Publication: Bosnia and Herzegovina : Accounting and Auditing
Date
2010-12
ISSN
Published
2010-12
Author(s)
World Bank
Abstract
This assessment of accounting and
auditing (A&A) practices in Bosnia and Herzegovina is
part of a joint initiative by the World Bank and
International Monetary Fund (IMF) to prepare reports on the
Observance of Standards and Codes (ROSC). The assessment
focuses on the strengths and weaknesses of the accounting
and auditing environment that influence the quality of
corporate financial reporting, and includes a review of both
statutory requirements and actual practice. It uses
International Financial Reporting Standards (IFRS) and
International Standards on Auditing (ISA) as benchmarks and
draws on international experience and best practices. This
assessment updates the findings of the previous A&A ROSC
conducted and published in Bosnia and Herzegovina in 2004.
With a population of 3.8 million, Bosnia and Herzegovina is
one of the smallest countries in Central and Eastern Europe.
That population is largely made up of three constituent
peoples: Bosniaks, Serbs, and Croats. Prior to the war, the
three groups were more evenly distributed throughout the
territory of Bosnia and Herzegovina, but now FBH's
population is predominantly Bosniaks and Croats, while the
RS has mostly Serbs. Since the war, Bosnia and Herzegovina
has seen great progress in post-conflict reconstruction and
development as well as in terms of reintegration and
reconciliation. In recent years, Bosnia and Herzegovina has
seen robust economic growth. After the war, this was
initially driven by reconstruction efforts, but later
private sector investment contributed to most of the growth.
Between 2004 and 2008, the economy of Bosnia and Herzegovina
grew at an average annual rate of 6 percent in real terms,
and gross domestic product (GDP) growth peaked in 2007 at
around 7 percent. Although economic activity started to
weaken with the onset of the financial crisis, GDP growth
was still relatively strong in 2008 at 5.4 percent. Both
private investment and consumption saw strong growth, and
export growth averaged 25 percent per annum over the period.
Inflation was moderate during this period, amounting to just
3.8 percent in 2008 (year-on-year), despite a sharp rise in
fuel and food prices in the first half of the year. The
level of external public debt has been relatively low, but
has been growing with the onset of the global crisis. In
this context, this A&A ROSC aims to support the
strategic objective of furthering the development of Bosnia
and Herzegovina's corporate sector, improving access to
finance for domestic enterprises, and reducing the cost of
doing business in the country.
Citation
“World Bank. 2010. Bosnia and Herzegovina : Accounting and Auditing. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/52d4c51e-36a6-5578-a193-264f3762c2d6 License: CC BY 3.0 IGO.”