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  • About the project

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    COUNTRY CONTEXT

    This project is part of a comprehensive programe of support for the reform in financial reporting in Albania. This project is a follow up to the Corporate Financial Reporting Enhancement Project (CFREP) which ended in March 2014. The new project, Enhancing the Quality of Financial Reporting (EQFINREP), is building on the work of CFREP and tackle other priorities laid out in the Country Action Plan (CAP), by focusing more on capacity building, enforcement and transparency. Total cost of the project is estimated at around EUR 2.4 mln. Project is financed through a World Bank trust fund that similarly as in previous project Corporate Financial Reporting Enhancement Project (CFREP) was generously donated from Swiss Government, State Secretariat for Economic Affairs SECO, including also in kind contribution by Government of Albania.

    The Project Development Objective (PDO) of this project is to improve and reinforce the implementation of good quality financial reporting by focusing on capacity building for the accountancy and audit professions, better enforcement and monitoring by regulators of the quality of financial reporting, and public transparency of companies’ financial information.

    EQ Finrep is implemented by Government of Albania, Ministry of Finance and Economy through a dedicated Implementation team.

    Supported through IBRD: REPARIS TRUST FUND 

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    objective

    01

    repairs

    Albania is an active participant in The Road to Europe: Program of Accounting Reform and Institutional Strengthening. Other participating countries include Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, the former Yugoslav Republic of Macedonia, Moldova, Serbia, and Montenegro. REPARIS (Road to Europe: Program of Accounting Reform and Institutional Strengthening) is a regional program aimed at creating a transparent policy environment and effective institutional framework for corporate reporting within South Central and South East Europe. REPARIS is part of The Centre for Financial Reporting Reform (CFRR) located in Vienna, Austria, which is responsible for the World Bank’s corporate sector financial reporting activities in Europe and Central Asia.

     

    PROJECT DATA SHEET
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    No.

    Category

    Description

    1.
    Project Title
    Enhancing Quality of Financial Reporting Project (EQ-finrep.al) - Albania
    2.
    Funding institution
    World Bank and SECO
    3.
    Team Leader
    Andrei Busuioc
    4.
    Approval Date
    March 17, 2015
    5.
    Closing date
    December 31, 2019
    6.
    Borrower
    Ministry of Finance and Economy
    7.
    Implementing institution
    Central Financing and Contracting Unit within the Ministry of Finance & Economy
    8.
    Amount
    $ 2.46 million
    9.
    Donator
    Swiss Government, State Secretariat for Economic Affairs
    objectives

    Creation of a transparent policy environment and effective institutional framework for corporate financial reporting in line with best international practices, aligned with EU acquis communautaire.

    Results
    a.

    Improve legitimacy of the legal framework in the area of corporate financial reporting by aligning it with the EU acquis communautaire;

    b.

    Strengthen standard setting by the National Accounting Council (NAC);

    c.

    Improve standard-setting and supervision of auditing practices by the audit oversight system;

    d.

    Improve skills for compliance with new professional standards through revisions and updates of accounting and auditing curricula for university education and professional certification;

    e.

    Improve management of reforms in corporate financial reporting by the National Steering Committee and the Ministry of Finance and Economy

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    PROJECT DEVELOPMENT OBJECTIVES

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    PROJECT COMPONENTS

    01

    Support for the accounting regulator and oversight of the accountancy profession (National Accounting Council and Public Oversight Board)

    A technical assistance program that will increase the capacity of the accounting standards setter and regulator to contribute to the development of accountancy in Albania based on the best international practices.

    02

    Raising Awareness of Corporate Financial Reporting and Auditing. Promoting awareness of good corporate disclosure and transparency in respect of financial reporting in order to increase confidence in financial reporting in Albania

    The objective of this component is to increase confidence in financial reporting in Albania. Also, the public demand for good corporate disclosure and transparency should increase. The risk of fraud will reduce. Deepen the local knowledge of financial reporting, thus increasing the potential investor base in Albania.

    03

    Project management, strengthening reform capacity, and monitoring and evaluation

    The development and roll out of accounting and audit practices in the State Owned Enterprise that is consistent with the requirements of the Acquis Comunautaire, represent best international practice for the financial management and governance of SOEs and are in line with the SOE reform agenda in Albania. Delivery of greater confidence amongst the public and institutional stakeholders, both national and international, in the financial governance of the SOE sector.