International Financial Reporting Standards have become a worldwide common accounting language, and most countries adopted it.
From 2015, Uzbekistan also joined IFRS and required certain selected public companies and banks to follow these standards.
The Law on Accounting of 1996, as amended, establishes basic accounting and bookkeeping requirements for all legal entities in the Republic of Uzbekistan, except for banks and credit institutions, and authorizes the Ministry of Finance of the Republic of Uzbekistan to set accounting standards both for private companies and state-financed organizations. National Accounting Standards adopted by the Ministry represent a modified version of IAS as they existed in 2008.
The Presidential Decree issued in 2018 listed companies that are permitted, and in 2022 will be required, to use IFRS. In 2013 IFRS were translated into Uzbek by the National Association of Accountants and Auditors of Uzbekistan.
On February 24, 2020, the President of the Republic of Uzbekistan signed Resolution No. 4611 ‘On Additional Measures to Transition to International Financial Reporting Standards’ (Resolution No. 4611). This resolution requires joint-stock companies, commercial banks, insurance organisations and legal entities classified as large taxpayers to prepare financial statements in accordance with IFRS Standards from 1 January 2021. Moreover, business entities preparing financial statements on a voluntary basis in accordance with IFRS Standards are exempted from submitting financial statements in accordance with national accounting standards (NAS).
Apart from certain companies, starting from 2020, the State Asset Management Agency will annually approve and publish, by 1 June, a schedule of business entities with a state share and of state-owned enterprises that must implement IFRS Standards and that do not meet the criteria above.