November 10, 2016
A new Georgian law, “On Accounting, Reporting and Audit,” has been adopted. It entered into force on 8 June 2016 to replace the old law, “On Accounting and Financial Reporting.” Representatives from governmental bodies, professional organizations and experts from The World Bank were involved in the law-making process. This was an important step since implementing new regulations is important for economic growth and development of the investment environment.
The purpose of creating this law was the improvement and perfection of the system that regulates accounting, financial reports and auditing in order to ensure that it meets the requirements of European directives. This law aims to determine an appropriate supervising body, which will control the work done by auditors/auditing firms and professional organizations in accordance with proper legal acts. Enforcement of the new law also required amendments to various other laws, such as the Law on Entrepreneurs, Tax Code and Law on Facilitation of the Prevention of Illicit Income Legalization.
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