International Financial Reporting Standard (IFRS)

The new International Financial Reporting Standard 9 (IFRS 9) Financial Instruments comes into effect starting January 1, 2018, for all entities reporting under the IFRS. This new standard is the biggest change in 10 years in the accounting for financial instruments, fundamentally redrafting the accounting rules, replacing the incurred loss impairment model with a more forward looking expected loss model, as well as bringing new methodology for financial instruments classification.

Starting 2018, Georgian small and medium enterprises (SMEs) will transition to IFRS for SMEs. This important step is expected to raise financial transparency of Georgian businesses, increasing their opportunities for investment and simplifying access to credit. To support the local business community and assist SMEs in this important change, the Georgian Service for Accounting, Reporting and Auditing Supervision (SARAS) has launched a series of education events to raise awareness about the Standard and collaborate with the wider stakeholder groups in the country.

Serbian Finance Minister and other government and EU representatives discuss reform progress and share experiences

• Serbian Finance Minister Dusan Vujovic joined senior representatives from the World Bank Centre for Financial Reporting Reform (CFRR) program beneficiary countries, CFRR development partners including the European Commission, and the Governments of Austria, Switzerland and Luxembourg, as well as World Bank/CFRR representatives in Brussels on 29 March 2017.
• The meeting was convened to discuss financial reporting reform progress in countries in the Wester

Supervisory staff of the National Bank of the Kyrgyz Republic (NBKR) are better equipped with the knowledge and tools on International Financial Reporting Standards (IFRS) requirements. A four-day training program focused on IFRSs specifically used in banking sector was delivered with KAREP support between February 01 and 08, 2022.

A two-day virtual forum for banking and insurance regulators was delivered by the CFRR on December 13 and 14, 2021 under two flagship regional programs: Strengthening Auditing and Reporting in the Eastern Partnership (STAREP) and the Road to Europe Program of Accounting Reform and Strengthening Institutions for Small and Medium Enterprises (REPARIS for SMEs). Representatives of regulators from Kazakhstan and the Kyrgyz Republic also joined the event.

A virtual seminar was organized to support STAREP countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine) to better understand the objective and the structure of the recently announced comprehensive review and request of information by the International Accounting Standards Board (IASB) on IFRS for SMEs with a final aim to provide IASB a regional consolidated response to the request for information.

During the first week of May, the regional "Strengthening Auditing and Reporting in the Eastern Partnership" program hosted several knowledge and capacity events aimed at strengthening accounting and auditing profession in Georgia. Joining forces with the Service for Accounting, Reporting and Auditing Supervision (SARAS) and IFRS Foundation, the World Bank’s CFRR delivered two roundtables dedicated to the accounting education and professional development, as well as IFRS Workshop.

The conference on October 2nd featured speakers from the World Bank, the Professional Accountancy Organization Development Committee of the International Federation of Accountants (IFAC), as well as representatives from Professional Accountancy Organizations (PAOs) in Poland, the Kyrgyz Republic, and Georgia. The discussions focused on changes in Accounting Law, how to achieve smooth transition by learning good international practices and overcoming challenges, as well as the implications to the accounting profession.

Over 32 representatives from Central Banks, Banking Supervisory Agencies, and Insurance Supervisory Agencies from 13 countries from Europe and Central Asia attended the Executive IFRS for Regulators Workshop on 26 and 28 November 2018, at the hotel Intercontinental in Vienna. The workshop was one of the several events around the 2018 Ministerial Conference, that took place on 27 November 2018, and was specifically directed at financial supervisors and regulators. This workshop was jointly organized by the World Bank Centre for Financial Reporting Reform (CFRR) and the IFRS Foundation.

A two-and-a-half day workshop, designed for banking supervisory staff responsible for supervising banks and drafting accounting and prudential regulations, was held in Chisinau between 5 and 7 December, 2018. Speakers included the World Bank’s CFRR senior staff, experts in accounting standards, a former member of Audit Committee of banks as well as representatives of commercial banks and audit firms from Moldova.