The Government adopted the Strategy and the Action Plan for the Financial Reporting Quality Improvement

Both the Strategy and the Action plan were prepared on the basis of the Report on Observance of Standards and Codes (ROSC), related to the accounting and auditing area. The Report was prepared by the World Bank during their mission in Montenegro in 2006. The Report formulated interrelated and consistent recommendation, with the objective of improving the financial reporting environment of Montenegro. On the basis of issued recommendations, the Ministry of finance established the National Council for Accounting and Auditing, which task among all is to develop the Strategy and the Action plan for the financial reporting quality improvement in Montenegro. The objective of the Strategy is to recognize and to define activities and instruments which will lead to the adjustments of the regulatory framework for the financial reporting with Acquis Communautaire, including the preparation of consolidated financial statements, regulations of audit firms and electronic publication of financial statements, as well as to define proportional requirements for financial reporting of small and medium sized enterprises.