Accounting Developments in Poland

6780 WordsJun 17, 201128 Pages
Introduction of Poland Poland officially known as Republic of Poland (Rzeczpospolita Polska) is a country in Central Europe. Poland is bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north. The total area of Poland is 312,679 square kilometers (120,726 sq mi), making it the 69th largest country in the world and 9th in Europe. Poland has a population of over 38 million people, which makes it the 33rd most populous country in the world. (WBO, 2010) Historical Background A national accounting chart for Poland did not exist before the 1930s although an accountants’ Association was already…show more content…
In the year 1956, the socialist-communist ruling in Poland was lessened and it has created certain level of autonomy for state-owned enterprises and enabled the management and other personnel to participate in profit distribution. Consequently, Institute of Audit Experts was established in 1957. The appointed State Authorised Accountants (SAA) was to serve the purpose to verify the accounts of state owned enterprises with a view to ascertain appropriation of profits and also the achievement of the centrally planned targets. Three years later the longest UPA in operation (1960 -1975) was implemented based upon the previous Uniform Plans of Accounts, Branch Accounting Plans and Enterprise Accounting Plans 15. This change has allowed firms to devise accounting systems to meet their individual needs. The last Uniform Plan of Accounts was enacted in the year 1976. This gives strong grounds to believe that the accounting body, in a system based on rigid law regulations was still capable of developing a broader perspective, professional view and ability to use professional judgment. It is visible that under socialist ruling management accounting was the main area of growth since ‘nominal profitability’ and improvement of internal ‘efficiency’ were the main objectives of the practitioners. No specific or detailed rules were provided for cultural and historical events and the nature of codified law affect IFRS adoption, acceptance

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