«Yangi O‘zbekiston: Moliyaviy hisobotning xalqaro
standartlarini joriy etishda muvaffaqiyatli
xalqaro tajriba» 16 dekabr, 2022 yil.
204
Annotation.
This article is devoted to the application and implementation of Interna-
tional 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.
Key words:
Accounting, auditing, IFRS, ISA, regulation, accounting (financial) repor-
ting, methodological approaches.
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 de-
gree 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 dissat-
isfaction 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-
TAJIMURATOVA NILUFAR ADILBEK KIZI
A third-year student at the faculty
of Budget Accounting and Treasury at the
«Tashkent Institute of Finance »
«nilufartajimuratova06@gmail.com»
APPLICATION
OF IFRS IN NEW
UZBEKISTAN
https://doi.org/10.47689/STARS.univer-
s i t y - 5 - p p 2 0 2 - 2 0 5
STARS International University
205
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 inter-
ested professionals: accountants, financial analysts, representatives of education-
al 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 neces-
sary 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.
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, under-
standability, 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 re-
porting 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 fi-
nancial 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 inter-
national 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-
«Yangi O‘zbekiston: Moliyaviy hisobotning xalqaro
standartlarini joriy etishda muvaffaqiyatli
xalqaro tajriba» 16 dekabr, 2022 yil.
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 ma-
jor factor in improving the business climate in the Republic of Uzbekistan.
Results.
Adopted on February 24, 2020, The Decree of the President of the Re-
public of Uzbekistan N-4611 “On additional measures for the transition to Interna-
tional 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 As-
sets 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 ac-
counting 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 div 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 opportuni-
ty 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 account-
ing is to build a reliable and transparent system of financial accounting.
In order to improve and strengthen the professional knowledge of those ac-
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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 enter-
prise. 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 fol-
lowing priority areas:
- conduct preparatory work on the application of IFRS taking into account re-
cent 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 na-
tional school for training international-level specialists.
List of references:
1. Decree of the President of the Republic of Uzbekistan No. UP-4720 of April
24, 2015 “On measures to introduce modern methods of corporate governance in
joint-stock companies”.
2. Decree of the President of the Republic of Uzbekistan No. 3946 of September
19, 2018. “On measures for further development of auditing activities in the Repub-
lic of Uzbekistan”.
3. Decree of the President of the Republic of Uzbekistan No. 4611 of February
24, 2020. “On Additional Measures for Transition to International Financial Re-
porting Standards”.
4. Professional Development Course on International Financial Reporting Stan-
dards. Tutorial - 2018. - p.4.
5. International Financial Reporting Standards, 2012: Russian language edition.
Moscow: Askeri-ACCA, 2012. - 998 p.
6. Rozhnova, O.V. International standards of accounting and financial reporting
standards: textbook for universities / O.V. Rozhnova. - Moscow: Ekzamen; Edition
2-th, revised and supplement, 2015. - 256 p.
