Accounting and auditing standards in businesses

Accounting and auditing standards in businesses

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Legal subjects are liable for keeping financial books, and preparing and submitting accounting statements according to the provisions of the Law on accounting, the International Accounting Code, and International Accounting Standards.

The accounting statements must truly and accurately present the resource balance, liabilities towards other sources, and the outcomes of the legal subject’s businesses.

Legal subject submits its accounting statements semi-annually (semi-annual balance statement) and annually (annual balance statement). Semi-annual balance statement has to be turned in by the end of July of the current year, while the annual balance statement has to be submitted by the end of February of the following year - for the year that had expired.

In the process of book-keeping and accounting statement rendering, a legal subject shall observe the Code and the Standards.

The Standards are adopted in accordance with international accounting standards and relevant EU instructions.

Business books are kept by applying double entry principle.

Annual and semi-annual balance statements shall contain the following accounting statements:

  • Status balance
  • Accomplishment balance

Legal subjects must properly maintain and store accounting documents, business books, accounting statements and business reports.

Standards define periods and methods of maintenance and storage of accounting documents, business books, accounting statements, and business reports.

Legal subject observes the following general evaluation principles in the process of preparing an accounting statement:

  • Principle of continuity;
  • Principle of consistency;
  • Principle of caution, for balances that contain: principle of completion, principle of impurity (inequality);
  • Principle of causality of incomes and expenditures;
  • Principle of individual evaluation of assets and liabilities towards other sources;
  • Principle of time-related balance.
Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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