The process of financial reporting standardization in R. Macedonia is based on introducing and application of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). Creating of accounting practice may be better arranged through application of standards set by professional accounting bodies than by legislation. It derives from the fact that accountants are most familiar with accounting matters and they are most qualified to offer appropriate solutions.
Inconsistent application of IAS and IFRS results in different practices of reporting in entities in international frames. According to this, the quality of information in financial statements varies and it harms the ability of financial statements users to understand and compare the financial information and to make appropriate decisions.
R. Macedonia has implemented IAS and IFRS and they are compulsory for firms from 1 January 2005. IAS was translated in Macedonian by Commission for Accounting Standards and in accordance with our regulations they should be fully implemented. Macedonian accounting profession is on the stage of passing the way to harmonization with international trends through adoption of International Accounting Standards, International Financial Reporting Standards, International Accounting Standards in Public Practice, International Standards on Auditing, International Education Standards, and Code of Ethics. However, certain specifics and adjustments of IAS and IFRS in R. Macedonia give special feature of accounting in our country.