LIROLA KËRI1*, ALBANA JUPE2
1 National Accounting Council of Albania, Blv. “Dëshmorët e 4 Shkurtit” Nr. 6, Tirana – Albania
2 Department of Finance and Accounting, Agricultural University of Tirana, Tirana – Albania
Recently Albania has implemented international accounting standards for public interest entities, such as second tier banks, insurance and reinsurance companies and several entities that are important because of their turnover and/or employment and national accounting standards for the rest of the entities.
International Accounting Standards Board (IASB), as the highest body which has the authority to design these international accounting standards, has issued another standard for entities not listed in stock market, classified as medium or smaller ones or non public interest entities . The main concern in Albanian context is whether this standard should be implemented by replacing the current national accounting standards, or whether our local standards should be amended.
Getting together confidential financial information in a large range is challenging and difficult. It is even more difficult considering our country has only two decades of a free market economy and a poor inheritance in the tradition of financial information publication. This paper discusses the challenge of IFRS-for-SME implementation and presents a case study to show how this framework may effect the reporting requirements. Furthermore, in addition to literature review we have used the financial information of one company to analyse and to demonstrate the differences arising by the two different frameworks. This paper tries to take into consideration the effects which will associate the changes from local standards to IFRS-for-SME; the effects that it will have in different sectors of the economy, how such change is reflected in the work of professional accountants, and the necessary steps for such accounting changes. This study serves as a good starting point for further advanced studies on this topic.
Keywords: IFRS for SME, NAS, National Accounting Standards, NACA.