Accounting Reform in Transition and Developing Economies

505 Pages·2009·6.099 MB·English

by  Meliha Basic (auth.), Robert W. McGee (eds.)

Accounting Reform in Transition and Developing
Economies
Robert W. McGee
Editor
Accounting Reform
in Transition and Developing
Economies
Robert W. McGee
School of Accounting
College of Business Administration
ACII 124
Florida International University
Biscayne Bay Campus
3000 NE 151st Street
North Miami, FL 33181
ISBN: 978-0-387-25707-5 e-ISBN: 978-0-387-25708-2
DOI: 10.1007/978-0-387-25708-2
Library of Congress Control Number: 2008930264
© 2008 Springer Science + Business Media, LLC
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Preface
Much has been written about the economic and political problems of countries that
are in the process of changing from centrally planned systems to market systems.
Most studies have focused on the economic, legal, political, and sociological prob-
lems these economies have had to face during the transition period. However, not
much has been written about the dramatic changes that have to be made to the
accounting and financial system of a transition economy. This book was written to
help fill that gap.
Accounting Reform in Transition and Developing Economies is the fourth in a
series to examine accounting and financial system reform in transition and develop-
ing economies. The first volume used Russia as a case study. The second volume
in the series examined some additional aspects of the reform in Russia and also
looked at the accounting and financial system reform efforts that are being made in
Ukraine, Bosnia & Herzegovina, Armenia, Eastern Europe, and Central Asia. The
third volume examined taxation and public finance in transition and developing
economies.
The present volume examines accounting reform in transition and developing
economies. It is divided into five parts. Part I consists of 14 studies that examine
various aspects of accounting reform in different transition economies. It is a series
of country studies. Part II comprises ten chapters on how accounting education has
been reformed in some former Soviet republics and countries in Central and
Eastern Europe. Part III examines recent developments in accounting certification
in Central Asia, the former Soviet Union, and Central and Eastern Europe. Part IV
includes three studies on corporate governance and Part V examines the views on
tax evasion in ten transition economies.
Contents
Part I Country Studies
1 Accounting Reforms in Bosnia and Herzegovina Since 1992 . . . . . . . 3
Meliha Basic
2 Converting Enterprise Accounting Systems in Emerging
Economies: A Case Study of Bosnia. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Robert W. McGee and Senad Pekmez
3 Banking Reform in China. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Belinda Bai and Jens Hölscher
4 Accounting Reform in Croatia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Mira Dimitrić
5 Accounting Reform in the Czech Republic . . . . . . . . . . . . . . . . . . . . . . 89
Marcela Žárová
6 Development of Accounting and Implementation
of International Financial Reporting Standards in Estonia . . . . . . . . 101
Jaan Alver and Lehte Alver
7 Accounting Reform in Lithuania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Vaclovas Lakis and Laimute Kazlauskiene
8 Accounting Systems and Structures in Poland . . . . . . . . . . . . . . . . . . . 131
Navchaa Lamjav
9 Accounting Reform and the Role of Cultural
and Historical Paradigms in Transitional Economies
of Eastern Europe: The Case of Russia. . . . . . . . . . . . . . . . . . . . . . . . . 139
Arsen M. Djatej, Robert H.S. Sarikas, and David L. Senteney
viii Contents
10 Prospects of Transition of the Russian Banking Sector
to International Accounting Standards. . . . . . . . . . . . . . . . . . . . . . . . 155
Vladimir V. Kachalin
11 A Reemerging Professional in an Emerging Market:
The Story of the Modern Serbian Accountancy Profession. . . . . . . . 167
Željko Šević
12 Reform of Slovak Accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Alberta Suhanyiova and Marian Gal
13 Spain and the Transition to IFRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Ana Zorio
14 The Changing Financial System in Taiwan. . . . . . . . . . . . . . . . . . . . . 215
Doris H. Chuang and Jens Hölscher
Part II Accounting Education
15 Reforming Accounting Education in a Transition Economy:
A Case Study of Armenia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Robert W. McGee
16 Accounting and Business Education in China. . . . . . . . . . . . . . . . . . . 257
Guo Zhiwen
17 Accounting Education in the Republic of Croatia . . . . . . . . . . . . . . . 273
Katarina Zager
18 Accounting Education in the Czech Republic: A Case Study . . . . . . 293
Eva Holínská
19 The Development of Accounting Higher Education
in the Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
Miloslav Janhuba
20 Quality and Effectiveness Enhancement of Prequalifi cation
Education of Professional Accountants in the Czech Republic. . . . . 307
Bohumil Král and Libuše Müllerová
21 Accounting Education in Russia and the USA:
A Comparative Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
Robert W. McGee and Galina G. Preobragenskaya
Contents ix
22 Accounting Education in the Slovak Republic . . . . . . . . . . . . . . . . . . 337
Radoslav Tusan and Lenka Stasova
23 Comments from a Fly on the Wall: An Outsider’s Inside View
of Ukrainian Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
Jeffrey D. Heyd
24 Teaching and Training of International Accounting Standards
in Former Soviet Republics and in the Balkans 1994–2005. . . . . . . . 355
Laszlo J. Urmenyhazi
Part III Accounting Certifi cation
25 International Accounting Certifi cation in the CIS, Eastern,
and Central Europe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
Robert W. McGee and Galina G. Preobragenskaya
26 Accounting Certifi cation in the Russian Language . . . . . . . . . . . . . . 391
Robert W. McGee
27 Accounting Certifi cation in Central Asia . . . . . . . . . . . . . . . . . . . . . . 403
Robert W. McGee
28 Accounting Certifi cation in Russia. . . . . . . . . . . . . . . . . . . . . . . . . . . . 417
Robert W. McGee
29 Accounting Certifi cation in Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . 421
Robert W. McGee
30 Certifi cation of Accountants in Georgia . . . . . . . . . . . . . . . . . . . . . . . 429
Robert W. McGee
31 Accounting Certifi cation in the Slovak Republic . . . . . . . . . . . . . . . . 439
Anna Banociova and Jozef Lescisin
Part IV Corporate Governance
32 Corporate Governance in Russia: Concept and Reality . . . . . . . . . . 445
Andrei Kuznetsov and Olga Kuznetsova
33 Timeliness of Financial Reporting in the Russian Energy Sector. . . 459
Robert W. McGee
x Contents
34 The Timeliness of Financial Reporting and the Russian
Banking System: An Empirical Study. . . . . . . . . . . . . . . . . . . . . . . . . 467
Robert W. McGee and Thomas Tarangelo
35 Corporate Governance in the Slovak Republic. . . . . . . . . . . . . . . . . . 489
Jan Vravec and Radoslav Bajus
Part V Public Finance
36 Opinions on the Ethics of Tax Evasion: A Comparative
Study of Ten Transition Economies. . . . . . . . . . . . . . . . . . . . . . . . . . . 495
Robert W. McGee and Wendy Gelman
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509
Part I
Country Studies
Chapter 1
Accounting Reforms in Bosnia
and Herzegovina Since 1992
Meliha Basic
1.1 Introduction
Since 1992, Bosnia-Herzegovina (BiH) has been working not only on building state
institutions but has also been working on its socio-economic recovery and develop-
ment. Many processes related to modernizing the economy and society take place
alongside the post-war recovery, with the vast assistance of the international com-
munity. The processes penetrate all fields and all levels, whereas the most important
of them are the following:
● Shift from majority state-owned to privately owned property (this process is now
nearly completed)
● Legislation on all administration levels and in all sectors (drafting and adopting
of new laws that are fully harmonized with international law and European
standards – process still ongoing)
● Development of the financial infrastructure (process aimed at development and
modern operation of the Central Bank, plus creation of sound and strong finan-
cial institutions – process near completion)
● Finance and accounting reform on all levels (passing of appropriate regulations
that provide for introduction and application of IFRS, trading securities, etc. –
reform still ongoing)
These and other processes are all aiming to achieve one sole goal – creation of a
modern and developed state that will be a member of the EU and that will have its
place in the world.
During all these reforms, one very important factor in their implementation is
always the constitutional structure, which in our case is the Dayton Agreement
(developed under the close eye of the international community, mainly the USA).
This Agreement has put an end to the war in BiH (1992–1995), and it established
two constituent entities that together form the state of BiH:
M. Basic
University of Sarajevo
R. W. McGee (ed.), Accounting Reform in Transition and Developing Economies, 3
© Springer Science + Business Media LLC 2008