Accounting in small and medium enterprises in Albania

Abstract

Accounting methods in Albania has changed a lot during the years, like all other things. First beginnings of accounting in Albania are in the 19th century. Nowadays accounting in Albania is organized with national and international accounting standards in different types of entities. We use 16 national accounting standards to register transactions in small and medium enterprises in Albania. In this paper, I evaluate accounting quality in 150 small and medium enterprises in Albania during nine years of activity (2006-2014) using Barth Model. I used earning management to evaluate accounting quality. If there is earning management in financial statements it means that the quality of accounting is poor and vice versa. I conclude that the quality is improved during the years.