Drafting on amendments (Accounting)

Date: 
8-10 July 2019
 

                                                                            30 September - 1 October 2019

Description

The experts met with representatives of SARAS to finalize the list of amendments proposed to Georgian legislation to address the discrepancies with the Accounting Directive (Directive 2013/34/EU).

 

Outcomes

According to the findings, the provisions of the directive have been incorporated to a significant extent into the Law on Accounting, Reporting and Auditing. However, a number of additions and amendments remain to be made.

The remarks of experts regarding these amendments are given below.

 

  • Proposed amendments regarding small entities (3rd category) remain.
  • Definition of investment undertakings is not needed. However, in accordance with the common practice of all European Union countries, it is recommended for this kind of undertakings to prepare their financial statements in accordance with the full version of IFRS, irrespectively of their size.
  • Directive 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement should be examined, especially the articles 9a, 9b and 9c. However, Directive 2017/828 is not part of the Association Agreement.
  • Article 33 of the Directive 2013/34 demands responsibility and liability for drawing up and publishing financial statements and management reports. These provisions are obligatory for MSs according to the above-mentioned article.
  • Proposed amendments for deregistration of the entities that do not file acts in the Business Register. Measures in accordance with the EU best practice (see for example Companies House in the UK, Department of Registrar of Companies and Official Receiver in Cyprus) are provided in article 51 of the transposition table.