Georgia

The statutory framework for corporate financial reporting and auditing in Georgia is primarily established by the Law of Georgia on Entrepreneurs (2021) and the Law of Georgia on Accounting, Reporting and Auditing No. 5386 (2016). The Law on Entrepreneurs sets out the general legal framework for commercial entities, while Law No. 5386 establishes the detailed requirements for financial reporting, statutory audit, professional regulation, and public oversight.

Law No. 5386 classifies reporting entities into four categories based on total assets, revenue, and average number of employees, and separately defines public interest entities (PIEs). PIEs include, among others, entities whose securities are admitted to trading, banks, microfinance institutions, credit unions, insurance undertakings, and investment funds.

Public interest entities and first-category (large) entities are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board (IASB) and adopted by the Service for Accounting, Reporting and Auditing Supervision (SARAS) under the Ministry of Finance. SARAS continues to adopt updated IFRS on an ongoing basis, including the 2024 Blue Book, which supports an Adopted jurisdiction-level assessment under the current 2026 definitions for the applicable scope of domestic publicly accountable entities. Application of the English-language version is also permitted.

Second- and third-category entities are required or permitted to apply IFRS for Small and Medium-sized Entities (IFRS for SMEs), while fourth-category entities and certain non-entrepreneurial (non-profit) legal entities may apply simplified standards prescribed by SARAS, IFRS for SMEs, or full IFRS depending on their reporting needs and legal classification.

Mandatory statutory audits are required for PIEs and first- and second-category entities, as well as other entities where specifically required by law. Audits must be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB) and adopted by SARAS. Georgia maintains an ongoing process for translation and incorporation of new and revised standards, and the English-language version may also be applied. Based on current publicly available information, ISA continue to be applied jurisdiction-wide for all mandatory audits.

The public oversight, standard adoption, and enforcement framework is administered by SARAS, which operates as the independent authority under the Ministry of Finance responsible for corporate reporting supervision, audit oversight, standard adoption, and related regulatory functions. The framework continues to reflect Georgia’s alignment with European Union corporate reporting reforms and the recommendations of international development partners.

The accountancy profession in Georgia is regulated under a shared model established by the Law of Georgia on Accounting, Reporting and Audit. The law regulates certified accountants, auditors, audit firms, accountants providing professional services, and accounting firms, while other accountancy professionals may join professional organizations on a voluntary basis. Oversight is exercised by the Service for Accounting, Reporting and Auditing Supervision (SARAS) under the Ministry of Finance, with certain certification and continuing education functions delegated to recognized professional organizations.

A certified accountant is a person whose qualification is verified through professional certification in accordance with standards established by SARAS. The law requires SARAS to establish professional certification and continuing education standards aligned with European Union directives and the International Education Standards (IES) issued by the International Federation of Accountants. Professional certification is carried out by professional organizations whose certification programs and or examination processes are recognized by SARAS. SARAS also maintains the public Registry of Certified Accountants.

Under the current framework, recognized professional organizations play an operational role in certification and continuing professional development. SARAS records show that the Georgian Federation of Professional Accountants and Auditors (GFPAA) and the Georgian Federation of Auditors, Accountants and Financial Managers (GFAAFM) are recognized continuing professional development providers, while the certification recognition framework established by SARAS continues to govern the recognition of certification programs and examination processes.

An auditor is a certified accountant who is a member of a professional organization and is registered in the State Registry of Auditors/Audit Firms. To obtain registration, a natural person must be a certified accountant, have at least three years of supervised practical experience in audits of financial statements, be a member of a professional organization, and demonstrate compliance with the International Code of Ethics for Professional Accountants through confirmation by the relevant professional organization or supervising auditor. The law also permits registration of certain individuals from Organisation for Economic Co-operation and Development and European Union jurisdictions, subject to conditions established by SARAS and successful completion of a Georgian law qualification test.

Audit firms are also subject to statutory registration requirements. To be registered, a firm must conduct audit services through at least one engagement partner, meet ownership and governance requirements, and maintain professional liability insurance. Auditors must comprise the majority of the management body of an audit firm. SARAS maintains public registries for auditors, audit firms, certified accountants, accountants providing professional services, and accounting firms.

Professional organizations must be established in accordance with Georgian legislation as non-entrepreneurial (non-commercial) legal entities and must maintain internal policies, systems, and procedures to support professional certification, continuing education, ethical compliance, and quality management requirements for their members. They are also required to maintain disciplinary arrangements for members, publish financial statements and activity reports, and ensure that the majority of the members of their management body are auditors and or certified accountants.

SARAS is the principal regulatory authority for the profession. Its responsibilities include adopting and promulgating applicable standards in Georgian, establishing requirements for professional certification, examination, and continuing education, recognizing certification and continuing education programs, monitoring compliance by professional organizations and education providers, maintaining public registries, monitoring quality management systems of auditors and audit firms, and administering investigation and disciplinary procedures under the law. This framework reflects a system of state regulation with implementation support from recognized professional organizations.

Independent public oversight of the audit profession in Georgia is established under the Law of Georgia on Accounting, Reporting and Audit, which provides the legal framework for the regulation and supervision of auditors and audit firms. The law designates the Service for Accounting, Reporting and Auditing Supervision (SARAS), a state sub-agency under the Ministry of Finance, as the authority responsible for audit oversight in the jurisdiction.

Under the law and its implementing framework, SARAS is responsible for maintaining the public registry of auditors and audit firms; adopting and translating applicable international standards; establishing rules and requirements for auditing, quality management, certification, and continuing education; recognizing certification programs, examination processes, and continuing education programs; overseeing professional organizations and other education providers operating within the profession; conducting monitoring of quality management systems of auditors and audit firms; and administering investigative and disciplinary procedures within its statutory remit. SARAS’s recent strategic and annual reports confirm that these supervisory responsibilities remain active and central to its mandate.

SARAS also serves as the public oversight authority for the inspection of auditors and audit firms and continues to strengthen its supervisory framework in line with European Union audit reform and broader corporate reporting reforms. Its published strategy for 2023–2026 and recent annual reporting indicate an ongoing focus on legal approximation with the European Union acquis, enhancement of supervisory capacity, and further development of oversight practices in accounting, reporting, and auditing.

SARAS is a member of the International Forum of Independent Audit Regulators (IFIAR). IFIAR’s current member directory lists Georgia’s SARAS as the member body for the jurisdiction, confirming its continued participation in the international network of independent audit regulators.

The Georgian Federation of Auditors, Accountants and Financial Managers (GFAAFM)

The Georgian Federation of Auditors, Accountants and Financial Managers (GFAAFM) is a professional accountancy organization established in 2011 and operating on a voluntary membership basis. The organization brings together accountants, auditors, bookkeepers, tax advisors, and professionals from small and medium-sized practices. In line with the regulatory framework established by the Law of Georgia on Accounting, Reporting and Audit, GFAAFM is recognized by the Service for Accounting, Reporting and Auditing Supervision (SARAS) as an approved provider of continuing professional development programs for certified accountants. Its activities include the delivery of training and professional development programs in areas such as taxation, internal audit, financial management, and related professional competencies. The organization supports continuing education and capacity building within the profession and operates within the framework established by SARAS for recognized professional organizations.

The Georgian Federation of Professional Accountants and Auditors (GFPAA)

The Georgian Federation of Professional Accountants and Auditors (GFPAA) is the principal professional accountancy organization in Georgia and has been a member of the International Federation of Accountants (IFAC) since 2000. GFPAA is a non-governmental, non-profit professional body representing audit firms, statutory auditors, sole practitioners, consultants, and other accounting professionals on a voluntary membership basis. Prior to the establishment of the current public oversight framework in 2016, GFPAA served as the primary accredited body responsible for regulating auditors in the jurisdiction.

Following the enactment of the Law of Georgia on Accounting, Reporting and Audit, GFPAA continues to play a significant role in professional education, certification, and continuing professional development under the recognition and oversight of SARAS. The organization administers a locally recognized professional certification program based on the Association of Chartered Certified Accountants (ACCA) qualification syllabus translated and adapted for application in Georgia. The certification program and examination process were most recently updated and recognized by SARAS in 2023, and the program continues to maintain ACCA accreditation and exemption recognition for the 2024–2028 period.

GFPAA also delivers continuing professional development programs, maintains member and corporate registries, issues professional guidance and publications, and supports the implementation of international standards and national regulatory requirements. In addition, it collaborates actively with international development partners, including the World Bank Centre for Financial Reporting Reform, on education reform and professional capacity-building initiatives.

The quality assurance review system in Georgia is established under the Law of Georgia on Accounting, Reporting and Audit, which requires the Service for Accounting, Reporting and Auditing Supervision (SARAS) to monitor the quality management systems of auditors and audit firms registered in the jurisdiction. The law requires SARAS to put mandatory international standards into effect in Georgian within six months of renewal and permits auditors and audit firms to use the effective English-language version.

SARAS is responsible for conducting quality assurance reviews of auditors and audit firms, establishing the monitoring rules, and publishing the results in the public registry. The review cycle is set at least once every three years for auditors and audit firms performing audits of public interest entities and first-category enterprises, and at least once every six years for other auditors and audit firms. The law also includes requirements on reviewer independence, corrective actions, sanctions, appeals, and publication of monitoring results.

The jurisdiction-level framework is broadly aligned with the main requirements of Statement of Membership Obligations 1 in that a mandatory review system is established and operational for all statutory audits, with a cycle-based approach, public oversight, linkage to corrective and disciplinary action, and public reporting of results. However, available assessments indicate that the framework is not yet fully aligned in all respects, particularly regarding the expertise of review teams. Accordingly, the jurisdiction is assessed as Partially Adopted under the 2026 definitions.

As regards quality management standards, Georgia originally applied International Standard on Quality Control 1 through SARAS Decree No. 24 of December 4, 2017, and has since moved to the quality management standards. SARAS confirms that International Standard on Quality Management 1 and International Standard on Quality Management 2, based on the 2020 IAASB standards and translated into Georgian, have been in force since December 15, 2022; accordingly, ISQM 1 and ISQM 2 are adopted and effective in the jurisdiction. Relevant standards and guidance are published by SARAS, including links to the Georgian texts of ISQM 1, ISQM 2, and the monitoring framework.

Current Status: Partially Adopted

Initial and continuing professional development requirements in Georgia are established under the Law of Georgia on Accounting, Reporting and Audit, which requires the Service for Accounting, Reporting and Auditing Supervision (SARAS) to set professional certification and continuing education standards in accordance with European Union directives and the International Education Standards (IES) issued by the International Federation of Accountants. The law also requires professional organizations to implement and monitor continuing education and provides for SARAS recognition of certification programs, examination processes, and continuing education programs. (Law on Accounting, Reporting and Audit)

The current jurisdiction-level framework is supported by the Professional Certification Standard and the Continuous Education Standard. These standards are designed to align with IES and EU requirements, and SARAS continues to recognize continuing education programs annually. Recent SARAS reporting confirms that professional certification and continuing education standards remain in force and continue to be administered within this framework.

Recognized professional organizations implement the framework in practice. Publicly available SARAS and GFPAA information indicates that the Georgian Federation of Professional Accountants and Auditors (GFPAA) operates a recognized full certification program and examination process, updated as of May 31, 2023, and aligned with the Association of Chartered Certified Accountants qualification structure. The law also requires at least three years of supervised practical experience for registration as an auditor.

At the same time, available authoritative sources do not clearly demonstrate that the latest IES in effect as of the time of the assessment have been adopted in their entirety for all aspiring and professional accountants in the jurisdiction. The legal and regulatory framework refers generally to IES rather than identifying a current handbook year, and World Bank diagnostics and the 2022 ROSC note that, despite substantial progress, further work remains in university alignment and in strengthening the monitoring and assessment of practical experience and competency development.

Accordingly, the jurisdiction-level framework is partially aligned with the relevant requirements of Statement of Membership Obligations 2, and the adoption status for IESs is assessed as Partially Adopted under the 2026 definitions. The basis for this assessment is that Georgia has an IES-based legal and regulatory framework in place, but full adoption of the latest IES in effect at the time of assessment cannot yet be demonstrated for all aspiring and professional accountants.

Current Status: Partially Adopted

The Law of Georgia on Accounting, Reporting and Audit requires all mandatory audits to be conducted in accordance with the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board and adopted by the Service for Accounting, Reporting and Auditing Supervision (SARAS). The law requires SARAS to translate and publish the standards within six months of issuance and also permits application of the effective English-language version. On this basis, Georgia’s legal framework provides for application of the latest ISA in effect as of the time of the assessment for all mandatory audits. (Law on Accounting, Reporting and Audit)

The jurisdiction-level framework is aligned with the relevant requirements of Statement of Membership Obligations 3 because ISA are legally required for all mandatory audits and are supported by an ongoing mechanism for translation, publication, and use in practice. Accordingly, under the 2026 definitions, ISA are assessed as Adopted in Georgia.

SARAS has also introduced the International Standard on Auditing for Less Complex Entities (ISA for LCE) for application in the jurisdiction. (SARAS news on ISA for LCE).

Current Status: Adopted

The Law of Georgia on Accounting, Reporting and Audit requires certified accountants, auditors, and audit firms to comply with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants. The law also requires professional organizations to ensure compliance by their members. The Service for Accounting, Reporting and Auditing Supervision (SARAS) is responsible for making the Code available in Georgian within six months of update, and the law expressly permits use of the effective English-language version. (Law on Accounting, Reporting and Audit)

SARAS’s public materials indicate that the 2024 edition of the Code was adopted on February 27, 2025, following earlier adoption of the 2022 and 2023 editions. Given the legal permission to use the effective English-language version, the framework also permits application of the 2025 Handbook currently in effect. (SARAS Key Aspects of Monitoring and Investigation 2025) (SARAS news) (IESBA 2025 Handbook)

Current Status: Adopted

Public sector accounting standards in Georgia are established by the Ministry of Finance and implemented through the Treasury reform framework, which is based on the International Public Sector Accounting Standards (IPSAS) and accrual accounting. (IPSAS reform overview)

According to the World Bank’s Public Sector Accounting Assessment (PULSE) Report of Georgia, the regulatory framework introduced in 2020–2021 incorporates 24 accrual-based IPSAS, with additional standards, including IPSAS 38 and IPSAS 40, adopted from 2024. Implementation remains ongoing, with central government entities largely applying accrual-based standards, while full implementation across all public sector entities has not yet been achieved. (PULSE Report)

The framework reflects convergence with IPSAS but does not constitute full adoption of the latest IPSAS in effect for all public sector entities. Accordingly, under the 2026 definitions, IPSAS are assessed as Partially Adopted.

Current Status: Partially Adopted

The Law of Georgia on Accounting, Reporting and Audit establishes a shared investigative and disciplinary (I&D) system, with responsibilities divided between the Service for Accounting, Reporting and Auditing Supervision (SARAS) and recognized professional organizations. SARAS is responsible for oversight of the system and for investigation and discipline of auditors and audit firms, while professional organizations are responsible for detecting violations, establishing disciplinary rules approved by SARAS, and imposing sanctions on their individual members. (Law on Accounting, Reporting and Audit)

Certified accountants, the only segment of the profession regulated at the state level, are required to be members of a recognized professional organization. The Georgian Federation of Professional Accountants and Auditors (GFPAA) has established an Ethics and Disciplinary Committee and has reported alignment of its procedures with the requirements of Statement of Membership Obligations 6. The Georgian Federation of Auditors, Accountants and Financial Managers (GFAAFM) also operates a Professional Ethics and Disciplinary Committee and disciplinary procedures for its members; however, as a non-IFAC member organization, it has not publicly reported on alignment with SMO 6.

The framework includes key elements of SMO 6, including investigative processes, disciplinary mechanisms, sanctions, and public oversight. However, given the shared responsibilities and limited publicly available information demonstrating consistent alignment across all professional organizations, the system does not fully meet all SMO 6 requirements at the jurisdiction level. Accordingly, under the 2026 definitions, the I&D system is assessed as Partially Adopted.

Current Status: Partially Adopted

The Law of Georgia on Accounting, Reporting and Audit requires International Financial Reporting Standards (IFRS Accounting Standards) for public interest entities and first-category entities. The Service for Accounting, Reporting and Auditing Supervision (SARAS) is required to make IFRS available in Georgian within six months of update, and the law expressly permits use of the effective English-language version. (Law on Accounting, Reporting and Audit)

This framework supports application of the latest IFRS in effect for domestic publicly accountable entities. SARAS confirms adoption of the 2024 Blue Book and subsequent updates. Accordingly, under the 2026 definitions, IFRS are assessed as Adopted in Georgia.

Second- and third-category entities may apply the IFRS for SMEs Accounting Standard or full IFRS. Accordingly, IFRS for SMEs are Adopted in Georgia; this does not affect the overall IFRS adoption rating.

Current Status: Adopted

Relevant Organizations

Association of Chartered Certified Accountants

Georgian Federation of Professional Accountants and Auditors

Service for Accounting, Reporting and Auditing Supervision

World Bank Centre for Financial Reporting Reform

Relevant Legislation

Law of Georgia on Accounting, Reporting and Audit

Relevant Publications

GFPAA SMO Action Plan 2022–2024

Public Sector Accounting Assessment (PULSE) Report of Georgia

SARAS Annual Report 2024

SARAS Key Aspects of Monitoring and Investigation 2025

Use of IFRS Accounting Standards by Jurisdiction: Georgia

World Bank National Education Initiatives – Georgia