Bulgaria : Accounting and Auditing

An assessment of accounting and auditing practices in Bulgaria is a part of the World Bank and the International Monetary Fund (IMF) joint initiative on reports on the Observance of Standards and Codes (ROSC). The assessment focused on the strengths and weaknesses of the accounting and auditing environment that influences the quality of corporate financial reporting. It used the International Accounting Standards (IAS) and the International Standards of Auditing (ISA) as benchmarks. It involved a review of both mandatory requirements and actual practices. The report has found that the transition to full IAS compliance will be demanding. It requires extensive education in a different style and philosophy of accounting requirements. The transition is made all the more difficult by the decision to require all entities to comply with IAS. This is a much greater burden than applies in any EU Member State. Finally, the transition to full IAS may face considerable push back from regulators who fail to differentiate between general purpose and regulatory financial statements. There is currently no effective enforcement of compliance with national accounting standards and there are conflicting opinions about the effectiveness of the audit quality control reviews carried out by the Institute of Certified Public Accountants of Bulgaria (ICPAB). This report draws upon recent international experience in developed economies and recommends that the current self-regulation of the audit profession should be reviewed and an adequate oversight mechanism established.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington DC 2002-12-16
Subjects:	ACCOUNTING, ACCOUNTING POLICIES, ACCOUNTING STANDARDS, ACCOUNTING TREATMENT, AUDITING, AUDITING STANDARDS, AUDITORS, AUDITS, BALANCE SHEETS, BANKING SECTOR, BANKS, CASH FLOWS, CERTIFIED ACCOUNTANTS, CERTIFIED PUBLIC ACCOUNTANT, CERTIFIED PUBLIC ACCOUNTANTS, CIVIL LIABILITY, COMMERCIAL LAW, COMPLIANCE OFFICERS, CONSOLIDATED FINANCIAL STATEMENTS, CORPORATE GOVERNANCE, CREDIT RISK, DEBT, DISCLOSURE REQUIREMENTS, ECONOMICS, ENFORCEMENT MECHANISMS, EXCHANGE COMMISSION, EXTRAORDINARY ITEMS, FINANCIAL ASSETS, FINANCIAL AUDIT, FINANCIAL INDICATORS, FINANCIAL INFORMATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL REPORTING, FOREIGN INVESTORS, IIC, INCOME STATEMENTS, INDEPENDENCE REQUIREMENTS, INITIAL PUBLIC OFFERING, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL INVESTORS, INSURANCE, INSURANCE COMPANIES, INTERESTED PARTIES, INTERESTS OF MINORITY SHAREHOLDERS, INTERNATIONAL ACCOUNTING STANDARDS, INTERNATIONAL STANDARDS, JOINT STOCK, JOINT STOCK COMPANIES, LAWS, LEGAL ENTITY, LEGISLATION, LEGISLATIVE FRAMEWORK, LIMITED, LIMITED LIABILITY, LIMITED LIABILITY COMPANIES, LIQUIDITY, LOAN LOSS PROVISIONS, MANAGERS, MARKET ECONOMY, MASS PRIVATIZATION, MASS PRIVATIZATION PROGRAM, MEMBER STATE, NATIONAL BANK, NET PROFIT, OPERATING REVENUE, PARENT COMPANY, PENALTIES, PENSION FUNDS, PERSONS, POLITICAL CLOUT, PRIVATE SECTOR, PRIVATIZATION, PRIVATIZATION PROGRAM, PROTECTION OF INVESTORS, PRUDENTIAL SUPERVISION, PUBLIC COMPANY, PUBLIC INTEREST, PUBLIC OFFERING, RATING AGENCIES, REGULATORY AGENCY, SECURITIES, SECURITIES REGULATION, SHAREHOLDER, SHAREHOLDERS, SOCIETY, SOLE PRACTITIONER, SOLE PRACTITIONERS, STAKEHOLDER, STAKEHOLDERS, STOCK EXCHANGE, SUBSIDIARIES, TAX ADMINISTRATION, TAX COMPLIANCE, TAXATION, TECHNICAL ASSISTANCE, TRANSPARENCY, UNION, UNIVERSITIES, WESTERN EUROPE,
Online Access:	http://documents.worldbank.org/curated/en/2002/12/7454554/bulgaria-report-observance-standards-codes-rosc-accounting-auditing https://hdl.handle.net/10986/14558
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