APPLICATION OF IFRS IN NEW UZBEKISTAN

Annotation. This article is devoted to the application and implementation of International Accounting and Auditing standards based on European and American practice achievements, particularly International Financial Reporting Standards and International Standards of Auditing. There were described the main achievements in the integration of the national accounting and audit system into the world community. In summary, the recommendations and conclusions were developed on priority areas for further IFRS- and ISA-based accounting and audit reforms.


Introduction.
Reforming accounting in Uzbekistan is based on the use of the achievements of accounting science, statistics, and world practice, reflected in the system of national accounts (SNA) and international financial reporting standards (IFRS), as well as taking into account the characteristics of the national economy. Accounting should be considered as an area of coordination of interests of the state and business in the context of globalization of the world economy.
Financial statements are just a little useful to users: we can say with a high degree of certainty that it is difficult to obtain information about the actual financial position of an organization from the date of such statements. This is primarily due to the way in which indicators are formed, evaluated, and grouped in modern financial statements. The state of accounting (financial) reporting causes dissatisfaction not only among scientists but also among practitioners. And not only practicing accountants but also businessmen. Many entrepreneurs mistrust the data generated in financial statements and do not consider them as a source of information for making decisions regarding the management of their property.
Since the conceptual provisions of the strategic development of the country's economy, which include reforming both the financial mechanism and accounting technology, legal support, and organizational and structural transformations, are currently being implemented, there is an urgent need to analyze and summarize the progressive foreign experience. With regard to accounting technology, it is a reference to the analysis and use of international financial reporting standards. Convergence of the domestic accounting system with IFRS is only one of the directions of improvement of the accounting system. The essence of the devel- opment of accounting may be reduced not to a desire to introduce IFRS into the national practice by all means, but to a harmonious combination of the new with the traditions of the national system of accounting. Moreover, IFRS is periodically updated, and these updates are based, in fact, on the advanced developments of scientists from different countries. It is important that the focus of IFRS is related to the requirements for financial reporting, and not aimed at the requirements for accounting. IFRS is a system of documents defining the general approach to the preparation of financial statements. Creating more detailed standards would make it impossible for all countries to apply them. After all, each country has its own accounting traditions and, importantly, its own general civil legislation. Therefore, IFRS are rules for the preparation of accounting (financial) statements, which are recommendatory in nature. The following positive points should be emphasized. Firstly, the standards are constantly being revised, focusing on the needs of the current moment. Second, the development of IFRS involves a wide range of interested professionals: accountants, financial analysts, representatives of educational institutions, and other interested users of financial statements around the world. It is developed over several decades that domestic accountants got used to the fact that answers to all questions can be found in normative documents. We can state that up to now many of them do not understand that standard documents cannot provide for the entire diversity of facts of economic activity, and therefore cannot give answers to all questions. In order to change this approach, it is necessary to fundamentally change the program of their training in higher educational institutions, as well as to pay serious attention to this in the courses of professional development.

TAJIMURATOVA NILUFAR ADILBEK KIZI
Methods. Recently the IFRS has become more and more important since they are a convenient means of "communication" between enterprises of different countries. Undoubtedly, if financial reports were prepared under common rules, it would be convenient for all. Because both the composition of reporting indicators and the procedure for their formation will be the same. V.V. Kovalev and Vit.V. Kovalev draw attention to the fact that the need to ensure transparency, understandability, and interpretability of certain information, operations and algorithms is especially relevant in the international context when the user has quite natural doubts as to whether the conceptual and algorithmic fields are the same as those of a reporter and its user. There are various reasons for possible discrepancies: differences in legal support of an economic activity, national accounting and reporting standards, the level of legal culture, business customs, etc. The success of the solution of this problem may be achieved with the use of the Internet. The success of solving this problem can be achieved only if financial statements are prepared according to unified rules. This approach to compiling indicators of financial information about the organization will undoubtedly greatly facilitate the work of those working in international markets, which primarily include investors.
All efforts are made to ensure the rapid transition of organizations to international standards, separately it is worth noting the need for the most accurate translation into the national language. Now, professional public associations of auditors and accountants are engaged in the introduction and application of IFRS in practice.
The National Association of Accountants and Auditors of Uzbekistan is respon- 206 sible for the efficiency of the implementation of procedures on the translation of IFRS text from English into the state language. Already now the International Federation of Accountants has posted on its website the recognition of the text of IFRS in Uzbek language. The draft proposes norms based on proven principles. Implementation of these norms guarantees the development of audit activity on the basis of international standards, which are aimed at maintaining and forming the trust of the business community and society to the results of audit services, increasing the authority of the professional "auditor", as well as directly the quality of audit services as a major factor in improving the business climate in the Republic of Uzbekistan.
Results. Adopted on February 24, 2020, The Decree of the President of the Republic of Uzbekistan N-4611 "On additional measures for the transition to International Financial Reporting Standards" provides for a radical review of the process of transition to IFRS of business entities.
A number of legal entities were identified, which will be compulsory to prepare financial statements on the basis of international auditing standards already from January 1, 2021. This includes commercial banks, joint stock companies, insurance companies, and legal entities that are considered large taxpayers. From the 1st of January 2021, they are required to: -Organize accounting on the basis of IFRS; -Provide the necessary number of employees of accounting services necessary for the quality and effective application of international standards. The State Assets Management Agency will approve and publish by June 1 each year a schedule for state-owned enterprises and companies with state capital to transition to accounting and preparation of financial statements on the basis of IFRS.
The Ministry of Finance of the Republic of Uzbekistan has been determined as the responsible body for implementing IFRS. In order to fulfill the assigned tasks within the structure of the Ministry it was agreed to create the Department of coordination of the implementation of international financial reporting standards and external quality control.
The Resolution puts great emphasis on the necessity of training a considerable number of highly qualified specialists in this sphere with the necessary skills and knowledge and also provides for a fundamentally new integrated approach to personnel training.
Based on this, in 2020-2025 for the first time from the national budget, there will be reimbursed the cost of professional development, and training in IFRS, as well as registration for the exam in the international certification of accountants, in particular under the ACCA program. Teachers of disciplines "Accounting" and "Audit" of higher educational institutions, employees of state bodies, and students and graduates of higher educational institutions will be able to reimburse these expenses.
Applicants with international accountancy certificates are given the opportunity to enroll without passing the entrance exams in the master's degree program in "Accounting" and "Audit" of higher educational institutions on a fee-paying basis.
Conclusion. The purpose of all these measures in the field of audit and accounting is to build a reliable and transparent system of financial accounting.
In order to improve and strengthen the professional knowledge of those ac-countants who are just beginning to get acquainted with IFRS, it is necessary to organize on a mandatory basis a professional development course at each enterprise. The courses will address those standards that form the basis of IFRS. Their understanding will make it easy to raise and understand the requirements of more complex standards. For further reform of accounting on the basis of IFRS we recommend the following priority areas: -conduct preparatory work on the application of IFRS taking into account recent changes; -improvement of the existing system of legal regulation based on IFRS; -ensuring high-quality translation of the IFRS, compliant with the original and the linguistic norms of the Uzbek language -development and implementation of methodological support (instructions, methodological guidelines, comments) at the industry level; -staffing (building the capacity of accounting specialists); -further development of international cooperation. The effective implementation of these measures will give a great start to a national school for training international-level specialists.