CZ: Financial Reporting Project

Project completed

Despite major reforms by the New EU Member States to their legal and regulatory frameworks governing corporate sector accounting and auditing, there is a substantial unfinished institutional development agenda in the field of financial reporting. The Financial Reporting Technical Assistance Program provides support
to five national administrations (in the Czech Republic as well as in Estonia, Latvia, Poland, Slovenia) which face capacity constraints and challenges in fully implementing, both in law and in practice, the very demanding obligations imposed by the rapidly-evolving acquis communautaire in this field.

Country/region Topic Period Budget
Czech Republic
Promoting economic growth and improving working conditions
Regulation of the financial sector
01.01.2010 - 30.06.2015
CHF 2'000'001
Background Preparing for their accession to the EU in 2004, the new EU Member States undertook major reforms to their legal and regulatory frameworks governing corporate sector financial reporting. However, less emphasis was placed on the creation and/or strengthening of the institutional and human capacity required to ensure effective implementation and enforcement of the acquis in practice, and it is now evident that there is a substantial unfinished institutional development agenda in the field of financial reporting.
Objectives
  • Better decision-making and enhanced financial transparency and governance of the corporate sector.
  • Strengthened financial sector stability, as financial institutions and institutional investors gain access to more relevant, complete and reliable financial information.
  • Improved tax collections.
Target groups Financial sector, corporate sector
Activities The World Bank’s Center for Financial Reporting Reform will provide technical assistance and training to a number of Czech key stakeholders. A strong focus will be put on audit public oversight and quality assurance in order to meet the requirements of the acquis communautaire and attain an enhanced quality and reliability of the auditing process and financial statements of Czech private sector enterprises.
Results

Achieved results:  

  • Conformity of the accounting and auditing system with the acquis communautaire.
  • Strengthened institutional capacity in financial reporting policy-making, legislation, standard-setting as well as the implementation thereof.
  • Strengthened institutional capacity in financial reporting policy-making, legislation, standard-setting as well as the implementation thereof.
  • Thanks to their participation in training (in total around 7,800 participant days) and thanks to five study visits, authorities and associations have acquired expertise in the area of international standards for financial reporting and auditing.
  • The exchange of experiences of the Federal Audit Oversight Authority with FINMA and Swiss Re facilitated the practical application of the gained knowledge.
  • ROSC report (Report on the Observance of Standards and Codes on Accounting and Auditing) disseminated.


Directorate/federal office responsible SECO
Credit area Swiss Contribution to the enlarged EU
Project partners Contract partner
  • World Bank - International Bank for Reconstruction and Development


Other partners
Center for Financial Reporting Reform (CFRR)
Budget Current phase Swiss budget CHF   2'000'001 Swiss disbursement to date CHF   2'000'000
Project phases

Phase 1 01.01.2010 - 30.06.2015   (Completed)