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Main Challenges for Academic and Professional Education of Accounting & Auditing in Georgia

The accounting and auditing field in Georgia.

Education and Accounting in Georgia

23 April 2019

 

On April 23rd, the National Reforms Support Foundation for Accounting, Reporting and Auditing invited representant to present the evolution and the futur steps taken for the development of the auditing and accounting field in Georgia. H.E. Pascal Meunier, French Ambassador in Georgia make a presentation about the French-Georgian university. Our member PKF Georgia, represented by David Gvetadze also make an intervention to present PKF training center.

 

2018 was the first year that companies had to submit their financial reports. And 90% (700 companies) of them acted accordingly. The goal of this reform is to give more transparency and to promote the well development of Georgian companies for investors, institutions and stakeholders. The reforms taken by Georgia in this direction, come within the scope of the signature of the association agreement with the European Union.

There are 3 pillars to achieve a financial inclusion:

  • Requirement – in 2016, Georgia adopted the Law on Accounting and Auditing.
  • Monetary enforcement – the government of Georgia established SARAS
  • Capacity and relevant skills (in order to prepare the financial statements) – Georgia is working on the upgrading of its education.

 

The World Bank has been involved in the sector of accounting in Georgia for many years. Their work started in 2007 when they conducted a survey in order to have a visibility on the compliance of companies with the established regulations in accounting.

In 2013 the project STAREP (original program covering Eastern countries) was engaged in order to facilitate the closeness of regulations with the European standards in the Eastern partnership countries. In this context regional meeting with regulators took place in order to exchange experiences, best practices and to assist each other.

This program achieved:

  1. Law on accounting and audit: formation of SARAS institution
  2. Registration of auditing firms
  3. Platform for education
  4. Improvement of the financial data, especially for SME’s

The World Bank supported SME’s by helping them develop their competences in finance and by offering meetings. Also they elaborated a training module but came with the fact that the number of professionals is very important and there is a need for more trainings. That is why they are launching 4 new training sections that will take place in Tbilisi but also in the regions.

They also assist by translated the standards to gave a better access and understanding to professionals in Georgia.

The World Bank is also working in the improvement of accounting education. In that direction they are working with universities and federations/ associations.

They are working on a benchmarking survey in order to determine what methodologies universities are using and then compare them with the recognised standards and identify the potential weaknesses they may have. This cooperation is also taking into account the widening of text books, the upgrading of existing ones and the acquisition of new ones.

The goal is to improve the education system with professional of the sector.

The French Institute is also supporting the developement of the field by offering courses and by oppening a French-Georgian university.

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