Adopting International Financial Reporting Standards (IFRS) is essential for companies seeking transparency, comparability, and credibility in financial reporting. IFRS compliance not only improves the quality of financial statements but also facilitates access to international investment, strengthens stakeholder confidence, and ensures alignment with global best practices.
Loialte provides comprehensive IFRS services in Uzbekistan, including:
By partnering with Loialte, your company ensures accurate and transparent financial reporting in accordance with IFRS, enhances credibility with investors and stakeholders, and aligns its accounting practices with international standards in Uzbekistan.
Under Presidential Decree No. PP-4611, the transition to International Financial Reporting Standards (IFRS) is mandatory for joint-stock companies, commercial banks, insurance organizations, and legal entities classified as large taxpayers in Uzbekistan. This legal requirement was established to improve transparency and facilitate the attraction of foreign investment into the national economy. Companies meeting these criteria must maintain their accounting records and prepare financial statements exclusively based on IFRS starting from the established deadlines. For most large taxpayers, the requirement involves not only annual reporting but also ensuring internal accounting policies align with international standards. Practically, this means moving away from the National Accounting Standards (NAS/BHMS) for statutory reporting. Failure to comply with these mandatory reporting standards can result in administrative sanctions and complications during state audits.
The process of switching from National Accounting Standards (NAS) to IFRS in Uzbekistan involves a complex “transformation” of financial data, beginning with a gap analysis between local regulations and international requirements. Legally, the transition must follow the guidelines set out in the Law “On Accounting” and relevant Presidential Decrees regarding the automation of financial processes. Practically, a company must prepare an “IFRS Opening Balance,” which requires the revaluation of assets and liabilities to their fair value as of the transition date. This often involves significant adjustments to fixed assets, accounts receivable, and inventory valuations. Following the transformation, the company must implement new IFRS-compliant accounting policies and train its staff or hire certified experts. Ongoing monitoring is essential to ensure that every subsequent transaction is recorded under the dual-reporting or full-transformation model.
While IFRS is a financial reporting standard, its adoption in Uzbekistan directly impacts the calculation of the tax base, particularly for Profit Tax as outlined in the Tax Code. Article 76 of the Tax Code allows for certain differences between accounting profit and taxable profit, but the move to IFRS changes how depreciation, provisions, and revenue recognition are handled. In practice, companies must maintain a tax register to reconcile IFRS figures with the specific requirements of the State Tax Committee. This is crucial because the “fair value” adjustments required by IFRS are often not recognized for tax purposes until the asset is actually sold or disposed of. A professional tax advisor helps bridge this gap to ensure the company does not underpay or overpay taxes during the transition. Compliance monitoring ensures that the “deferred tax” assets and liabilities are accurately reflected on the balance sheet.
Yes, under Uzbekistan legislation, accountants responsible for preparing IFRS reports for mandatory entities must possess a certificate of international standard, such as ACCA, DipIFR, or a local equivalent recognized by the Ministry of Economy and Finance. Presidential Decree PP-4611 specifically emphasizes the need for high-quality human capital to support the national transition to IFRS. Practically, this means that a standard Chief Accountant may require additional training or the support of an outsourced firm that employs internationally certified specialists. The government currently provides incentives, including the reimbursement of exam costs, to encourage the professional development of accountants in this field. For a company, having a certified professional is a legal prerequisite for the validity of their international financial statements. Without a certified signatory, a company’s IFRS reports may not be accepted by regulators or international auditors.
IFRS provides a universal financial language that allows foreign investors to evaluate the performance of an Uzbekistan company against global benchmarks without the need for complex translations from local NAS. According to the Law “On Investments and Investment Activity,” the state guarantees transparency, and IFRS is the primary tool used to achieve this for international stakeholders. Practically, IFRS-compliant reports are essential for securing loans from international financial institutions (like the EBRD or ADB) and for the repatriation of dividends. It simplifies the consolidation process for global groups with subsidiaries in Tashkent or other regions. By adopting IFRS, an Uzbekistan company significantly lowers its “information risk,” making it a much more attractive target for capital injection. Ultimately, it builds a bridge of trust between the local business environment and the global financial market.
Phone
Phone
Phone
Uzbekistan, Tashkent
United Arab Emirates, Dubai
Phone
Phone
Phone
Uzbekistan, Tashkent
United Arab Emirates, Dubai
Developed By Web Features 2026 All Rights Reserved
