![\"\"](\"https:\/\/ants.ge\/wp-content\/uploads\/2019\/11\/categories-2.png\")
<\/p>\nWhat changed?<\/b><\/p>\n
In 2018 important amendment was implemented in the field of finance, which significantly changed the state\u2019s approach. Before 2018, apart from very small number of firms, companies did not have to publish their financial statements. Starting from 2018, state gradually introduced annual mandatory reporting.<\/p>\n
Namely, companies were divided into four categories:<\/p>\n
The\u00a0first<\/b>\u00a0and\u00a0second<\/b>\u00a0category entities became obliged to file 2017-year annual report no later than 1 October 2018.<\/p>\n
Third<\/b>\u00a0category entities became obliged to file 2018-year annual report no later than 1 October 2019.<\/p>\n
Fourth<\/b>\u00a0category entities became obliged to file 2020-year annual report no later than 1 October 2021.<\/p>\n
What is the category assigned to your company?<\/b><\/p>\n
Companies are assigned categories based on their sizes. The sizes depend on three criteria: 1) total assets; 2) revenues; and 3) average number of employees during the year. To be assigned a specific category, entity must satisfy\u00a0at least two<\/b>\u00a0of the three criteria for that category. The below table will help you to ascertain your company\u2019s category:<\/p>\n
<\/p>\n
Does a mandatory audit apply to my company?<\/b><\/p>\n
Based on the new regulations, the\u00a0first<\/b>\u00a0and\u00a0second<\/b>\u00a0category entities must conduct the mandatory audit. In other words, apart from the fact that the first and second category entities must publish their financial statements, they must also conduct an audit of those financials before publishing. As for\u00a0third<\/b>\u00a0and\u00a0fourth<\/b>\u00a0category entities, they do not have to conduct mandatory audit, which means that they only must prepare and publish financial statements, however they do not have to conduct mandatory audit before publishing.<\/p>\n
What if my company fails to publish the mandatory annual report?<\/b><\/p>\n
Failing to comply with the law will result in penalties. Failing to comply\u00a0within one month<\/b>\u00a0from the receipt of warning notice from the state, penalty amount will double in size.<\/p>\n","protected":false},"excerpt":{"rendered":"
What changed? In 2018 important amendment was implemented in the field of finance, which significantly changed the state\u2019s approach. Before 2018, apart from very small number of firms, companies did not have to publish their financial statements. Starting from 2018, state gradually introduced annual mandatory reporting. Namely, companies were divided into four categories: The\u00a0first\u00a0and\u00a0second\u00a0category entities […]<\/p>\n","protected":false},"author":1,"featured_media":30,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-31","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n