Authors

  • Sitora Qurbonova
    Tashkent state university of economics

DOI:

https://doi.org/10.71337/inlibrary.uz.jasss.113694

Abstract

This article analyzes the features of accounting of construction organizations in the Republic of Uzbekistan. The role of the construction industry in the economy, the main areas of accounting, as well as the procedure for maintaining accounting on the basis of current regulatory legal acts are covered. In the construction process, it is important to accurately take into account the costs of material resources, labor and services, distribute costs on objects and determine profitability. The article also discusses the problems encountered in accounting and the ways to solve them, and the role of digital technologies and automated applications. The study concludes with practical recommendations aimed at increasing financial management in the field of construction in Uzbekistan, forming a transparent and reliable accounting system.

 

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ACCOUNTING IN CONSTRUCTION ORGANIZATIONS IN UZBEKISTAN

Qurbonova Sitora Vahobjon kizi

Tashkent state university of economics,

Faculty of finance and accounting, bachelor

sitoraqurbonova982@gmail.com

Abstract:

This article analyzes the features of accounting of construction organizations in the

Republic of Uzbekistan. The role of the construction industry in the economy, the main areas of

accounting, as well as the procedure for maintaining accounting on the basis of current

regulatory legal acts are covered. In the construction process, it is important to accurately take

into account the costs of material resources, labor and services, distribute costs on objects and

determine profitability. The article also discusses the problems encountered in accounting and

the ways to solve them, and the role of digital technologies and automated applications. The

study concludes with practical recommendations aimed at increasing financial management in

the field of construction in Uzbekistan, forming a transparent and reliable accounting system.

Keywords:

construction accounting, accounting, expenses, estimate, financial control,

Uzbekistan, balance sheet, income, digital reporting, economic efficient

Introduction

Accounting in construction and contracting organizations in Uzbekistan practical measures to

improve accounting and audit 2020 of the president of the Republic of Uzbekistan The

construction network of the Republic of Uzbekistan dated November 27 modernization, rapid

and innovative development .Approval of its strategy for 2021-2025 urban planning activities in

the decree"on PF-6119" effectiveness of administrative procedures in the field of, ensuring

rationality and transparency, as well as construction improving the efficiency of the activities of

network organizations"the function is defined. This is the case in construction-contracting

organizations rethinking approaches to the field of accounting and auditing presupposes

consideration. After all, in construction-contracting organizations efficiency of activity through

rational use of resources the mechanisms of Organization of accounting and audit in increasing

improvement is a period requirement.In construction-contracting organizations from the audit of

processes related to accounting there is a great need for transfer. In particular, international

auditing collect audit evidence based on standards, assets taking into account the processes

associated with depreciation correct assessment of audit risk, to the degree of reliability of

evidence due to proper classification, processes associated with depreciation it is important to

properly organize the audit.

Accordingly, in this article, the processes of organizing accounting in construction

organizations were studied.

Literature review


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Before writing this article, I studied and analyzed the scientific work of a number of professors,

teachers in this area.Accounting in the field of construction is a complex and multi-stage process,

scientific and practical research on this area, as well as regulatory documents, are always

relevant.

The law on accounting of the Republic of Uzbekistan (in the new edition, January 4, 2021)-

this law establishes the general principles of accounting, the obligations of the entities and the

criteria for preparing financial statements. Construction organizations also maintain accounts

under this law.

PQ-4611 of the president of the Republic of Uzbekistan dated February 24, 2020 is a decision

aimed at “improving public management in the construction sector”and emphasizes

strengthening accounting and control systems in the sector.

Nasrullaeva D. (2022). "Forms of financial reporting in construction organizations and their

specifics.– - the article analyzes the problems in the formation of profit and loss reports in

construction organizations and the importance of accounting policies.

Jabborov M., Karimova S. (2021). "Specifics of accounting for production costs in

construction."- the study covers the issues of production costs substances, their correct

accounting and comparison with the estimate.

The procedure for drawing up cost estimates for construction work approved by the Ministry of

Finance of the Republic of Uzbekistan (2020)-this document is an important practical resource

when accounting for construction costs.

Khodjayeva Z. (2023). "The role of automated systems in accounting in construction.– - the

article analyzes the advantages of digital technologies in simplifying calculations.

Tursunov B. (2020). "Adaptation of construction accounting in the conditions of Uzbekistan to

International Financial Reporting Standards."- the article shows the differences between

international and national accounting systems.

Decisions of the State Tax Committee of the Republic of Uzbekistan and the Ministry of Finance

on tax reports (2021-2024) – these documents directly affect the taxation and accounting of

construction organizations.

Results.

The construction sector is one of the leading and strategic sectors of the economy of Uzbekistan.

In recent years, this sector has become more important due to the acceleration of the urbanization

process in the country, the increase in the number of inhabitants and the increased need for social

infrastructure. The construction serves not only to form modern cities, but also to improve the

living conditions of the population, increase production capacity and develop a service network.

As a result of the reforms carried out in the country, housing construction is being carried out on

a large scale. In particular, the construction of affordable and high-quality housing for the

population in need of social protection by the state serves to increase the standard of living of the

population. High-rise residential buildings, new massifs, new suburbs are being built. This is the

reason for the creation of jobs not only in construction, but also in other industries close to it.In

addition, major infrastructure projects are being built – roads, bridges, Metropolitan lines, power

lines, drinking water systems, sewers and other important facilities. The construction of objects

of the social sphere – school, kindergarten, hospital, culture and sports facilities-creates the


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necessary conditions for the quality of life of the population. The construction sector is also

stimulating the economy through the construction of industrial facilities – factories and factories,

logistics centers and other manufacturing infrastructure.

This sector contributes significantly to the Gross Domestic Product (GDP) of Uzbekistan. The

activities of enterprises producing building materials are becoming more active, along with the

domestic market, the export potential is increasing.

The growth picture of the construction industry and the dynamics of its share in GDP

Share in GDP

Growth rate

Source: Prepared on the basis of data from the statistics committee.

In addition, thousands of new jobs are being created through construction, which is an important

factor in ensuring social stability.


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Source:

https://review.uz/uz/post/faol-bandlik-siyosati-iqtisodiy-barqarorlik-va-kuchli-ijtimoiy-

himoya-sifatida

The National economy as defined by the Ministry of economy and industry according to the

classifier of networks of construction organizations separate types are allocated the following

network codes:

60,000

-

construction

;

61000

-

construction, installation and installation in the contract and farm method

other general construction and specialization of work organizations;

62,000

buildings and structures for the purpose of production organizations performing

overhaul

;

63,000

building with a non-production purpose and repair of structures, living quarters

according to the order of the population organizations that perform repair and construction

work;

65,000

organizations performing drilling operations

;

66000

-project, Project-Search and search organizations

;

69,000

– civil engineering departments of construction

.

As economic entities of construction organizations can be classified by different signs.

Construction organizations according to their property form and legal status Open Joint Stock

Companies (JSC), limited liability Societies (LLC), private enterprises (firms) and public unitary

there may be Enterprises. Construction in this status it is in our republic to establish

organizations and maintain their activities the law on economic entities of the type vakonosti

documents, as well as the founding of these organizations it is carried out on the basis of

documents.

Even according to the name, construction organizations are Turlich. Their most common name

moving is a mechanized column (CMK–PMK). Construction their construction on the basis of


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giving such a name to organizations, its activities directly related to construction installation and

other work special moving technique in the places ordered their implementation using tools,

machines and mechanisms lies. In addition, private construction in the construction network firm,

subsidiary construction enterprise, construction company, construction there are also business

entities in names such as trust. Network of construction organizations according to the scope of

operation and is divided into inter-network construction organizations. Network construction

organizations own in separate derived branches of the national economy operate. According to

the specialization of construction organizations special and are universal organizations. For

example, construction metro construction of organizations, home construction, road construction,

bridge there are special specialized types of construction and other similar. Some construction

companies (trusts) are multidisciplinary, namely are universal organizations.

What are the tasks of accounting in construction organizations?

Accounting in construction organizations functions construction, construction and installation

directly performed by them, installation, expansion, reconstruction of equipment, the

peculiarity of landscaping, capital and current repair work derived from its properties. Project-

estimate of these works the fact that it is carried out in accordance with its documents and the

established norm in this and control whether procedures are followed, to construction work

correct and timely documentation of expenses incurred, they are building processes on the basis

of synthetic and analytical accountingcorrect determination of the value of unfinished

construction work, completed accurate assessment and calculation of the value of works,

reporting them introduction based on the principle of calculation on the income of the period,

ensuring that the calculations are carried out on time accounting these are the most important

tasks facing the account. Features of construction work in construction organizations their as

well as before the account of the sources of Organization of this property puts important tasks.

Chunonchi, basic tools account and the reporting system is a special one that is expensive in the

structure of these assets equipment various mechanical and electrical equipment, trucks,

condition and movement of special buildings and structures, their work more about activities,

depreciation and other aspects should give information. The execution of construction work

within the specified deadlines is relevant timely arrival of building materials on construction

sites to fall, the presence, idol of the limit approved on them and directly depends on the quality.

In addition, the coming correctly assess the value (cost) of materials, they calculate one way or

another, the evaluation of construction work to the cost, the income and payable from their

performance direct impact on taxes, the net profit of the construction organization shows. All

these materials in construction organizations before accounting they correctly assess the value,

the condition of the materials and to carry out continuous control over the movement, to the

input and output correct and timely registration of documents related to these riches in

accordance with the established procedure of warehouse and accounting registers puts an

important task like keeping. Large amounts of funds according to the size and value of

construction work is a demanding activity. Therefore, the construction work timely and high-

quality execution of their financing directly related to the availability of its sources. Construction

work, usually, prepayment and subsequent payments received from the customer, as well as the

contractor organization's own funds or they it is made in return for bank loans received by.


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Accounting in the accounting policy of construction organizations the chosen form of

organization, as well as in this form

internal regulatory that regulates the performance of accounting work the system of documents is

determined. Internal regulatory documents are usually, accounting regulations, of chief

accountants and accountants requirements for professional skills, among accountants distribution

of functional obligations, employment contracts, with specialized accounting firms or audit

organizations are concluded contracts. The availability of these internal regulatory documents

and their observance are the main features of accounting it is important to be properly organized

and maintained. Accounting Journal-order in construction organizations,

memorial-order, head-Journal and in one of the compactified forms based on manual or modern

computer technology can be maintained without. Most construction at the moment Journal-order

form as an account form used in organizations.

Discussion

Accounting in the construction sector in Uzbekistan is considered more complex and

comprehensive in comparison with other areas. This is primarily due to the long duration of the

construction process, the combination of different stages, and the large number of types of costs.

In the course of the study, it is found that as the main accounting problems in many construction

organizations, the following stand out:

lack of a systematic approach to accurate cost accounting;

failure of calculations to take place on time;

incomplete introduction of automated accounting programs;

difficulties in adapting to International Financial Reporting Standards.

Also, the main parts of accounting — general management accounting, project costs, equipment

costs — require special attention. Keeping them in time and correctly has a direct impact on the

effectiveness of construction processes.

In the course of the discussion, it turns out that in recent years in Uzbekistan, important steps

have been taken to digitize the accounting system. However, in territorial organizations, this

process is slow. Many small and medium-sized enterprises still rely on old-fashioned manual

calculations. This leads to errors and delays.In addition, while there is a valid legislative

framework, it is considered important to improve the qualifications of specialists in its full and

correct application in practice. Also, the lack of a unified methodology for drawing up an

estimate, analyzing costs and taxation is causing some problems.Therefore, accounting systems

should be organized on the basis of modern programs, adapted to international standards,

transparent and understandable. Such an approach not only increases the accuracy of financial

statements, but also serves to strengthen investment confidence.


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Conclusion

In conclusion, accounting in construction organizations plays an important role not only in the

effective implementation of financial discipline, but also in the effective implementation of the

entire project management. The construction industry is characterized by its complexity, long-

term projects and costs arising at different stages. Therefore, it is necessary that the calculations

are accurate, systematic and comply with modern standards.Although a number of laws and

decisions have been adopted in this direction in Uzbekistan, for their full implementation there is

a need for practical work, in particular, the widespread introduction of information technology

into the accounting system, improving staff skills and studying international experience. In

particular, modern approaches are required to correctly forecast expenses and income, manage

them effectively, draw up an estimate and maintain tax accounting.

On this basis, the transparency and reliability of accounting not only ensures the financial

stability of the organization, but also plays an important role for the entire economic system. In

the future, if reforms in this area are deepened, the competitiveness and compliance with world

standards of the construction industry in Uzbekistan will increase significantly.

References

:

1. Tax Code of the Republic of Uzbekistan (new edition) – 2020.

2. Presidential Decree of the Republic of Uzbekistan No. PQ–313 dated July 12, 2022, “On

Accelerating the Digitalization in the Construction Sector.”

3. Presidential Decree of the Republic of Uzbekistan No. PF-5635 dated January 24, 2019, “On

Approval of the Concept for the Development of the Construction Sector for 2019–2021.”

4. Law of the Republic of Uzbekistan "On Accounting," 1996, No. 279-I.

5. Ministry of Finance of the Republic of Uzbekistan. (2022). Accounting Standards for

Construction Companies. Tashkent: Ministry of Finance Publishing.

6. International Federation of Accountants (IFAC). (2021). International Public Sector

Accounting Standards (IPSAS) applicable to construction entities.

7. Kadirov, U. (2022). “Modern Requirements of Accounting in Construction Organizations.”

Economy and Finance scientific journal, No. 2, pp. 45–51.

8. Islomova, D. (2021). “Accounting Principles for Budgeting Documentation in Construction.”

Accounting and Audit journal, No. 3.

9. Sobirov, B. (2020). “Cost Accounting in Construction Activities.” Financial Analysis journal,

No. 4.


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10. Raimova, M. (2023). “Accounting Features of Government-Funded Construction Projects.”

Economic Research journal.

11. Construction Financial Management Association (CFMA). (2020). Construction Accounting

and Financial Management. Pearson Education.

12. Halilov, Sh. (2019). Construction Economics and Finance. Tashkent: Textbook for Higher

Education Institutions.

13. United Nations Economic Commission for Europe (UNECE). (2021). Cost and Accounting

Standards in the Construction Sector.

14. Ernst & Young. (2020). Accounting for Construction Contracts under IFRS 15. EY Insights

Report.

15. State Committee of the Republic of Uzbekistan on Statistics. (2023). “Annual Statistical Data

on Construction Activities.”

References

Tax Code of the Republic of Uzbekistan (new edition) – 2020.

Presidential Decree of the Republic of Uzbekistan No. PQ–313 dated July 12, 2022, “On Accelerating the Digitalization in the Construction Sector.”

Presidential Decree of the Republic of Uzbekistan No. PF-5635 dated January 24, 2019, “On Approval of the Concept for the Development of the Construction Sector for 2019–2021.”

Law of the Republic of Uzbekistan "On Accounting," 1996, No. 279-I.

Ministry of Finance of the Republic of Uzbekistan. (2022). Accounting Standards for Construction Companies. Tashkent: Ministry of Finance Publishing.

International Federation of Accountants (IFAC). (2021). International Public Sector Accounting Standards (IPSAS) applicable to construction entities.

Kadirov, U. (2022). “Modern Requirements of Accounting in Construction Organizations.” Economy and Finance scientific journal, No. 2, pp. 45–51.

Islomova, D. (2021). “Accounting Principles for Budgeting Documentation in Construction.” Accounting and Audit journal, No. 3.

Sobirov, B. (2020). “Cost Accounting in Construction Activities.” Financial Analysis journal, No. 4.

Raimova, M. (2023). “Accounting Features of Government-Funded Construction Projects.” Economic Research journal.

Construction Financial Management Association (CFMA). (2020). Construction Accounting and Financial Management. Pearson Education.

Halilov, Sh. (2019). Construction Economics and Finance. Tashkent: Textbook for Higher Education Institutions.

United Nations Economic Commission for Europe (UNECE). (2021). Cost and Accounting Standards in the Construction Sector.

Ernst & Young. (2020). Accounting for Construction Contracts under IFRS 15. EY Insights Report.

State Committee of the Republic of Uzbekistan on Statistics. (2023). “Annual Statistical Data on Construction Activities.”