Tashkent, Uzbekistan (UzDaily.com) -- The international standards of financial reporting are a system of rules and clarifications that cover the general principles for the formation of financial statements of organizations. The use of international standards ensures transparency of the financial report of economic entities, provides an opportunity to reflect the financial situation of companies and the results of their financial activities on the basis of recognized accounting principles in the international community. Therefore, large companies in more than 150 countries of the world use these standards as the “language of international business”.

The copyright to the international standards of financial reporting (IFRS)belongs to the IFRS Fund, which is considered an international organization. For this reason, the use of international standards as a normative document on the territory of any country is a complex process.

In order to organize the use of the international standards of financial reporting as a normative document in our republic, the Cabinet of Ministers of the Republic of Uzbekistan adopted Resolution № 507 of August 24, 2020 “On approval of the statute of the international standards of financial reporting and the procedure for recognition of the text of explanations to it”.

By this decision, the regulation on the international standards of financial reporting and the procedure for recognition of the text of explanations was approved.

In accordance with this regulation, the international standards of the financial report for its application in the territory of the Republic of Uzbekistan and the text of explanations to it were included in the following documents adopted by the IFRS Fund:

international standards of financial reporting;

explanations to the international standards of financial reporting;

Changes to the text of IFRSdocuments  ;

Other documents specified by IFRS Fund as an integral part of the text of the documents of IFRS .

In addition, with this regulation, the procedure for the expert examination of the documents of the international standards of financial reporting for application in the territory of the Republic of Uzbekistan and the procedure for decision-making on the introduction of the documents of the international standards of financial reporting in the territory of the Republic of Uzbekistan have been established.

The above resolution adopted by the Cabinet of ministers provides for the implementation of the resolution of the President of the Republic of Uzbekistan № PP-4611 of February 24, 2020 “On additional measures for the transition to International Financial Reporting Standards” and provides the legal basis for the use of International Financial Reporting Standards in our republic as a normative document.