Entity category
Enter the three indicators at the end of the reporting period – the category and its duties appear at once.
Under the Law of Georgia on Accounting, Reporting and Auditing, every enterprise belongs to one of four size categories, decided at the end of the reporting period by three indicators: total assets, revenue and the average number of employees. An enterprise falls into the smallest category whose thresholds it meets on at least two of the three. The category determines the reporting standard, whether an audit is mandatory, and what must be filed with SARAS.
Banks, microbanks, microfinance organisations, insurers, listed issuers, pension and investment companies, credit unions, or entities designated by SARAS
| Criterion | Threshold | Your figure | |
|---|---|---|---|
| Total assets | ≤ 1,000,000.00 | 800,000.00 | ● met |
| Revenue | ≤ 2,000,000.00 | 1,500,000.00 | ● met |
| Average employees | ≤ 10 | 8 | ● met |
Checked rows are the thresholds this company meets – at least two of three place it in this category.
What this means for the company
- Financial statements under full IFRS (mandatory)
- Financial statements under IFRS for SMEs (full IFRS optional)
- SARAS's simplified standard for Category IV enterprises (IFRS for SMEs or full IFRS optional)
- Annual audit of the financial statements is mandatory
- No statutory audit obligation (unless another law requires one)
- A management report must be prepared and filed alongside the financial statements
- No management report is required
- File with SARAS via reportal.ge no later than 1 October of the following year (a non-calendar reporting year: within 9 months of the period end)
- Extra explanatory-note disclosures (revenue by segment/market, auditor remuneration); businesses using subsoil or harvesting timber also file a report on payments to the State
- A PIE must additionally publish its statements on its own website or in print
- PIE status overrides size: full IFRS, mandatory audit and a management report apply regardless of the figures above
Worth knowing
- The test is “at least two of three” at the end of the reporting period – a single indicator above the caps never lifts the category on its own.
- The category changes only after the new criteria hold for two consecutive reporting periods; a jump of two or more categories takes effect immediately.
- For a group, the parent's consolidated figures decide the category of the whole group.
- An enterprise may always opt into the standards of a higher category voluntarily.
ZUSTI fills these three indicators from your books by itself
The balance sheet, revenue and the employee register are already in the books – the category and its reporting duties in one click.
Standalone calculators – they do not create any accounting entries. Figures are estimates for guidance only, not tax or financial advice. Georgian rates effective 2025: income tax 20%, pension 2% + 2%, VAT 18%, corporate tax 15%. Verify against current law before relying on them.