THE IMPACT OF ACCOUNTING INFORMATION ON MANAGERIAL DECISION-MAKING

Abstract

One of the numerous challenges that countries such as Kosovo must address during the transition period is enhancing accounting practices to provide both domestic and foreign investors with transparent and dependable information, as well as determining the extent of accountability required from business managers in their decision-making processes. An outdated accounting system and functionality that Kosovo has inherited are incompatible with modern reporting requirements and market demands. For the nation to achieve economic growth, investors, managers, government officials, and others must have access to sufficient accurate and pertinent information to make beneficial economic decisions. Kosovo possesses several small and medium-sized enterprises, necessitating the establishment of appropriate regulations for these operations. Establishing Kosovo's accounting standards is a means to achieve its ultimate European status. In contemporary economies, adherence to accounting standards, encompassing the definition of accounting, accounting systems, and recording procedures, is more vital. This application will directly impact the economic prosperity of the country, particularly in nations adhering to International Accounting Standards. It will also substantially affect the activities of governmental agencies tasked with overseeing and regulating public and private enterprises.