119 2/2007 South-East Europe Review S. 119 – 130 Wolfgang Tiede and Sabina Krispenz The new public accounting law in Albania – the current situation and the introduction of IPSAS to systems of public accounting Introduction The government of Albania launched its National Strategy for Social and Economic Development in 2002, proposing several reforms towards achieving sustainable eco- nomic growth and development. Among other things, it calls for stronger public ac- countability and increased public participation and decision-making. Therefore, the public accounting system in Albania is presently undergoing some substantial changes that might lead to the introduction of IPSAS – International Pub- lic Sector Accounting Standards – and the harmonisation of public accounting ac- cording to international standards. In this way, Albania would draw level with other countries and institutions such as Switzerland, France, the European Union and the UN. In order to achieve an effective and efficient transition from the present system to the new and modernised way of public accounting, an analysis of the introduction of IPSAS in other countries is both helpful and necessary. The following analysis de- scribes the present situation of public accounting in Albania and analyses the laws in- troducing IPSAS in Switzerland, the European Communities and the Russian Federa- tion, with special regard to the techniques and scope of regulation and integration of IPSAS. The current situation of public accounting in Albania The Organic Budget Law (OBL) 8379, 1 enacted on 29 July 1998, currently regulates the Albanian budgetary process. According to this law, ministers are responsible for proper accounting and internal inspections of revenue, as well as for the expenditure transactions of budgetary institutions under their control. Budgetary institutions Budget accounting is established in the Organic Budget Law’s article 41 et seq. Arti- cle 45 obliges all budgetary institutions 2 to prepare final financial reports and to send them to the Minister of Finance no later than 31 March. These financial reports are consolidated by the Ministry of Finance and provide a basis for the final annual state- ment of accounts of the State Budget (Art. 46 OBL). The presentation of financial reports is also established in articles 19 and 48 of the OBL. However, the Law does not provide detailed accounting principles or methods. In particular, the accounting basis – cash or accrual – is not determined. The Minister 1 Organic Budget Law on the preparation and execution of the state budget of the Republic of Albania, No. 8379 from 29 July 1998. 2 Budgetary institutions are government institutions, public administration institutions, lo- cal governments and organs of the judiciary (Art. 24 para. 1 OBL).