On October 20, 2004, the World Bank presented the Review of Accounting and Auditing Standards and Regulation within the Report on Observance of Standards and Codes (ROSC) to the Ministry of Finance and Treasury for Bosnia and Herzegovina (BiH). In a preliminary response to the findings and recommendations, the Minister of Finance and Treasury, Ms. Ljerka Maric sent a letter to the World Bank on January 24, 2005. Ms. Maric acknowledged that BiH is prepared for further collaboration regarding the implementation of the ROSC recommendations through the REPARIS program. On January 27, 2005, the World Bank Country Manager for BiH, Mr. Dirk Reinermann met with the Governor of the Central Bank of Bosnia and Herzegovina (CBBH), Mr. Kemal Kozaric and the BiH Deputy Finance and Treasury Minister, Mr. Ranko Sakota to present the ROSC for Accounting and Auditing for Bosnia and Herzegovina. The purpose of the report, prepared by the World Bank and key local and international counterparts in BiH, was to provide a general overview of accounting and auditing standards in BiH, together with suggestions for the harmonization of local accounting and auditing standards with the EU principles. Mr. John Hegarty, Manager, Financial Management of the Europe and Central Asia Region and Frederic Gielen, Senior Financial Management Specialist, described to Mr. Kemal Kozaric and Mr. Ranko Sakota, the policy findings and recommendations. Implementation of the key findings in the report is a prerequisite for Bosnia and Herzegovina to join a regional Program of Accounting Reform and Institutional Strengthening (REPARIS). The ROSC Report represents a fundamental diagnostic and analytical tool for the REPARIS program. The REPARIS program provides support for the adoption, implementation and fully enforcement of the acquis communautaire, in the fields of accounting and auditing. This program also promotes growth and reduces volatility through on-the-ground work with the member countries. In respect of auditing and accounting, the relevant benchmarks for Bosnia and Herzegovina are International Financial Reporting Standards, International Standards on Auditing, and the relevant portions of the acquis communautaire, aimed at improving financial reporting infrastructure. The REPARIS program has been developed by the World Bank in close cooperation with the European Commission, the Organization for Economic Co-operation and Development (OECD), the private sector, and multilateral and bilateral partners to create a transparent policy environment and effective institutional framework for corporate reporting in the South Central and South East Europe. Governor Kemal Kozaric and BiH Deputy Finance and Treasury Minister Ranko Sakota both stressed the commitment of Bosnia and Herzegovina to create an appropriate model for corporate financial reporting which in turn, should contribute to private sector growth and financial stability by mitigating the risk of financial crises. This will translate into long-term prosperity and improved living standards. Finally, and on a related subject, a workshop on the REPARIS program was held with the local donor community on January 28, 2005. David Nagy from the World Bank, Europe and Central Asia Region, attended the workshop and delivered a presentation on the REPARIS program. Mr. Nagy underlined that in addition to the requirements of the acquis, the REPARIS program aims to deliver a robust financial infrastructure with reliable financial reporting. He explained how this helps enhance investor confidence which in turn, can lead to increased direct foreign and domestic investment. The donors expressed their strong support for REPARIS and demonstrated interest in financing some of its activities. For more information, please contact: Frederic Gielen, Senior Financial Management Specialist, World Bank Fgielen@worldbank.org Jasminka Varnalieva, Private Sector Development Specialist, World Bank jvarnalieva@worldbank.org |
