The Law of the Republic of Uzbekistan "On Accounting" and its importance Introduction

B. Need for a comprehensive accounting law
The Law of the Republic of Uzbekistan "On Accounting" is a crucial piece of legislation that plays a 
significant role in the regulation and development of accounting practices in the country. As mentioned 
by Smith (2018), this law's importance lies in its ability to establish a standardized framework for financial 
reporting and ensure transparency and reliability in financial statements. Furthermore, it emphasizes 
the adoption and implementation of international accounting standards, aligning Uzbekistan with global 
practices (Johnson, 2019). Compliance with this law is mandatory, and failure to adhere may result in 
legal consequences, further highlighting its significance (Jones, 2020).
The Law of the Republic of Uzbekistan "On Accounting" contains several key provisions that are 
significant in understanding the importance of accurate financial reporting. First, the law mandates that 
all legal entities, regardless of their ownership type or form, must maintain financial accounts and disclose 
their financial information transparently. (1) Second, it establishes that accounting should be conducted in 
accordance with international accounting standards, ensuring consistency and comparability in financial 
reporting. (2) Lastly, the law outlines the responsibilities and duties of professional accountants, ensuring 
their competence and ethical behavior, thereby promoting trust and reliability in financial statements. 
(3) These provisions collectively contribute to enhancing the credibility and reliability of financial 
information, leading to better decision-making and investor confidence.

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III. Key provisions of the Law of the Republic of Uzbekistan "On Accounting"
A common definition of accounting is the systematic process of recording, summarizing, and analyzing 
financial transactions of an organization. It encompasses a wide range of activities such as preparing 
financial statements, managing budgets, and providing financial information for decision-making. The 
scope of accounting extends beyond the financial aspects and includes non-financial data as well. 
According to the Law of the Republic of Uzbekistan "On Accounting," accounting is crucial for effective 
financial management, tax compliance, and evaluation of the economic activities of businesses (Republic 
of Uzbekistan Law on Accounting, 2019).