Challenges of Meeting International Financial Reporting Standards for SMEs in Georgia

Abstract

The paper focuses on the challenges faced by small and medium-sized entities (SMEs)  in Georgia through adopting International Financial Reporting Standards (IFRS) for SMEs. It describes a new law issued in 2015 by the Parliament of Georgia, according to which entities should use translated versions of IFRS, IFRS for SMEs, International Standards for Auditing (ISA) and the last publication of International Ethics Standards Board for Accountants (IESBA) Code from January 1, 2017. International experiences of implementing IFRS for SMEs of several developing countries, which have already overcome the problems of implementation was obsrved. In addition, the paper presents research findings of the study conducted in order to identify problems faced by small and medium-sized entities in Georgia through adopting IFRS for SMEs. The paper offers the ways of resolving these problems by considering international practisesand the analysis of research results and findings. The article highlights the role of the government in this process.Keywords: financial reporting, financial statements, Georgia, International Financial  Reporting Standards (IFRS), small and medium-sized entities (SMEs)JEL: M40, M41, M48