Frequently Asked Questions

 

The deadline for the registration procedure is not indicated. Thus, AQrticles 13 (1) and 28 (4) of the Law on Accounting, Reporting and Auditing have to be considered.
The Auditor’s and Audit Firm’s registration forms can be presented at the same time. It is notable that, before registering an Audit Firm, at least one Engagement partner of the firm has to be registered in the register.
If you hold a perpetual certificate, leave the effective date blank, which automatically means you have the mentioned type of certificate.
If you have not received income, you should leave the paragraph about Income derived from person’s auditing (non-hired) activity blank.
You are not requested to fill in salaries in the paragraph about ‘Income derived from person’s auditing (non-hired) activity’. You only have to indicate income received while working as an individual auditor.
In this case, please address a signed and stamped written statement to the Service, indicating the inaccuracies.

 

The size category of an enterprise is defined according to the value of total assets, income and average number of employees at the end of the reporting period. To define the category of enterprise, please see the determiner of the size category.
The size category of a group is defined according to the value of total assets, income and average number of employees calculated on a consolidated basis at the end of the reporting period of the parent company. To define the category of a group, please see the determiner of the size category.
The size category of an enterprise/group shall be defined for the 2016 reporting period and for the following reporting periods.
If an entity/group at the end of the 2 consecutive reporting periods does not meet at least two criteria of the size categories criteria, the category of enterprise/group will be changed. If the size category of an enterprise/group has increased by two or more categories compared to the previous reporting period, the latter rule is no longer used and the size category of the group/enterprise will be changed as soon as the reporting period ends.
According to the "Law of Georgia on Accounting, Reporting and Auditing", the budgetary organization does not represent an entity. Accordingly, it does not have an obligation to report to the Service for Accounting, Auditing and Reporting Supervision.
A sole entrepreneur that meets the requirements of the enterprise of the third, second or first category represents an entity and accordingly is within the scope of the “Law of Georgia on Accounting, Reporting and Auditing”.
The branch of a foreign enterprise that meets the criteria of the enterprise of the third, second or first category represents an entity and accordingly is within the scope of the “Law of Georgia on Accounting, Reporting and Auditing”.

An entity shall report its financial statement, management Report, report on payments to government and audit report immediately, but not later than October 1st of the next year of the reporting period. If the reporting period of an enterprise doesn't coincide with the calendar year, an entity should report them immediately, but not later than 9 months from the end of the reporting period.
PIE, the enterprises of the first and second category shall report their financial/non-financial statements of the reporting period ended on December 31, 2017 and for following periods accordingly. If the reporting period of an enterprise doesn’t coincide with the calendar year- than for the reporting period which ends after December 31, 2017.
The enterprises of the third and fourth category shall report their financial/non-financial statements of the reporting period ended on December 31, 2018 and for the following periods accordingly. If the reporting period of an enterprise doesn’t coincide with the calendar year - than for the reporting period which ends after December 31, 2018.

If you were required to perform statutory audit of your financial statement under the “Law of Georgia on Accounting and Auditing of the Financial Statements“ of June 29, 2012, you should report financial statement, consolidated financial statements and audit report, immediately, but not later than October 1st, 2017. If your reporting period doesn't coincide with the calendar year, you should report them immediately, but not later than 9 months from the end of the reporting period.
According to the article 7, paragraph 4 of the “Law of Georgia on Accounting and Auditing of the Financial Statements” of June 29, 2012 the following entities were subjects of the statutory audit:

  • The entities under the supervision of the National Bank of Georgia being required to perform annual audits;
  • The entities under the supervision of the Insurance State Supervision Service of Georgia being required to perform annual audits;
  • The enterprises meeting the respective criteria established by the Government of Georgia;
  • In other cases provided by Georgian legislation.
You shall perform audit of your financial statements/consolidated financial statements if you are a PIE, an enterprise of the first and second category and a group of the first and second category, as well as in other cases provided by legislation.
Reporting of the financial/non-financial statements and audit report is carried out according to the rule set by the Service.
You shall prepare and file the management report if you are a PIE, the enterprise of the first or second category.
PIEs and the enterprises of the first and second category shall file the management report for the reporting period ended on December 31, 2017 and the following periods. If the reporting period of an enterprise doesn’t coincide with the calendar year - than for the reporting period that ends after December 31, 2017.
If you are a PIE or an enterprise of the first category active in the extractive industry (including extraction of oil and gas) or the logging of primary forests, you shall prepare and file the Report on payments to government.
PIEs and the first category enterprises shall file the Report on Payments to Government for the reporting period ended on December 31, 2017 and the following periods. If the reporting period of an enterprise doesn’t coincide with the calendar year - than for the reporting period that ends after December 31, 2017.