Financial Standard for non-entrepreneurial (non-profit) legal entities was approved

Under the order (June 26, 2018) of the head of the Service for Accounting, Reporting and Auditing Supervision Subdivision of the Ministry of Finance of Georgia,  “Financial Standard for Non-entrepreneurial (non-profit) Legal Entities” was approved. This Standard becomes operative for financial statements covering reporting periods beginning on or after 1 January 2018.  As the result of the standard approval, the act N10 (April 5, 2005) of the Commission of Accounting Standards of the Parliament of Georgia regarding ‘Temporary Standard for Accounting and Structure of the Chart of Accounts for Non-entrepreneurial (non-profit) Legal Entities” was declared invalid.

SARAS formed Consultative Group for Standard development. The group was composed of representatives from non-entrepreneurial (non-profit) legal entities, professional organizations and academic sector.  Comments on draft Standard pointed out at the working meeting conducted with the interested parties were discussed and the standard was finalized. 

According to the order, sample Financial Statements were also approved. These samples aim to maximally simplify the use of standard for interested parties. Main principles and assumptions, as well as recognition and measurement methods defined in IFRS standards are retained.