Jul 23, 2020

Gradual Transition to the Accrual Accounting in Montenegro Possible also with the On-going Slovak Support

Following a successful completion of the professional qualification training program for public sector accountants in Montenegro, Martin Polónyi, Director General, from the International Relations Section at the Slovak Ministry of Finance shares his views about the benefits of the Public Accountants Certification Training (PACT) delivered in Montenegro. The PACT program has helped public sector accountants in Montenegro apply international accounting standards, improve accountability and strengthen the role of the accounting profession.

No reform can take place without carriers of the change and their quality performance. The PACT program in Montenegro has been suitably centred on strengthening the public accountant profession and institutional ability to continuously develop capacities of the public sector accountants in order to be able to effectuate the transition to accrual accounting system.

At the Ministry of Finance of the Slovak Republic, we find of key importance that, besides this fundamental pillar of the assistance, the project has also invested in completion of the accounting policy. Although the Public Sector Accounting Law addresses some accrual accounting principles, the majority of the specific methodology guidelines remain to be further elaborated in bylaws. Without comprehensive accounting principles the reform could not be considered as finalized.

Notwithstanding that the work on bylaws will continue beyond 2020, the latest outputs are a promising step towards the legal accounting framework and efficient guidance for the accountants and all future legislation users.

Besides being highly relevant and impactful, these efforts perfectly fit the goals of the ongoing Slovakia´s bilateral cooperation in the area of accounting, which is to support Montenegro in preparation of the public sector for the gradual transition to the accrual accounting and reporting system under IPSAS.