Approval and Introduction of the International Financial Reporting Standards (IFRS) in Georgia: Challenges and Perspectives

摘要

In this study we discuss how important introduction of the International Financial Reporting Standards is for the Georgian auditors and how the standards affect transparency and the shareholders’ attitude to the management’s representations. The target group is the external (independent) auditors, and the randomly selected audit firms in Georgia. The initial data were gathered by means of the questionnaire distributed among the addressees and checked by means of the chi-square test and the statistical package for the social sciences. The findings confirmed that the International Financial Reporting Standards affect transparency and the shareholders’ attitude to the management’s representations. The study recommends training of the staff for better application of the standards preconditioning the shareholders’ loyalty.