“Non-compliances identified as a result of reviewing financial statements” - an important document for the entities was placed on the SARAS web-page

In accordance with Article 9 (3) of the law of Georgia on “Accounting, Reporting and Auditing”, in order to identify compliance of presented by entities financial statements with IFRS Standards, SARAS, using the EU’s practice, started a thorough reviewing process. For greater transparency of the process, on November 26, 2020, SARAS published a guideline “Priorities for 2019 and 2020 annual reports review process” on its web-page. This document provides information on the selection criteria of submitted and/or published reports, as well as, identification and correction of non-compliance with IFRS Standards.   

The document prepared by the SARAS - “Non-compliances identified as a result of reviewing financial statements” - summarizes the major non-compliances identified through a thorough reviewing process of compliance of financial statements with IFRS standards of 2018-2019 of some PIEs and I category entities (10% of PIEs; 15% of I category entities).

According to the SARAS, this document will help enhance the quality of submitted reports’ compliance with IFRS Standards. Consequently, the document will be published again at certain intervals in the future (expected to happen, at least, twice a year).