---
title: "Financial Statement Preparation"
url: "https://legal.ge/en/service/accounting-and-financial-advisory-en/financial-statement-preparation-en"
field: "Accounting & Financial Advisory"
description: "Financial statement preparation: standards, audit duties, 1 October deadline and 6-year retention. Legal.ge."
reviewed: "2026-07-09"
updated: "2026-11-08"
publisher: "legal.ge"
---

# Financial Statement Preparation

> Source: legal.ge, https://legal.ge/en/service/accounting-and-financial-advisory-en/financial-statement-preparation-en

## Foundations of Bookkeeping

Financial statement preparation begins with properly kept accounting records: the entity keeps its accounts on the basis of natural units of measurement, in generalised monetary expression, with chronological, continuous and documented reflection of events. The records may be kept through an employed accountant or an accountant providing professional services, as well as through services rendered by an accounting or an audit firm. Economic events are entered in the records under the double-entry principle, immediately upon occurrence, and are attributed to the period to which they relate. Every entry carries defined requisites — the date of the operation, the debit and credit accounts with the amounts, a short description and the reference to the primary document. A primary document confirming an economic event carries mandatory requisites: its name and number, the date of compilation, the economic content of the operation, the names and identification data of the participating persons, signatures, and monetary or quantitative data. The entity itself determines its accounting policy, develops the chart of accounts, builds the mechanism for producing and controlling documents, and establishes an internal control system that safeguards the reliability of the reporting. Accounting documents are signed by the person responsible to the management, the accountant, or other persons with the authority defined by internal policy.

## Principles and Standards of Reporting

Financial statements must be complete, correct and fair: for the comparable period they must reflect the entity's financial position, the results of its activity, the movement of funds and capital, and explanatory notes. The information given in the statements must conform to the fundamental qualitative characteristics defined by the international standards of financial reporting. An entity prepares financial statements at least once a year, and the selected accounting policies and methods must be applied consistently. A special rule concerns fourth-category enterprises and non-commercial legal persons: their statements are prepared only in accordance with the standards established for them. The documents presenting the statements must indicate the entity's name, legal form, legal address and registration data, so that every report is identifiable and verifiable at any moment.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/accounting-and-financial-advisory-en/financial-statement-preparation-en

### On what principles are statements prepared?

They must be complete, correct and fair, reflect the financial position, results and movement of funds, and conform to the qualitative characteristics of the international standards.

### When must statements be submitted?

By 1 October of the year following the reporting period; for a non-calendar period — no later than 9 months after its end.

### Does the Service publish the statements?

Yes, submitted statements are published within 1 month, except fourth-category enterprise statements, which a person may request under the set procedure.

### Can bookkeeping be outsourced?

Yes, records may be kept through an accountant providing professional services or through an accounting or audit firm.