Financial, Tax and Sustainability Peculiarities in Large Georgian and Foreign Companies

In the modern business environment, financial reporting has proven to be one of the main communication tools, typically combining the financial position and performance of companies. In terms of sustainability, unlike foreign companies, Georgian companies, with a few exceptions, do not yet pay much attention to disclosing sustainable development indicators in their financial or management reports. However, the introduction of new European international sustainability standards in Georgia will already contribute to the development of this practice. From a tax perspective, the introduction of sustainability reporting standards will likely gradually create the prerequisites for implementing relevant tax changes. In summary, financial reporting, as a systematic and complex business tool, requires both standardization and industry-specific flexibility. Large companies, which contribute a large part of their revenues to the development of the country's economy, are recommended to collectively and comprehensively consider not only the requirements of internationally recognized financial reporting standards (IFRS), but also the requirements of sustainability standards (ESRS 1, 2), other environmental issues based on industry specifics, which will further enhance their corporate responsibility.