EFEKTET E STANDARDEVE NDËRKOMBËTARE TË RAPORTIMIT FINANCIAR MBI CILËSINË E RAPORTIMIT FINANCIAR
THE EFFECTS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON FINANCIAL REPORTING QUALITY

Summary/Abstract: This paper discusses the effects of the adoption of International Financial Reporting Standards (IFRS) on the quality of financial reporting in Kosovo. The purpose of IFRS is to develop a single set of high-quality, comprehensible and globally accepted financial reporting standards based on clearly expressed principles and legislations. The implementation of the Accounting Standards affects the quality and reliability of the financial statements. The reliability of the financial statements and their publication increases the transparency of the financial results of the economic entities. Qualitative financial reporting eliminates irregularities and reduces informality. High quality financial reporting may also contribute to improving the assessment and collection of taxes on corporate profits. Reliable financial statements affect the security of lenders and the attraction of foreign investments. In this way qualitative, transparent and reliable financial reporting has a great impact on the economic development of a country since the financial information provided by the financial statements of economic entities has a great influence on the decision making of investors, lenders and other interested parties. The adoption procedure of International Financial Reporting Standards creates challenges to the adopter and the purpose of this study was to investigate the possible challenges of adoption of this standards. There are difficulties in applying accounting standards in practice, as financial reporting standards are complex, voluminous and often changing. Implementation of these standards requires certain knowledge from professionals. The study found out that professionals in the field of financial reporting have nowhere to address their problems. Cost of adoption, training of relevant accounting professional, lack of proper instructions from regulatory bodies, were the main challenges of International Financial Reporting Standards adoption. Based on results of data collected will give conclusions and recommendations in order to facilitate the work of professionals in the field of accounting and on the other hand to enable a qualitative, transparent and comparable financial reporting.

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