economic development of the country, beside it, requires adequate information, reliable and important for economic decisions from investors, managers, administrators of state, etc. Along with other economic development and management, also and development of an accounting system, able to provide the necessary information and reliable in decision-making, is an important factor. Qualitative and reliable financial information is a key element in decision-making process, while the availability of such information has special importance for business management and is public interest with priority in general. The role of this information is important, not only for foreign investors or large businesses, but even for those small and medium because it provides important information about the phases of decision-making, such as planning, control and evaluation. The aim of this study is to provide an overview of developments and knowledge on accounting information and the influence that it has on decision-making, needs that management has for information and how they are realized currently, in order to see accounting information as one of the important directions of increase of efficiency on decision-making of direction of economic units (entities) and users of accounting information. Through descriptive statistical analysis the importance of high quality accounting information and its impact on decision-making by its users will be presented. We conclude that the information is an indispensable resource for the development of successful and efficient business. The information communicated by accounting is very important for its users, because it will affect on making an economic decision. This information must meet the qualitative characteristics, so we have to be accurate, valid and useful so that users trust its quality and authenticity. An exact information will reflect in a reliable financial reporting and this will result in strengthening the financial position of the entity, will identify risks and will manage them on time , will enable the attraction of investments, then decisions will be taken on the basis of strong economic information. This work is licensed under a&nbsp;Creative Commons Attribution-NonCommercial 4.0 International License.</p

The Impact of Information Technology in Accounting Systems in Kosovo

Introduction of information technology in accounting is one of the most important innovations. Nowadays, all types of business are helped by advanced accounting systems to manage their operations. Accounting is a key factor in any business, and being in step with advanced systems of information technology enables increased speed and accuracy of calculations, increased flexibility and file information in the accounts, as well as helping better decision making by management. The role of this information is important, not only for foreign investors or large businesses, but even for those small and medium because it provides important information about the phases of decision-making, such as planning, control and evaluation. With the advancement of information technology, especially in recent times, the opportunities increased for the development of accounting and information systems. The use of computers and different software for recording and analyzing information has enabled firms to increase productivity and accelerate the exchange of information. Therefore, the purpose of this paper is to present the impact of information technology in accounting systems in Kosovo. The data was collected through the questionnaire, which contains both types of questions, open and closed questions. Data processing is done by SPSS software. According to the survey that was conducted with the employees from the accounting companies, currently in Kosovo are used different systems to process accounting information

Factors contributing to the effectiveness of internal audit : case study of internal audit in the public sector in Kosovo

Since audit has a great importance in preventing, consulting and finding cases of funds misuse, it was thought of analyzing the factors that contribute to increasing the efficiency of internal audit in the public sector which would help to set proper and more transparent governance of public financial resources. This study investigated the relationship between effectiveness and contributing factors. The data for the study were collected through an online questionnaire and direct hand-outs of such. The results of the empirical analysis proved that effectiveness has a positive relationship with internal audit quality, the competence of the internal audit team, the independence of internal audit, as well as with the support of internal audit from the management. Moreover, it was confirmed that audit quality is the fundamental element of the effectiveness of internal audit since it was among the most influential factors in the sample.peer-reviewe

Impact of Scientific and Technological Progress on Economic Development - the Views of Some Nobel Laureates of the Economic Science

There are different authors' opinions and numerous theories according to which scientific technological progress is a determining factor of the economic development. The paper aims to present the contributions of some Nobel laureates to the impact of scientific and technological progress on economic development such as Arrow, Debreu, Hicks, Solow, Kuznets, Kantorovich and Stiglitz. The research results of their contributions show that scientific technological progress is considered as a source of economic development but this advanced technology to be widely and effectively used should be accompanied by such ideological and institutional adjustments that guarantee the reasonable use of innovations produced by the huge improvements of human knowledge