Preparing IFRS Financial Statements: Full Set, Stages and Deadlines

What the full set includes

The financial statements are prepared on the basis of the IFRS texts recognised for application in Uzbekistan by Order No. 61 of the Minister of Finance (reg. No. 3400).

• statement of financial position;
• statement of profit or loss and other comprehensive income;
• statement of changes in equity;
• statement of cash flows (indirect method);
• notes: material accounting policy information and other explanatory information (Regulation reg. No. 3567, paragraph 11).

Who needs IFRS financial statements

• public interest entities: listed issuers, banks, microfinance organisations, payment institutions, investment funds, exchanges, large state-owned enterprises and companies meeting the criteria for assets, revenue and headcount;
• companies with consolidated IFRS financial statements, which also prepare separate IFRS financial statements (PP-282);
• subsidiaries of international groups, borrowers from foreign banks, companies preparing for a deal with an investor: voluntarily, notifying the tax authority by 1 March of the following year (PP-282).

Conversion or parallel accounting

Conversion means restating NAS data into IFRS through adjustments at the end of the period. It suits companies that need IFRS financial statements once a year and have few transactions.

Parallel accounting means maintaining IFRS data throughout the year. It is needed when financial statements are required quarterly or when there are many differences: leases, financial instruments, revenue from long-term contracts.

Project stages

• Diagnostic review: which accounting areas will produce the main adjustments and what data is available.
• IFRS accounting policies, approved before calculations begin.
• Collecting data for the reporting and comparative year: for first-time IFRS financial statements, IFRS 1 requires a full set for the reporting period and the previous year.
• Adjustments: property, plant and equipment and impairment, financial assets and expected credit losses, leases, revenue, deferred tax, consolidation.
• Statements and notes, plus adjustment working papers for the auditor.

Link with the audit

Public interest entities publish their IFRS financial statements together with the audit report (PP-282). The Law "On Auditing Activity" prohibits an audit firm from auditing financial statements that it prepared itself in the period under audit (Articles 33 and 34 of Law ZRU-677), so preparation and audit are carried out by different firms.

What we need from the company

• NAS trial balances and registers for two years;
• lease, loan and major sales contracts;
• fixed asset register and receivables data;
• group structure and related party transactions.