Changes in law on Accounting and Financial Audit

The Georgian Parliament is currently discussing a number of amendments, the aim of which, are to set out additional time for the development of EU directives corresponding to potential alterations in legislation. This additional time is considered to be necessary to ensure that interests of all professional organizations comments will be collated and that best practice is adopted as it relates to professional body regulation.

According to the changes, temporary accounting standards will be valid from 1 January 2016 instead of 1 January 2015. Additionally, financial reporting under the IFRS shall be mandatory as from 1 January 2016; however, an entity has a right to apply the above-mentioned standards until this time. Auditors/audit firms will not be required to become members of professional organisations until 1 January 2016.