Best Accounting & Auditing Lawyers in Tbilisi

About Accounting & Auditing Law in Tbilisi, Georgia

Accounting and auditing laws in Tbilisi, Georgia are governed by various regulatory bodies including the Ministry of Finance and Georgia’s Auditors Oversight Entity. These regulations are designed to enhance transparency, reliability and comparability of financial statements prepared by businesses. They abide by a framework that is largely consistent with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA).

Why You May Need a Lawyer

You might need a lawyer specializing in accounting and auditing laws in Tbilisi, Georgia if you are looking to set up a new business or if you are an existing business wishing to stay compliant with the local laws. Lawyers can also help in cases involving fraudulent financial reporting, potential accounting irregularities, or if you're facing an audit by governmental or regulatory bodies. Furthermore, should there be any mergers, acquisitions, or large scale investments, a lawyer will ensure everything is conducted in line with Georgian & international laws.

Local Laws Overview

Georgian accounting and auditing law requires that all medium and large enterprises prepare financial statements in line with International Financial Reporting Standards (IFRS). Smaller companies may follow Georgian accounting standards, with the option to voluntarily adopt the IFRS for SMEs. In terms of auditing, all medium and large companies are subject to an obligatory external audit. Legal entities of public interest, such as banks, insurance companies, and publicly listed companies, must be audited by auditors approved by Georgia’s Auditors Oversight Entity.

Frequently Asked Questions

1. What is the main regulatory body for accounting and auditing in Georgia?

The Ministry of Finance oversees the regulation of accounting while the Auditors Oversight Entity is charged with primary responsibility for monitoring and enforcement of audit quality.

2. Can a small business in Tbilisi use international accounting practices?

Yes, small businesses in Tbilisi have the option to voluntarily use IFRS for SMEs (Small and Medium-sized Entities), although they can also follow local Georgian accounting standards.

3. Do all businesses require an external audit in Tbilisi?

No. As per Georgian law, only medium and large businesses, along with legal entities of public interest, are subject to obligatory external audits.

4. What happens if a Tbilisi-based business fails to comply with accounting and auditing laws?

Failure to comply with accounting or auditing laws could result in substantial monetary fines, loss of business license, or legal sanctions for the responsible individuals.

5. Is a lawyer necessary for dealing with accounting and auditing in Tbilisi?

While it's not mandatory, engaging a lawyer can be incredibly beneficial to navigate complex legal terrain, stay compliant with all regulations, and for legal representation during any government or internal audits.

Additional Resources

Governmental bodies like the Ministry of Finance, Georgia’s Auditors Oversight Entity, and non-governmental professional organizations such as Georgian Federation of Professional Accountants and Auditors (GFPAA) are viable resources for additional information and guidance in the field of accounting and auditing.

Next Steps

If you require legal assistance, consider reaching out to local legal services specializing in accounting and auditing laws. Comprehensive preparation including gathering all relevant financial data and documentation would ease any potential processes. Having an open line of communication with your lawyer and informing them about all particular details concerning your operations will assist them to provide you the best legal advice in the realm of accounting and auditing in Tbilisi, Georgia.