Browsing by Author "Sabauri, Levan"

Now showing 1 - 7 of 7
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    Issues of accounting for the impairment of financial instruments
    (Ivane Javakhishvili Tbilisi State University Press, 2019) Kvatashidze, Nadejda; Sabauri, Levan
    Users of financial reporting information are interested in whether there is a risk of impairment of financial instruments – the likelihood of emerging a loss due to non-compliance with contractual obligations. To provide the users with a fair information on the financial instrument, IAS 9 „Financial Instruments” requires their testing on impairment . A purpose of impairment-related requirements is to recognize the expected credit loss for all financial instruments in the financial statements. IAS 9 requires to measure an impairment of the financial instruments by the Expected Credit Loss (ECL) model – to recognize the financial assets by amount of the ECL. A purpose of this model is to provide users of financial reporting information with the relevant information on the volume, timing and future uncertainties of a reporting entity. Therefore, under this model, a company should not postpone the recognition of credit losses until there is objective evidence of impairment. Rather, this model requires the recognition of credit losses throughout the existence of a financial asset and the updating of expected losses at each reporting date in order to provide timely a relevant information to stakeholders.
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    The modified role of internal audit in COVID-19 pandemic conditions
    (Ivane Javakhishvili Tbilisi State University Press, 2021) Sabauri, Levan
    New reality drives the changes not only for the industries, cities, countries, or the world but forces us to follow these changes. The article aims to present how the pandemic impacted internal audit and the responses the auditors should take in the Covid crisis. The article also discusses the necessities that caused changes in the role of internal audit during the pandemic. While discussing the change in the role of an audit we elaborate on the stages that provide reduction of the risks with the help of the audit and preserve stable financial condition for the company.
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    On recognition of contract asset and contract liability in the financial statements
    (Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics, 2023) Sabauri, Levan; Vardiashvili, Mariam; Maisuradze, Marina
    With the publication of the International Financial Reporting Standard (IFRS) 15 “Revenue from Contracts with Customers”, approaches to recognition and methods of measurement of the revenues have changed fundamentally. The standard considers a contract liability as a reference point for accounting coordinates, for transferring control over an asset (goods or services) and determining the moment of recognition of revenue to the seller. In the fulfillment of the performance obligations in the contract with the customer, assets or liabilities may arise that are directly related to the performance of the terms of the contract by any of the parties to the contract. Depending on the situation in terms of the fulfillment of the obligation by the entity and payment by the customer, the entity must reflect this contract in the statement of financial condition in the form of a contract asset or a contract liability The article discusses the terms of reflection of a contract asset and a contract obligation in the financial statements, and the difference from such traditional objects of accounting as trade requirements and trade obligations. The study of a contract asset or contract obligation is important because it improves general purpose financial statements, providing financial information to the users of financial statements that will be useful for making decisions about the supply of resources to a given entity. The article deals with the opinions and views of various researchers related to this issue.
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    Reflection of post-pandemic changes in financial statements
    (Ivane Javakhishvili Tbilisi State University Press, 2023) Sabauri, Levan; Kvatashidze, Nadezhda; Khorava, Anzheli; Gogrichiani, Zeinab
    The article discusses the changes made by the International Accounting Standards Board (IASB) in the post-pandemic period to the International Financial Reporting Standards and the new challenges of the Board. It also analyzes the impact of the changes on the information in the financial statements. Namely, the changes in the following standards are discussed: IAS 1; 16, 37; 39; IFRS 3; 7; 9; 16.
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    Some aspects of loan and capital financial instruments
    (Ivane Javakhishvili Tbilisi State University Press, 2020) Sabauri, Levan; Kvatashidze, Nadezhda
    Financial Instruments are any contract that generates both the financial assets of one enterprise as well as the financial liability of the second enterprise or the equity instrument. In many cases, the contract does not clearly indicate what the enterprise has to do with financial liabilities or equity instruments. Emission and equity instruments are implemented in different conditions, which determine the actual economic content of the instrument. Their recognition, measurement and accounting procedures differ significantly, while their correct classification affects the financial indexes and the financial conclusions and decisions made by an user of the financial information. Thus, it is important to properly identify, measure and reflect in the financial statements all financial instruments.
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    Topical issues of ensuring the internal quality control of the auditing organizations
    (Ivane Javakhishvili Tbilisi State University Press, 2018) Sabauri, Levan
    The article discusses theoretical and practical challenges of quality control in audit organizations. Different school of thoughts are explored in the related scientific literature. Therefore we focus on the characteristics of quality control in large and small audit organizations and the importance to develop internal corporate standards. We analyzed main challenges arising during the quality control based on the annual report of the respective control services. We present the assessment principles and procedures for ensuring quality control according to the International Audit Standards. The focus is on the quality control features in the large and small audit organizations and the need to develop internal corporate standards.
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    Uncertainty about the estimation of Ffnancial statement information and fair presentation
    (Ivane Javakhishvili Tbilisi State University Press, 2023) Sabauri, Levan; Kvatashidze, Nadejda
    From 2023, the amendments to IAS 8 are intended to provide more clarity to the distinction between accounting policies and accounting estimates. The correct identification of differences affects the fair presentation of financial statement information. To clarify the difference between these concepts, the Board replaced the concept of “changes in accounting estimates” with the concept of “accounting estimates”. As a result of the amendments, the accounting estimate is defined as “the amount of money reflected in the financial statements which is subject to estimation uncertainty.”