INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
Journal:
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page 603
ORGANIZATION OF FINANCIAL ACCOUNTING BASED ON INTERNATIONAL
STANDARDS IN THE CONTEXT OF ECONOMIC LIBERALIZATION
Gulyamova Iroda , Mutabar Dzhuraevna
Tashkent Institute of Irrigation and Agricultural Mechanization Engineers
Abstract:
In the context of economic liberalization, the transition to International Financial
Reporting Standards (IFRS) is a critical step toward enhancing the transparency and
investment attractiveness of enterprises. This article explores the implementation specifics of
IFRS in Uzbekistan, identifies key benefits and challenges, and analyzes both international
and local experiences. Particular attention is given to corporate case studies and a cost-benefit
analysis of IFRS adoption.
Key words:
IFRS, financial accounting, economic liberalization, investments, Uzbekistan,
standardization.
Introduction
Modern economic development requires harmonization of national accounting systems with
international standards. Liberalization of the economy in Uzbekistan necessitates the
transition to International Financial Reporting Standards (IFRS) to ensure transparency,
increase investor confidence and integration into the global community. This article aims to
analyze the processes and results of IFRS implementation in Uzbekistan.
Literature Review
In global practice, the use of IFRS ensures the comparability of financial information.
According to the World Bank for 2022, the transition to IFRS increases the transparency of
companies by 20-30%. In Uzbekistan, the implementation of IFRS has been actively
implemented since 2020, which has become an important tool for integrating companies into
international financial markets.
For example, companies such as
" Uzbekneftegaz "
and
" UzAuto Motors "
report in
accordance with IFRS, which allowed them to attract the attention of foreign investors.
JSC
" UzAssets "
implements sustainable reporting standards ( S 1 and S 2) that meet
international requirements. Financial institutions such as
TBC Bank Uzbekistan
, operate
exclusively on the basis of IFRS, which increases the level of transparency and trust in the
banking sector.
IFRS also allows Uzbek companies to obtain international credit ratings, improving their
financial attractiveness. Many small and medium-sized businesses have begun to apply
simplified versions of IFRS, which gives them access to global supply chains.
New IFRS disciplines are being introduced in the country's universities to help train future
accountants and auditors. As
Savitskaya G.V. (2022)
and the
Financial Reporting and
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
Journal:
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Audit Journal (2023)
emphasize , personnel training and government support are key factors
in the successful implementation of IFRS in Uzbekistan. In recent years, efforts to introduce
IFRS in public and private companies have been intensifying in Uzbekistan. Artemenkov and
Ganiev (2024) presented an analytical approach to asset impairment testing using Excel -
based algorithms that can be used in the practical work of accountants. Sativaldieva (2023)
emphasizes the potential for applying IFRS in small and medium-sized businesses in
Uzbekistan, pointing to the need to develop financial literacy and simplify the regulatory
environment. Bozorova (2023) highlights the need to reform the balance sheet in accordance
with IFRS as a path to international compatibility. Saidov (2023) analyzes the barriers and
opportunities for the implementation of IFRS for the accounting profession. According to the
Ministry of Finance of Uzbekistan (2022), by 2026, it is planned to fully integrate IFRS into
the activities of organizations of public interest. JSC ' National Electric Grid of Uzbekistan
has been successfully implementing IFRS since 2023, their reporting has been confirmed by
the international audit company Ernst & Young . JSC UzAssets has been actively
implementing sustainable reporting standards S 1 and S 2 within IFRS since 2021. These
examples demonstrate the active participation of large state-owned enterprises in reforming
financial reporting based on IFRS.
Methodology
The article uses methods of comparative analysis, visualization of statistical data (graphs and
diagrams), as well as a case method to describe the experience of individual enterprises. The
sources of information were official reports, publications in specialized journals, open data
from the Ministry of Finance and international organizations.
Introduction
Liberalization of the economy requires adaptation of financial accounting to modern
international standards, which ensures transparency and comparability of financial
information. International Financial Reporting Standards (IFRS) are becoming an integral
part of effective financial management in the context of globalization and an open market.
1. The importance of international standards in the context of economic liberalization
International Financial Reporting Standards (IFRS) are aimed at unifying accounting policies,
providing uniform principles for reporting. This is especially important for countries with
transition economies, where integration into the global economic community requires
transparency.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
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Figure
1.
Growth
of
IFRS
adoption
in
developing
countries
2. The main advantages of using IFRS
- Transparency of financial information Improving the investment climate Simplifying access
to international capital markets Reducing corruption risks and increasing confidence among
foreign investors Comparison of national standards and IFRS
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
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Organizing financial accounting based on international standards is a key condition for
successful integration into the global economy. In the context of economic liberalization, the
transition to IFRS allows for investor confidence, increased competitiveness, and sustainable
development.
Problems and barriers to the implementation of IFRS. Despite the obvious advantages, the
implementation of IFRS is associated with a number of difficulties:
- Insufficient training of personnel with knowledge of international standards - High costs of
retraining personnel and upgrading information systems - The presence of a dual reporting
system at the transition stage - Lack of motivation among small and medium businesses to
switch to IFRS
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
Journal:
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Figure 2. Average costs of transition to IFRS by sector
4. International experience and examples of successful adaptation
The experience of Eastern Europe, Southeast Asia and Latin America demonstrates that a
comprehensive approach with government support and international cooperation contributes
to the successful adaptation of IFRS. For example, in Poland, the implementation of
international standards was accompanied by government training programs, and in Brazil -
tax incentives for companies that switched to IFRS.
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ISSN: 2692-5206, Impact Factor: 12,23
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5. Prospects and current situation in Uzbekistan
Uzbekistan is actively working to implement IFRS in public and private organizations. Since
2021, plans have been approved for mandatory transition to international reporting standards
for large enterprises. Training programs are being created with the support of the Ministry of
Finance, and international consultants are being involved.
6. Examples of companies implementing IFRS
Let us consider specific examples of companies in Uzbekistan that have implemented or are
in the process of transitioning to international financial reporting standards:
Figure 3. Evaluation of companies' transparency before and after the implementation of IFRS
JSC ' Uzbekneftegaz '
One of the first state-owned companies to implement IFRS in order to attract foreign
investment and place Eurobonds on international markets. Uses independent audit and
publishes IFRS reports annually.
JSC ' UzAuto Motors '
The country's largest car manufacturer has adapted its internal accounting systems to IFRS
requirements as part of its collaboration with General Motors and preparations for IPO .
JSC ' Uzmetkombinat '
A metallurgical giant that is gradually transitioning to IFRS starting in 2022. An international
reporting department has been created and foreign auditors have been hired.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
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TBC Bank Uzbekistan
A branch of an international banking group initially operates exclusively according to
international standards in accordance with the requirements of the head office and foreign
investors. These examples show that the transition to IFRS requires a strategic approach and
investment, but ultimately ensures a high level of trust from partners and investors, as well as
sustainable development.
7. Analytical tables: the impact of IFRS
Table 1. Impact of IFRS implementation on the performance indicators of companies in
Uzbekistan
Indicator
Before the implementation
of IFRS
After the implementation of
IFRS
Transparency of financial
reporting
Low
Tall
Investor confidence
Limited
Enlarged
Access
to
international
financing
Limited
Extended
Quality of internal control
Heterogeneous
Systematized
Corporate governance
Weak
Fortified
Staff preparedness
Low
Medium / High
Conclusion
Thus, the transition to IFRS in the context of economic liberalization is a necessary step to
increase financial transparency, attract investment and sustainable development. Despite
existing barriers, such as a shortage of qualified personnel and high costs, international and
domestic experience shows the high efficiency of this transformation.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 610
Referenes :
1. International Financial Reporting Standards ( IFRS Foundation , 2023).
2. Savitskaya G.V. Analysis of economic activity of the enterprise. - Minsk: New
knowledge, 2022.
3. Uzbekistan : www . mf . uz
4. Articles of the journal 'Financial reporting and audit', No. 4, 2023.
5. World Bank Report on Financial Transparency in Developing Countries, 2022.
6. 6. Artemenkov, A. I., & Ganiev, O. (2024). Navigating IFRS Transition in Uzbekistan:
An Analytical Examination... SSRN.
7. Sativaldieva, D. A. (2023). Prospects for the Implementation of IFRS in Medium and
Small Businesses... AJPDIS.
8. Bozorova, M. T. (2023). Improving Uzbekistan's Balance Sheet in Accordance with
IFRS... AJ Digital Economics.
9. Saidov, J. (2023). Challenges and Opportunities of IFRS for the Accounting Profession
in Uzbekistan... WBML.
10. Ministry of Finance Uzbekistan (2022). Roadmap for the Implementation of IFRS in
Public Interest Entities by 2026.
