Mirziyoyev orders accelerated transition to international financial reporting standards

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Uzbek president Shavkat Mirziyoyev has given the country’s joint-stock companies, commercial banks, insurance companies and other large taxpaying organisations until the end of 2021 to conform to international financial reporting standards. A presidential decree to this effect has been published by the official news agency of Uzbekistan UzA (in Russian).

From 1 January 2021, they will be required to have planned for the introduction of accounting methods in line with these standards, and from the end of 2021, to be able to produce financial reports that conform to them. In order to do this, they will need to employ a sufficient (no less than three) number of accountants who have successfully completed a recognised international course in International Financial Reporting Standards (IFRS) or who possess an international accounting certificate.

The ministry of finance has been entrusted with overseeing the transition to international standards. A new three-man Office for Coordinating the Introduction of International Financial Reporting Standards at the finance ministry will be created under the existing Department of Accounting and Audit Methodology.

Companies and organisations that voluntarily prepare financial statements in line with IFRS will be exempted from presenting reports that follow existing national standards.

The presidential decree proposes to widen the country’s cooperation with international organisations in the domain of financial reporting – the Association of Chartered Certified Accountants and others – to disseminate accepted standard global practices for the training of specialists in this area.

By 1 August 2020, the Ministry of Higher and Secondary Specialized Education is to approve and introduce new study programmes in accounting and auditing at undergraduate and graduate level which include a detailed study of IFRS. By 1 January 2021, accredited accounting schools will be required to have fully-trained teaching staff in accounting and auditing.

Starting in 2021, courses in IFRS and international auditing standards will only be taught at educational institutions that have been accredited by international accounting organisations.

The decree states that an accelerated transition to these standards is required in order to “create the necessary climate for foreign investors and guarantee increased access to international financial markets”.