Slovenia Report on the Observance of Standards and Codes

Abstract

This assessment of accounting and
 auditing practices in Slovenia is part of a joint initiative
 of the World Bank and International Monetary Fund (IMF) to
 prepare Reports on the Observance of Standards and Codes
 (ROSC). The assessment focuses on the strengths and
 weaknesses of the accounting and auditing environment that
 influence the quality of corporate financial reporting and
 includes a review of both mandatory requirements and actual
 practice. This is the second A&A ROSC for Slovenia and
 based on information collected in 2013, early 2014. The
 first one was published in 2004. As the requirements of the
 EU acquis communautaire and international standards have
 already been adopted in the financial sector this assessment
 focuses on the proper application of these requirements,
 with the view that improved financial information raises the
 capacity of regulators to maintain financial stability, and
 improve the level of trust in the financial system, in the
 context of an ongoing recapitalization exercise. In the
 State Owned Enterprises, or SOEs, the report focuses on the
 requirements applicable to them and how well these are
 enforced, as well as to what extent the government uses the
 financial reporting and audit process to monitor SOEs and
 hold their management teams accountable. This report also
 considers SMEs financial reporting, including how current
 requirements compare with the latest revisions to the EU
 Accounting Directive, which further simplified requirements
 for smaller companies. Finally, audit oversight and quality
 assurance systems are assessed, including the feasibility of
 incorporating the audit oversight body as part of the
 financial sector supervisor.