Hoti: It has to go back to the accounting bill, financial reporting and auditing.

The MP from the Democratic League of Kosovo ranks, Avdullah Hoti, has said that the Financial Reporting, Financial Reporting and Audition Bill should go back and prepare the new bill, since it thus claims to undermine the quality of financial reporting in the country and that it exacerbates the business environment.

According to Hoti, this bill will have a negative impact on the credit market, on foreign and domestic investments in the private sector, as well as on the general credibility of the public and investors in corporate financial reports in Kosovo.

“With the help of the World Bank and other relevant organisations, as well as the involvement of professional accounting and audit associations, the new bill that fully replaces existing law and transposses the entire directives of the European Union in the area of financial reporting should be prepared. In no form should the integrity and independence of professional accounting associations and reporting be violated. There are powerful reasons that the existing law has defined their independence and their interaction with the International Accounting Federation”, Hoti wrote.

He has also listed four reasons for this conclusion:

1. The bill cuts the ties of local accounting and audit associations with the International Federation of Accounting in terms of their license and operation. This was done through Article 2 and Article 4 of the bill.

2. The role of Government has increased, through the Kosovo Financial Reporting Council, in the daily work of professional accounting and audit associations. Article 4, points 3 and 4, make this clear.

3. The finance minister has been granted unlimited and unclear authorization to issue sublaw acts when a association is revoted license. This is specified in Article 6, 2.11.

4. Even more problematic is the European Union's nontransmission of directives to this area in this bill. This is pointless and harmful. The area of financial reporting is areas where the directives of the European Union must be fully transposed. It is also binding on a Stabilisation and Association Agreement. Even if it is not due, it is in the interest of Kosovo's economy to implement the same regular financial reporting so that investors and the general public can assess more easily and more clearly the state of business finances, which the assessment is the key factor for investment and tax issues.