Ministry of Economy and Finance of the Republic of Uzbekistan

Based on these, a draft project for President decree of the Republic of Uzbekistan “On further improvement of the accounting system and measures to encourage the implementation of international financial reporting standards” was developed in respect of the important priorities of the accounting system and its transfer to international standards.

The following important priorities were identified:

1) To divide the organizations that implement IFRS into specific classes based on quality criteria.

The legal status of Public-interest entities (PIE) and creating a list of them will be determined. From January 1, 2026, all PIE organizations will be required to carry out their accounting records and to prepare financial statement based on IFRS, and they also will be required to present their IFRS based financial statements together with audit reports.

2) Compliance of national accounting standards (NAS) with international principles.

Development of National Financial Reporting Standards (NFRS) harmonized with the IFRS through the unification of national accounting standards and its gradual introduction to the activities of business entities (except for organizations scheduled to transition to the IFRS);

3) Improvement of the procedures for provision of personnel with IFRS knowledge and reimbursement of studying expenses of IFRS.

In order to further expand the scope of international certification of accountants and to provide potential personnel to the IFRS adopted organizations, current reimbursement procedure to cover the costs of initial registration and examination will be available for all citizens under the age of thirty-five upon successful completion of the examination and be extended by December 31, 2027;

Current procedure applies to teaching staff and students of higher education institutions, and employees of state bodies until the end of 2025.

Also, due to unsatisfactory exam results of the applicants of internationally accredited training centers within the framework of international certification of accountants, training costs of applicants of accredited training centers will be reimbursed upon the successful completion of examination in the relevant subject within the framework of international certification of accountants.

4) Issues of coordination and methodological provision of the process of implementation of IFRS.

During the reporting year, in order to support the legal entities that are adopting the IFRS for the first time, to save their costs of implementing IFRS, and to create them an opportunity to change the roadmap and accounting policy for the transition to IFRS, the date of transition to the IFRS is set as the beginning of the period after the reporting period - January 1.

Also, development of forms of IFRS based financial statements and forms of invoices in accordance with IFRS;

development of the procedure for external monitoring and review of the quality of financial reports and establishment of mutual information exchange;

proposals were made to create and maintain a database of financial reports on the basis of Standard Business Report, which ensures the collection and storage of financial reports.

5) Based on the results of the study of the legal documents and best practices of foreign countries in the field of accounting, it is determited to develop the draft project of Law “On Accounting and Financial Reporting” in a new version, as well as concepts for the development of accounting and auditing in Uzbekistan for 2025-2030.

6) Establishing an expert group (Council) in the field of accounting and auditing, consisting of qualified specialists and practitioners, scientific pedagogues, foreign experts, in order to discuss the issues and problems related to accounting, including IFRS and auditing with the general public.

II. A number of proposals were developed to create a national system of certification of accountants and to strengthen the legal status and prestige of the profession of accountants and auditors.

gradual introduction of a new system of national certification based on a level and modular approach in accordance with International standards of education for professional accountants;

introduction of IFRS Sustainability Standards, designed to strengthen relationships between investors and companies so that investors can obtain information related to sustainability that is useful for making decisions on a global scale;

introducing the practice of “green accounting”, which is a method of measuring and reporting the impact of economic activities on the environment;

Wide promotion of the International Code of Ethics of the Professional Accountants of IFAC on the territory of the republic.

Also, considering the proposals of the general public working in the field, in order to properly encourage the honorable, hard-working and highly responsible profession of accountants and auditors, to promote the achievements in the field, and to attract young people to the field, December 9 is designated as “Day of Accountants and Auditors of the Republic of Uzbekistan”.

This draft decision was posted on project discussion portal regulations and legal acts of the Republic of Uzbekistan on July 12, 2024. Suggestions (comments) from the discussion participants regarding the draft project can be made through the following links: https://regulation.gov.uz/oz/d/101485

In addition, it is note that drafts projects of normative legal documents containing proposals for further improvement of the accounting system and encouraging the transition to the IFRS are published by the ministry of Economy and finance of the Republic of Uzbekistan.

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Ministry of Economy and Finance