ACCOUNTING POLICIES AND FINANCIAL REPORTING REQUIREMENTS: PRACTICE AND DEVELOPMENT STAGES

Abstract

Requirements for accounting policies and financial reports of commercial banks play an important role in ensuring the transparency, reliability and stability of the banking system.  The accounting policy determines the procedure for accounting of the bank's assets, liabilities, income and expenses and must be consistent with international financial reporting standards.  Financial statements provide accurate information about a bank's financial position, results, and cash flows.  These reports are a trusted source for stakeholders – investors, lenders, regulators and customers.  The bank's accounting policy and financial reports are checked by internal and external audit.  Also, they should be prepared in accordance with national legislation and the requirements of the Central Bank.