Kosovo

Extent of IFRS application | Status | Additional Information |
---|---|---|
IFRS Standards are required for domestic public companies |
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No stock exchange. IFRS required for all large commercial companies, which includes banks. |
IFRS Standards are permitted but not required for domestic public companies | ||
IFRS Standards are required or permitted for listings by foreign companies | No stock exchange. | |
The IFRS for SMEs Standard is required or permitted |
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Large commercial companies are required to use IFRS Standards. All other SMEs are permitted to use either the IFRS for SMEs or full IFRS Standards. |
The IFRS for SMEs Standard is under consideration |
Organisation
Kosovo Council for Financial Reporting (KCFR)
Society of Certified Accountants and Auditors of Kosovo (SCAAK)
Central Bank of the Republic of Kosovo (CBORK)
Role of the organisation
The KCFR was established by the Law No.04/L-014 on Accounting, Financial Reporting and Audit. The KCFR has statutory authority to adopt accounting standards in Kosovo.
The SCAAK is the professional accounting body and serves as an adviser to the KCFR.
The Central bank has authority to establish accounting standards for banks and other financial institutions.
Website
KCFR: https://mf.rks-gov.net/page.aspx?id=2,1
SCAAK: http://scaak.org/
CBORK: www.bqk-kos.org/?cid=2,1
Email contact
KCFR: mehmet.gjukaj@mf-rks.org
SCAAK: info@scaak.org and administrata@scaak.org
CBORK: info@bqk-kos.org
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
Yes.
Law No.04/L-014 on Accounting, Financial Reporting and Audit requires all business organisations registered as limited liability companies or shareholder companies in Kosovo to apply IAS Standards and IFRS Standards as issued by IASB Board following approval by KCFR as published in the Official Gazette of Kosovo
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
Kosovo has a three-tier accounting standards structure as follows:
- Large commercial companies must use full IFRS Standards. Those are companies that meet two of the three following criteria: annual turnover (net) greater than €4,000,000; total assets greater than €2,000,000; and average number of employees greater than 50.
- Micro-sized entities must use standards developed for them by the KCFR. Micro-sized entities are those with annual turnover €50,000 or less; total assets €25,000 or less; and average number of employees not more than 10.
- Small and medium-sized entities must use the IFRS for SMEs Standards. These are all business entities that are neither large nor micro-sized.
SMEs and micro-sized entities may use full IFRS Standards if they wish.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Not applicable.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
The translation is done by Keshilli Kombetar i Kontabilitetit – the National Accounting Council of Albania – under contract with the IFRS Foundation. The translated standards may be found on the website of the Keshilli Kombetar i Kontabilitetit.
Translation of the most recent standards (issued 2012-2013) is in progress. The IFRS for SMEs Standard has already been translated into Albanian.
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
Small and medium-sized entities (SMEs) in Kosovo are required to use the IFRS for SMEs Standard starting 1 January 2015. That requirement was adopted by the Kosovo Council for Financial Reporting (KCFR) – the accounting standard setter in Kosovo – pursuant to Law No. 04/L-014 on Accounting, Financial Reporting and audit. Consequently, Kosovo now has a three-tier accounting standards structure as follows:
- Large commercial companies must use full IFRS Standards. Those are companies that meet two of the three following criteria: annual turnover (net) greater than €4,000,000; total assets greater than €2,000,000; and average number of employees greater than 50.
- Micro-sized entities must use standards developed for them by the KCFR. Micro-sized entities are those with annual turnover €50,000 or less; total assets €25,000 or less; and average number of employees not more than 10.
- Small and medium-sized entities must use the IFRS for SMEs Standard. These are all business entities that are neither large nor micro-sized.
SMEs and micro-sized entities may use full IFRS Standards if they wish.