Statutory Financial Reporting & Audit
SBC Audit offers a broad range of financial and management reporting and statutory audit services to clients required to fulfil the requirements provided by the Law of Georgia on Accounting, Reporting and Audit of June 8, 2016 (as amended). Our professionals prepare financial reports in accordance with the International Financial Reporting Standards (IFRS).
Enterprise of the fourth category – an entity whose indicators, at the end of the reporting period, meet at least two criteria out of three criteria given below:
● The total value of assets does not exceed GEL 1 million;
● The revenue does not exceed GEL 2 million;
● The average number of persons employed during the reporting period does not exceed 10.
Enterprise of the third category – an entity which is not an enterprise of the fourth category and meets at least two criteria out of three criteria given below:
● The total value of assets does not exceed GEL 10 million;
● The revenue does not exceed GEL 20 million;
● The average number of persons employed during the reporting period does not exceed 50.
Enterprise of the second category – an entity, which is not an enterprise of the third and fourth category and meets at least two criteria out of three criteria given below:
● The total value of assets does not exceed GEL 50 million;
● The revenue does not exceed GEL 100 million;
● The average number of persons employed during the reporting period does not exceed 250.
Enterprise of the first category – an entity whose indicators, at the end of the reporting period, meet at least two criteria out of three criteria given below:
● The total value of assets does not exceed GEL 50 million;
● The revenue does not exceed GEL 100 million;
● The average number of persons employed during the reporting period does not exceed 250.
Public Interest Entity (the “PIE”) – enterprises that constitute commercial banks, microfinance organizations, insurers, founders of non-state pension schemes, investment funds, non-bank deposit institutions, and others defined as such by the Government of Georgia.
The following table shows the financial reporting requirements applicable to the business entities of each category:
| Category | Accounting & Financial Reporting Standard | Preparation of Financial Statements | Filling of Financial Statements | Publication of Financial Statements** | Audit of Financial Statements | Management Reports | Reports on Payments to the State |
| Public Interest Entity (PIE) | IFRS | REQUIRED | REQUIRED | REQUIRED | REQUIRED | REQUIRED | REQUIRED |
| First Category (I) | IFRS | REQUIRED | REQUIRED | REQUIRED | REQUIRED | REQUIRED | REQUIRED |
| Second Category (II) | IFRS for SME | REQUIRED | REQUIRED | REQUIRED | REQUIRED | REQUIRED | NOT-REQUIRED |
| Third Category (III) | IFRS for SME | REQUIRED | REQUIRED | REQUIRED | NOT-REQUIRED | NOT-REQUIRED | NOT-REQUIRED |
| Fourth Category (IV) | Special Accounting Rules | REQUIRED | REQUIRED | NOT-REQUIRED | NOT-REQUIRED | NOT-REQUIRED | NOT-REQUIRED |
| Non-Commercial Organizations | Special Accounting Rules | REQUIRED | NOT-REQUIRED | NOT-REQUIRED | NOT-REQUIRED | NOT-REQUIRED | NOT-REQUIRED |
*Enterprises of the fourth category are allowed to use IFRS for SME standards upon their decision.
**Publication of financial statements is the obligation of the Service for Accounting, Reporting and Auditing Supervision.
***Enterprises of the first category whose activities involve the use of subsoil (including oil and gas extraction) or timber harvesting in a natural forest, are obliged to prepare and submit a report on payments made to the State on an annual basis.
Disclaimer: The table provided above is by no means conclusive. It aims to show the general trends and concrete requirements shall be determined in coordination with the SBC Audit team.
Non-Statutory Audit Service
SBC Audit offers a non-statutory audit service that can be conducted at the request of the directors, trustees or shareholders of any business entity registered and/or operating in Georgia. Non-Statutory audit services can validate how the business is performing financially or highlight issues that need to be addressed. Non-Statutory audit is of great value when selling a private business, by giving investors/buyers an independent professional view of the company’s financial position. Audit reports serve as the basis for obtaining additional finance from institutional or private lenders by providing assurances to creditors and/or suppliers.
Tax Compliance & Consulting Services
SBC Audit offers tax compliance and consulting services to all forms of business entities and taxpayer natural persons. Our professionals have built tax consulting services to create the right tax support and strategies that drive growth, maximize profits, manage risks and create value. With an understanding of industry idiosyncrasies, dedicated experts, creative and innovative approach, our team offers the following services:
● Tax planning utilizing opportunities within tax law;
● Implementing best practices and innovative tax reliefs;
● Preparing and submitting annual tax returns;
● Professional tax advice and consultations related to general tax matters;
● Reporting clients’ weak links in corporate tax strategies;
● Tax guidance through Georgian and international tax requirements;
● Developing tax strategies to strengthen client’s tax approaches;
● Maximizing tax relief on capital expenditure;
● Reporting on legislation changes that affect the clients.
Representation in Tax Disputes
Out tax experts have an extensive experience in working for the Revenue Service of Georgia (RS) and representing the clients in tax disputes. We help our clients achieve the most effective and efficient way to resolve their tax disputes. Our goal is to minimize the tax burden, reduce stress and eliminate obstacles in the process. Our professionals will help you throughout the entire tax dispute process, starting with audit inspections, involving participation in audit inspections, conducting recalculations and/or parallel calculations, representing the clients with the Revenue Service and the Council of Tax Appeals within the Ministry of Finance.
Accounts Advisory Services
Our professionals offer accounts advisory services that include the provision of expert recommendations, options, and strategies to help client business entities achieve their financial and operational goals. The SBC Audit team is well-equipped to guide our clients in the process of making better-informed business decisions, increasing their profits and cash flow, and avoiding potential problems. Accounts advisory services go beyond compliance services, preparation of financial reports and filing taxes. It examines the present financial condition of the business entity, looks into the future and provides guidance to the clients to maximize their profits.
Accounting Services
We offer all-inclusive service to clients that helps the clients to get set up, maximize profits and grow their business. Our professionals provide the following accounting and related services:
● Bookkeeping;
● Bank Reconciliations;
● Invoicing/Accounts Receivable/Accounts Payable servicing;
● Financial statements preparation: reviews and compilations;
● Accounting in accordance with the IFRS and US GAAP standards;
● Making and implementing the policy of financial accounting;
● Preparing reports for management and current periodic financial analysis;
● Accounting program selection and management of accounting software programs;
● Assisting in the preparation of IFRS accounting manuals and their implementation;
● Payroll processing;
● Bill paying services;
● Budgeting and cash-flow forecasting;
● General business consulting: best practice recommendations.
Confirmation of the Pricing Adequacy
SBC Audit offers the pricing adequacy confirmation service to the client companies involved in the tender process. According to the Order N9 of the Chairman of the State Procurement Agency of April 7, 2011 (``On the Approval of Simplified Procurement, Simplified Electronic Tender and Electronic Tender Procedure``), the winning bidder with the lowest price proposal has the obligation to substantiate the adequacy of pricing in the tender documentation, if the final price recorded by it in the system is 20% or more below the estimated purchase price. Our Professionals will examine the documentation submitted by the companies and prepare the relevant conclusion in the shortest possible time.
Project Financial Management
Our professionals provide clients with project financial management service that involves project accounting during funding provision designated for long-term projects. It involves managing projects’ financial aspects such as cost, revenue, and profit. Our team brings together planning, estimating, budgeting, funding, commercial and financial structuring of projects, managing project expenses, and billing.
Evaluation of the Business
SBC Audit offers its clients business valuation services that enable them to determine a company’s monetary value in the process of sale, international transactions, leveraged buyouts, mergers and acquisitions, and/or project finance deals.