On February 24, 2020, the President of the Republic of Uzbekistan signed the decree No. 4611 “On additional measures for transitioning to international financial reporting standards”, which opens a new page in the history of transition to IFRS in the Republic of Uzbekistan.

The adopted document provides for a well-rounded review of the coordination process and preparations for the transition to IFRS of business entities.

In particular:

1) A list of persons who will prepare financial statements based on IFRS starting with the results of 2021 in a mandatory order. This list includes joint-stock companies, commercial banks, insurance companies and legal entities classified as large taxpayers. The above-mentioned persons will have to fulfill accounting on the basis of IFRS from January 1, 2021, as well as provide a sufficient number of specialists for the quality application of IFRS. In addition, starting from 2020, the State Assets Management Agency will annually approve and publish the Schedule for the transition of business entities with a state share and state-owned enterprises to accounting and financial reporting on the basis of IFRS until June 1;

2) The Ministry of Finance of the Republic of Uzbekistan is assigned as an authorized body for the implementation of IFRS and is to fulfill corresponding functions, for the implementation of which the Department for coordination of international financial reporting standards and external quality controlimplementation will be created in the structure of the Ministry;

Considering the necessity for training of a significant number of qualified specialists who possess the relevant knowledge and skills, the document provides for a fundamentally new integrated approach to the training of national specialists:

1. In the period 2020–2025 the costs of training, advanced training in accordance with IFRS, as well as initial registration and registration for the exam in the Republic of Uzbekistan in the framework of international certification of accountants (ACCA program) will be reimbursed from the republican budget of the Republic of Uzbekistan for the first time. It should be emphasized that this mechanism will apply to teaching staff in the disciplines of “Accounting” and “Audit” of higher educational institutions, employees of state bodies, as well as students and graduates (within 6 months after graduation) of higher educational institutions.

2. Applicants with an international certificate of accountant become exempt from entrance exams while enrolling in the Master`s degree in the specialties “Accounting” and “Audit” on a paid contract basis.

It is expected that these measures will not only allow the timely preparation of the required number of qualified practicing specialists in the field of IFRS, but also ensure the creation of a national training system.

In addition, according to the Decree, the Ministry of Finance is required to:

– conclude an agreement with the International Financial Reporting Standards Fund, an international independent organization for the development and approval of common financial reporting standards, as well as cover the costs associated with the translation of IFRS texts and explanations to them in the state language;

– jointly with the Ministry of Higher and Secondary Special Education, based on the results of the study of international practice of training specialists in the field of accounting and auditing, prepare proposals on the possibility of reducing the term of full-time education in the direction of undergraduate education “Accounting and Auditing”.

More detailed information on the measures taken will be available through seminars and thematic meetings, which will be organized by the Ministry of Finance of the Republic of Uzbekistan.

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