Volume 4, issue 4, 2025
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ORGANIZATION OF FINANCIAL ACCOUNTING BASED ON INTERNATIONAL
STANDARDS IN THE CONTEXT OF ECONOMIC LIBERALIZATION
Gulyamova Iroda , Mutabar Dzhuraevna
Tashkent Institute of Irrigation and Agricultural Mechanization Engineers
Abstract :
In the context of economic liberalization, the transition to International Financial
Reporting Standards (IFRS) is a critical step toward enhancing the transparency and investment
attractiveness of enterprises. This article explores the implementation specifics of IFRS in
Uzbekistan, identifies key benefits and challenges, and analyzes both international and local
experiences. Particular attention is given to corporate case studies and a cost-benefit analysis of
IFRS adoption.
Key words:
IFRS, financial accounting, economic liberalization, investments, Uzbekistan,
standardization
.
Introduction
Modern economic development requires harmonization of national accounting systems with
international standards. Liberalization of the economy in Uzbekistan necessitates the transition to
International Financial Reporting Standards (IFRS) to ensure transparency, increase investor
confidence and integration into the global community. This article aims to analyze the processes
and results of IFRS implementation in Uzbekistan.
Literature Review
In global practice, the use of IFRS ensures the comparability of financial information. According
to the World Bank for 2022, the transition to IFRS increases the transparency of companies by
20-30%. In Uzbekistan, the implementation of IFRS has been actively implemented since 2020,
which has become an important tool for integrating companies into international financial
markets.
For example, companies such as
" Uzbekneftegaz "
and
" UzAuto Motors "
report in
accordance with IFRS, which allowed them to attract the attention of foreign investors.
JSC "
UzAssets "
implements sustainable reporting standards ( S 1 and S 2) that meet international
requirements. Financial institutions such as
TBC Bank Uzbekistan
, operate exclusively on the
basis of IFRS, which increases the level of transparency and trust in the banking sector.
IFRS also allows Uzbek companies to obtain international credit ratings, improving their
financial attractiveness. Many small and medium-sized businesses have begun to apply
simplified versions of IFRS, which gives them access to global supply chains.
New IFRS disciplines are being introduced in the country's universities to help train future
accountants and auditors. As
Savitskaya G.V. (2022)
and the
Financial Reporting and Audit
Journal (2023)
emphasize , personnel training and government support are key factors in the
successful implementation of IFRS in Uzbekistan. In recent years, efforts to introduce IFRS in
Volume 4, issue 4, 2025
18
public and private companies have been intensifying in Uzbekistan. Artemenkov and Ganiev
(2024) presented an analytical approach to asset impairment testing using Excel -based
algorithms that can be used in the practical work of accountants. Sativaldieva (2023) emphasizes
the potential for applying IFRS in small and medium-sized businesses in Uzbekistan, pointing to
the need to develop financial literacy and simplify the regulatory environment. Bozorova (2023)
highlights the need to reform the balance sheet in accordance with IFRS as a path to international
compatibility. Saidov (2023) analyzes the barriers and opportunities for the implementation of
IFRS for the accounting profession. According to the Ministry of Finance of Uzbekistan (2022),
by 2026, it is planned to fully integrate IFRS into the activities of organizations of public interest.
JSC ' National Electric Grid of Uzbekistan has been successfully implementing IFRS since 2023,
their reporting has been confirmed by the international audit company Ernst & Young . JSC
UzAssets has been actively implementing sustainable reporting standards S 1 and S 2 within
IFRS since 2021. These examples demonstrate the active participation of large state-owned
enterprises in reforming financial reporting based on IFRS.
Methodology
The article uses methods of comparative analysis, visualization of statistical data (graphs and
diagrams), as well as a case method to describe the experience of individual enterprises. The
sources of information were official reports, publications in specialized journals, open data from
the Ministry of Finance and international organizations.
Introduction
Liberalization of the economy requires adaptation of financial accounting to modern
international standards, which ensures transparency and comparability of financial information.
International Financial Reporting Standards (IFRS) are becoming an integral part of effective
financial management in the context of globalization and an open market.
1. The importance of international standards in the context of economic liberalization
International Financial Reporting Standards (IFRS) are aimed at unifying accounting policies,
providing uniform principles for reporting. This is especially important for countries with
transition economies, where integration into the global economic community requires
transparency.
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19
Figure
1.
Growth
of
IFRS
adoption
in
developing
countries
2. The main advantages of using IFRS
- Transparency of financial information Improving the investment climate Simplifying access to
international capital markets Reducing corruption risks and increasing confidence among foreign
investors Comparison of national standards and IFRS
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Organizing financial accounting based on international standards is a key condition for
successful integration into the global economy. In the context of economic liberalization, the
transition to IFRS allows for investor confidence, increased competitiveness, and sustainable
development.
Problems and barriers to the implementation of IFRS. Despite the obvious advantages, the
implementation
of
IFRS
is
associated
with
a
number
of
difficulties:
- Insufficient training of personnel with knowledge of international standards - High costs of
retraining personnel and upgrading information systems - The presence of a dual reporting
system at the transition stage - Lack of motivation among small and medium businesses to
switch to IFRS
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21
Figure 2. Average costs of transition to IFRS by sector
4. International experience and examples of successful adaptation
The experience of Eastern Europe, Southeast Asia and Latin America demonstrates that a
comprehensive approach with government support and international cooperation contributes to
the successful adaptation of IFRS. For example, in Poland, the implementation of international
standards was accompanied by government training programs, and in Brazil - tax incentives for
companies that switched to IFRS.
5. Prospects and current situation in Uzbekistan
Uzbekistan is actively working to implement IFRS in public and private organizations. Since
2021, plans have been approved for mandatory transition to international reporting standards for
large enterprises. Training programs are being created with the support of the Ministry of
Finance, and international consultants are being involved.
6. Examples of companies implementing IFRS
Let us consider specific examples of companies in Uzbekistan that have implemented or are in
the process of transitioning to international financial reporting standards:
Figure 3. Evaluation of companies' transparency before and after the implementation of IFRS
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JSC ' Uzbekneftegaz '
One of the first state-owned companies to implement IFRS in order to attract foreign investment
and place Eurobonds on international markets. Uses independent audit and publishes IFRS
reports annually.
JSC ' UzAuto Motors '
The country's largest car manufacturer has adapted its internal accounting systems to IFRS
requirements as part of its collaboration with General Motors and preparations for IPO .
JSC ' Uzmetkombinat '
A metallurgical giant that is gradually transitioning to IFRS starting in 2022. An international
reporting department has been created and foreign auditors have been hired.
TBC Bank Uzbekistan
A branch of an international banking group initially operates exclusively according to
international standards in accordance with the requirements of the head office and foreign
investors. These examples show that the transition to IFRS requires a strategic approach and
investment, but ultimately ensures a high level of trust from partners and investors, as well as
sustainable development.
7. Analytical tables: the impact of IFRS
Table 1. Impact of IFRS implementation on the performance indicators of companies in
Uzbekistan
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23
Indicator
Before the implementation
of IFRS
After the implementation of
IFRS
Transparency of financial
reporting
Low
Tall
Investor confidence
Limited
Enlarged
Access to international
financing
Limited
Extended
Quality of internal control
Heterogeneous
Systematized
Corporate governance
Weak
Fortified
Staff preparedness
Low
Medium / High
Conclusion
Thus, the transition to IFRS in the context of economic liberalization is a necessary step to
increase financial transparency, attract investment and sustainable development. Despite existing
barriers, such as a shortage of qualified personnel and high costs, international and domestic
experience shows the high efficiency of this transformation.
Referenes:
1. International Financial Reporting Standards ( IFRS Foundation , 2023).
2. Savitskaya G.V. Analysis of economic activity of the enterprise. - Minsk: New knowledge,
2022.
3. Uzbekistan : www . mf . uz
4. Articles of the journal 'Financial reporting and audit', No. 4, 2023.
5. World Bank Report on Financial Transparency in Developing Countries, 2022.
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24
6. Artemenkov, A. I., & Ganiev, O. (2024). Navigating IFRS Transition in Uzbekistan: An
Analytical Examination... SSRN.
6. Sativaldieva, D. A. (2023). Prospects for the Implementation of IFRS in Medium and Small
Businesses... AJPDIS.
7. Bozorova, M. T. (2023). Improving Uzbekistan's Balance Sheet in Accordance with IFRS...
AJ Digital Economics.
8. Saidov, J. (2023). Challenges and Opportunities of IFRS for the Accounting Profession in
Uzbekistan... WBML.
9. Ministry of Finance Uzbekistan (2022). Roadmap for the Implementation of IFRS in Public
Interest Entities by 2026.
