ISA vs NAS in Uzbekistan: What to Choose for Your Company
Accounting · Published: 2026-04-05 · Updated: 2026-08-06 · Reading time: 7 min
Many companies in Uzbekistan face a dilemma: maintain accounts under national NAS standards or directly under international IFRS?
Prepared by the auditors of Leader Audit (CAP, CIPA, DipIFR). Sources: Tax Code of Uzbekistan, Ministry of Finance of the Republic of Uzbekistan.
For accountants and finance directors in Uzbekistan, the choice between national (NAS) and international (IFRS) accounting standards is one of the key questions. Understanding the difference helps avoid costly mistakes and structure financial reporting properly.
What NAS and IFRS are
NAS (National Accounting Standards) are the standards of the Republic of Uzbekistan, developed by the Ministry of Finance of the Republic of Uzbekistan. They are mandatory for all resident companies and govern the maintenance of accounting records and the preparation of financial statements.
IFRS (International Financial Reporting Standards) are global standards developed by the IFRS Board (IASB). They are applied in more than 140 countries worldwide and serve as the "common language" of business for investors, banks and regulators at the international level.
ISA (International Standards on Auditing) are the standards for conducting audits associated with IFRS. If a company prepares its financial statements under IFRS, the audit is performed in accordance with ISA.
Who is required to apply IFRS in Uzbekistan
- Public interest entities (PIE) included in the corresponding Register
- criteria for this category are set by the Ministry of Economy and Finance together with the Central Bank, based on the type of activity and/or the size of assets
- inclusion in the Register takes place annually by 1 July: by the Ministry of Economy and Finance, and for entities supervised by the Central Bank, by the Central Bank
- from 1 January 2026 the Register is maintained electronically and published annually by 1 July on the Government Portal and the Open Data Portal
- legal entities for which legislation prescribes earlier IFRS transition deadlines
- subsidiaries of foreign holdings — at the request of the parent company (a contractual, not a statutory, basis)
The mechanism has changed. Point 1 of Resolution PP-4611 of 24 February 2020, which set the previous list of entities transitioning to IFRS, ceased to have effect on 17 December 2025 under Presidential Resolution No. PP-282 of 15 September 2025. In its place, the status of Public interest entities and a corresponding Register were introduced. An entity included in the Register organises its accounting under IFRS from 1 January of the year following inclusion and, based on the results of the second year, prepares and publishes financial statements together with an audit report in accordance with IFRS. All other companies keep their records under NAS and may transition to IFRS voluntarily, notifying the tax authorities through the taxpayer personal account by 1 March of the following reporting year.
Key differences between NAS and IFRS
1. Principles vs rules
IFRS is based on principles and requires professional judgement. NAS is closer to rules — most situations have clearly prescribed procedures. This simplifies the accountant's work but reduces flexibility.
2. Valuation of assets
Under IFRS, assets are often measured at fair value with regular revaluation. Under NAS, historical cost with depreciation prevails.
3. Financial statements
IFRS requires more detailed disclosures, mandatory explanatory notes, and a cash flow statement in expanded form. NAS is limited to standard forms 1, 2 and their appendices.
4. Accounting for leases, impairment, deferred taxes
These areas differ substantially. For example, under IFRS (IFRS 16) almost all lease agreements are recognised on the balance sheet as an asset and a liability — whereas under NAS operating leases are more often accounted for off-balance-sheet.
When parallel accounting is needed
Parallel accounting under NAS and IFRS is maintained by companies that:
- Have a parent company or shareholders abroad
- Attract foreign investment or are planning an IPO
- Obtain loans from international banks
- Are preparing to sell the business to an international buyer
- Want to apply a more progressive accounting policy for management purposes
Transformation vs parallel accounting
There are two ways to obtain IFRS financial statements:
- Parallel accounting — every transaction is recorded simultaneously under NAS and IFRS. More expensive in ongoing maintenance, but provides accurate data in real time
- Transformation — records are kept under NAS, and at the end of the period (quarter/year) they are restated into IFRS. Cheaper, but requires considerable effort at the moment of transformation and is less accurate
What to choose for your business
- Small and medium-sized local business — NAS only, that is sufficient
- Company with foreign investors — parallel accounting or regular transformation
- An IT startup with plans to enter the international market — IFRS straight away as the primary accounting basis
- A company preparing for sale — transformation for the last 2-3 years
- Bank/insurance company/joint-stock company — IFRS plus NAS, mandatory
Conclusion
The choice between NAS and IFRS is not an "either/or", but a question of the right strategy for your business. Most successful medium-sized companies in Uzbekistan maintain parallel accounting or regularly transform their financial statements — this opens access to foreign financing, increases transparency for owners and simplifies the audit. If you are considering a transition to IFRS or need a transformation, Leader Audit specialists holding the international CAP, CIPA, DipIFR certifications will help develop the optimal solution.
Frequently asked questions
What is the difference between NAS and IFRS in Uzbekistan?
NAS (National Accounting Standards) are the standards of the Republic of Uzbekistan developed by the Ministry of Finance and are mandatory for all resident companies. IFRS (International Financial Reporting Standards) are global standards developed by the IASB and used in more than 140 countries as the common language of business for international investors, banks and regulators. NAS is closer to a rules-based system with prescribed procedures, while IFRS is principles-based and requires professional judgement, more detailed disclosures, and often fair-value measurement of assets.
Which companies are required to apply IFRS in Uzbekistan?
A new mechanism has applied since 17 December 2025. The previous list set by point 1 of Resolution PP-4611 ceased to have effect under Presidential Resolution No. PP-282 of 15 September 2025; it was replaced by the status of Public interest entities (PIE) and a corresponding Register. The criteria are set by the Ministry of Economy and Finance together with the Central Bank, based on the type of activity and/or the size of assets, and inclusion in the Register takes place annually by 1 July. An entity in the Register keeps its accounts under IFRS from 1 January of the following year and, after the second year, publishes its statements together with an audit report under IFRS. Earlier transition deadlines remain where separate legislation prescribes them. All other companies keep their records under NAS and may transition voluntarily, notifying the tax authority by 1 March of the following reporting year.
What is the difference between ISA and IFRS?
IFRS (International Financial Reporting Standards) govern how financial statements are prepared, while ISA (International Standards on Auditing) govern how those statements are audited. If a company prepares its financial statements under IFRS, the audit is performed in accordance with ISA. In Uzbekistan, financial statements prepared under national standards (NAS) are audited accordingly, so the reporting framework and the audit framework are chosen together.
Should my company use parallel accounting or transformation to obtain IFRS statements?
There are two approaches. Parallel accounting records every transaction simultaneously under NAS and IFRS, which is more expensive to maintain but provides accurate data in real time. Transformation keeps records under NAS and restates them into IFRS at the end of each period, which is cheaper but requires considerable effort at the moment of transformation and is less precise. Companies attracting foreign investment or planning an IPO often choose parallel accounting, while those preparing for sale typically transform the last 2-3 years. Leader Audit specialists holding CAP, CIPA and DipIFR certifications can help select the optimal solution.
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