Browsing by Author "Chiladze, Izolda"

Now showing 1 - 9 of 9
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    Accounting of deferred taxable asset and liability is not justified
    (Ivane Javakhishvili Tbilisi State University Press, 2018) Chiladze, Izolda
    International accounting standard 12-Income tax – regulates accounting methodic of profit tax and demands that the enterprises must account the deferred tax asset and the deferred tax liability. For this reason, the net profit indicator published in the financial statement of the enterprises is unrealistic which in one hand contradicts to requirements of basic qualitative characteristics a financial statement such as Relevance and Faithful Representation and in another hand, it allows of fraud in the financial statement. The aim of this study is to substantiation necessity of simplification of the IAS 12 – Income Tax. In the article is affirmed that accounting of the deferred tax asset and deferred tax liability derives many problems for the enterprises and the investors. They also have not an analytical role in the financial analysis of the enterprises. That is why, the leadership of the enterprises avoids to using mentioned standard 12 – Income Tax - in Georgia. This study gives the recommendation that in the IAS 12 - Income tax – bring in the changes, which will be simplified by the method of profit tax accounting in the enterprises and it will eliminate the existing problems of accounting the profit tax.
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    Actual issues of enterprise cash flow reporting
    (Ivane Javakhishvili Tbilisi State University Press, 2019) Chiladze, Izolda; Kozmanashvili, Lia
    The purpose of this article is to examine cash flow reporting indicators, quantitative relationships with other components of financial reporting, and identify trends in key money ratios for the example of analytical enterprises. Based on cash flow reporting information, it is possible to assess whether an enterprise has sufficient cash resources to meet its liabilities. Structural, coefficient and the comparative analysis methods of reporting are used for this purpose. The article examines the cash flow reporting structure and the key ratios of cash asset utilization efficiency for the three enterprises studies and makes appropriate conclusions. The study found that some companies use an indirect method of cash flow reporting, which makes their analysis imperfect. The basic method of preparing cash flows in accordance with International Financial Reporting Standards is a direct method because it is important in the analysis of cash flows. In addition, there are sometimes no internal quantitative-economic relationships between the financial reporting components of enterprises. We believe it is necessary for accounting departments, together with management, to prepare financial reporting information based on real financial-economic relationships, without any faults.
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    Aspects of the relationship between the weighted average cost of capital and profitability indicators of enterprises
    (Ivane Javakhishvili Tbilisi State University Press, 2022) Chiladze, Izolda
    The article discusses the indicators of the weighted average cost of enterprise capital (WACC) and the profitability of enterprise activities. The weighted average cost of capital (WACC) is the average rate a business pays to finance its assets. It is calculated based on the average rate of all sources of capital (both debt and equity) of the company, weighted by the proportion of each component. The higher the weighted average cost of capital is above zero and the more stable a potential investor is, the more interested he will be in buying the company's shares. Therefore, it is very important for potential investors. In addition, the managers of the enterprise are responsible for the effective management of the resources entrusted to them, which means that the business must cover the costs and additionally receive a financial surplus or profit. It is also necessary to manage and control the asset utilization ratio. The article presents a comparative characterization of the weighted average cost of capital (WACC) and profitability. Draws relevant conclusions.
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    Business stability and Christian outlook
    (Ivane Javakhishvili Tbilisi State University Press, 2019) Chiladze, Izolda
    After the discovery of the atom, it was widely distributed concept in the world that as a result of the spread of scientific, technical and enlightenment ideas, religion would gradually lose its importance. The concept of"holy" and "beyond" would be forgotten. But these assumptions did not come true. Neither science nor widespread enlightenment nor total repression could separate religion from human consciousness. Moreover, the latest scientific research in high-energy physics already confirms the existence of the "beyond". Theologians write: There are only three things that can be done for God: "Creation out of nothing, knowing the future, and governing of the conscience". With the advent of modern complex and endless types of goods and globalization, business stability has become even more important internationally. The high culture is the fundamental of the business stability: profitability, solvency and security. In order to be successful and competitive in an internationally man-made international market, people need to understand the processes of spiritual development. Today, millions of people of different national and ethnic backgrounds and customs are involved in international trade and economic relations. Nevertheless, modern business relationships in themselves form the common values of the business culture that "by itself", whether it be by anyone or whether one thinks about it, is gradually approaching Christian morality: „"love each other"; "Carry each other's burdens"; „Whatever you do, work at it with all your heart, as working for the God, not for human masters“. In line with the Christian outlook for real business stability and development, the following suggestions were developed in the article: 1. Whoever repays the loan and its benefits on time, the borrower may eventually be awarded a cash bonus; 2. If the borrower becomes insolvent, he or she will not be penalized; 3. It would be good if an unemployment compensation fund were set up in Georgia, where a certain percentage of the first and second category of enterprises would transfer from their profits and from wages all emploieds.
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    Changes in the financial results and risks of enterprises after the pandemic in Georgia
    (Ivane Javakhishvili Tbilisi State University Press, 2022) Chiladze, Izolda; Toria, Tamar
    The aim of the research is to assess the financial efficiency and quality of financial risks of enterprises before and after the pandemic in Georgia, on the example of analytical enterprises. The research is conducted on the example of fifteen companies in twelve different fields of the Georgian economy. The research is conducted on the example of fifteen companies in twelve different fields of the Georgian economy. After the pandemic, there is a significant decline in the profitability and solvency of all analytical enterprises, when the negative results are already established. Companies do not have sufficient cash and are unable to repay liabilities. In order to get out of the post-pandemic crisis situation, we consider it advisable to implement the following measures: It is necessary to pursue a solidary economic policy in the state. There may be only value added tax, excise and income taxes
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    Christian paradigms of economics
    (Ivane Javakhishvili Tbilisi State University Press, 2021) Chiladze, Izolda
    The present work presents the paradigms (theses) of the Christian worldview of economics, which are based on the glory of the All-Holy Trinity and the ultimate perspective of mankind on “a new heaven and a new earth.” Glory to God, protection of human dignity and private property, mercy, initiatives, industry, investments, family - as a basic economic unit, harmonious relationship between family and society, generosity, guardianship, quality labor, distribution of working time, protection of ecological environment, necessity of taxes, protection of the poor and the ultimate hope for the end of mankind are the Christian paradigms of economics that brings true happiness to mankind “within two countries.” Christians must look to the eschatological promise of the New Heavnes and New Earth as our ultimate economic hope. We must lay up treasures in heaven and not on earth.
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    Discussion aspects of conceptual framework for financial reporting
    (Ivane Javakhishvili Tbilisi State University Press, 2021) Chiladze, Izolda; Sreseli, Nana
    Based on the methods of comparative analysis and professional judgment, the article discusses the recent changes in the “Сonceptual Frameworks for Financial Standards” regarding the definition of assets and its valuation methods, and the relevant conclusions are made. The following conclusions and recommendations are made: • Assets’ impairment losses are calculated from the sale of products made by the noncurrent asset based on future cash flows, whereas finished goods are not produced solely through the participation of long-term assets; • The probability of the influence of uncertainties and subjective factors is high. In particular, management may show a profit even in the event of an economic crisis or show a loss in order to reduce the tax burden; • The revaluation methodology is also influenced by changes in the financial policy of the banking sector, which further increases the degree of uncertainty; • Due to the fact that the conceptual basis of financial reporting is global in nature, the application of existing methodologies in individual countries may provoke economic crises internationally. Recommendations: • Revaluation of long-term assets should be done only at the time of their decommissioning and in case of any serious damage; • The definition of assets should be formulated as follows: An asset is a resource that an enterprise controls as a result of past events and has the potential to generate economic benefits.
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    The importance of financial reporting transparency and ways to improve its analysis in Georgian enterprises (research project for enterprise management)
    (2019) Chiladze, Izolda; Maisuradze, Marina; Vardiashili, Mariam; Kozamnasvili, Lia; Modebadze, Tamar
    The association agreement between Georgia and the European Union obliges Georgia to gradually bring its legislation into line with EU law and international legal instruments. One of the areas that European legislation dictates to Georgia is to increase the transparency of business financial reporting in the country. This will help increase the quality of enterprise management. Following the signing of the Association Agreement with the EU, Georgian enterprises are required to publish financial statements. In Georgia necessary to establish transparency of financial reporting. Financial reporting is a key information source for analyzing the financial and economic performance of companies. This information helps enterprise management to fully control the company's solvency, financial position, risks and profitability, and to make adequate decisions. Thus, the issues of the financial reporting methodology have not lost its actuality. The purpose of the research project is to develop and deliver methodological and practical recommendations for financial reporting analysis to Georgian enterprises as well as to other stakeholders. The subject of the project research is the financial statements published on the financial reporting portal, based on which the recommendations will be developed for the identified gaps. The study was selected ten Georgian enterprises from different sectors, except for the financial sector. The study uses quantitative and qualitative analysis methods. Specifically, mathematical tools, factor elimination method, vertical, horizontal and ratio analysis methods are used. The practical significance of the study is that any practical and methodical recommendations provided by the community process can be applied to any enterprise registered in Georgia (except the financial and public sector). The report recommends that all enterprise management regularly apply the methods of vertical, horizontal and coefficient analysis of financial statements presented in this work; Using a multi-factor model of cash flow numbers, organic capital structure, profitability, operational and financial leverage indicators developed by one of the authors will help enterprise management measure the impact of factors on the deviation of these indicators and make appropriate decisions. The research presented in Georgia is the first attempt to help business owners and managers understand, on the one hand, that the transparency of financial statements, which not only publishes them but also publicly discusses them, is not unnecessary or dangerous. This scientific-research project will be provided to all interested persons as a recommendation. The successful implementation of project recommendations in practice will be one of the strong empirical results of cooperation and partnership between the scientific sector and the practical economic sector. Keywords: financial reporting, transparency, solvency, profitability, leverage, factor-models.
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    Trends in financial risks of enterprises in Georgia in the post-covid 19 period
    (Ivane Javakhishvili Tbilisi State University Press, 2023) Chiladze, Izolda
    The analysis showed that the financial risks caused by the pandemic are still high in the majority of enterprises operating in Georgia. In our opinion, one of the indicators of business stability today is the share of reinvested profit in net profit, which should be paid more attention by the enterprise management. Enterprises also need some financial assistance from the government in order to overcome the current crisis, and as a result, the policy of paying taxes by enterprises in the state budget will be activated. Also, we think it is necessary to improve the quality of the management and control of the torture itself.