“Non-compliances identified as a result of reviewing financial statements” - second edition

SARAS, using the EU’s practice, continues the review process of the financial statements submitted by entities in order to identify their compliance with IFRS Standards. For greater transparency of the process, SARAS publishes priorities for the reports review process annually, which should be considered by the entities while preparing financial statements. 

The document prepared by SARAS - “Non-compliances identified as a result of reviewing financial statements” (second edition) - summarizes the major non-compliances identified through a reviewing process of compliance of financial statements with IFRS standards of 35 financial statements (7% of PIEs; 14% of I category entities; 2% of II category entities) selected by SARAS in 2021.  

As a result of the review process, a relatively high rate of non-compliance is revealed in relation to IFRS 7 and IAS 1. Non-compliance with other standards is found with a relatively lower percentage (for detailed information see the document). 

SARAS considers that public disclosure of mentioned document provides entities with useful information. Analyzing and taking into account this document (“Non-compliances identified as a result of reviewing financial statements”) will help entities prepare financial statements in compliance with IFRS Standards. In turn, it will have a positive impact on the quality of submitted reports.

At further stages, SARAS also plans to review the reports submitted by other category entities.