1. Public Sector Accounting and Reporting in Georgia
Minsk, Belorussia
2016

2. Implementation of IPSAS Action Plan
Stage
Activity
Year
1 Initiation
Public sector accounting strategy; IPSAS council established
2010
2 Piloting
Piloting of IPSAS-based modified cash method
2012
3 Modified cash method based on IPSAS
Consolidated government financial statements based on modified cash method
2015
4 Limited accrual
Consolidated government financial statements with limited information in line with IPSAS
2017
5 Accrual method in line with IPSAS
Financial statements fully in line with the accrual method pursuant to IPSAS
2020
6 Continuously
Continuous implementation of new IPSAS
Continuously

3. Standards Introduced
IPSAS 2 Cash Flow Statements (2014) IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors (2014) IPSAS 4 The Effects n Changes in Foreign Exchange Rates (2014) IPSAS 6 Consolidated and Separate Financial Statements (2014) IPSAS 13 Leases (2015) IPSAS 19 Provisions, Contingent Liabilities and Contingent Assets (2015) IPSAS 22 Disclosure of Financial Information About General Government Sector (2015) IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers) (2015) IPSAS 24 Presentation of Budget Information in Financial Statements (2015)

4. TA Area A review of Georgian public sector for IPSAS compliance;
Designing a detailed IPSAS implementation plan to reach full compliance with IPSAS by December 31, 2020

5. Obstacles ... Discrepancies ...
Fitting the new standards into the existing legislation and avoiding conflict between the two sets of accounting and reporting requirements;
Consolidation procedures:
Stage One: Аggregate all public sector organization into GGS. This means adding all public sector organizations’ balances to the year-end so that to draw all these balances and produce a financial position report and financial performance report pursuant to the current legislation.
Stage Two: Amend aggregated outcomes pursuant to the IPSAS (e.g. internal balance and transactions of organizations should be eliminated).

6. Resolving problems
IPSAS may be introduced irrespective of the current legislation to avoid any conflict with the legislation
Note: not all issues related to the introduction of new standards can be identified; even if it were possible to identify them, it would be impossible to respond without further review and analysis of the standards introduced.
Any legal requirement set forth by a new standard must not revoke the current legislation, even if there is an obvious conflict between IPSAS and the current rules and laws.
Option one: legislation may comprise a provision for the introduction of new standards
Option two: similar provisions may be introduced into each standard.

7. A Detailed IPSAS Implementation Plan (2017-2020)
2018
2019
2020
IPSAS 1 Presentation of financial statements
IPSAS 25 Employee benefits
IPSAS 12 Inventories
IPSAS 10  Financial reporting in hyperinflationary economies
IPSAS 5 Borrowing costs
IPSAS 28  Financial instruments: представление
IPSAS 17 Property, plant and equipment
IPSAS 11  Construction contracts
IPSAS 9 Revenue from exchange transactions
IPSAS 29 Financial instruments: recognition and measurement
IPSAS 21 Impairment of non-cash-generating assets
IPSAS 18 Segment reporting
IPSAS 14 Events after the reporting date
IPSAS 30  Financial instruments: disclosures
IPSAS 26 Impairment of cash-generating assets
IPSAS 20 Related party disclosures
IPSAS 16 Investment property
IPSAS 33 First-time adoption of accrual basis IPSAS  
IPSAS 31 Intangible assets
IPSAS 27 Agriculture
IPSAS 36 Investment in acssociates and joint ventures
IPSAS 32 Service concession arrangements: grantors
IPSAS 34 Separate financial statements
IPSAS 37 Joint arrangements
IPSAS 35 Consolidated financial reporting
IPSAS 38 Disclosure of interest in other entities