|Extent of IFRS application
|IFRS Accounting Standards are required for domestic public companies
|IFRS Standards are required for all public interest entities and large entities (first category entities).
|IFRS Accounting Standards are permitted but not required for domestic public companies
|IFRS Accounting Standards are required or permitted for listings by foreign companies
|The IFRS for SMEs Accounting Standard is required or permitted
|The IFRS for SMEs Accounting Standard is under consideration
Profile last updated: 27 October 2019
Georgia adopted IFRS Standards for large public interest and large entities. Small and medium sized companies are required to use the IFRS for SMEs Standard, Micro entities are required to use IFRS for SMEs based simplified local standards adopted by SARAS.
In accordance with the legislation the following entities are required to use IFRS Standards:
all public interest entities (including entities whose securities are admitted to trading on the stock exchange, commercial banks and qualified credit institutions, microfinance organisations, insurers, founders of non-state pension plans, investments funds, non-bank deposit institutions and credit unions and specific entities defined as PIEs by the Government of Georgia);
first cat egory entities are those that satisfy at least two criteria out of the following three:
Large public interest and large entities have adopted IFRS Standards for the year ended 31 December 2017 and filed their IFRS financial statements before 30 September 2018. Small and medium sized entities adopted IFRS Standards for the year ended 31 December 2018 and filed their financial statements as of 30 September 2019.
Micro entities should have prepared their financial statements for the year ended 31 December 2018 and filed before 30 September 2019, however based on the public announcement made on 26 September 2019 the amendments to the law on ‘Accounting, Reporting and Auditing’ have been initiated according to which reporting deadlines for Micro entities will be postponed for 2 years.
All public interest entities and entities under first category are required to prepare financial statements using full IFRS Standards.
All other entities are not required but are permitted to use IFRS Standards.
The Law on the Regulation of Accounting and Financial Reporting dated 5 February 1999 (the Accounting Law) stated that ‘all legal entities, except small enterprises, were required to prepare their financial statements in conformity with International Accounting Standards (IASs) and temporary accounting standards’. The Accounting Law was supplemented in 2005 by Regulation No. 11 dated 6 April 2005, which adopted IFRS Standards issued by the International Accounting Standards Board as the accounting framework applicable in Georgia. The law was amended subsequently to adopt the IFRS for SMEs Standard.In 2016 the new law of Georgia on Accounting, Reporting and Auditing was adopted (repealing the old one) which categorises entities by sizes and public interest in line with EU Directive 34. According to this law IFRS Standards are required for public interest and large entities. Small and medium sized entities are required to apply IFRS for SMEs. Micro entities apply IFRS for SMEs based simplified standard. All category entities are entitled to apply higher level reporting standard on voluntary basis.
Yes, IFRS Standards are translated into Georgian and the translation is provided / coordinated by the IFRS Foundation. Currently the 2019 Blue Book is available in Georgian.
SMEs that are not public interest entities are required to use IFRS for SMEs unless they choose to apply full IFRS Standards.