European Journal of Emerging Technology and Discoveries

THE NEED TO TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IN UZBEKISTAN

Kilicheva Farida Beshimovna

PhD in Economics, Associate Professor Renaissance Educational University

Bazarova Ozoda Rakhimovna

Teacher of Renaissance University

Irmukhamedova Muslima Dilshodovna

Masters in Graduate School of Business and Entrepreneurship

Keywords: NAS (National Accounting Standard), IFRS (International Financial Reporting Standards), automation, accounting process, chart of accounts.

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Abstract

The issue related to the need for the transition of Uzbek enterprises to international financial reporting standards (IFRS) was considered. The need to intensify measures to apply international standards in the financial reporting of business entities is associated with the need to attract investment in the production and financial sectors of the economy of the Republic of Uzbekistan by increasing the transparency of corporate governance. The transition to international accounting practice is intended to significantly facilitate the relationship of enterprises with large investors, including foreign, large suppliers and buyers, and contribute to an increase in the number of joint projects due to generally recognized rules for the formation of current financial statements. The article discusses a number of fundamental differences between the requirements of IFRS and the requirements of national accounting standards (NAS). At the same time, attention is drawn to the fact that IFRS require not so much knowledge of specific accounting entries, as required by NAS, but understanding and reflection of the economic essence of the economic processes taking place at the enterprise. A number of methodological issues on changing the accounting system that companies need to solve at the stage of making a decision on the transition to IFRS are also considered.

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References

Resolution of the President of the Republic of Uzbekistan No. PP-4611 dated February 24, 2020 “On additional measures for the transition to international financial reporting standards.”.

Law on joint stock companies and protection of shareholders’ rights (new edition) - May 6, 2014, No. ZRU-370 ҳttps://lekh.uz/asts/2382411.

Code of Corporate Governance. - http://nrm.uz/contentf?doc=453533_code_of_corporate_governance%20.

IFRS standards (IAS) - http://finotchet.ru/library/160/12/19/.