Assistance to the Treasury Service of the Ministry of Finance of Georgia in the development of a detailed work plan for transition to International Public Sector Accounting Standards

Michael Parry Consulting together with PMCG implemented the project to assist the Treasury Service of the Ministry of Finance of Georgia to conduct a study on the accounting system. Dr. Michael Parry, project team leader, is one of the world’s experienced and recognized consultants in the public finance. He assisted the Treasury Service of the Ministry of Finance of Georgia to conduct a study on Georgian accounting system with respect the implementation of the International Accounting Standards for Public Sector. PMCG provided accounting expertise and local support to fulfill the assignment.

The Ministry of Finance of Georgia approved the “Accounting Reform strategy”. The application of IPSAS had several benefits including, most notably, transparency, understandability and easy public access to information on public sector finances. It also supported to identify areas in which better financial practices could be adopted and would increase the utility of the Government’s financial statements by, for example, supporting and reflecting management’s need for detailed information for decision-making purposes.

Michael Parry Consulting and PMCG provided following deliverables:

• Study of the value-added of IPSASs:
• Review of existing accounting system and respective regulations;
• The set of accounting policies including draft regulations, sample reporting forms, prototype chart of accounts and proposed resolutions for specific issues listed above;
• The draft action plan for implementation of International Public sector accounting standards;
• The final detail action plan for implementation of International Public sector accounting standards.