This paper focuses on the history, culture, and economy of Albania as the foundation for their Generally Accepted Accounting Principles (GAAP). In assessing the many areas that affect Albania as a whole, one is able to more thoroughly understand their business practices. While Albania is seeking to adopt the International Accounting Standards (IAS), they have encountered many different challenges full implementation. Some of the areas that Albania is currently working to address are corruption, poor infrastructure, and a stronger enforcement of their accounting standards. While Albania has been through much turmoil in its history, it is making steps towards having a free market economy and a democratic nation, as well as continuously improving accounting standards.
Throughout its’ history, Albania is a land that has experienced control, upheaval and turmoil. From 534 to 1204, Albania was ruled by the Byzantine Empire. During the late 1300’s until 1912 Albania was ruled by the Ottoman Empire. Following Ottoman rule, Albania was ruled by Communist dictators (Albania: History, Goegraphy, Governement, and Culture, 2007) from 1944 until 1991. For the last 16 years, Albania has been struggling to emerge as democratic nation (Albania: History, Goegraphy, Governement, and Culture, 2007). Through these different Empires and rulers, not only has the economy been affected, but the religion, the culture, and the mindset of the people.
For many centuries, the Illyrian people (now modern day Albanians) considered themselves Christians. During the rule of the Ottomans, many people converted to Islam. The Ottomans offered financial rewards to convert and most Albanians even changed their names to reflect their Muslim status. During Communist rule, religion was completely eliminated for society (Albanians Economy, 2007). Enver Hoxha, the Communist dictator went as far as declaring Albania an...