Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
64
IMPACT OF IMPLEMENTING INTERNATIONAL FINANCIAL REPORTING STANDARDS IN
JOINT STOCK COMPANIES ON THE NATIONAL ECONOMY
Assoc. prof.
Imamova Nasiba Muzafarovna
Tashkent State University of Economics
ORCID: 0009-0004-1970-1349
Abstract.
Today, two benchmarks - International Financial Reporting Standards - IFRS
(International Financial Reporting Standards - IFRS) and the generally accepted accounting rules of
the USA - BHUQ (Generally Accepted Accounting Principles - GAAP) are recognized as the standard
of accounting. According to the analysis, there is almost no accountant in the world who is not aware
of MHXS. Also, the number of countries that recognize international standards is increasing day by
day. Also, the number of countries that recognize international standards is increasing day by day. It
serves as an important tool in mutual cooperation between the countries of the world, including in
the development of economic relations, especially in improving the investment environment. This
article covers a number of aspects such as MHSS, international experience, and its use in the countries
of the world.
Key words:
international standards of financial reporting - IFRS, reporting, accounting,
investment, transformation, interpretation.
MOLIYAVIY HISOBOTNING XALQARO STANDARTLARINI AKSIYADORLIK JAMIYATLARDA
JORIY QILINISHINING
MAMLAKAT IQTISODIYOTIGA TA’SIRI
Dots.
Imamova Nasiba Muzafarovna
Toshkent davlat iqtisodiyot universiteti
Annotatsiya.
Bugungi kunda buxgalteriya hisobining haqaro standarti sifatida ikkita etalon
–
Moliyaviy hisobotning xalqaro standartlari - MHXS (International Financial Reporting Standards -
IFRS) hamda AQSHning Buxgalteriya hisobining umumqabul qilingan qoidalari - BHUQ (Generally
Accepted Accounting Principles -
GAAP) tan olinmoqda. Tahlillarga ko‘ra, jahonda MHXS haqida
xabardor bo‘lmagan buxgalter deyarli yo‘q. Shuningdek, dunyo miqyosida kun sayin xalqaro
standartlarni eʼtirof etuvchi mamlakatlar soni oshib bormoqda. U dunyo
mamlakatlari o‘rtasida
o‘zaro hamkorlikda, jumladan iqtisodiy munosabatlarni rivojlantirishda, ayniqsa, investit
siya
muhitini yaxshilashda muhim vosita bo‘lib xizmat qilmoqda. Mazkur maqolada MHXS, xalqaro
tajriba, dunyo mamlakatlarida qo‘llanilishi kabi bir qator jihatlar yoritib o‘tilgan.
Kalit so‘zlar:
moliyaviy hisobotning xalqaro standartlari
–
MHXS, hisobot, buxgalteriya hisobi,
investitsiya, transformatsiya, interpretatsiya
UO
‘
K: 657.1
IV SON - APREL, 2024
64-70
Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
65
ВЛИЯНИЕ ВНЕДРЕНИЯ МЕЖДУНАРОДНЫХ СТАНДАРТОВ ФИНАНСОВОЙ ОТЧЕТНОСТИ
В АКЦИОНЕРНЫХ ОБЩЕСТВАХ НА ЭКОНОМИКУ СТРАНЫ
Доц
.
Имамова Насиба Музафаровна
Ташкентский государственный экономический университет
Аннотация
.
На сегодняшний день в качестве стандарта бухгалтерского учета
признаны два эталона –
Международные стандарты финансовой отчетности –
MСФО
(Международные стандарты финансовой отчетности –
IFRS) и общепринятые правила
бухгалтерского учета США –
BHUQ (Общепринятые принципы бухгалтерского учета –
GAAP). Согласно анализам, в мире практически нет бухгалтера, не знакомого с МСФО.
Также день ото дня увеличивается количество стран, признающих международные
стандарты. МСФО служит важным инструментом во взаимном сотрудничестве стран
мира, в том числе в развитии экономических отношений, особенно в улучшении
инвестиционного климата. В данной статье рассматривается ряд аспектов, таких как
МСФО, международный опыт и его использование в странах мира.
Ключевые слова:
международные стандарты финансовой отчетности
-
МСФО,
отчетность, бухгалтерский учет, инвестиции, трансформация, интерпретация
Introduction.
The reforms being implemented in our country, in particular, the increasing flow of
investments to the world capital market is considered a favourable factor. It should be noted that
business entities with the participation of foreign investments have been established and are
successfully operating in the leading sectors and branches of the national economy in the Republic
of Uzbekistan. In the last five years, the volume of foreign investments has increased 3 times. As a
result, hundreds of enterprises have been launched, production volumes have increased, and new
jobs have been created. When entering the world capital market and attracting foreign investors,
preparing reports based on international financial reporting standards is becoming a vital
necessity. It is known that the international financial reporting standards (IFRS) have been
considered as the basic tool in the implementation of reforms in the accounting system of the
Republic of Uzbekistan in recent years.
Introduction of international financial reporting standards in business entities in any
country results in the improvement of focus areas for attracting foreign investors and creation of
a convenient accounting system. In addition, transparency and objectivity of the information in
the reports will be achieved, and it will help solve the issue of investing in the development of the
entity
’
s performance by investors and banks. The modern accounting system developed on the
basis of the international financial accounting principles enables companies to manage their
activities in compliance with the market economy requirements.
Moreover, implementation of international financial reporting standards enables to improve
the management system of economic entities, to inform users of internal and external information
about the financial status of the enterprise, as well as to enhance competitiveness of the company
through the use of uniform methods of accounting. It is known that accounting is considered the
“
language of business
” b
ecause economic entities have economic relations with each other, they
must be aware of the financial situation of their partners. With the aim of investigating and
analyzing its financial situation it is required to understand its financial documents. In other
words, it is necessary to prepare financial statements based on the same principles and rules of
cooperation entities that do not contradict each other. International financial reporting standards
determine general rules that make financial reporting consistent, transparent and comparable
around the world.
Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
66
Literature review.
Studying the experience of European countries on the implementation of the IFRS and a
systematic approach to the problems in this process are crucially important issues during the
transition to the process of accounting and financial reporting in compliance with the IFRS in
business entities operating in Uzbekistan. According to the level of implementing the international
financial reporting standards in the countries of the world, the countries that have directly
adopted them through special regulations are a number of European countries, the countries that
have adjusted their national standards in compliance with the international financial reporting
standards are the United States of America, Japan. Furthermore, China, Estonia, and Latvia are
among the countries that have strictly implemented the IFRS in their companies participating in
international exchanges. Another advantage of maintaining a modern accounting system in
reliance upon the international financial reporting standards is that it enables business entities to
make efficient management decisions in the internal management accounting system. In many
world countries during the compilation process, financial statements are being prepared on the
IFRS basis (Djumanov, 2019)
.
According to Tashnazarov
(2019)
, one of the economists of our country, it is the most urgent
issue for all countries to harmonize accounting and reporting with the requirements of
international standards, to achieve global harmonization of financial reporting on this basis, and
to effectively use the advanced practices at the national level
.
Foreign scholars Jessica Yang, Nada Kakabadze and Dmytro Lazovsky (2013) have come to
the conclusion that the main purpose of international financial reporting standards is to attract
foreign investment to the economies of developed and developing countries.
Another scholar-economist stated that adoption of international financial reporting
standards is related to the increased need for reliability and comparability of financial reports in
the countries of the world (Auwalu Musa, 2019). According to L.V. Gusarova, the data on the
company that prepares the reporting in reliance upon the IFRS is sufficient for a potential investor
to understand and assess the risks associated with financing. Thus, the use of international
financial reporting standards in the preparation of financial statements by an economic entity
enables to increase their competitiveness in the process of searching for sources of financing
(Gusarova, 2012). In the opinion of N.V. Malinovskaya, the significance of the IFRS is that it is
appropriate to create financial reports that are easy for all users to understand in all countries of
the world in order to develop integration relations in the conditions of the market economy
(Malinovskaya, 2011).
Analysis and discussion.
The main goal of shifting to the nternational standards is to enter the international market
and attract investments. Moreover, international standards make an important contribution to the
qualitative development of the national economy.
In this process, a favorable investment
environment, openness of companie
s’ activities, accountability of management to shareholders,
as well as introduction of the advanced methods of corporate management make an essential
contribution to the development of joint-stock companies (
Avlokulov, 2017)
. From the point of
view of another scholar-economist, adoption of international financial reporting standards is
related to the increased need for reliability and comparability of financial reports in the countries
of the world (
Auwalu Musa, 2019)
. International Financial Reporting Standards (IFRS) is not just
a set of rules that complicate the work of practicing accountants, but is logically based on the
simple principles of the accounting system, which aim is to provide true and reliable financial
information about the company
’
s activities in financial reports (
Karimov, Ibragimov and other,
2021). In 2022-2026, the issues of rapid development, diversification and quality improvement of
Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
67
real sector enterprises have been determined in the Development Strategy of New Uzbekistan
19
.
This requires that the accounting system, which formulates reliable information about them, be
aligned with international standards. Moreover, it shows that it is important to further develop
the activities of economic sectors of our republic, in particular, joint-stock companies, and to
attract investments, to raise the level of the population employment in reliance upon creation of
new jobs in the sectors, and to organize financial accounts and reports in them according to the
requirements of international standards.
Chart 1. Sequence of the processes of adjusting the accounting and reporting
system of Uzbekistan in compliance with the IFRS
20
The transition to the international financial reporting standards on a global scale will be
benefitial for all business entities, especially investors, who can analyze the reports and determine
which companies or activities to invest in. The goal of shifting to international financial reporting
standards is to provide foreign investors with accurate and reliable information when making
decisions on financing. The structure of financial reports based on the requirements of
international standards serves the accuracy and reliability of information. The transition to
international financial reporting standards is one of the measures aimed at enhancing the
country
’
s investment attractiveness.
The process of introducing international financial reporting standards can be conditionally
divided into 4 stages:
1. Development of the accounting policy as an initial stage;
2. Creation of an accounting based on the international financial reporting standards as the
implementation stage;
3. Preparation of financial reporting forms - formation of financial reporting stage;
4. The stage after the preparation of the financial report-transformation processes.
As a result of practical implementation of the process of introducing the international
financial reporting standards, conditionally divided into 4 stages, the accounting procedure
according to the IFRS will be further improved.
2)
We demonstrate the following comparative description of the reporting forms according
to the IFRS and national standards.
19
Decree of the President of the Republic of Uzbekistan PD-
60 “On the Development Strategy of New Uzbekistan for 2022
-2026
dated January 28, 2022, www lex.uz
20
Developed by the author in reliance upon the data used.
Development of a plan of economic operations in
compliance with the IFRS-based accounting system
Compilation of individual
reports
Compilation of
consolidated reports
Providing reports to users of
accounting information
Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
68
Table 1
Comparative description of the reporting forms according to the IFRS
and national standards
21
№
Report name
22
Form of the national report
23
1
Statement of financial position
Accounting balance
2
Statement of Profit or Loss
Report on financial results
3
Cash flow statement
Cash flow statement
4
Statement on changes on equity
Equity statement
A complete set of international financial reporting consists of the following components:
a) statement of financial position;
b) statement of profit or loss and other comprehensive income;
c) statement of changes in equity;
d) statement of Cash Flows;
e) accounting policies and comments, that is, disclosures to the report (explanations);
f) a statement of financial position at the beginning of the most recent comparable period, if
the entity applies accounting policies retrospectively or retrospectively recalculates items in its
financial statements or reclassifies items in its financial statements.
Currently two benchmarks - International Financial Reporting Standards - IFRS
(International Financial Reporting Standards) and US Generally Accepted Accounting Principles
(GAAP) are recognized and admitted as the accounting standards.
Another important aspect in the transition to international financial reporting standards is
transformation of financial reporting in joint-stock companies of the Republic of Uzbekistan.
Financial reporting transformation is the process of preparing financial reports in accordance
with the National Accounting System by making corrections to the report items in compliance with
the rules of the national accounting system. However, this process requires specific rules and
regulations.
Adjusting in compliance with the IFRS can be convenient, but requires skilled professionals.
Another way is to implement the procedure of accounting and financial reporting in parallel with
the National Accounting Standards. The second way is relatively simpler, but requires a lot of
work. One of the significant issues in the transition to international financial reporting standards
is creation of the IFRS-based accounting policy. Researches demonstrate that there is almost no
accountant in the world who is not aware of the IFRS.
The necessity of using the IFRS is determined by the following factors:
–
investors and shareholders in different countries will have the opportunity to better
analyze the financial statements of potential companies based on the same principles, i.e.
comparability;
–
in various countries, it is more appropriate to prepare a single financial report that is
recognized for all of them, rather than a financial report prepared based on the standards of that
country for different stock exchanges. As a result, reporting costs are reduced and fund raising
opportunities are expanded (Tashnazarov, 2016).
Investigating the experience of European countries on the implementation of the IFRS and a
systematic approach to the problems in this process are essential issues during the transition to the
process of accounting and financial reporting in compliance with the IFRS in joint stock companies
operating in our country. In reliance upon this aspect, we have determined the following focus areas
as the main objectives for business entities in the process of transition to international financial
reporting standards:
21
Developed by the author.
22
IAS 1-
“
Presentation of Financial Statements
”
23
“Rules for filling out financial reporting forms” approved by Appendix No. 7 to Order No. 140 of December 27, 2002 of the
Minister of Finance of the Republic of Uzbekistan. www.lex.uz
Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
69
- working out the system of accounting and financial reporting standards that provide
transparent information to users of financial reporting information, first of all, to investors;
- ensuring coherence with the main trends of the international accounting system in the
management of the accounting system in economic entities;
- developing the methodical procedures using efficient aspects of international accounting
models.
There are several stages of the process of preparing reports based on international financial
reporting standards, and we have divided them into the following groups.
Figure 1. Methods of preparing reports in reliance upon international financial
reporting standards in joint-stock companies
24
As it is obvious, each process has its own peculiarities which we are considering. In the
process of our research, we have studied several definitions given by experts. In particular,
according to Bagopolsky (2009), transformation is a process that is performed on the date of
preparation of reports and includes corrections based on the principles of recognition,
measurement and disclosure of financial reporting indicators compiled in accordance with the
national accounting system.
Conclusions.
In our opinion, financial reporting transformation is the process of preparing financial
reports in compliance with the National Accounting System by making corrections to the reporting
items in accordance with the rules of the national accounting system.
Advantages of the transformation method in joint-stock companies:
- compared to parallel accounting, it is a low-cost and economical accounting system;
- time is economized while performing accounting;
- accounting procedure is much simpler than parallel accounting, if an accurate procedure is
developed once, there will be no difficulties in data processing, data reliability can be achieved;
- efficiency of this method directly depends on the established procedure, model, method
and professional knowledge of the employee;
- visibility of correction records, i.e. the ability to make a clear conclusion on differences;
24
Developed by the author in reliance upon the data used.
Parallel accounting
Accounting is performed
simultaneously on the basis of
national and international standards
Combined
accounting method
Transformation of
financial statements
The process of drawing up
financial statements in
accordance with the IFRS
Periodic implementation of the
calculation according to the national
accounting system and transfer to the
international financial reporting
standards with subsequent corrections
Iqtisodiy taraqqiyot va tahlil, 2024-yil, aprel
www.e-itt.uz
70
- it is possible to improve the system every year, find more effective methods and eliminate
existing shortcomings, as a result, in a few years, it will be possible to create a perfect system
suitable for this company, and it can be considered know-how.
One of the most significant advantages of international financial reporting standards in joint-
stock companies is that due to the fact that reports are harmonized, investors do not spend time
and money on processing and correcting them in order to understand them. Reports prepared on
the IFRS basis reduce costs for investors. In addition, due to the transparency and
comprehensibility of information, they rarely make mistakes in the selection of shares. On the one
hand, the price of shares increases, on the other hand, attractiveness of new investments in
companies with the government share enhances as well.
Reference:
Auwalu Musa. (2019) The Role of IFRS on Financial Reporting Quality and Global Convergence:
A Conceptual Review. //International Business and Accounting Research Journal Volume 3, Issue 1,
January, 67-76.
Avlokulov A.Z. (2017) Features of reflecting financial performance indicators in the
international standards of financial reporting.// "International Finance and Accounting" scientific
electronic journal. №2, Apr
il.
Bagopolsky A.B. (2009) The practice of transforming reporting into the IFRS format. Corporate
financial reporting. international standards. Journal and practical developments on IFRS and
management accounting. https://finotchet.ru/print/articles/491/
Djumanov S.A. (2019) Compilation of financial reporting information based on international
standards: Abstract of the dissertation claiming for the degree of the Philosophy Doctor on Economics
(PhD).
–
T., -56 p.;
Gusarova L.V. (2012) Methodology for transforming the financial statements of a non-profit
organization into the IFRS format // Accounting in budgetary and non-
profit organizations. № 5. p.
17
–
30.
Jessica Hong Yang, Nada Kakabadse, Dmytro Lozovskyi. (2013) International financial
reporting standards (IFRS) as a change agent in Ukraine. // Journal of Governance and Regulation /
Volume 2, Issue 3, Continued - 1.
Karimov A.A., Ibragimov A.K., Rizaev N.K., Imamova N.M. (2021) INTERNATIONAL FINANCIAL
REPORTING STANDARDS Textbook. Tashkent, 15 p.
Malinovskaya N.V. (2011) New forms of financial statements and their role in convergence with
IFRS requirements // International Accounting. № 32. p. 23–
27.
Tashnazarov S.N. (2019) Improving the theoretical and methodological foundations of
financial reporting under conditions of economic modernization: Abstract of the dissertation
claiming for the degree of the Doctor of Science on Economics (DSc).
–
Т.,
-74 p.
Tashnazarov S.N., (2016) International standards of financial reporting and the need to
transition to them economics and finance / Economics and finance, 7 49 55 p.
