World Bank Document

regulations issued by the MoF. Most NAS were issued in 1998, and some were updated in the 
period from 2003 to 2005. These were developed based on IAS/IFRS, but significant differences 
between NAS and IFRS remain (for more details, see Appendix 1). Regulations supporting NAS 
were issued during the same period to provide additional guidance, reporting formats and details 
on how to apply the reporting requirements, as well as guidelines on the accounting treatment of 
specific transactions. 
22. Both the Center on Coordination and Control Over Functioning of the Securities 
Market (CCCFSM) and the tax authorities are entitled to monitor compliance with 
legislation on financial reporting, although the tax authorities look at compliance only from 
the perspective of tax collection. In reality, however, it does not appear that these institutions 
have the resources and capacity to effectively monitor compliance with financial reporting 
requirements, particularly compliance with the disclosure requirements. 
23. The activities of banks are regulated by the Law on the Central Bank of Uzbekistan 
(No. 154-I, 1995), as amended, by the Law on Banks and Banking Activity (LBBA) (April 
25, 1996), as amended, and by other legislation. A bank (whether domestic or foreign) must 
obtain a license issued by the Central Bank of Uzbekistan, which also establishes their minimum 
statutory capital. That statutory capital consists of monetary contributions made by founders and 

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The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
- 8 - 
 
shareholders. Money received as loans, pledges for loans, etc., does not qualify as statutory 
capital. As a rule, banks are established as joint-stock companies, and founders can be both legal 
and natural persons, including foreigners. State entities, charities and public funds cannot be bank 
shareholders, unless stipulated otherwise by other legislation. Banks are not allowed to engage in 
manufacturing, trade and insurance activities, except for cases foreseen by legislation.