Implementation of accounting standards: effects on business activities in Kosova

Abstract

Small and Medium Enterprises sector in SEE (South Eastern Europe) countries are the main engine for the 
economic development, reduction of unemployment and fiscal sustainability in these countries. Due to this 
reason the standards of accounting should give clear and transparent information for local as well as 
international investors.  
The main aim of this paper is to address the challenges of implementation of accounting standards in South 
Eastern Europe, specifically in Kosovo. Among the main economic challenges in transition countries is the 
development and implementation of accounting standards in line with international framework of accounting.  
Furthermore, in this paper are presented the results of a survey on which 50 respondents have been included in 
order to analyze the implementation of international accounting standards in Kosovo. Among the respondents 
have been certified accountants, SME managers, managers of banks and insurance companies as well as tax 
administration officials.  
Finally are given some recommendations that should be undertaken by local authorities in Kosovo in order to 
ensure the implementation of accounting standards. 

Keywords: accounting standards, SME,  transition countries.