How the entities evaluate a new regulatory framework – the results of the survey conducted within the framework of the Twinning Project are summarized

Under the guidance of SARAS, the reporting and auditing reform progresses in Georgia for the fifth year.  The reform aims to establish European regulations in the country, which will promote the growth of financial access and investment attraction through building a culture of financial transparency, enhancing professional qualification and implementing quality assurance mechanisms. 

To assess the impact of the new regulations and standards established in the country as a result of the reform, within the Twinning Project in 2020, Ilia State University conducted the survey, the results of which were summarized recently.

The 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, and the timeliness of providing the information. According to the survey 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 with the opportunity to promote local statements and enhance their value.

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.   

See the regulatory impact assessment report.