Establishment of the international accounting standards in Central-Eastern European and other developing countries

Abstract

This article investigates the developments in the process of introduction of the International Accounting Standards (IAS) mainly in the countries of central-eastern Europe. These countries are now going through a stage of developing basic infrastructure in most of the areas of economic activity and especially in the financial markets. In particular, this article presents the business environment of developing countries and highlights problems arising in the entire financial sector of these countries from establishment of the IAS. Its most important finding is that factors like fluidity of domestic accounting standards, lack of appropriate training of accountants and employees, as well as lack of trust in the economic-political system of the country play a negative role to the IAS introduction process.