World Bank Document

I. INTRODUCTION 
1. 
This assessment of accounting and auditing practices in the Republic of Uzbekistan is 
part of a joint initiative of the World Bank and International Monetary Fund (IMF) to 
prepare Reports on the Observance of Standards and Codes (ROSC).
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The assessment 
focuses on the strengths and weaknesses of the accounting and auditing environment that 
influence the quality of corporate financial reporting in the Republic of Uzbekistan, and includes 
a review of both statutory requirements and actual practice. The report uses International 
Financial Reporting Standards (IFRS)
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and International Standards on Auditing (ISA)
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as 
benchmarks, and draws on international experience and good practice in the field of accounting 
and auditing regulation.
2. 
Although the previous Country Financial Accountability Assessment (CFAA) 
undertaken in 2004
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did not specifically analyze corporate financial reporting, it did have 
some recommendations for state-owned entities: “(i)A legal framework should be created for 
the management and operations of state owned enterprises, with clear provisions for financial 
accountability and governance and well established governance structures; (ii) There should be 
requirement to use International Financial Reporting Standards for accounting and reporting of 
the results of the enterprises’ activities in their financial statements. Adoption of International 
Financial Reporting Standards could be on a phased approach, based on the size and nature of the 
enterprises; (iii) The Government should encourage the use of independent external auditors to 
conduct the annual audit of IFRS financial statements of the enterprises, using International 
Standards of Auditing (ISA); (iv) The Government should adopt a full translation of International 
Financial Reporting Standards which could be applied to public interest enterprises; which would 
include the major public enterprises.”
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This current report builds on these earlier 
recommendations and suggests further reforms to strengthen corporate financial reporting and 
auditing in The Republic of Uzbekistan.
3.