PMCG is Lobbying the Draft Law on Accounting and Audit

In accordance with the Law on Lobbying Activities, PMCG moved to lobby the Draft Law of Georgia on Accounting and Audit. The draft law has been elaborated by Georgian Federation of Professional Accountants and Auditors (GFPAA), with support from the World Bank (WB) and International Federation of Accountants (IFAC).

Start Date: March 2010
End Date: December 2010
Country: Georgia
Client: Georgian Federation of Professional Accountants and Auditors (GFPAA)

The main purpose of the law is to:

• introduce international accounting and audit standards in Georgia;
• simplify and improve the accounting system for small and medium enterprises;
• form transparent business environment resulting from improved accountability;
• reduce the risk factors for bankruptcy based on transparency of financial reporting.

The draft law aims to refine the legal framework for accounting, financial reporting and audit in Georgia, and to define the following: i) legal and institutional framework for accounting and reporting; ii) levels of financial reporting; and iii) rules and conditions for external audits. The draft law consists of 6 chapters: Accounting, Audit, Nominated professional organizations, Public supervision, and Transitional and Conclusive Provisions.

The role of PMCG is to launch lobbying activities related to organizing relations with legislative and executive bodies and actively cooperating with decision makers, for the purpose of adopting the amendments in the legislation. Specifically, their role involves:

• lobbying/promoting the adoption of the law on Accounting and Audit by the Parliament;
• engaging in the debates and discussions of the law on Accounting and Audit of Georgia;
• closely cooperating with state and nongovernmental organizations and make a special campaign if necessary, in the regard of approving the draft law on Accounting and Audit; and to
• revealing and explaining the advantages and necessity of the draft law to the public.

The Law on Lobbying Activities was adopted by the Parliament in 1998, although there have been fairly few provisions of applying it and very small number of registered lobbyists in Georgia since then. Therefore PMCG’s precedence can be regarded as a significant impetus for stirring up the official lobbying activities in the country.