How the entities evaluate the regulatory framework – a survey was conducted within Twinning project

Within Twinning project, Ilia State University conducted the survey aimed at evaluating changes resulting from the Accounting and Reporting Reform.

The interim results of the survey point out that the new regulatory framework succeeded in improving significantly the transparency of corporate financial reports, the understandability of the information provided in corporate financial reports, the timeliness of providing the information while the qualitative characteristics of the financial statements appear to meet the requirements of the external users. 

Furthermore, there is the strong belief that the adoption of the internationally recognized set of accounting standards from the Georgian companies provides them the opportunity to promote local statements and enhance their value. 

Despite the fact that the marginal majority of the participants asserted that it is not possible to comply with the requirements of the new accounting framework without additional efforts and costs, the overall regulatory impact assessment remains positive.

As has been recognized by the majority of the survey participants, SARAS initiatives and actions not only play a vital role in the establishment and enforcement of the new accounting requirements but also affect the quality of audit and corporate reporting. 

The final survey report is expected to be released in November 2020.