All articles
Explanations of accounting, taxes and audit in Uzbekistan. Articles not yet translated are shown in Uzbek.
How does the export contract price become the customs value: are freight and packing added to the declaration, is delivery abroad deducted?
Export of dried apricots: the contract price is 48 000 dollars, while the customs value in the declaration is 45 950. Where does the difference come from? Under Articles 315, 316 and 317 of the Customs Code: which costs are added, which are deducted, and what happens if documents are missing or the price is determined later.
If doubt arises about a company's ability to continue operating: which signs does the auditor look at, what does the auditor ask management and when does the report change?
Financial statements are prepared on the assumption that the company will keep operating. When a loan falls due and cash is running out, that assumption comes into doubt. Using a parquet manufacturer as the example: which indicators raise a warning, why management's cash forecast becomes the decisive document and how the auditor's opinion changes if the disclosure in the notes is not sufficient.
If the tax authority suspends operations on bank accounts: in which four cases, what is not suspended and when is the decision cancelled?
If a report is not filed on time or a demand of the tax authority is not met, outgoing operations on all accounts of a legal entity may be suspended. Under Articles 111–113 of the Tax Code: who decides and for how many days, the four grounds, what the restriction does not touch, cancellation deadlines, interest and late-payment interest when cancellation is unlawful or late: in the six-day example of one company.
Software has been purchased: should it be recorded as an intangible asset or expensed, and when does amortization start?
A freight company bought a route-planning program. If six requirements of NAS No. 7 are met at the same time, the program is recognized as an asset in account 0430; otherwise it is an expense. What goes into the initial cost and what does not, and why amortization starts not in the month of purchase but on the 1st day of the next month: one example, with a 60-month schedule.
Document and receipt: why is everything recorded?
The twelfth Basics lesson: at Qodir's shop a cash shortage turned up at the end of the day. What a document and a receipt are, why they are needed and how to find a missing entry, with a simple calculation.
Who is an entrepreneur and what is an enterprise?
The eleventh Basics lesson: when Munisa, who sews dresses at home, becomes an entrepreneur, what an enterprise is, and why business money must not get mixed up with family money. With a simple calculation for one month.
Maternity (pregnancy and childbirth) benefit: who receives it, how is the length-of-service coefficient applied, and how is the benefit calculated if an employee becomes pregnant again while on childcare leave?
How many months of insurance record are needed for the benefit, which months do not break continuous service, when the 75, 85 and 100 percent coefficient applies, and how average earnings are determined if an employee on childcare leave becomes pregnant again: under the Regulation of Resolution No. 796 and Instruction No. 2667, with three scenarios for an employee of one sewing company.
What is a customs regime: what «status» do goods get when they cross the border, and how are the 16 regimes grouped?
The second lesson of the course: what a customs regime is in plain words, why the same goods pass under different regimes for different purposes, the full list of 16 regimes with their codes, how to group them by direction, and a table of hypothetical shipments for one month.
How to liquidate a fixed asset: six stages from the commission to closing account 9210
An old steam boiler has broken down. Who inspects it, which certificate form is filled in, who approves it, when may it be cut up and how is the scrap metal taken into stock? Paragraphs 54–58 of NAS No. 5, three appendix forms and NAS No. 21 journal entries, using a cannery as the example.
Which documents are submitted for each of the 16 customs procedures: one table by the articles of the Customs Code
The Customs Code has a separate article for each procedure on the "documents required" for placement. Put side by side, they split the 16 procedures into four groups: declaration and accompanying documents only; procedures that require an additional document; procedures whose list is left to the Cabinet of Ministers; and procedures cleared with a special declaration (a short CCD or a transit declaration). The documents for a processing permit and tips on documents when choosing a procedure.
Which documents are needed for an export (code 10): how does one set of documents serve customs, the tax authority and accounting?
Export documents are needed in four places: by customs, which places the goods under the procedure, by the post at the border, by the tax authority to confirm 0% VAT and by accounting to record revenue. Which document is required by which article, which one serves several purposes at once and which date determines what: the example of an export of granite slabs by rail.
Which documents are prepared for an import (code 40): from the papers that travel with the goods to the journal entry
Before foreign goods reach the warehouse, the documents are collected in three layers: those that travel with the goods, those the carrier presents at the border and those the declarant submits to customs. What the Customs Code lists precisely, what it leaves to the Cabinet of Ministers and which entry is made in the books on the basis of each document: the example of an import of furniture fittings.
If a buyer makes a claim about exported goods or the goods do not arrive: how are a discount, compensation and the exchange difference recorded in the accounts?
Some of the LED lamps sent to Bishkek were damaged in transit, and the buyer asked for a price reduction. Is this a sales discount or compensation under a claim, at which rate is the discount recorded if the receivable was remeasured at month-end, what happens if the goods do not arrive at all, and what is done with the customs declaration and payments: full accounting under the Customs Code and NAS No. 21.
Where are freight, insurance, broker and certificate costs recorded in an export, and how do the delivery terms change the seller's profit?
The buyer offered two prices: at the lower one he collects the cargo from the warehouse himself, at the higher one the seller pays the freight and insurance. Why export costs go not to the cost of the product but to 9410, which line records each of them, and which offer leaves more profit: a calculation on the example of mung beans.
Export through an intermediary (commission agent): on whose balance sheet are the goods, when is revenue recorded and which documents are needed for 0% VAT?
A small manufacturer did not enter the foreign market itself and entrusted its export to an experienced trading company. On whose balance sheet does the atlas silk handed to the intermediary remain, at which rate is revenue recorded, where does the agency fee go, and when is VAT credited if the money arrives in the intermediary's account: the principal's and the commission agent's accounting in one example.
0% VAT on export: in which month is the VAT paid on raw materials credited, how is the negative difference refunded and what is recorded in the books?
No VAT is charged on export sales, but the VAT paid on raw materials is not lost. It is credited step by step as the buyer's money arrives, and in the end a negative difference appears. The difference between the zero rate and exemption, a two-month calculation, the refund procedure and journal entries using the example of a juice company.
Two foreign-currency advances were received for an export and the goods were shipped later: at which rates is revenue recorded and how is the remaining receivable remeasured?
Half of the contract amount arrived in advance in two parts, the rest after shipment. One sale is recorded at three different rates: each advance at the rate of its own day, the remaining part at the rate of the shipment day. Why the advance is not remeasured at month-end while the remaining receivable is: the full chain using the example of a knitwear company.
Engel's law: if a family's income doubles, does its spending on food double too?
A family with a monthly income of 6 million soum spends half of it on food, while a family with 24 million soum spends only a quarter. The amount spent on food rises, but more slowly than income. This is Engel's law, observed in the 19th century. Its cause, how it is measured, its limitations and a practical conclusion for a neighbourhood shop owner.
Benford's law: why do almost a third of amounts start with the digit 1, and how does this help find a fake document?
If you count the first digit of a thousand payment amounts, about 301 will be 1s and only 46 will be 9s. This is not chance, it is Benford's law. When does the law work, when does it not, and what might a sharp increase in amounts starting with 4 in a list of payments point to? A table and a checking procedure.
Documentary collection: if an exporter sends the shipping documents through a bank, does the bank guarantee that it will be paid?
In a documentary collection the bank releases the documents to the buyer only against payment or acceptance of a bill of exchange, but it does not guarantee payment itself. Using one export deal, we compare advance payment, letter of credit, collection and open account by bank cost and expected loss.
Trade credit insurance: if a buyer who took goods on credit goes bankrupt, who covers the receivable?
A confectionery wholesaler sold 500 million soum of goods on credit to a large supermarket, and the supermarket became unable to pay. With trade credit insurance, how much of the loss comes back, and why do the limit set for the buyer and the seller's own share matter? Calculation and entries under NAS No. 21.
Sensitivity analysis: if one assumption in the annual budget turns out wrong, which one cuts profit the most — price, volume or raw materials?
A bakery's budget plans for a profit of 700 million soum. If the price comes out 10 percent lower, profit falls by 71 percent; if raw materials become 10 percent more expensive, it falls by 31 percent. How to change each assumption in turn to find the most dangerous one, how to calculate each indicator's "safety margin" and what happens when two things get worse at the same time.
Analytical procedures (ISA 520): how does the auditor calculate a figure in advance, compare it with the books and what does it do if there is a difference?
Without opening every rent invoice of a shopping centre, the auditor calculates the expected income from the leased area and the price. The expectation, the acceptable difference, checking management's explanation and documenting it all: 7 points and a worked example from the audit of a shopping centre.
Not enough money to pay the tax in one go: who can get a deferral or an instalment plan, on what grounds, and when is interest charged?
After a desk tax audit, a plastic containers company was assessed 84 million soum of additional tax. Must it be paid within a month, or can it be split over six months? Grounds under Chapter 11 of the Tax Code, cases with and without interest, reasons for refusal, the documents required and what happens if the conditions are breached.
Returnable containers and single-use packaging: on which account are containers kept, what happens if a deposit is not returned and where is the expense recorded?
A drinking water company gives 19-litre bottles to customers against a deposit and packs small bottles into cardboard boxes. Which packaging goes into cost and which into selling expenses, why a returned deposit is not income, and what happens to a bottle that does not come back: the example of one company under NAS No. 4 and NAS No. 21.
Free warehouse (code 73): if foreign goods are stored duty-free and without a time limit, what may be done there and how is cost calculated when part is imported?
A spare parts trader brought in 1 000 boxes of goods, but the domestic market needs only 600 of them for now. What the free warehouse procedure offers, which works are allowed there, why retail trade is prohibited and why two parts of one consignment end up with different costs in the books: 8 points and an accounting example.
Processing within the customs territory (code 51): if a product is made from a foreign customer's raw material, what is formalised at customs and what is recorded in the books?
A Kazakh customer sends aluminium profile, and a workshop in Uzbekistan assembles window frames from it and ships them back. Is duty paid on the profile, for how many years is the permit issued, what happens to the leftover profile and what does the workshop show on its own balance sheet: the example of one workshop under the Customs Code and NAS No. 21.
Demand and supply: how does the price of strawberries at the Saturday bazaar settle at one point all by itself?
The second lesson of the course: what demand and supply are, the difference between «demand» and «quantity demanded», the equilibrium price, surplus and shortage in a hypothetical table of a strawberry market, and how the price moves to a new point when more farmers come in the middle of the season.
Statistical observation: where do the numbers come from, and do we always have to count everyone?
The second lesson of the course: how statistical data are collected, the four questions in planning an observation, the types of observation (by coverage, by timing and by the method of obtaining data) shown on one bakery, and the errors made in observation.
What is a bank account, and how do 12 million soum «travel» from one company to another?
The second lesson of the course: what a bank account is in plain words, how in a transfer the money does not actually travel but the records change, how a payment is made within one bank and between two banks, and how a company's accountant records it on account 5110.