World Bank Document

Chart of Accounts, NAS apply to the insurance sector as well, although there is no specific 
standard on insurance contracts. The MoF has issued a separate regulation on the chart of 
accounts for the insurance sector, as well as specific reporting formats primarily addressing 
prudential reporting requirements. Financial reports of insurance companies have standard 
formats and include financial statements, solvency and reserves statements and reports on 
insurance activities. Insurance companies are also obliged to have a certified actuary prepare an 
annual actuarial assessment. 
71. As part of the ROSC assessment, a compliance gap analysis was carried out, which 
shows that the quality of the financial statements prepared by the selected enterprises needs 

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The Republic of Uzbekistan – Accounting and Auditing ROSC 
 
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improvement. Although the law requires certain entities to publish their financial statements, 
frequently, compliance with this requirement is reduced to publishing a summarized balance 
sheet and income statement. Because general purpose financial statements are ordinarily not 
publicly available, the compliance gap assessment covered only a sample of 10 sets of audited 
financial statements prepared in accordance with NAS and two sets prepared in accordance with 
IFRS (by way of converted NAS statements). The financial statements came from eight private 
sector companies, one bank and one insurance company. Results of the review can be 
summarized as follows: 

Only one set of NAS financial statements of a foreign-owned enterprise and two sets of 
IFRS financial statements from a bank and an insurance company included notes to the financial 
statements; these financial statements were audited by member firms of international audit 
networks. The remaining financial statements did not contain any notes as required by NAS and, 
therefore, did not fully comply with NAS requirements. 

There are differences between banking sector regulatory requirements and IFRS in the 
treatment of loan loss allowances, and this difference is not disclosed in IFRS financial 
statements.
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Also, the CBU recognizes only those adjusting entries related to conversion from 
NAS to IFRS that do not contradict national legislation; no reference is made in the financial 
statements to CBU regulations, and the allowances were presented as compliant with IFRS in the 
financial statements. Ordinarily, where national regulations give rise to such a difference, 
disclosures about, and the quantification of, these differences are required. 

Financial statements submitted by insurance companies did not include cash-flow 
statements and notes to the financial statements; in fact, these financial statements were those 
required for prudential purposes only. 
72. The overall conclusion of the review of Uzbek financial statements is that there is a