IFRS accounting: chart of accounts, parallel accounting and conversion

Who applies IFRS in Uzbekistan from 2026

• public interest entities (Presidential Resolution PP-282): issuers listed on an exchange, banks, microfinance organisations, payment organisations, investment funds, exchanges; companies with a state share of 50% or more and large organisations — with assets and revenue of at least 1 million BCV (base calculation value) for two years in a row (for large organisations, also 500 or more employees) (Regulation No. 3736);
• PIEs are included in the Register every year by 1 July and keep their books under IFRS from 1 January of the following year;
• others may switch voluntarily by notifying the tax authority by 1 March; those voluntarily preparing IFRS statements are exempt from NAS (national accounting standards) reporting (PP-4611).

How IFRS accounting differs from national accounting

The main difference is the logic. National accounting relies largely on the form of the document and regulatory requirements, while IFRS starts from the economic substance of the transaction and the usefulness of information for investors and lenders. That is exactly why the same contract may be recorded differently.

The second difference is the role of professional judgement. IFRS does not give a ready answer for every case: it sets principles, and the company justifies its choice. So an IFRS accounting policy is not a formality but a working document that defends the company’s position before the auditor.

The third is measurement. The international standards pay noticeably more attention to fair value, impairment of assets and discounting — that is, to what an asset or liability is worth now rather than what was once paid for it.

Who in Uzbekistan needs IFRS accounting

For some organisations financial reporting under international standards is mandatory: the list of such categories is set by legislation and revised from time to time, so the current status of your company is best checked individually.

Others come to IFRS voluntarily. The usual triggers are negotiations with a foreign partner, raising a loan or investment, preparing for a transaction, or the parent company’s group reporting requirements.

• organisations for which IFRS reporting is required by legislation
• companies raising external financing
• members of groups with a foreign parent company
• businesses preparing to sell a stake or bring in an investor
• companies that need comparable reporting across years and segments

Two ways to organise IFRS accounting: conversion and parallel accounting

Conversion means recalculating national accounting data into IFRS format at the reporting date. It is cheaper at the start and does not require rebuilding the accounting system, but it is retrospective: during the period management does not see figures under the international standards.

Parallel accounting means transactions are recorded in two systems at the same time. It is more expensive to implement and requires configuring the accounting software, but the data are available at any moment and the period close is faster and more predictable.

The choice depends on how often reporting is needed and how large the differences between the systems are. Many companies start with conversion and move to parallel accounting once IFRS reporting becomes regular.

Areas where IFRS departs from familiar practice

Differences are concentrated in a few areas, and these produce most of the adjustments on first-time application of the standards. The same areas usually raise the most questions from the auditor.

Each requires not only a calculation but also documented support: assumptions, data sources, the logic of the judgement.

• revenue recognition: the moment control transfers rather than the shipment date on a document
• leases and right-of-use assets
• impairment of assets and measurement of the recoverable amount
• financial instruments and expected credit losses
• provisions, estimated liabilities and events after the reporting date
• deferred taxes arising from differences between bases

Typical errors in IFRS accounting

The most common error is mechanically carrying over national data with cosmetic edits. The statements look like IFRS on the outside, but judgements are not formulated, assumptions are not documented, and everything falls apart at the first audit.

The second error is missing disclosures. In IFRS financial statements the notes carry no less meaning than the primary statements: without them the user cannot understand how the figures were arrived at.

The third is an accounting policy copied from someone else’s template. If the policy does not reflect the company’s actual transactions, it does not help — it creates additional questions.

Where to start setting up IFRS accounting

The first step is diagnostics: what transactions the company has, which standards are critical for them, what state the national accounting data and the accounting system are in. The results show where information will have to be gathered that simply did not exist before.

Next, an IFRS accounting policy is formed, measurement models are defined and a conversion methodology or the configuration of a parallel ledger is prepared. The transition date and the procedure for forming opening balances are fixed separately.

The final stage is the first set of financial statements with notes and its review. Practice shows that disclosures take the most time, so they are best prepared alongside the calculations rather than at the end.

How we help with IFRS accounting

Leader Audit is an audit organisation with 13 years of practice and more than 220 audits completed. We work both on preparing financial statements and on auditing them, so we see clearly which areas raise questions.

For companies across Uzbekistan we review the current state of the books, help build the methodology and support the preparation of the first financial statements under the international standards.