World Bank Document

closed (shares are restricted to certain classes of shareholders only) joint-stock companies, 
banks and other credit institutions, insurance institutions, investment funds, charities, and 
entities with state participation. The law states that the auditor is appointed by “the entity” and 
confirmed by the shareholder(s) or, where applicable, by a shareholders’ meeting. In 2007, the 
government introduced a rotation requirement; an audit firm is allowed to audit an entity for only 
three consecutive years. With regard to termination of an audit assignment, the CBU requires 
banks to promptly inform it if an audit assignment is terminated during the course of an audit. 
The Statutory Framework for Accounting and Financial Reporting
 
17. Accounting and financial reporting in the Uzbek enterprise sector are primarily 
regulated by the Law on Accounting (LoA) (No. 279-1, 1996) and the Law on Auditing 
Activity (LoAA) (1992). When addressing issues of accounting and auditing, other company 
legislation is typically cross-referenced to these two laws. Although the two laws spell out most 
of the country’s financial reporting obligations, certain institutions, primarily those in the 
financial sector, are subject to some additional requirements. 
18. The LoA sets out the main principles and regulations governing accounting and 
financial reporting in the Republic of Uzbekistan, including the basis for that accounting 
and reporting, the responsibilities of the regulators, and the responsibilities of those 
involved in the financial reporting process. The LoA is applicable to all legal entities in both 
the private and public sectors. The law defines financial statements as including a balance sheet, 
13
According to data provided by the State Statistics Committee of Republic of Uzbekistan. 

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The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
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statement of financial results, statement of changes in non-current assets, cash-flow statement, 
statement of changes in capital and notes to the financial statements. The law also designates the 
Ministry of Finance (MoF) to be the standard setter and says the reporting period must be the 
calendar year. Companies that have subsidiaries or branches must prepare consolidated financial 
statements. Additional prescribed reports must be submitted to the tax authorities, shareholder(s), 
the state statistics department and other authorities as required by other laws (e.g., prudential 
reporting by banks and insurance companies). The reporting period is one quarter, on a 
cumulative basis.