Application of ifrs in New Uzbekistan

Аннотация

This article is devoted to the application and implementation of Interna- tional Accounting and Auditing standards based on European and American practice achievements, particularly International Financial Reporting Standards and International Standards of Auditing. There were described the main achievements in the integration of the national accounting and audit system into the world community. In summary, the recommendations and conclusions were developed on priority areas for further IFRS- and ISA-based accounting and audit reforms. Key words: Accounting, auditing, IFRS, ISA, regulation, accounting (financial) repor- ting, methodological approaches. Introduction. Reforming accounting in Uzbekistan is based on the use of the achievements of accounting science, statistics, and world practice, reflected in the system of national accounts (SNA) and international financial reporting standards (IFRS), as well as taking into account the characteristics of the national economy. Accounting should be considered as an area of coordination of interests of the state and business in the context of globalization of the world economy. Financial statements are just a little useful to users: we can say with a high de- gree of certainty that it is difficult to obtain information about the actual financial position of an organization from the date of such statements. This is primarily due to the way in which indicators are formed, evaluated, and grouped in modern financial statements. The state of accounting (financial) reporting causes dissat- isfaction not only among scientists but also among practitioners. And not only practicing accountants but also businessmen. Many entrepreneurs mistrust the data generated in financial statements and do not consider them as a source of information for making decisions regarding the management of their property. Since the conceptual provisions of the strategic development of the country’s economy, which include reforming both the financial mechanism and accounting technology, legal support, and organizational and structural transformations, are currently being implemented, there is an urgent need to analyze and summarize the progressive foreign experience. With regard to accounting technology, it is a reference to the analysis and use of international financial reporting standards. Convergence of the domestic accounting system with IFRS is only one of the directions of improvement of the accounting system. The essence of the devel- «Yangi O‘zbekiston: Moliyaviy hisobotning xalqaro standartlarini joriy etishda muvaffaqiyatli 204 xalqaro tajriba» 16 dekabr, 2022 yil. opment of accounting may be reduced not to a desire to introduce IFRS into the national practice by all means, but to a harmonious combination of the new with the traditions of the national system of accounting. Moreover, IFRS is periodically updated, and these updates are based, in fact, on the advanced developments of scientists from different countries. It is important that the focus of IFRS is related to the requirements for financial reporting, and not aimed at the requirements for accounting. IFRS is a system of documents defining the general approach to the preparation of financial statements. Creating more detailed standards would make it impossible for all countries to apply them. After all, each country has its own accounting traditions and, importantly, its own general civil legislation. Therefore, IFRS are rules for the preparation of accounting (financial) statements, which are recommendatory in nature. The following positive points should be emphasized. Firstly, the standards are constantly being revised, focusing on the needs of the current moment. Second, the development of IFRS involves a wide range of inter- ested professionals: accountants, financial analysts, representatives of education- al institutions, and other interested users of financial statements around the world. It is developed over several decades that domestic accountants got used to the fact that answers to all questions can be found in normative documents. We can state that up to now many of them do not understand that standard documents cannot provide for the entire diversity of facts of economic activity, and therefore cannot give answers to all questions. In order to change this approach, it is neces- sary to fundamentally change the program of their training in higher educational institutions, as well as to pay serious attention to this in the courses of professional development. Methods. Recently the IFRS has become more and more important since they are a convenient means of “communication” between enterprises of different countries. Undoubtedly, if financial reports were prepared under common rules, it would be convenient for all. Because both the composition of reporting indicators and the procedure for their formation will be the same. V.V. Kovalev and Vit.V. Kovalev draw attention to the fact that the need to ensure transparency,