IFRS Background Information
Starting from 2017, legislation requires almost all Georgian companies, both SME and large enterprises, to publicly issue their financial statement. The process has already started and all stakeholders have been trying to comply.
The reform will play a crucial role in improving overall transparency and the quality of financial management in Georgian companies. Based on those countries who have already adopted IFRS, it is observed that these standards:
- Create a transparent, comparable, consistent, and effective process in the company
- Are the most efficient way of financial process standardization
- Enable access to foreign capital and investments
- Are relevant and comparable to other local or international companies
- Develop financial staff and raise the general level of professionalism and competence
IFRS Implementation Service Overview
SavvY Consulting’s IFRS Implementation offers companies of varying scales a clear, simple roadmap for:
- IFRS Diagnostics
- IFRS Implementation
- Monitoring and audit support
We realize that not every company requires every element of the IFRS Implementation due to different levels of sophistication, conditions of internal controls, company specifications, etc. For this reason, SavvY can adapt its approach depending on client needs, time constraints, and budget.
The SavvY Approach
Our approach to IFRS Implementation starts with a fundamental understanding of the company’s finances and financial management processes, and the risks involved in existing practices and control systems. From there, we develop a dedicated training course for finance department staff, and a customized policy manual for the relevant finance department procedures. With the implementation of the new policies completed, we assist management with monitoring and auditing of the new procedures and their effectiveness.
In this service, we analyse the level of compliance/convergence of the Company’s reporting policy with IFRS and provide a detailed roadmap of how the company can achieve a successful implementation of the Standards. This includes baseline diagnostics of the financial organization and its operations, an assessment of the inherent risks, and employee training in the most relevant parts of IFRS.
Given a specific implementation guideline, we start the implementation procedures in the company resulting in new recognition and measurement criteria as well as sufficient and appropriate IFRS compliant policies
With IFRS compliant procedures and policies in place, we begin to monitor how effectively the financial organization is internalizing the new way of doing business. Pursuant to a full audit of the new procedures, we develop and embed a final set of management-level recommendations to ensure IFRS compliance.