B A R T A
THE BEST ANNUAL REPORT AND TRANSPARENCY
The European Union and the World Bank, in partnership with the National Accounting, Reporting and Auditing Reform Support Fund (RSF), have announced the opening of the 2022 Annual Report and Transparency Award (BARTA) . The aim of this competition is to increase the quality of reporting and transparency of Georgian companies. Given European and global developments, in particular the steps taken towards the introduction of sustainability reporting, this award has an even more important role to play.
BARTA was established in 2019 as part of a joint project of financial engagement and accountability between the EU and the World Bank, after the European Union (EU) launched a fundamental review of corporate financial statements. In April 2021, the European Commission initiated the Corporate Sustainability Reporting Directive (CSRD) in support of the EU's transition to a sustainable economy. As a result sustainability reporting in the EU will assume equal importance to financial reporting. Meanwhile we can expect the same globally as the IFRS Foundation looks set to develop International Sustainability Reporting Standards.
This year BARTA is open to all companies that are public interest entities (PIEs), including companies in the A and B listing categories, banks, insurance companies, etc. All companies listed on the exchange will automatically participate in the evaluation if they satisfy eligibility criteria, namely an unqualified audit opinion and timely submission of all mandatory reporting applicable to the company’s category. Other companies classified as PIEs, including commercial firms, will need to apply.
The deadline for companies to submit is October 31, 2022.
As part of the BARTA’s gradual evolution to reflect the emergence of sustainability reporting, the 2022 competition will have two awards for sustainability reporting. Reports must be based on a generally recognized framework, such as the Global Reporting Initiative, and be included within the Annual Report.
SCORING OF POINTS
(Financial and Non-Financial PIEs with more than 500 staff)
Evaluation process consists of 3 stages, including initial selection and screening, detailed evaluation of selected companies, and finally, identification of winners by a panel of judges, comprising local and international experts.
The award is only open to companies that are classified as a ‘public interest entity’ (PIE). PIEs that are listed companies (stock exchange listing A and B categories) and that meet current financial reporting requirements, as evidenced by the unmodified audit report and timely submission of the annual report to the Accounting, Reporting and Auditing Service (SARAS) (October 2021) at www.reportal.ge, will be notified that they have met the initial selection criteria and will be automatically subject to evaluation. In effect these companies are automatically nominated. All other companies classified as ‘public interest entities’ (PIEs) must apply themselves using the ‘Registration’ button above. These companies, just like listed PIEs, must meet current financial reporting requirements, as evidenced by an unmodified audit report and the timely submission of an annual report to the SARAS. In effect these companies are self nominees.
All other PIEs not included in the GSE’s A and B listings, have to file applications themselves. However, like the listed PIEs, they are to meet the effective financial reporting requirements, confirmed by unqualified audit opinion and timely submission of the annual report to SARAS.
Those companies that comply with the requirements need to self-nominate themselves by e-mailing an electronic copy of their annual report to RSF. A complete list of PIEs, including ones outside the GSE listing and that can self-nominate, is given in the respective section of the site.
Note: All banks, financial institutions, insurance companies and state-owned enterprises (SOEs) are classified as PIEs. In addition, they are reminded that they will also need to comply with their respective regulator’s reporting deadlines to be eligible for participation in the contest.
Small and Medium Companies
(PIEs with less than 500 staff)
Award winners will be determined based on an evaluation of their management reporting, corporate governance statement, non-financial information (NFI) prepared in accordance with Article 7 of the Law of Georgia on Accounting, Reporting and Auditing and the other factors(e.g. publication of reports on their website, timely filing of annual report and quality of presented financial statements). Therefore, a condition for taking part in the contest is compliance with the legal requirements.
Panel members with the assistance of local consultants will assign the scores to companies in every category. Each company will be scored out of 100% according to components shown in the table above.