World Bank Document

 
24. The Central Bank of Uzbekistan (CBU) is responsible for supervising the operations of 
banking organizations. When it comes to accounting and auditing, the CBU: 
 

establishes rules for the conduct of banking operations, bookkeeping, bank statistical 
reporting and annual reporting; and 

has the right to receive and inspect reports and other bank documents, to demand 
information on operations and transactions, to establish internal audit requirements for banks, to 
instruct a bank to improve its operations and procedures, and to specify the qualification 
requirements for the head and chief accountants of banks and their branches.
The LBBA requires that banks be audited annually by auditors holding CBU audit licenses. The 
audit should include an assessment of a bank’s capital adequacy and a classification of credits, 
risks and liquidity. The CBU is authorized to require auditors to follow its regulations, including 
its procedures and methodology, and also to ask them for information on bank audit results.
25. To obtain the certificate permitting it to perform bank audits in Uzbekistan, an audit 
firm must file an application with the CBU, enclosing the following documents: (i) data 
confirming that the firm has at least two auditors on staff who have the qualification certificate 
giving them the right to perform bank audits, and (ii) a notarized copy of their MoF license. The 
CBU will then issue the certificate permitting the firm to audit banks. 
26. In accordance with Uzbek banking laws and CBU decrees, banks must present 
prudential information in a prescribed format. These reports have to include a daily trial 
balance sheet; monthly balance sheet and income statement; and a quarterly balance sheet, 
statement of income, cash-flow statement, and changes in non-current assets and equity. NAS 
issued by the MoF are not applicable to banks. In accordance with Art. 41 of the LBBA, the CBU 
establishes regulations for accounting and financial reporting by banks according to the 
legislation of Republic of Uzbekistan and international standards. So far, the CBU has issued 17 
regulations for accounting and financial reporting by banks that were developed on the basis of 
some IAS/IFRS valid at the time of the regulations’ adoption and modified to reflect the 
requirements of country legislation. In addition, the CBU requires that annual bank financial 
statements be prepared in accordance with IFRS. The LBBA also requires that annual financial 
statements be published together with the audit report not later than May 1 of the year following 
the reporting year. To convert the CBU compliant financial statements to full IFRS financial 
statements, adjustments are required, which may be made in some cases with auditors’ help. The 
banks publish their financial statements in the print media, releasing four statements: the income 
statement, balance sheet, changes in equity, and the cash-flow statement, along with an extract 
from the audit opinion. Only a few banks publish general purpose financial statements on their 
websites, again posting the same four statements and the audit opinion extract. 
27. Three specific laws regulate non-bank financial institutions (NBFI): the Law on Credit