“Non-compliances identified as a result of reviewing annual reports” - Third Edition

SARAS, using the EU's practice, annually reviews annual reports submitted by entities. As a result of standard compliance review of annual reports, SARAS developed the third edition of the document - “non-compliances identified as a result of reviewing annual reports”. In 2022 SARAS selected annual reports submitted in 2020-2021, and the document provides information on major non-compliances identified during the review of those annual reports’ compliance with IFRS standards. In particular, the document prepared by SARAS summarises major non-compliances identified during the review of the PIEs, I and II category entities’ 2020-2021 annual reports’ compliance with IFRS standards (3 % of PIEs; 7% of I category entities; 2% of II category entities).

During the review of the 2020-2021 annual reports, SARAS concentrated on the following standards: IAS 1, IFRS 7, IFRS 9, IAS, 24, IAS 7, IAS 16, IAS 2, IAS 8, and IAS 32.

For the process to be transparent, SARAS annually publishes the selection criteria for the review of annual reports for identification of non-compliance with IFRS standards and their correction. According to SARAS, this document will help enhance the quality of submitted annual reports’ compliance with IFRS Standards.