Abstract: This paper gives an overview of prior writings published by Estonian
researchers that have analyzed the development of Estonian accounting legislation
and financial reporting and potentially contributes to the understanding of Estonian
international financial reporting standards’ implementation issues. The authors
have analyzed the history of Estonian accounting legislation from 1990 until 2013
and have divided the integration of Estonian accounting system to the framework
of IFRSs into two stages: 1) implementation of IFRSs, and 2) implementation of
the IFRS for SMEs. The paper also analyzes the possible changes the new
European Union Accounting Directive will bring to the Estonian accounting
framework. As a methodological technique literature review and document analysis
are used, including bachelor and master thesis and papers written by the Estonian
researchers. In conclusion, it may be said that the implementation of IFRSs and
IFRS for SMEs in the form of the Estonian good accounting practice (EGAP) has
been smooth and successful in Estonia.