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Uzbekistan Transition to International Financial Reporting Standards — Orbitax Tax News & Alerts

The Uzbekistan Ministry of Finance has issued a release regarding its transition to International Financial Reporting Standards (IFRS). The release follows the Ministry's participation in an online IFRS Global Conference held 24 to 26 June 2020, which included the topic of the introduction of IFRS in Uzbekistan. In this regard, the release notes the following:

- The government is implementing a course to accelerate integration into the global economy. This goal can be achieved by creating a competitive economy, where one of the important components is the availability of high-quality financial information that foreign partners can trust. Such trust can be achieved by reporting on the basis of IFRS.

- The Ministry of Finance has been designated as the authorized body for their implementation. The roadmap for the phased transition to IFRS and modern training methods in this area has been approved. Business entities that voluntarily prepare statements in accordance with IFRS are exempted from reporting in accordance with national accounting standards. The Ministry is working on bringing national accounting standards and other reporting forms in accordance with IFRS, translating IFRS texts and explanations into the state language.

- With effect from 2021, domestic joint-stock companies, commercial banks, insurance organizations, and legal entities that are large taxpayers must switch to IFRS as provided for by the decree of the President of the Republic of Uzbekistan dated 24 February 2020 on additional measures to transit to IFRS.