The rule for reviewing the compliance of reports published on the reporting portal with international standards has entered into force
The Order of the Head of SARAS regarding the Rule for Reviewing the Compliance of Reports Published on the Reporting Portal with International Standards has been published in the Legislative Herald of Georgia and has entered into force.
The Order defines the procedure for conducting compliance reviews of financial statements published on the reporting portal with international standards. The normative act establishes a legal and procedural framework for compliance assessment, ensures transparency and a consistent approach in the review process, and promotes the improvement of financial reporting quality.
Financial statements for the most recent reporting period submitted and published on the reporting portal prior to the commencement of administrative proceedings are subject to review. SARAS will act in accordance with the procedures established by the current legislation in case of the identification of non-compliance with international standards.
The objective of the Order is to establish a legal procedure for assessing the compliance of financial statements with international standards, to increase reporting quality, and to enhance alignment with international standards. This, in turn, serves to prevent legal violations and strengthen the reliability of the reporting system.
The draft of the normative act was published for public feedback. During its development, the views of Accounting, Reporting and Auditing Board, professional circles, and other stakeholders were taken into consideration. Based on the analysis of the received comments and suggestions, the draft was revised, ensuring alignment with practical regulatory needs and the involvement of the professional community.
The Order is important for entities that prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).
The normative act establishes the legal basis for assessing financial statements published on the reporting portal and clarifies the procedures related to the review process.