On October 20, 2004, the World Bank organized a workshop to present the conclusions of the review of accounting and auditing practices within the Report on the Observance of Standards and Codes initiative (ROSC) in Bosnia and Herzegovina. The diagnostic review of accounting and auditing standards and practices was conducted from April to June 2004 by the World Bank in close cooperation with the Government and private sector stakeholders. The ROSC report used International Financial Reporting Standards, International Standards on Auditing, and the relevant portions of the acquis communautaire as benchmarks for the assessment of the accounting, financial reporting, and auditing requirements and practices of the enterprise and financial sectors. The workshop was organized in close cooperation with the Central Bank and the Ministry of Finance and Treasury of Bosnia and Herzegovina and was very well received by the participants. In his opening remarks, Mr. Peter Nicholl, Governor of the Central Bank of Bosnia and Herzegovina acknowledged the importance of reliable corporate financial reporting to mitigate the risk of financial system instability and increase private sector growth. The Governor sent a strong message to the participants: A robust accounting and auditing environment is a fundamental pillar of the financial architecture that the country needs to establish for sustained economic development. In addition, his positive message regarding the achievements of the Central Bank in this area is a testimony that it can be done. Mr. Dirk Reinermann, Country Manager, World Bank Sarajevo Office, underlined the proactive role of the Central Bank of Bosnia and Herzegovina, the Government, and their private sector partners. Mr. Reinermann emphasized that the ROSC report lays the foundation for a reform agenda that is necessary for a closer approximation to the European Union. He reminded the participants that the reforms undertaken as a result of the ROSC recommendations will be sustained by The Road to Europe – Program of Accounting Reform and Institutional Strengthening (REPARIS), a regional program of technical assistance aimed at creating a transparent policy environment and effective institutional framework for corporate reporting in South East and South Central Europe. Deputy Minister Ranko Sakota, Ministry of Finance and Treasury of Bosnia and Herzegovina, reemphasized the importance of implementing the reforms set out in the ROSC report, in order to gradually achieve compliance with and implement the acquis communautaire. In his concluding remarks, Mr. Frédéric Gielen, Senior Financial Management Specialist, World Bank, re-emphasized that a high-quality financial reporting system, which entails internationally-recognized accounting and auditing standards, as well as a statutory and institutional framework to implement and enforce such standards, is only a means to an end. Ultimately, the goal is to enhance the corporate financial reporting system in order to achieve stability of the financial system and increased private sector growth. The REPARIS program is aimed at achieving both of these overarching objectives. Background documentation:
Agenda of the meeting and Presentations For more information, contact:
Frederic Gielen, Senior Financial Management Specialist, World Bank
Fgielen@worldbank.org
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From right to left:
Mr. Peter Nicholl, Governor, Central Bank; Mr. Dirk Reinermann, Country Manager, World Bank
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