Gap analysis of national legislation (Accounting)

18-22 February 2019



Several consultative meetings were held with participation of experts specializing in reporting and the staff of SARAS. The issues discussed revolved around the gaps encountered in Georgia’s legal framework for accounting and reporting in relation with the EU legislation and specifically with the Accounting Directive (2013/34/EU).

The approach was to analyze the EU legislation article by article to verify correspondence between the Georgian and EU legislations, confirming this way the relative gaps and sharing best practices and experience.

The experts also had the opportunity to meet and consult on relevant matters with Deputy Business Ombudsman of Georgia, a member of the Office of Business Ombudsman of Georgia, and representatives of the National Bank of Georgia.



Findings of the gap analysis revealed that although the 2013 Accounting Directive was incorporated into Georgian law, certain gaps nevertheless remained, as can be seen below.


  • Definitions (some definitions are missing)
  • The legislation imposes more requirements for third category entities (small entities) than the directive
  • Exemptions from consolidation
  • Issues concerning the fourth category standard (fair value measurement, initial recognition at discounted amounts and own shares)
  • Provisions about non-financial statement need further improvement
  • Provisions about payments to government are not covered
  • Publication related matters for fourth category entities
  • Obligations of auditors to verify the content of non-financial statement reports