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Explanations of accounting, taxes and audit in Uzbekistan. Articles not yet translated are shown in Uzbek.
What do the procedure, transport and delivery terms codes in a cargo customs declaration tell an accountant?
Figures in the CCD such as "40", "30" and "02 FCA" are not just for customs. They show in advance whether the goods will stay with you, which document to ask for and which expense goes into cost. Full tables of three classifiers and an example of reading one declaration.
Natural loss norm: what is the difference between a shortage within the norm and above it?
It is natural for rice to dry out and sugar to spill, losing a little. But when is this loss charged to expenses as "within the norm", and when is it claimed from the person at fault as a shortage? The rules and a rice warehouse example.
How should spoiled or expired material be written off, and what happens if someone is found at fault?
Sugar spoiled by damp, expired glaze, vanillin that arrived defective: each is written off differently. The route through 5910, recovery from the person at fault at market value, and a confectionery workshop example.
Material has left the warehouse: which account is it charged to for production, the workshop, the office or sale?
Material in the warehouse is accounted for in 1010, but if it goes into bread, into cleaning the workshop or to the office, it is charged to different accounts. One month of issues and journal entries, using a bakery workshop as the example.
A surplus found in an inventory count: at what value and with what journal entry is it taken onto the books?
The warehouse holds more goods than the book says. This is not a gift but a sign of an error in the records. What to check before taking a surplus onto the books, which account is used, and a shoe shop example.
When is an inventory count mandatory? The complete list in NAS No. 19
Year end, a change of storekeeper, theft or fire, cash every month, fuel every quarter: in which cases an inventory count is not optional, according to the list in the standard, with an example covering one year.
How is an inventory count carried out: 7 steps from the order to the comparison statement
Counting is only one part of an inventory count. Before it come the order, the commission and the written statement; after it come the count sheet, the comparison statement and the head's decision. Every step, using a building materials warehouse as the example.
Repairing or modernising a fixed asset: when is the cost a period expense, and when does it increase the asset's value?
Not every sum spent on equipment is added to its value. Using three invoices at a sewing workshop, we separate repairs from modernisation and work out the journal entries and the new depreciation.
What journal entries are made when defective output (rejects) appears in the workshop?
Rejects are not simply written off as a "loss": they are first accumulated in 2610, then split into usable scrap, the amount recoverable from the person at fault and the net loss. The rules and a furniture workshop example.
If corporate profit tax on services at bazaars and shopping complexes is 15 percent, how much is saved and how should the accounts be split?
Decree PF-175 lowers the rate on profit from services provided at bazaars and shopping complexes from 20 percent to 15 percent. How large is the saving, and how does a company with two lines of business allocate its common costs?
How should you check your VAT accounts before closing the month: do 4410, 6410 and the invoices match?
The VAT payable to the budget comes from the difference between two accounts. If one of them does not match the documents, the error passes into the return as well. A short month-end checklist and one discrepancy that was found.
The lead schedule the auditor asks for: how do you show which accounts each figure in the financial statements is built from?
The auditor looks at a figure in the balance sheet and asks, "where did this come from?" If the answer is in a single schedule, the audit goes faster. The schedule's columns, a trading firm example and an error found with the schedule.
Markup and margin: if you add a 25 percent markup, why does your profit come out at 20 percent of the price?
Markup is calculated on cost, while margin is calculated on the selling price. Not knowing the difference can push a shop into a loss when it announces a discount. Formulas, a table and the entries in account 2980.
When the business stops: how does business interruption insurance calculate the loss?
After a fire the kitchen is repaired, but rent and salaries do not stop during the months it stays closed. A property policy does not cover this. The logic of business interruption insurance and a simple calculation.
How much does a one-off fee increase the real cost of a loan?
A 24 percent loan can turn out more expensive than a 25 percent one if a fee is deducted from it up front. The rule for calculating the real cost, a comparison of two banks' offers and the journal entries.
Economies of scale: why does the cost per unit fall when more is produced, and when does it stop?
When more bread is baked, the rent and equipment cost per loaf decreases. But beyond a certain point a new tandoor, and a new cost, is needed. A calculation using a bakery as an example.
How should the plan fulfilment percentage be calculated, and how is it linked to the growth rate?
The plan was 105 percent fulfilled, while growth compared with last year is 15.5 percent. These two figures do not contradict each other: they are linked by a single formula. Three relative indicators and a trap in the cost plan.
If the price of goods falls, at what value is the inventory in the warehouse shown in the balance sheet?
Out-of-season sandals are selling below cost, and water-damaged sneakers need cleaning. Using a shoe shop as an example, we calculate how to write inventory down to its net realizable value under NAS No. 4.
If a significant event happens after the year is closed, should the statements be adjusted or is a note enough?
In January a customer went bankrupt, in February a fire broke out in the warehouse, and the annual statements have not yet been approved. Under NAS No. 16, which event changes the figures and which one is only disclosed in the notes?
What is your firm's tax burden: how should it be calculated and what should it be compared with?
"How much tax are we paying out of revenue?" To answer this question correctly, which taxes should be added, which base should be taken and who should the result be compared with? Step by step, using a sewing firm as an example.
Why does subtracting 12 percent give the wrong answer when finding the VAT included in a price?
The menu price includes VAT. If you subtract 12 percent from it, VAT goes up and income goes down. The correct formula and a simple check, using a café as an example.
If the auditor leaves a letter on internal control deficiencies, what should the manager and the accountant do?
The audit is over, and in addition to the report the auditor has also provided a list of deficiencies and recommendations. Does this letter affect the report and how should you respond to it? Short key points and a sample action plan.
If a supplier offers a discount for early payment, does it pay to pay even if you have to borrow?
"Pay within 10 days and get a 2% discount" looks like a small number. But on an annual basis it can turn out to be more expensive than many bank loans. We calculate it using a sewing factory as an example.
In property insurance, is the payout made at the new price or is wear and tear deducted?
A five-year-old printing machine burned down. Will the insurer pay the price of a new machine or deduct wear and tear? The two bases, how they differ, and not confusing them with carrying amount in the accounts.
How does a bank calculate whether you can repay a loan before granting it?
There is collateral and there is profit, yet the bank suggested extending the loan term. Why? Using a furniture workshop as an example, we calculate how many times cash flow covers debt payments and check it ourselves.
ABC analysis: which goods bring in most of the revenue, and what should be done about it?
Four out of ten product groups bring in three quarters of revenue. Using a minimarket as an example, we carry out an ABC analysis step by step and compare the result with profit.
Should you regret the money spent on old equipment? Sunk costs and the right decision
"I paid 30 mln for the oven, I can't just throw it away now": a familiar thought? In economics such spending is called a sunk cost, and it should not affect the decision. Using a café as an example, we compare two options.
Halley's table: how was the price of life insurance calculated?
The astronomer famous for Halley's Comet also left his mark on the history of insurance: in 1693 he compiled a life table from the birth and burial records of a single city and tried to calculate the price of life annuities. How the table was compiled, why Breslau was chosen and how it is used.
How was the cash register invented: from Ritty to the online cash register
The first cash register was invented by a saloon owner who wanted to find out where the money in his till was disappearing. Today a receipt reaches the tax authority in an instant. The main stops on a journey of nearly two centuries.
From Pascal to Burroughs: what did mechanical calculating machines give the accountant?
The first famous calculating machine was built by the young Blaise Pascal to help his father, a tax collector. Later the machine learned to multiply, passed into the hands of insurers, acquired keys and began printing on paper tape. The road from Pascal to the electronic calculator and its main gift to accounting.