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Slovenia

Slovenia

Slovenia started moving towards a market economy after it declared independence from Yugoslavia in 1991. 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 Slovenia was published in October 2004 and made a range of recommendations for improving the Slovenian framework for accounting and auditing and its practical application.

Slovenia has been a member of the European Union since May 2004 and joined the euro zone in January 2007. Its legal and institutional framework for financial reporting is aligned with the EU acquis. 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 Slovenia's FRTAP program are designed to address these issues.

Slovenia is part of the following programs at the CFRR:

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Flag of Slovenia

Republic of Slovenia
Republika Slovenija

Slovenia in Europe

Capital (and largest city):
Ljubljana

Official language:
Slovene

Contact at the CFRR:
John Carchrae
Tel: +43 1 2170740
jcarchrae@worldbank.org


Background


Economic and Business Background for Slovenia


Doing Business 2012 "Doing Business" Results for Slovenia

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 "Slovenia, Doing Business Report 2012"




Background Economic Indicators

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


Population


Gross Domestic Product (GDP, current US$)


Cash surplus/deficit (% of GDP)


Exports of goods and services (% of GDP)


Imports of goods and services (% of GDP)


Inflation, GDP deflator (annual %)


Market capitalization of listed companies (% of GDP)


ROSC


A&A ROSC for Slovenia


Executive Summary

This report provides an assessment of accounting, financial reporting, and auditing requirements and practices within the enterprise and financial sectors in Slovenia, using International Financial Reporting Standards (IFRSs); International Standards on Auditing (ISAs); and the relevant portions of European Union (EU) law (also known as the acquis communautaire, as benchmarks. It draws on international experience and good practices in the field of accounting and audit regulation.

In the area of financial reporting and auditing law, Slovenia implemented the Fourth, Seventh, and Eighth EU Company Law Directives, and ISAs. The Company Act requires that all companies, including banks, insurance companies, and listed companies, prepare legal and consolidated financial statements in conformity with Slovenian Accounting Standards. These national standards generally meet the identified needs of users of small- and medium-sized enterprises’ financial statements. However, in order to better meet the expectations and needs of users - especially foreign users - of financial statements prepared by public interest entities (e.g., banks, insurance companies, listed companies), this report recommends that they adopt IFRSs. Clearly, this measure would go a step ahead of the current requirements of the acquis, as this is not yet required by the EU; however, the ROSC team believes that it would be valuable for enhancing the transparency of financial reporting of PIEs.

Slovenian 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. However, this report strongly recommends that existing arrangements be reassessed in the wake of international corporate accounting scandals and the proposal for a new Eighth EU Company Law Directive, which will require enhanced public oversight of the auditing profession.

As new regulations come into force, priorities are now turning to build 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 Slovenia has to tackle. This report draws upon recent international experience in developed economies and accession countries, as well as expected amendments to the acquis communautaire and recommends that Slovenia strengthen the enforcement of accounting and auditing standards.

Contact


John Carchrae

John Carchrae

John Carchrae is a Senior Financial Management Specialist, and has 39 years of experience in securities regulation, accounting standards-setting and public accounting.

Before joining the World Bank, John was Chief Accountant of the Ontario Securities Commission in Toronto, Canada and served on the International Organization of Securities Commissions Standing Committee dealing with financial reporting and disclosure.

Previously he was Assistant Director, Accounting Standards, with the Canadian Accounting Standards Board where he worked closely with the International Accounting Standards Committee. Before moving to Canada, John worked in the audit practice of Thomson McLintock & Co in London, England.

He currently serves as a member of the Standards Advisory Council of the International Accounting Standards Board and has also served on the Consultative Advisory Group of the International Auditing and Assurance Standards Board. John is a Chartered Accountant.

Contact information

Tel: +43 1 2170740

E-mail: jcarchrae@worldbank.org



Country Office Slovenia

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




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