SARAS publishes draft order on the Rule for Reviewing the Compliance of Reports Published on the Reporting Website with International Financial Reporting Standards to receive feedback from interested parties

As known, the mandate of the Service for Accounting, Reporting and Auditing Supervision (SARAS) includes ensuring the review of the compliance of submitted reports with international standards as defined by the Law of Georgia on Accounting, Reporting and Auditing.

In this regard, SARAS has developed a draft subordinate normative act aimed at legally consolidating the approaches established and implemented during the reform process for the detailed review of the compliance of publicly disclosed reports with the standards prescribed by law. Accordingly, the draft represents a generalization of the practices tested throughout the existence of SARAS and their implementation at the normative level. 

The proposed rule refers to the administration process for reviewing audited individual/consolidated reports prepared by PIEs, I, II and III category entity/parent entity of a group. It is notable that the rule does not apply to the compliance review of unaudited individual/consolidated reports submitted by the III category entity/parent entity of a group.

The draft provides for detailed regulation of issues related to the compliance review of published reports, such as: the grounds for initiating administrative proceedings for the purpose of reviewing reports, the scope and procedure of the review, the need to involve the interested party/entity in the administrative proceedings, details of the review team, the obligations of both the entity and the Service, the results of the review, and more.

Given the importance of stakeholder involvement in the development process, SARAS is publishing the draft order of the Head of SARAS on the Rule for Reviewing the Compliance of Reports Published on the Reporting Website with International Financial Reporting Standards (including its Annex and Explanatory Note) for feedback.

Please submit your suggestions and/or recommendations electronically by 30 May using the SARAS email submission facility: https://saras.gov.ge/ms/.