Click here for search results

Poland

Poland

Poland started moving towards a market economy after the end of communist rule in 1989. A wide range of reforms were implemented, including steps towards setting up a national system for corporate financial reporting. The first World Bank report on the observance of standards and codes in accounting and auditing (A&A ROSC) in Poland was published in February 2005 and made a range of recommendations for improving the frameworks for accounting and auditing in Poland and their effective enforcement.

Poland has been a member of the European Union since May 2004 and its legal and institutional framework for financial reporting is already aligned with the EU acquis communautaire. However, there is still room for progress in implementing the provisions of the acquis. In particular, there is a need to improve the operation of the system of public oversight and to strengthen the capacity of the auditing profession to implement the provisions of the Statutory Audit Directive. The projects organized under Poland’s FRTAP program are designed to address these issues.

Poland is part of the following programs at the CFRR:

Translate this page (the translation is carried out using Google Translate, the CFRR cannot guarantee the accuracy of the results of such an automatic translation)

Flag of Poland

Republic of Poland
Rzeczpospolita Polska

Poland in Europe

Capital (and largest city):
Warsaw

Official language:
Polish

Contact at the CFRR:
Henri Fortin
hfortin@worldbank.org


Background


Economic and Business Background for Poland


Doing Business 2012 "Doing Business" Results for Poland

The World Bank's annual "Doing Business" reports provide objective measures of the impact of business regulations and their enforcement in 183 economies across the world.

Source: doingbusiness.org, the World Bank Group

Download "Poland, Doing Business Report 2012"



Background Economic Indicators


Source: World Development Indicators (WDI), the World Bank Group


Population


Gross Domestic Product (GDP, current US$)


Government budget surplus/deficit (% of GDP)


Inflation, GDP deflator (annual %)

ROSC


A&A ROSC for Poland


Executive Summary

This report acknowledges the very significant progress achieved by Poland under the leadership of the Ministry of Finance since publication of the first accounting and auditing ROSC report in July 2002. This report provides an assessment of accounting, financial reporting, and auditing requirements and practices within the enterprise and financial sectors in Poland.

The report uses International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) as benchmarks and draws on international experience and good practices in the field of accounting and audit regulation. The assessment also has regard to the relevant requirements of EU law (also known as the acquis communautaire). The report sometimes takes a position that goes well beyond what is presently practice in most EU Member States (e.g., it recommends the use of IFRS and of ISA for a large number of companies and for all statutory audits, and relies on the international initiatives currently underway at the international level to ensure that these standards, and the related standard setting processes, will be further enhanced). These positions are clearly identified in the report.

Companies (including limited liability companies and joint stock companies) are required to prepare their financial statements in conformity with Polish accounting requirements, which are based on the Fourth and Seventh EU Company Law Directives and provide a simplified financial reporting framework for small and medium sized enterprises. Banks (both listed and nonlisted) are required to prepare their consolidated financial statements in conformity with endorsed IFRS, and their legal entity financial statements in conformity either with accounting regulations set by the Minister of Finance, which are based on the Banking Accounts Directive, or with endorsed IFRS. Insurance companies are required to prepare their financial statements in conformity with accounting regulations set by the Minister of Finance, which are based on the Insurance Accounts Directive. Companies listed on the Warsaw Stock Exchange are required to prepare their consolidated financial statements in conformity with endorsed IFRS. Furthermore, a company may opt to use IFRS in its consolidated financial statements if (a) it has applied for admission to public trading, or (b) it is a subsidiary of a parent which prepares its consolidated accounts in accordance with IFRS. In addition, a company may opt to use IFRS in its legal entity financial statements if (a) it is a listed company, (b) it has filedfor admission to public trading, or (c) it is a subsidiary of a parent which prepares its consolidated accounts in accordance with IFRS.

In order to better meet the expectations and needs of users of financial statements prepared by public interest entities (e.g., banks, insurance companies, all listed companies), this report recommends that public interest entities be required to prepare their consolidated financial statements in conformity with IFRS. Clearly, this measure would go a step ahead of the current requirements of the acquis, as this is not yet required by the EU—other than for the consolidated financial statements of listed companies—however, the ROSC team believes that it would be valuable for enhancing the transparency of financial reporting of public interest entities.

Polish enterprises are subject to statutory audit requirements, which are consistent with the existing acquis requirements. These audit requirements are generally conducive to greater compliance with accounting standards although the report notes variation in the quality of statutory audits. Consequently, this report strongly recommends that existing arrangements be reassessed in the wake of the proposal for a new Eighth EU Company Law Directive, which will require enhanced public oversight of the auditing profession.

This report shows that priorities should now turn to building the monitoring, supervisory and disciplinary regimes necessary to ensure effective compliance. This assessment demonstrates that the effective enforcement of accounting, auditing and ethical standards is the next challenge that Poland has to tackle.

While the report highlights a major program of required reforms to ensure practices catch up with recent regulatory enhancements, the report commends Poland for its achievements to date, some of which go beyond what is presently required by the acquis communautaire and what “peer” large EU Member States are presently doing.

Contact


Henri Fortin

Henri Fortin

Henri Fortin is Head of the Centre for Financial Reporting Reform (CFRR).

Previously he was senior financial management specialist in the Latin America and Caribbean Region at the World Bank. He lead the Reports on the Observance of Standards and Codes (ROSC) Accounting & Auditing (A&A) program in that region and has been the lead author for 20 country reports since 2003.

He has advised partner countries on implementing reforms and capacity development programs to bring their cor- porate financial reporting to par with international standards. He was also the World Bank's project manager for several related knowledge activities including the CReCER annual conferences on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean.

Mr. Fortin holds a master's degree in management from Ecole des Hautes Etudes Commerciales in Paris, France.

Contact information

E-mail: hfortin@worldbank.org



Country Office Poland

For information on other World Bank activities in Poland contact the World Bank Country office:




Permanent URL for this page: http://go.worldbank.org/49XLWWW691