Notes to Financial Statements: What to Disclose in Uzbekistan

What the notes are and who presents them

NAS 1 provides that the notes take the form of calculations, explanations and notes (para. 119), and that explanations are presented systematically as an explanatory note, with cross-references to the related items of the statements (para. 121). Regulation 3567 calls this element of the set "notes, calculations and explanations (notes to the financial statements)" (para. 9).

An important caveat: the annual statements of micro-firms and small enterprises include only the balance sheet and the statement of financial results (Regulation 3567, para. 10). For other organisations reporting under NAS, the notes are a mandatory part of the annual set, which is due no later than 1 March of the following year (para. 7).

The mandatory minimum

Paragraph 120 of NAS 1 requires three blocks of information in the notes. The first is the basis of preparation and the accounting policies chosen. The second is information required by national standards that is not presented in any form. The third is additional analysis needed for an accurate and fair view of the statements.

• legal form, country of incorporation and registered address (or the actual place of business, if different) (para. 127);
• a description of the nature of the main operations (para. 127);
• the name of the parent or the ultimate parent of the group (para. 127);
• the average number of employees on the payroll (para. 127);
• compliance with national standards, measurement bases and accounting policies, additional detail on line items, contingent liabilities and non-financial disclosures (para. 122).

The accounting policy section

The basis of preparation and specific accounting policies are presented as a separate section ahead of the other notes (para. 123). It discloses the measurement bases used, each significant part of the accounting policy and an explanation where the policy has changed (para. 124). Where more than one measurement basis is applied to one class of assets, information is given for each category separately (para. 125).

The standard gives an open list of topics usually disclosed (para. 126). Management selects what matters for its own company, guided by what helps users assess risks and future cash flows.

• profit recognition and consolidation;
• property, plant and equipment and intangible assets, depreciation (amortisation);
• capitalisation of borrowing costs, capital expenditure, investment property;
• financial instruments and investments, leases;
• inventories, research and development;
• taxes, including deferred taxes, provisions, staff costs;
• foreign currency translation, segments, inflation accounting, government assistance.

Changes in policies and estimates, material errors

Where a change in accounting policy has a material effect on the current or future periods, the notes disclose the reasons for the change, the adjustments for the current and prior periods, the adjustment recognised in current-period net profit, and restated comparatives or the reasons why restatement is impracticable (para. 110).

The nature and amount of a change in an accounting estimate that materially affects the current period or will lead to material changes later are also disclosed; if the amount cannot be determined, that fact is disclosed (para. 113).

When a material prior-period error is corrected through opening retained earnings, the notes disclose the nature of the error, the corrections for the current and each period presented, adjustments to comparatives, and the restated comparatives or the reasons why restatement is not possible (para. 117).

Notes to individual statements

• Statement of financial results: analysis of income and expenses by nature or by function; where expenses are classified by function, additional information by nature, including depreciation (amortisation) and staff costs (NAS 1, paras. 96, 97).
• Equity: cases where equity decreased, such as a participant leaving, a buy-back or cancellation of shares, a reduction in par value (para. 102); joint-stock companies disclose the number of shares issued and outstanding, par value, and unpaid cumulative dividends on preference shares (para. 103).
• Cash flows: acquisitions and disposals of subsidiaries — total consideration, the part paid in cash, cash held by the entity acquired or sold (NAS 9, para. 29); non-cash investing and financing transactions (para. 30); significant cash balances not available to the group, with management's explanation (para. 32).
• Balance sheet: the form is accompanied by a breakdown of overdue receivables and payables (an appendix to the balance sheet under Regulation 3567), and overdue receivables are shown on a separate line in the balance sheet itself.

Structuring the note so the auditor and users accept it

• Start with general information about the company and the basis of preparation, then the accounting policies as a separate section, then notes to line items in the order of the forms (paras. 123, 127).
• Link each note to the line or item number in the form; the standard requires cross-references to the related items (para. 121).
• Figures in the notes must agree with the forms: the fixed-asset breakdown with the balance sheet, the expense breakdown with the statement of financial results.
• Do not copy the whole accounting policy; disclose what matters for understanding these particular statements (para. 126).
• Disclose contingent liabilities such as litigation and guarantees given; the standard lists them among the required other disclosures (para. 122).

What changes from 2027

NAS 1 ceases to apply on 1 January 2027. It is replaced by National Financial Reporting Standard (NFRS) No. 1 "Presentation and Disclosure of Information in Financial Statements", approved by Order No. 392 (registration No. 3923 of 13.08.2026). The new standard has a separate chapter on the notes and states the principle directly: an entity presents or discloses only material information (para. 10). In addition, for each asset and liability line that combines amounts due within and after twelve months, the notes disclose the amount expected to be recovered or settled after twelve months (para. 38). The 2026 statements are still prepared under NAS 1, but it makes sense to build the structure of the note with the new standard in mind.