Questions and answers

You have 10 working days. This is the procedure of Article 121¹: an organization or individual entrepreneur with tax arrears may ask for them to be collected from its debtor. A debtor is a person who owes it money, in this case you (you owe the supplier). The article was introduced by Law No. ZRU-1108 and has applied since 1 January 2026.

Stages of the procedure:

The biggest risk is staying silent. If no reasoned refusal is given, or the notice is left unanswered, the receivable is considered acknowledged and consent to collection is considered given. A signed statement, for its part, is a basis for directing collection at you whether or not the creditor (the supplier) has signed. The same procedure applies where the tax authority itself identified your debt (from data it holds or from the results of an audit): the notice is sent to you and to the supplier within 3 working days of the day the debt is identified; you and the supplier have 10 working days from receipt of the notice to confirm it or to give a reasoned refusal.

Cases where collection is not directed at you (the full list under the article, seven items). Here the "debtor" is you: 1. You have given a reasoned refusal of the amount of the debt. 2. The limitation period has expired. 3. A court act on this very amount to be collected from you is with the compulsory enforcement body; or the period for presenting it for enforcement has expired; or enforcement actions have been suspended, terminated or postponed, or are being carried out in instalments. 4. The debtor is not a taxpayer of the Republic of Uzbekistan. 5. The debtor is an individual. 6. The debtor is in liquidation, or insolvency proceedings have been opened against it. 7. The debtor's activity has been terminated or it has been removed from the state register of legal entities.

If you have already paid the supplier, submit documents proving it (the payment order, a bank statement): the tax authority then withdraws the collection order without execution within 3 working days at the latest. A court decision produces the same result. Execution of the collection order, collection, or withdrawal without execution is carried out under the procedure of Article 121.

Example (compiled by the author, hypothetical figures). "Tolmas savdo" LLC owes "Bahor metall" LLC 45 million soums. "Bahor metall" has tax arrears of 30 million soums. The collection limit is the smaller of the two amounts: 30 million soums. With other ratios:

Accounting: when the money is debited from the bank account and you and the supplier acknowledge the debt for that amount as settled, the entry is: Dt 6010 – Ct 5110 (content of the line: settlement of debt to suppliers; NAS No. 21, paragraph 226, line 15). The standard's examples have no ready-made line for the entry on the supplier's side, so it is not given here. Whether your debt under the contract is legally reduced by this amount lies outside this article: confirm it with your contract lawyer.

Practical tip: appoint someone responsible for checking the personal account every day. The response deadline (10 working days) runs from the day the notice is received.

Source: Tax Code, Article 121¹; NAS No. 21, paragraph 226.

NAS No. 21 provides four accounts in group 4700 for employee debts, two of which are close to your situation:

The official text itself points to two paths: - In the table of examples for income accounts (paragraph 383, line 3), the sale of products to an employee is shown as Dt 4790 – Ct 9010, 9020, 9030 (this line covers sales to an employee, including the sale of special clothing). - Account 4710 is intended for goods sold "on credit"; its withholding entry is separate: Dt 6710 – Ct 4710 (paragraph 290, line 15).

Accordingly: an ordinary sale to an employee goes to 4790; a sale "on credit" paid in instalments on a schedule goes to 4710. The standard does not give a clear boundary between the two cases (for example, how many days of deferral count as "credit"). So write in your accounting policy which one you use and apply it consistently.

Example (compiled by the author, hypothetical figures). "Nafis pishiriq" LLC sold employee Sardor a box of pastries: selling price 300,000 soums, cost 210,000 soums. The company is taken as not a VAT payer (if it is a VAT payer, VAT is added to the sale entries; its rules are not the subject of this answer). Sardor's accrued salary for the month is 2,400,000 soums.

At the end of the month the balance on 4790 for Sardor is 0. Profit: 300,000 − 210,000 = 90,000 soums (the difference between sales income and cost). The part of the salary paid to Sardor will be 300,000 soums less than the accrued amount before the withholding.

Two notes: 1. Analytical accounting of settlements with employees is kept per employee (end of paragraph 205). That is, 4790 must have a separate card such as "Sardor", "Madina". 2. How much may be withheld from salary and the legal procedure for it are set by labour legislation; this answer does not cover it, so check with a lawyer.

Source: NAS No. 21, paragraphs 200, 205, 290 (lines 11 and 15), 383 (line 3) and 390.

It is evidence, but the auditor cannot accept it as "ready truth". ISA 500 ("Audit Evidence") requires the auditor, when using information produced by the entity, to evaluate whether it is sufficiently reliable for the auditor's purposes. For this, where necessary:

1. Audit evidence is obtained about the completeness and accuracy of the information.
2. The auditor evaluates whether the information is sufficiently precise and detailed for the auditor's purposes.

The reason is simple: who configured the software report, which date was used as the basis, which documents were not entered — none of this is visible in the report itself. If the report is wrong, a conclusion drawn from it is wrong too.

In practice the auditor usually looks for answers to three questions:

Recalculation example (compiled by the author; report date 31 December 2026, age = days elapsed since the invoice date):

All five invoices match the groups in the software. So, as to accuracy, no discrepancy was found in this sample. But as to completeness, the difference of 14 million soums remained open: it may be either invoices that did not get into the report or other entries in the general ledger (for example, an advance or a correcting entry). Until this difference is explained, the report cannot be considered fully reliable for calculating the allowance.

What you can do: - Reconcile the report with the general ledger yourself before the auditor's request and record the difference. - Show the auditor on which date and with which filters the report was produced (software settings, date of generation). - Allow the auditor to regenerate the file from the software in front of them or with their own access. This increases confidence that the file was not edited afterwards.

This is not disrespect towards you on the auditor's part, but a requirement of the standard. With good controls the auditor may reduce the scope of testing; with weak controls the auditor will increase it.

Source: ISA 500 ("Audit Evidence"): the requirement on using information produced by the entity.

NAS No. 1 allows this with a limitation. Under paragraph 36, when rounding information to thousands or millions, a degree of precision that does not breach the materiality principle may be used. That is, rounding itself is not an error, but a difference that affects the user's decision must not disappear.

Related rules: - Paragraph 55: the statements must state openly in which currency they are measured and with what degree of precision the numbers are given (for example, in thousands or in millions). That is, the label "in thousands of soums" must be clearly visible in the statements (for example, in the table heading). - Paragraph 35: if material information is combined with other material information in one item, it must be disclosed in the notes to the statements. That is, rounding and aggregation must not hide material data. - Paragraph 32: information is material if its omission or misstatement affects the user's economic decision.

Example (compiled by the author). Assets in the balance sheet of "Zarafshon pishiriq" LLC (in soums):

If you round the lines separately and add them: 48,350 + 21,650 + 9,450 + 5,010 = 84,460; if you round the total itself — 84,459. The difference is 1 thousand soums. It is not a calculation error but the mathematical result of rounding: three lines were rounded up and one down.

What can be done: 1. If you calculate the total line from the exact amount in soums and round it, the total is correct, but the sum of the visible lines differs by 1. 2. If you round the lines and take the total as their sum, everything inside the table agrees, but the total differs from the exact amount by 1. 3. Whichever way you choose, apply it consistently and add a note to the statements.

The text of NAS No. 1 has no separate rule for this difference. So the three steps above are not from the standard but a practical recommendation: the main thing is that the difference is small, immaterial, and that the degree of precision is stated openly in the heading of the statements.

One more risk: very small lines. For example, if "other assets" are 412 soums, rounding to thousands of soums gives 0. If this is immaterial, it is acceptable (practical recommendation). But if the line is material, do not turn it into zero.

If the form or system to which the statements are submitted requires its own unit of measure, follow that requirement: this answer only explains the general rule of NAS No. 1.

Source: NAS No. 1, paragraphs 32, 35, 36 and 55.

This ratio is called DSCR (debt service coverage ratio), after its English abbreviation. The idea is simple: how many times the monthly cash flow before loan payments exceeds one monthly loan payment (principal + interest).

DSCR = cash flow before loan payments ÷ loan payment for the same period (principal + interest).

If below 1, the payment is larger than the cash flow; if close to 1, there is no reserve and even a small fluctuation breaks the payment. What threshold a bank will require depends on the contract and the bank; ask the bank itself (it is not given here as a rule).

Example (compiled by the author, hypothetical). The "Yangi non" bakery takes a loan of 240 million soums: 36 months, 24% annual nominal rate (2% per month), equal payments (annuity). The monthly payment formula:

payment = amount × i ÷ (1 − (1 + i)^−n), where i = 0.02, n = 36.

Calculation (checked with Python): payment ≈ 9.416 million soums. Over 36 months a total of ≈ 338.97 million soums is paid, that is, interest ≈ 98.97 million soums. In the first month 4.8 million soums of the payment is interest (240 × 0.02), the rest is principal.

Before the loan payment the bakery generates an average of 13.0 million soums of net cash flow per month (including the additional cash from the equipment). Then:

DSCR = 13.0 ÷ 9.416 ≈ 1.38.

After the payment 13.0 − 9.416 ≈ 3.58 million soums per month remains. Now the "what if" questions:

So this bakery can cover the payment until cash flow falls by about 27.6%. That is its "safety margin". You need this figure before the bank does: could you pay in a month when revenue is 20% below plan?

A reverse calculation is useful too. If you want a DSCR of at least 1.25 for yourself (this is not a bank requirement but your own personal reserve rule), the largest payment is 13.0 ÷ 1.25 = 10.4 million soums. Such a payment over 36 months at 2% per month corresponds to a loan of ≈ 265 million soums. So 240 million soums fits within the reserve you set yourself.

Note: take not profit but cash flow itself: add back expenses that do not involve cash outflow, such as depreciation, but deduct taxes and other mandatory payments. For a seasonal business, look at the worst month too.

Source: general financial calculation formulas (annuity payment, debt service coverage ratio). The example was compiled by the author.

Yes, this insurance is called business interruption insurance (loss of profit insurance). Property insurance covers only the building, equipment and goods. The lost profit and the continuing fixed costs for the months when the cafe is closed are covered by a separate policy. This is general insurance practice; the exact terms are written in the insurer's policy and rules.

Remember three things about this insurance:

1. It is usually tied to damage to property: property must first have been damaged, that is, an insured event must have occurred. It does not pay simply because "customers did not come" (read the exact condition in the policy).
2. What it covers is defined in the policy. Usually lost profit and continuing costs are meant; variable costs (such as raw materials) are not covered because they are saved when operations stop. The insurance concept of "gross profit" may not be the same as an accountant's gross profit: read the definition in the policy.
3. The indemnity period is limited. This period (the longest period the insurer pays for) is set in the policy. If the cafe stays closed longer, the remaining months are not covered.

Example (compiled by the author, hypothetical). Monthly figures of "Bahor cafe":

After the fire the cafe stays closed for 3 months. The actual loss: - revenue is lost: 90 × 3 = 270 million; - variable costs saved: 54 × 3 = 162 million; - fixed costs saved: 4 × 3 = 12 million; - net loss: 270 − 162 − 12 = 96 million soums. In other words, 32 million soums per month: 8 million of profit and 24 million of continuing fixed costs.

If the policy's indemnity period is 3 months, these 96 million soums may be reimbursed (the exact calculation depends on the policy formula). But if rebuilding takes 5 months, the loss of the remaining 2 months, 64 million soums, stays outside the insurance. So do not choose an indemnity period shorter than the real recovery time: take into account the time for permits, repairs and delivery of equipment.

When choosing a policy, ask: how long is the indemnity period; how is gross profit calculated; is it paid even if the property damage is not insured; are losses from a supplier or power supply interruption covered.

Source: general insurance practice (business interruption insurance, indemnity period, the concept of gross profit). The exact terms are written in the policy text. The calculations were compiled and checked by the author.

Comparing rates alone is not enough. Closing the old loan and taking a new one (loan refinancing) also involves a fee and early repayment costs. The right question: in how many months will the savings on the rate cover these costs?

Calculation steps: 1. Calculate the remaining balance of the old loan and the total amount to be paid over the remaining term. 2. Calculate the total amount to be paid on the new loan over the same term. 3. Deduct the one-time costs (loan fee, early repayment charge, valuation, insurance and others) from the difference between the two. 4. One-time costs ÷ savings in the monthly payment = payback period.

Example (compiled by the author, hypothetical). The old loan of "Korasuv non" LLC: balance 150 million soums, remaining term 12 months, 28% per year, equal payments (annuity). The new bank: 24% per year, 12 months, annuity; loan origination fee — 1.5% of 150 million soums. The old bank charges 1 million soums for early repayment (hypothetical). The calculation, checked with Python:

Savings on interest: 173.71 − 170.21 ≈ 3.50 million soums (≈ 0.292 million per month). One-time costs: 150 × 0.015 + 1.0 = 3.25 million soums. Net savings: 3.50 − 3.25 ≈ 0.25 million soums. Payback period: 3.25 ÷ 0.292 ≈ 11.1 months, that is, almost the whole term goes to these costs.

Conclusion: even though a 4 percentage point difference looks large, with a short remaining term the savings are eaten up by the costs. If the remaining term is long or the fee is low, the result is different: for example, with no fee and if the old bank charged no penalty, the savings would be 3.50 million soums. So calculate each offer separately.

Accounting entries (NAS No. 21, paragraph 296): the new loan is received — Dt 5110 – Ct 6810 (line 1 "Receipt of short-term loans and borrowings"); the old loan is repaid (the old loan is also taken as short-term) — Dt 6810 – Ct 5110 (line 4 "Repayment of short-term loans and borrowings"). Under paragraph 291 of NAS No. 21, account 6810 is for short-term loans (up to 12 months); since the new loan term is 12 months, this account was used in the example. A loan with a longer term is kept on the long-term loans account. The accounting for the fee and the early repayment charge depends on the content of the contract and is not covered here.

Note: the simple calculation does not take the time value of money into account. In real life, read in the contract the payment schedules of both banks, the interest calculation method (daily on the balance, year of 360 or 365 days) and additional terms (covenants, collateral). When comparing rates, add up all payments rather than looking only at the "annual percentage".

Source: NAS No. 21, paragraphs 291 and 296 (lines 1 and 4 in paragraph 296); annuity payment formula (general financial calculation). The example was compiled by the author.

The average score is useful, but not sufficient on its own. The reason is that a rating from 1 to 5 is an ordinal scale: you can say 5 is better than 4 and 4 is better than 3. But there is no guarantee that the "distance" between 4 and 5 equals the distance between 1 and 2. And the mean relies precisely on this "equality of distances".

Moreover, the mean hides the distribution. For the two branches below the same mean of 3.0 comes out:

Both have a mean of 3.0, but reality is entirely different: in branch "A" everyone says "average", in "B" half are very satisfied and half very dissatisfied. In "B" the median also comes out as 3 (the 10th value is 1, the 11th value is 5, the middle is 3), even though no customer actually gave a 3.

Your data (compiled by the author, 20 customers):

Calculation (checked with Python): mean = (1×2 + 2×3 + 3×3 + 4×6 + 5×6) ÷ 20 = 71 ÷ 20 = 3.55. Median = 4 (the 10th and 11th values are both 4). There are two modes: 4 and 5 (6 times each). Customers who gave 4–5 points: 12, that is, 60%. Those who gave 1–2 points: 5, that is, 25%.

If a report is written like this, it gives the manager more benefit: "60% of customers gave 4 or 5 points, 25% gave 1 or 2 points, median 4, mean 3.55". This is more precise than a single "3.55".

Rules: 1. Always show the distribution of scores (what percentage gave each score). 2. The median, as well as the share of the top two scores (4–5) and the share of the bottom two scores (1–2), are indicators suited to an ordinal scale. 3. Give the mean as a supplementary indicator, especially when comparing over time (last month 3.40, this month 3.55). But do not make it the sole basis when the number of customers is small. 4. Show customers who did not answer or said "cannot say" separately: do not add them to the mean as 0.

Source: general statistical rules (measurement scales, mean, median, mode). The data were compiled by the author.

The tax is borne not by whoever remits it but by whichever of the two sides of the market is less able to adapt to the change. In economics this is called tax incidence. Who transfers the tax to the budget (the seller or the buyer) does not decide the real distribution of the burden.

Example (compiled by the author, hypothetical market). In the tea market the price is P (thousand soums), the quantity is Q (units): - demand: Qd = 85 − P; - supply: Qs = 10 + 2P.

Equilibrium without tax: 85 − P = 10 + 2P, hence P = 25, Q = 60.

Now sellers are taxed 6 thousand soums per unit. The seller receives 6 thousand less in hand, so the supply curve becomes: Qs = 10 + 2(P − 6) = 2P − 2. New equilibrium: 85 − P = 2P − 2, hence P = 29, Q = 56.

The result: - Of the 6 thousand soums of tax, the buyer bore 4 (2/3) and the seller 2 (1/3), even though the seller paid the tax. - If the tax were set to be paid by the buyer, the result would be the same: the buyer pays 29, the seller receives 23. - The market volume fell from 60 to 56. The 4 lost trades would have benefited both buyer and seller. This is the market's net loss (deadweight loss): 1/2 × 6 × 4 = 12 thousand soums in units.

Why did the buyer bear more? Because demand is less elastic than supply. Demand elasticity at the equilibrium point: |Ed| = 1 × 25 ÷ 60 ≈ 0.42, supply elasticity: Es = 2 × 25 ÷ 60 ≈ 0.83. The burden falls more on the side with lower elasticity: buyer's share = Es ÷ (Es + |Ed|) = 0.83 ÷ 1.25 = 2/3, which matches.

Practical conclusion: for a necessity such as tea, where the buyer cannot switch to something else (demand is inelastic), the tax is mostly passed into the price. For easily substitutable goods (the buyer switches to another good) the seller bears more of the burden and sales fall more. This is why, before changing a tax rate, the sensitivity of demand and supply to price is assessed.

This answer is a general model of economic theory, not about specific taxes and rates.

Source: general economic theory (demand and supply, elasticity, tax incidence). The example was compiled by the author, the calculation was checked with Python.

The Customs Code answers this question in four articles: 17 (notification), 18 and 19 (documents and information to be presented) and 20 (checkpoints and time).

1. Advance notification (Article 17, Parts Four and Five). When goods are taken out of the customs territory, the person moving them notifies the customs authority in advance of the intention to export. When and where the goods must be delivered for clearance is determined by the customs authority itself. If the notification is not made by the person moving the goods, this obligation falls on the carrier. When the border is crossed, notification is made by presenting the goods and their accompanying documents to the customs authority at the checkpoint. Customs authorities have no right to refuse to accept these documents (Part Six).

1. Documents (Article 19). The carrier must present the customs declaration (or another document allowing release), as well as the documents and information provided for in Article 18, depending on the type of transport. For international road transport, under Article 18 these are:

A) Relating to the motor vehicle: - the vehicle registration certificate under the Vienna Convention (1968); - in cases provided for by international treaties, a permit from the authorized body for a foreign vehicle; - if the cargo is carried under a TIR carnet, a certificate of approval for transport under customs seals and stamps; - when carrying perishable products, a certificate of approval of the vehicle for carrying such products (fresh fruit is usually considered perishable; determine in advance whether your cargo falls into this category and whether the document is needed); - when carrying dangerous goods, the relevant certificate.

B) Relating to the goods: - the consignment note under the Geneva Convention (1956); - if a TIR carnet is used, that carnet; - commercial documents.

C) These documents must show the following information: the name and postal address of the carrier; the place (country) where the goods are taken over and delivered; the names of the country of dispatch and the country of destination; the name and address of the consignor and consignee; the name of the goods under the Harmonized System and a code of at least six digits; for each code, gross weight (kg) and invoice value; the number of packages; container identification numbers.

These documents are presented in the state language or in other languages used in international transport; if in another language, they are translated into the state language where necessary, and the translation must be certified by the carrier (Article 18, Part Two; Article 19 refers to the documents of Article 18, so it is safer to prepare documents in the appropriate language on departure too).

1. Place and time (Article 20). Goods are moved across the customs border only at checkpoints, with the vehicle stopped in a specially designated place and during the working hours of the customs authorities. If this requirement is breached, customs authorities forcibly stop the vehicle. The working hours and stopping places must be announced in the established manner (customs authorities must provide publicly available information on this). The vehicle departs from the designated place after the necessary customs procedures are completed.

Example (compiled by the author; codes hypothetical). "Vodiy mevasi" LLC wants to send three kinds of fresh fruit in one truck. According to the consignment note and invoice:

Check these totals before loading the truck: the total gross weight in the consignment note (23,100 kg) and the invoice total (38,640) must equal the sum of the lines by code. If they differ, at the border the discrepancy in the documents may raise questions and the cargo may be delayed.

Practical checklist: (1) agree in advance the time and place of arrival at customs; (2) check the vehicle certificates and the perishable cargo certificates; (3) compare the data in the consignment note, the invoice and the cargo customs declaration with each other; (4) explain to the driver that arrival must be planned before the end of working hours and that documents must be prepared in the appropriate language.

Other permit documents (depending on the type of goods) are not covered in this answer.

Source: Customs Code, Article 17 (Parts 4–6), Article 18 (Part 1 item 1 and Part 2), Articles 19 and 20. The example was compiled by the author; codes are hypothetical.

The certificate is issued. Under the third paragraph of clause 29 of Instruction No. 2667, for a repeat pregnancy of a woman on childcare leave (until the child reaches the age of two and three years) or on additional leave without pay, the certificate is issued on general grounds. The 56 and 70 calendar days in the first two paragraphs of this clause are for other cases: for the person caring for the child when the mother dies, and for the person who adopts a newborn child (the guardian).

The benefit is calculated under clause 28 of the Regulation (Resolution No. 796, Appendix 4; as amended by Resolutions No. 239 and No. 440):

Mini example (compiled by the author, hypothetical): Zebuniso has not come back from leave and no wages were accrued in the months of leave, so the last 12 months for which wages were accrued are the months before the leave; a total of 60,000,000 soums was accrued in them. 60,000,000 : 12 = 5,000,000 soums; there are no months after the leave with accrued wages (fewer than 3), so the average earnings taken into account are 5,000,000 × 0.5 = 2,500,000 soums (comparing them with the minimum consumer expenditure amount is a separate step). This is not the benefit itself: how it is applied together with the length-of-service coefficient of clause 24 is not clear from these clauses, so clarify this with the fund or the employer.

On the number of children: clauses 7, 17, 23, 24, 25, 28 of the Regulation and clause 29 of the Instruction contain no limit depending on the number of children. We did not review the other clauses of the Regulation and the Instruction in this answer, so check the specific situation against the full text.

The coefficient is applied to average monthly earnings depending on the number of months of insurance record (Resolution No. 796, Appendix 4, clause 24 of the Regulation):

The table starts at 10 months because the maternity benefit requires an insurance record of at least ten months (clause 7, "b"). In addition, the record must not have been interrupted in the last six months before the month in which the insured event occurred (clause 7, "v"); for a repeat benefit this six-month requirement does not apply (clause 28).

Mini example (compiled by the author, hypothetical; average monthly earnings assumed to be 8,000,000 soums):

The one-month difference between Dildora's and Zarnigor's records raised the coefficient by 10 percentage points. So count the record month by month and check the boundary months (24/25 and 60/61) separately. The benefit is calculated for the period shown in the certificate, also taking into account the requirements of clause 17 of the Regulation (clause 25): Sundays and non-working public holidays under Article 208 of the Labour Code falling within the period are not taken into account when calculating the amount of the payment, and for voluntarily insured persons there is also the upper cap in clause 25.

In November. The revenue date in the accounts and the turnover date for VAT follow two different rules, so it is quite natural for them to fall into different months.

The VAT rule (Tax Code, Article 242, Part Ten). If goods are placed under the export customs procedure and taken out of the territory of Uzbekistan, the date of the turnover on sale is:

1. The date the customs border is actually crossed, determined in accordance with customs legislation.
2. Where periodic and (or) temporary declaration is used — the date of registration of the cargo customs declaration bearing the marks of the customs authority.

The accounting rule (NAS No. 2, paragraph 16). Revenue from the sale of goods is recognised when five conditions are met: a significant part of the risks and rewards has passed to the buyer; the seller has lost management and control over the goods; the amount of revenue can be measured reliably; it is probable that economic benefits will be received; the costs of the transaction can be measured reliably. When the risk passes is decided by the contract.

Example (prepared by the author, amounts and rate are hypothetical). "Qo'qon chinni" LLC sold porcelain tableware worth 30,000 US dollars to Almaty. The contract says the risk passes when the cargo is handed over at the factory to a carrier hired by the buyer. It was cleared with an ordinary (not periodic) CCD.

Journal entries on 28 October (hypothetical rate of 12,700 soums):

Result: October's financial result includes a gross profit of 381,000,000 − 290,000,000 = 91,000,000 soums, but this export turnover does not appear in the October VAT return. It is shown in the November return at the zero rate (Article 258, Part Two; Article 260, Part One, item 1). The documents confirming the zero rate are also submitted together with that return (Article 260, last part).

Had the company used periodic declaration, the turnover date would have been not the day of the border crossing but the day the CCD was registered (Article 242, Part Ten, item 2).

Practical tip: when closing the month, keep a small table reconciling "export revenue in 9010" with "0% turnover in the VAT return": shipment, CCD date, border crossing date, month in the accounts, month for VAT. Shipments that straddle a month end explain the difference at once, and no questions arise at a tax audit. Also remember that a foreign-currency receivable is remeasured at the end of every month (NAS No. 22, paragraph 8).

Source: Tax Code, Article 242 (Part Ten), Articles 258 and 260; NAS No. 2, paragraph 16; NAS No. 22, paragraph 8; NAS No. 21, paragraphs 383 and 390.

The answer depends on where the shelving units go. Article 262 of the Tax Code sets two different rates for this kind of processing service.

The customs side in one sentence: the customer's sheet is brought in under the processing within the customs territory procedure (code 51 in the CCD, Annex 3 to the Instruction) with conditional exemption from duties and taxes (Customs Code, Article 70); if the product is taken out within the set period, no VAT is paid on import (Tax Code, Article 277, Part One, item 4). Below we look only at the VAT on the service fee and its entries.

Example (prepared by the author, amounts, rate and allocation method are hypothetical). VAT payer "Temir usta" LLC made 400 shelving units from the customer's sheet. The work fee is 8,000 US dollars, at a rate of 12,700 soums: 101,600,000 soums. 300 units were shipped to the customer, and the customer cleared 100 units under the import procedure for sale in Uzbekistan. The service fee was allocated in proportion to the number of units.

Accounting entries. Keeping the customer's sheet on an off-balance sheet account, collecting costs and writing off the cost are covered in detail in a separate article (link below). Here are only the two VAT-related entries:

Total receivable from the customer: 101,600,000 + 3,048,000 = 104,648,000 soums.

Practical tip: write into the contract where the product goes and the customer's obligation to notify you in writing if it imports part of it. Otherwise an invoice issued at 0% will later have to be corrected.

Source: Tax Code, Articles 258, 262 and 277; Customs Code, Article 70; Instruction on the Procedure for Completing the CCD, Annex 3; NAS No. 21, paragraphs 275 and 383.

Yes, a local carrier can also apply 0%. Article 263 of the Tax Code has two items that fit such a trip, and one of them makes a customs mark a condition.

What the law says (Article 263, Part One, item 4): the zero rate applies to services of carriage or transportation of goods exported outside Uzbekistan rendered by carriers that are legal entities of Uzbekistan. This rule applies if the marks of the customs authorities are placed on the transport documents. The same item also covers carriage when products of processing in Uzbekistan are taken out.

International carriage of goods means carriage by air, rail and (or) road transport where the point of departure or destination is outside Uzbekistan (Article 263, Part One, item 1).

Can a forwarder also apply 0%? Yes, the provisions of Article 263 also extend to freight forwarding services rendered under a freight forwarding contract when organising international carriage (Part Two). Their composition (Part Three, in full):

1. Acceptance and delivery of cargo.
2. Loading, unloading and storage.
3. Arranging cargo insurance.
4. Customs clearance services for goods and vehicles.
5. Searching for cargo after delivery deadlines have expired.
6. Services of storing cargo in the forwarder's warehouses.

Example (prepared by the author, amounts are hypothetical). "Sirdaryo konserva" LLC concluded a contract with "Tez yuk" LLC for a Gulistan–Almaty trip worth 18,000,000 soums. After the cargo was accepted, the accountant checked the document folder:

The destination of the Gulistan–Almaty trip is outside Uzbekistan, so it also fits the definition of international carriage in item 1. Still, insist on a document with the customs mark: under item 4 the 0% rate is tied precisely to this mark, and the documents confirming the right to apply the zero rate are submitted together with the tax return (Article 260, last part). For comparison: at the 12% rate the VAT on this service would be 18,000,000 × 12% = 2,160,000 soums.

Journal entry: when the carrier's service for the sale of export products is accepted, Dt 9410 "Selling expenses" – Ct 6010 "Payables to suppliers and contractors", 18,000,000 soums (NAS No. 21, paragraph 257, line 11). Whether this expense is yours depends on the delivery term in the contract.

Practical tip: add to the contract with the carrier a clause to "provide a copy of the transport document with the customs mark after the cargo is delivered", and file the copy in the export shipment folder together with the CCD.

Source: Tax Code, Article 260 (last part), Article 263 (Part One, items 1 and 4; Parts Two and Three); NAS No. 21, paragraph 257.

There are three questions here: the status of the goods, the wrong entry in the accounts, and VAT.

1. Status of the goods. Under Article 29 of the Customs Code, goods placed under the export procedure and actually taken out of the customs territory lose the status of goods of Uzbekistan. Both conditions are needed together: placement under the procedure and actual removal. The furniture did not leave across the border, so it remained goods of Uzbekistan and may be sold on the domestic market. The customs side of the declaration is covered in a separate article (link below); this answer is only about accounting and VAT.

1. Accounts. Revenue is recognised when the conditions in paragraph 16 of NAS No. 2 are met, the first being that a significant part of the risks and rewards must have passed to the buyer. The contract in the example says the risk passes at the border, so the entry made on the CCD day was wrong from the start. We correct it with a red storno: the wrong entry is reversed with a minus amount.

1. VAT. The date of the export turnover is the date the customs border is actually crossed (Tax Code, Article 242, Part Ten, item 1), and the zero rate applies to the sale of goods taken out under the export customs procedure (Article 260, Part One, item 1). The border was not crossed, so no export turnover arose. If the furniture is later sold in Uzbekistan, this is an ordinary turnover and a VAT-paying company applies the 12% rate (Article 258, Part One).

Example (prepared by the author, amounts and rate are hypothetical). On 20 October "Zomin mebel" LLC cleared kitchen furniture worth 15,000 US dollars with a CCD. The accountant made an entry the same day at a rate of 12,650 soums. On 24 October the buyer withdrew and the cargo came back. In November the furniture was sold to a shop in Tashkent for 170,000,000 soums (excluding VAT).

After the storno in October, the balance on 4010 and 9010 for this deal is zero and the furniture is again on 2810. Gross profit in November: 170,000,000 − 140,000,000 = 30,000,000 soums; the total receivable from the shop is 190,400,000 soums.

Practical tip: do not tie export revenue automatically to the day the CCD is registered. First find the risk transfer point in the contract, and record the border crossing date separately for VAT.

Source: Customs Code, Article 29; Tax Code, Article 242 (Part Ten), Articles 258 and 260; NAS No. 2, paragraph 16; NAS No. 21, paragraphs 275, 383 and 390.

The Tax Code directly provides for this route: no tax is paid when goods are taken out under the export customs procedure, and this rule also applies when the goods are placed under the customs warehouse procedure for the purpose of subsequent export (Article 277, Part Two, item 1).

The main rules under the Customs Code:

Note: placing export goods under this procedure is expressly mentioned in Article 277 of the Tax Code (Part Two, item 1). Article 91 of the Customs Code allows any goods to be placed and, as regards goods of Uzbekistan, excludes only "goods of Uzbekistan prohibited from export". Even so, confirm in advance with the customs warehouse owner and the customs authority that the specific consignment can be placed.

What may be done in the warehouse (Article 95, Part One, full list; with notice to the customs authority):

1. Operations needed to keep the goods intact in an unchanged state.
2. Inspection, examination and measurement of the goods.
3. Moving within the warehouse (if the condition, packaging and means of identification do not change).
4. Taking samples and specimens for examination and identification in accordance with Article 211.
5. Operations needed to prepare for sale and carriage; the code lists them as follows: "splitting into lots, forming shipments, sorting, packing, repacking, marking (except for excise stamps), performing other similar operations, including simple assembly operations".
6. Other operations to improve quality, except mixing, processing of the goods or working on them.

These operations are not allowed if they lead to loss of the goods or a change in their properties (Article 95, Part Two). In the CCD, the customs warehouse procedure (code 74) is shown first, and the export procedure (code 10) on each shipment (Annex 3 to the Instruction).

Accounts. Since the owner has not changed, there is no sale entry: the cable stays on account 2810 "Finished goods in the warehouse". Analytical records on this account are also kept by storage location (NAS No. 21, paragraph 140), so it is enough to open a separate analytical sub-account "in the customs warehouse".

Example (prepared by the author, tariff and amounts are hypothetical). "Olmaliq kabel" LLC kept 40 drums of cable in a customs warehouse for 30 days; the tariff is 15,000 soums per drum per day (excluding VAT):

For VAT, the export turnover arises on the day each shipment crosses the border (Tax Code, Article 242, Part Ten). In the accounts, however, revenue and cost are recorded according to the risk transfer point in the contract (NAS No. 2, paragraph 16), so these two dates may differ.

Practical tip: keep the list of shipments in the form "drum number — CCD number — border crossing date". Then the "in the customs warehouse" balance on 2810 is quickly reconciled each month with the actual balance in the customs warehouse.

Source: Tax Code, Articles 242 and 277; Customs Code, Articles 90, 91, 95, 96 and 98; Instruction on the Procedure for Completing the CCD, Annex 3; NAS No. 2, paragraph 16; NAS No. 21, paragraphs 140 and 257.

They can. A taxpayer is entitled to participate in tax relations through a legal or authorised representative (Tax Code, Article 24, Part One). The representative's powers must be confirmed by a document (Part Two).

Who cannot be a representative: officials of the tax, finance, customs and other state bodies (Part Nine).

One more important rule: the actions or inaction of the legal representative — the director — in tax relations are deemed the actions of the legal entity itself (Part Five). In other words, a return signed and filed by the director is the company's own return.

Example (prepared by the author). "Bog'ishamol non" LLC concluded a bookkeeping services contract with the firm "Hisob-Pro". A separate section was added to the contract: which tax returns the firm files, which requests of the tax authority it answers, and when the authority expires. This section serves as the document confirming the authority; if he wishes, the director may also issue a separate power of attorney.

Practical tip: since the relationship with the representative is based on a contract, write into the contract in advance at whose expense the consequences of an erroneous return (late payment interest, fines) are covered.

Source: Tax Code, Article 24.

Neither piece of information you are asking about is a tax secret. Under Article 29 of the Tax Code, information about a taxpayer obtained by the competent bodies constitutes a tax secret, except for the following (Part One, full list):

1. Information that is accessible to everyone, including information made accessible with the owner's consent.
2. The taxpayer identification number (TIN).
3. Violations of tax legislation and the liability measures for them.
4. The tax regime applied and registration as a VAT payer.
5. The amounts of taxes paid and of tax arrears.
6. The participants of the legal entity.
7. The average headcount of employees.
8. The amounts of income and expenses according to the financial statements.

Information not on the list is a tax secret, and state bodies, their officials, and engaged specialists and experts may not disclose it except in cases provided for by law (Part Two). The use or transfer to others of a trade secret that became known to an official of a state body in the course of performing his duties is also deemed disclosure of a tax secret (Part Three).

Example (prepared by the author). "Chust pichoq" LLC wants to supply goods worth 120 million soums to a new wholesale buyer with a 90-day deferral. Before the contract it asked the buyer for three things: the TIN, the amount of tax arrears and the amount of income in the latest annual financial statements. All three are on the list of exceptions in Article 29, so this request breaches no one's secret. If the buyer has large tax arrears, collection may be directed at its bank account (Tax Code, Articles 120 and 121) — this signals to you a risk of payment delay.

Tip: request the information from the buyer in writing and keep the reply together with the contract documents.

Source: Tax Code, Articles 29, 120 and 121.

Article 91 of the Tax Code governs exactly this situation.

Who pays and from what money: - The liquidator performs the tax obligation of the legal entity being liquidated from its cash, including the money received from selling its property (Part One). - If the money is insufficient, the unpaid arrears may be paid off by the participants in the amount and manner established by law (Part Two). - The order in which tax arrears are paid among settlements with other creditors is determined by civil legislation (Part Three).

What happens to the overpayment: - The tax authority offsets it against arrears on other taxes (Part Four). - If there are arrears on several taxes, the amount is distributed in proportion to the arrears or by decision of the liquidator (Part Five). - If there are no arrears at all, the overpayment is refunded no later than fifteen days from the day the application is filed. If no application is filed, after the taxpayer is removed from the unified register this amount is written off the personal account (Part Six). In other words, if you do not apply, the money really is lost.

Example (prepared by the author, amounts are illustrative). "Qorako'l teri" LLC has: VAT arrears of 18 million and property tax arrears of 6 million soums; an overpayment of profit tax of 4 million soums. The liquidator chose proportional distribution:

The property was sold and 14 million soums came in. Under Part Two, the question of the remaining 6 million soums is resolved with the participants.

Source: Tax Code, Article 91.

The risk is serious, so make the decision knowing the conditions. When the deadlines for performing a tax obligation are changed, payment of tax may be secured by a surety (Tax Code, Article 108, Part One).

Main rules of suretyship (Article 108): - The surety undertakes to perform the obligation in full if the taxpayer does not pay the tax and late payment interest on time (Part Two). - Suretyship is formalised by a contract between the tax authority and the surety (Part Three). - If the company does not pay, the surety and the company are jointly and severally liable (Part Four): the tax authority may demand the amount from either of them. - The tax authority sends the surety a demand within five days from the day the deadline for meeting the demand for payment of tax expires (Part Five). If the surety does not pay either, compulsory collection measures are applied to him (Part Six). - A surety who has paid acquires the right to claim from the company the amount paid, interest on it and the losses incurred (Part Seven). - The surety may be a legal entity or an individual, and several sureties for one obligation are also allowed (Parts Eight and Nine).

Example (prepared by the author, amounts are illustrative). "Kattaqo'rg'on yog'" LLC was granted a deferral on 40 million soums of tax, and director Akmal Sobirov became surety. The deadline passed, the firm did not pay, and late payment interest reached 1.2 million soums. After the demand deadline expired, within five days Akmal received a demand for 41.2 million soums. If he pays, he can then claim this amount with interest from the firm — but since the firm has no money, this right may turn out to be worthless in practice.

An alternative is a bank guarantee (Article 109). Five requirements apply to the guarantee (Part Three, full list): 1. It must be irrevocable and non-transferable. 2. It must not contain any instruction for the tax authority to submit to the guarantor documents not provided for in Article 109. 3. Its term, unless the Code provides otherwise, must expire no earlier than six months after the day the deadline for paying the tax secured by the guarantee passes. 4. The guarantee amount must ensure full performance of the obligation to pay the tax and late payment interest. 5. It must provide that, if the bank does not meet the demand on time, the tax authority applies measures to collect the secured amount from the bank.

Here the risk is borne by the bank, not the director.

Source: Tax Code, Articles 108 and 109.

You are. The official conducting the audit is entitled to demand from a counterparty documents relating to the activity of the taxpayer being audited (Tax Code, Article 147, Part One).

How the demand reaches you (Article 147): 1. The auditing tax authority sends an order to the tax authority where you are registered. It states for which tax control measure the documents are needed and, if a specific transaction is requested, information allowing it to be identified (Part Three). 2. Your tax authority sends you a demand within three days from the day the order is received and attaches a copy of the order to it (Parts Four and Five). 3. Within five days from the day the demand is received you submit the documents or report that you do not have them. If you cannot make it, you may ask for an extension by petition (Part Six).

How the documents are submitted: in person or through a representative, by registered mail, or electronically via telecommunication networks or the personal account; on paper — as copies certified by you, and notarisation of them may not be required (under Part Seven of Article 147, the rules of Parts Three to Five and Eleven of Article 146 apply).

Can you refuse? The Code provides a right to refuse in one case: if the demand does not comply with the rules of Article 147 (last part). An example of such a case: no copy of the order is attached to the demand.

Checklist (prepared by the author):

Example (prepared by the author). "Yangiyer g'isht" LLC was asked for three waybills from Q3 2026 relating to its buyer "Sirdaryo qurilish". The accountant sent certified copies of the contract, the waybills and the reconciliation statement through the personal account and recorded the date of sending.

Source: Tax Code, Articles 146 and 147.

This is a royalty — a payment for using another organisation's asset (brand, recipe, know-how). Under NAS No. 21, an organisation's obligations for royalties are recorded in account 6930 "Royalties payable", which is credited in correspondence with expense accounts (paragraph 300). Analytical accounting is kept for each creditor.

Example (prepared by the author, amounts are illustrative). October revenue of "Shahrisabz kofe" LLC is 150,000,000 soums. Royalty under the contract: 150,000,000 × 4% = 6,000,000 soums.

9690 is "Other expenses on financial activities". That is why this amount appears in the statement of financial results not in period expenses but in the line "Other expenses on financial activities" (line 210) (Regulation approved by Order No. 181, Appendix 2).

Royalty unpaid at month-end goes to the balance sheet line "Other payables" (line 760) (Regulation approved by Order No. 181, Appendix 1).

Practical tip: have the contract state clearly from which revenue (with or without VAT) the royalty is calculated — otherwise a dispute with the brand owner will arise every month. If the royalty recipient is a foreign company, check the tax consequences separately.

Source: NAS No. 21, paragraphs 300 and 309; Regulation approved by Order No. 181 of the Minister of Economy and Finance, Appendices 1 and 2.

A penalty is recorded as income only in the amount acknowledged by the supplier or set by the economic court. A claim amount that has only been raised and not acknowledged is not reflected in the accounts (NAS No. 21, paragraph 213, subparagraph "d").

Example (prepared by the author, amounts are illustrative). "Marg'ilon tola" LLC concluded a contract with a supplier for 80,000,000 soums, with an agreed penalty of 0.1 percent of the contract amount for each day of delay. The delay is 10 days:

80,000,000 × 0.1% × 10 = 800,000 soums.

4860 is "Claims receivable", 9330 is "Fines, penalties and surcharges collected". Under paragraph 398, fines and penalties collected from debtors for breach of business contracts are recorded precisely to the credit of 9330.

Note: paragraph 213 of the standard also mentions linking this amount with 9390 "Other operating income", while paragraph 398 and the tables point to 9330. Record your choice in the accounting policy and apply it consistently. In the statement of financial results both go to the line "Other income from core activities" (line 090) (Regulation approved by Order No. 181, Appendix 2).

Practical tip: obtain a written document from the supplier acknowledging the penalty (a letter or a reconciliation statement) — this very document is the basis for the entry in 4860.

Source: NAS No. 21, paragraphs 213, 214, 216, 226, 398 and 405; Regulation approved by Order No. 181, Appendix 2.

The liability is recorded when the court decision is issued and in the amount set by the court. Under NAS No. 21, debt for fines, penalties and forfeits for non-compliance with contractual obligations is accrued in the amount acknowledged or recognised by arbitration (the court) (table to paragraph 309, line 14). While the dispute is ongoing, no entry is made on this line.

Which accounts: - 6960 "Claims payable" — claims raised by buyers and other organisations, and our debt for acknowledged (recognised) fines, penalties and forfeits; it is credited in correspondence with expense accounts (paragraph 303). Analytical accounting is kept for each creditor and claim (paragraph 304). - 9430 "Other operating expenses" — fines and penalties are recorded precisely in this account (paragraph 410).

Example (prepared by the author, amounts are illustrative). The lessor demanded a forfeit of 15,000,000 soums from "Denov savdo" LLC. The firm did not agree, and the economic court set 9,000,000 soums.

Once paid, the debt in 6960 is closed. In the statement of financial results this expense appears in the line "Other operating expenses" (line 070) (Regulation approved by Order No. 181, Appendix 2).

Practical tip: if the dispute carries over from one reporting period to the next, the accountant and the manager should discuss together whether to describe it in the notes to the annual statements.

Source: NAS No. 21, paragraphs 303, 304, 309, 410 and 412; Regulation approved by Order No. 181, Appendix 2.

Since there is no obligation to repay, it is not a loan. Under NAS No. 21, income received free of charge in the form of cash and cash equivalents is recorded to the credit of account 9380 "Non-repayable financial assistance" in correspondence with cash accounts (paragraph 403).

Example (prepared by the author, amounts are illustrative). While dealing with the aftermath of a mudflow, "Kosonsoy qandolat" LLC received 50,000,000 soums of non-repayable assistance from a partner company.

9380 is a transit account in group 9300 "Other income from core activities": it is closed at the end of the period and leaves no balance. In the statement of financial results the amount appears in the line "Other income from core activities" (line 090) (Regulation approved by Order No. 181, Appendix 2).

When this entry does not fit:

Practical tip: obtain a letter or agreement from the partner stating that the money is not to be repaid — this is the main document for the entry in 9380. Check the profit tax consequences separately under the Tax Code.

Source: NAS No. 21, paragraphs 403 and 405; Regulation approved by Order No. 181, Appendix 2.

Not expensed immediately. Postage stamps are a cash equivalent and are recorded in account 5610 "Cash equivalents (by type)" at nominal value (NAS No. 21, paragraph 235). On purchase 5610 is debited, and when used it is credited in correspondence with expense accounts (same paragraph). Analytical accounting is kept by type.

Example (prepared by the author, amounts are illustrative). "Qibray nashr" LLC bought 300 stamps with a nominal value of 5,000 soums: 300 × 5,000 = 1,500,000 soums. During the month 120 were used for office correspondence: 120 × 5,000 = 600,000 soums.

At month-end 180 stamps remained: 180 × 5,000 = 900,000 soums. On the balance sheet this amount is shown in the line "Other cash and cash equivalents (5500, 5600, 5700)" (line 360) (Regulation approved by Order No. 181, Appendix 1).

If the stamps are bought for cash, the entry is Dr 5610 Cr 5010 (table to paragraph 236, line 1). If a shortage is found at stocktaking and charged to the financially responsible person — Dr 4730 Cr 5610 (table to paragraph 206, line 10).

Practical tip: account for stamps in a separate book like cash in the till, and count the balance every month and reconcile it with 5610 — even if the amount is small, uncontrolled stamps quickly "disappear".

Source: NAS No. 21, paragraphs 206, 235, 236 and 409; Regulation approved by Order No. 181, Appendix 1.

This is not an accusation against you but a starting presumption in the standard. Under ISA 240, the auditor proceeds from the presumption that there are risks of material misstatement due to fraud in revenue recognition, and evaluates which types of revenue, transactions or assertions give rise to such risks. This presumption does not depend on whether fraud has been found at the company.

Why revenue in particular? Pressure to overstate or understate revenue — to meet a plan, earn a bonus, keep bank covenants or, conversely, to reduce tax — is common at many companies. And revenue is one of the largest items in almost every set of statements.

Can the presumption be rebutted? It can, but only with grounds. An example of such grounds: the company has a single simple source of revenue. In that case the auditor documents in the working papers why he concluded that there is no risk of fraud in revenue in this situation. A general sentence is not enough.

If this risk is identified, the auditor plans separate audit procedures for revenue that respond to it.

Example (prepared by the author, amounts are illustrative). "Shofirkon pishiriq" LLC does wholesale and retail trade. Management gets a bonus if annual revenue exceeds 5 billion soums. At year-end revenue was 4.96 billion soums, and on 28–31 December wholesale shipments of 70 million soums were recorded, bringing revenue to 5.03 billion soums. The auditor checked the waybills, buyers' signatures and January returns for these shipments: goods worth 45 million soums had been returned in full on 5 January. Excluding them, revenue is 4.985 billion soums and the bonus condition is not met.

Practical tip: prepare in advance a list of shipments, returns and credited invoices at year-end and at the start of the new year — this is exactly what the auditor uses to test cut-off.

Source: ISA 240; Law "On Auditing Activity" (O'RQ-677), Article 9.

No, the absence of a reply is not a confirmation. ISA 505 ("External Confirmations") distinguishes two kinds of request:

That is why the standard allows a negative request to be used as the sole substantive audit procedure only when all four of the following conditions are met together: 1. The risk of material misstatement has been assessed as low and sufficient appropriate evidence has been obtained about the operating effectiveness of the relevant controls. 2. The population consists of a large number of small, homogeneous balances. 3. A very low exception rate is expected. 4. The auditor is not aware of circumstances suggesting that recipients will disregard such requests.

Example (prepared by the author). "Sayxun suv" LLC has 1,200 household customers, each with a debt of 150–400 thousand soums. Settlement controls worked well throughout the year. The auditor sent them negative requests, and sent positive requests to the 5 largest wholesale buyers, because their amounts are large and not homogeneous.

Practical tip: update your database of customer addresses and contact details in advance. A negative request sent to a wrong address proves nothing to the auditor, and he will have to perform additional procedures.

Source: ISA 505 "External Confirmations"; Law "On Auditing Activity" (O'RQ-677), Article 9.

Usually not. Under ISA 570 ("Going Concern"), when evaluating management's assessment of the entity's ability to continue as a going concern, the auditor also considers the period covered by that assessment. The period must be at least twelve months from the date of the financial statements. If management has assessed a shorter period, the auditor asks it to extend it to at least twelve months.

Example (prepared by the author).

The management of "Toshloq mebel" extended the forecast by another 6 months: it prepared a schedule of monthly revenue, salaries, rent and loan payments. It took into account that the loan must be repaid in September 2027, and a cash shortfall appeared in month 9. Management explained in writing that it had started negotiations with the bank on extending the term.

Why does this matter? If there is a material uncertainty related to going concern and it is adequately disclosed in the statements, a separate section appears in the auditor's report; if it is not disclosed, the opinion is modified. The more thorough the assessment, the easier the dialogue with the auditor.

Practical tip: update the 12-month cash flow forecast every December — it is a useful document not only for the auditor but also for the bank and the founders.

Source: ISA 570 "Going Concern"; Law "On Auditing Activity" (O'RQ-677), Article 9.

This section is not a formality. Under ISA 700, it comes in the report directly after the "Opinion" section and contains four statements:

1. That the audit was conducted in accordance with International Standards on Auditing.
2. A reference to the section of the report that describes the auditor's responsibilities under those standards.
3. That the auditor is independent of the entity in accordance with the relevant ethical requirements and has fulfilled his other responsibilities under these requirements.
4. That the auditor believes the evidence obtained is sufficient and appropriate to provide a basis for the opinion.

What can be learned from it:

In Uzbekistan, international standards on auditing are applied as the standards of auditing activity and must be posted on the official website of the authorised body (Law O'RQ-677, Article 9). The texts of ISA 700 and ISA 705 and sample reports are published on the Ministry of Economy and Finance page on gov.uz.

Example (prepared by the author). Dilnoza, a bank credit officer, reading the report on "Arnasoy agro", saw that the section was titled "Basis for Qualified Opinion". This section revealed that depreciation of fixed assets had been under-calculated and that its effect concerned only this item. When reviewing the loan application, Dilnoza separately checked the carrying amount of the equipment offered as collateral.

Source: ISA 700 and ISA 705; Law "On Auditing Activity" (O'RQ-677), Article 9.

ISA 240 ("The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements") gives a clear answer to this question.

To whom and when it is reported: - If the auditor identifies fraud or obtains information indicating that fraud may exist, he communicates this on a timely basis to the appropriate level of management — the persons responsible for preventing and detecting fraud. - If the fraud involves management, employees with significant roles in internal control, or others where the fraud resulted in a material misstatement of the statements, the auditor also communicates on a timely basis with those charged with governance (in an LLC — the founders or the supervisory board).

How this case can be classified: the standard distinguishes two types of fraud — fraudulent financial reporting and misappropriation of assets. The storekeeper's actions fall into the second type.

Example (prepared by the author, amounts are illustrative). During the audit of "Uchqo'rg'on tekstil", the auditor saw that over 3 months 240 boxes of yarn had left the warehouse but there were no sales documents (450,000 soums per box, total 240 × 450,000 = 108,000,000 soums). Since the storekeeper was a key person in inventory control, the auditor reported this in writing both to the director and to the founders' meeting.

Key concept: the primary responsibility for preventing and detecting fraud rests with management and those charged with governance; the auditor is responsible for obtaining reasonable assurance that the statements are free from material misstatement, whether due to fraud or error.

Practical tip: after the auditor's communication, carry out a stocktaking of the warehouse immediately and record the shortage in the accounts in the established manner — it will also come back as a question at the next audit.

Source: ISA 240; Law "On Auditing Activity" (O'RQ-677), Article 9.

The director signs twice. The financial statement forms are signed by the manager and by the person performing the accounting and financial management functions or the chief accountant. If the manager has taken on these functions, he also signs in place of the chief accountant (Regulation approved by Order No. 181, paragraph 4).

The signature block is the same on every form (Appendices 1 and 2 to the Regulation):

Which forms a small enterprise submits: the annual statements of a micro-firm and a small enterprise consist of the balance sheet and the statement of financial results (paragraph 10). So the signatures are placed on two forms. Annual statements under NAS are submitted no later than 1 March of the year following the reporting year (paragraph 7).

Example (prepared by the author). In the 2026 statements, Rustam Qodirov, director of "Ohangaron kafel" LLC, wrote his full name in both the "Manager" and "Chief accountant" lines on each of the balance sheet and the statement of financial results, signed twice and entered the date.

Practical tip: formalise the director's taking on of the accounting functions with an internal order — you will have a ready answer when asked why the signatures are the same.

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, paragraphs 4, 7 and 10, Appendices 1 and 2.

You do not. Organisations that prepare financial statements in accordance with IFRS prepare them on the basis of the texts of IFRS and their interpretations recognised by Order No. 61 of the Minister of Finance dated 10 November 2022, and do not submit financial statements under NAS (Regulation approved by Order No. 181, paragraph 12).

Source: paragraphs 9 and 11.

An additional option: organisations preparing statements under IFRS may set out in their accounting policy the forms they publish in addition to those established by the Regulation, and the procedure and methods for submitting them (paragraph 14).

Example (prepared by the author). "Navoiy polimer" JSC prepares its 2026 statements under IFRS. It submits Appendices 5–8 and the notes by 1 May 2027; it does not separately submit NAS forms by 1 March.

Practical tip: state clearly in the accounting policy that the company prepares statements under IFRS and from what date it switched — if an inspector asks "where are the NAS forms?", this will be the first document you show.

Source: Regulation approved by Order No. 181, paragraphs 7, 9, 11, 12 and 14.

No, 6950 goes to a separate line. In the balance sheet form (Regulation approved by Order No. 181, Appendix 1):

Example (prepared by the author, amounts are illustrative). At "Nurobod sement" LLC as of 31 December:

Line 760: 2,750,000 + 4,300,000 + 650,000 = 7,700,000 soums. Since the balance sheet is prepared in thousands of soums, 7,700 is entered. Line 750 gets 36,000.

A subtle point: both lines are included in "Total current liabilities" (line 600). But the formula for "current payables" (line 601) includes line 760 and not line 750 (601 = 610+630+650+670+680+690+700+710+720+760). That is why line 601 coming out smaller than line 600 is not an error.

If there is overdue debt, it is shown in the line "of which: overdue current payables" (line 602), and the appendix to the balance sheet — the breakdown of overdue receivables and payables — is filled in.

Practical tip: before filling in the balance sheet, print a list of balances for each subaccount in group 6900 — that way you will not forget to separate 6950.

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance, Appendix 1 (balance sheet and its appendix).

Both fall outside the scope of this Regulation.

1. Insurance organisation. The Regulation sets the deadlines, composition and content of statements for accounting entities, but budget and insurance organisations, commercial banks and non-bank credit organisations are excluded (introductory part of the Regulation). So the insurance subsidiary's own statements are prepared under a different procedure.
2. Consolidated statements. The forms approved by the Regulation do not apply to the preparation of consolidated financial statements (paragraph 1).

To whom the Regulation applies:

Lines in the holding's own balance sheet related to subsidiaries (Appendix 1):

Example (prepared by the author). "Zomin invest" JSC prepared its separate statements on the Regulation forms and showed its investment in the subsidiaries in line 050. The insurance subsidiary "Zomin sug'urta" prepared its statements under its own separate procedure, and the group's consolidated statements were prepared outside the Regulation forms.

Practical tip: reconcile intra-group balances (4120, 6120) with the subsidiaries every quarter — on consolidation these are exactly what must match each other.

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance, introductory part, paragraph 1, Appendix 1.

The statement of cash flows form in the Regulation approved by Order No. 181 (Appendix 4) has a separate "Taxation" section for taxes:

Line 220 is found by subtracting total taxes paid (210) from the results of operating (050), investing (100) and financing (180) activities. NAS No. 9 also requires cash flows arising from taxes on income to be disclosed separately (paragraph 26).

One subtle point: paragraph 11 of NAS No. 9 lists payments of taxes relating to operating activities among payments that may be included in operating cash flows. But the form in the Regulation approved by Order No. 181 has a separate section for taxes, so when filling in the form, enter them in lines 190–200 and do not add them a second time to other operating payments (line 040).

Example (prepared by the author, in thousands of soums, amounts are illustrative). "Asaka avtoservis" LLC:

Practical tip: list tax payments from the bank statement separately by type of tax — it is easy to fill in lines 190 and 200 from that list.

Source: Regulation approved by Order No. 181, paragraph 9, Appendix 4; NAS No. 9 "Statement of Cash Flows", paragraphs 11 and 26.

For exports the VAT rate is 0 percent. Under the Tax Code, in the cases provided for in Chapter 36 the rate is set at 0 percent (Article 258, Part Two). The zero rate applies, in particular, when selling goods exported from the territory of Uzbekistan under the export customs procedure (Article 260, Part One, item 1). In the CCD this procedure is shown with code 10 (CCD filling Instruction, Appendix 3).

When they are submitted: documents confirming the right to apply the zero rate are submitted together with the tax return (Article 260, last part).

Which documents (Article 261, Part One, full list): 1. The contract or a copy of it certified in the established manner. 2. The cargo customs declaration that is the basis for taking the goods out of the customs territory of Uzbekistan; and for goods sold to foreign countries on national and foreign electronic trading platforms, the documents that are the basis for taking them out. 3. The goods' accompanying documents bearing the mark of the customs authority at the border crossing point confirming that the vehicle crossed the customs border.

Additional rules (Article 261):

Example (prepared by the author, amounts are illustrative). "Chortoq bog'" LLC shipped dried apricots worth 50,000 US dollars to a buyer in Kazakhstan. At month-end the accountant put together the document folder as follows:

These documents were submitted together with the VAT return, and the export turnover was shown at the 0 percent rate.

Practical tip: open a separate folder for each export shipment and put the contract, the CCD and the accompanying documents into it on the day of shipment — you will not have to search for them at month-end.

Source: Tax Code, Articles 258, 260 and 261; Instruction on the procedure for filling in the cargo customs declaration, Appendix 3.

Under certain conditions you can. If the declarant or customs broker, for reasons beyond their control, does not have all the necessary information, an incomplete cargo customs declaration may be filed, provided the goods can be identified (Customs Code, Article 269, Part One).

In which cases (Article 269, Part Two, with reference to Part Two of Article 22): - "v" — goods for which customs payments were paid on the basis of a provisional customs value; - "d" — goods for which the necessary documents (except documents of a permissive nature) and information have not been submitted; - "ye" — goods cleared under the release for free circulation (import) procedure with permission to defer or pay customs payments in instalments.

Conditions: 1. A written undertaking to submit the missing information and a fully completed declaration is attached to the declaration. The deadline is no more than sixty calendar days from the day the declaration is accepted, unless the law provides for a different period (Part Three). 2. Customs payments are calculated and paid in the same way as when a complete declaration is filed (Part Four). 3. Goods cleared with an incomplete declaration are deemed conditionally released (Article 22, Part Two).

An important restriction: if the missing document is a certificate of conformity or a sanitary and epidemiological conclusion, using, selling or otherwise disposing of the goods is prohibited (Article 22, Part Four).

Example (prepared by the author). "Bekobod plast" LLC received granules, but the supplier's quality passport was delayed. The firm filed an incomplete declaration and wrote an undertaking to submit the passport within 30 days. When the passport arrived, a complete declaration was filed.

Practical tip: put the date from the undertaking into your calendar and ask the supplier to speed up the document by courier — missing the deadline prolongs the problems of the goods' conditional status.

Source: Customs Code, Articles 22 and 269.

You can — there is a periodic cargo customs declaration for this (Customs Code, Article 270).

The goods must be moved regularly by the same person, and the following must be the same for the goods (Article 270, Part One): 1. country of origin; 2. physical characteristics; 3. quality; 4. manufacturer; 5. the ten-digit level of the code under the Commodity Nomenclature of Foreign Economic Activity.

What "regular movement" means (Part Two): moving such goods more than once within sixty calendar days, from the same consignor's address to the same consignee's address, under one contract (agreement, arrangement) and under the same conditions. In this case one declaration is filed for all goods over a certain period.

The limit: this procedure must not lead to a breach of the maximum temporary storage period or of the deadlines for paying customs payments (same part). Goods cleared with a periodic declaration are deemed conditionally released (Article 22, Part Two).

Example (prepared by the author).

"Chirchiq qadoq" LLC included 7 matching consignments within 60 days in one periodic declaration (release for free circulation, procedure code 40 — CCD filling Instruction, Appendix 3), and filed separate declarations for the two non-matching consignments.

Practical tip: fix the manufacturer and the commodity code firmly in the contract with the supplier — even one substitution breaks the periodic procedure.

Source: Customs Code, Articles 22 and 270; Instruction on the procedure for filling in the cargo customs declaration, Appendix 3.

You do, but not in full at once: in proportion to the foreign currency proceeds received. Article 266 of the Tax Code combines several rules here.

1. General conditions. To credit input VAT, the conditions in Part One must be met simultaneously. Those directly relevant to exports: the turnover must be subject to tax, including at the zero rate (Part One, item 1), and there must be an extract from a bank document confirming that the foreign buyer has paid for the exported goods (Part One, item 5; except for the cases in Part Three).
2. Proportion rule. VAT on purchases used for goods sold for export is credited in proportion to the foreign currency proceeds from the export of goods received in your bank account in Uzbekistan (Part Two).

Exception — disciplined exporters (Part Three): if you have been included in the category of disciplined taxpayers who, over the last year, have ensured timely receipt of foreign currency proceeds and have no overdue receivables under export contracts, VAT is credited regardless of the receipt of proceeds. However, if the proceeds or part of them are not received within one hundred and eighty calendar days from the day the goods were released under the "export" customs procedure, the credited VAT or the relevant part of it is written off in the established manner.

If the export is made through an intermediary, VAT is credited in proportion to the amount of foreign currency proceeds received in the account of the intermediary, the authorised agent or the taxpayer (Part Four).

Example (prepared by the author). "Xonqa tolasi" LLC exported yarn. The buyer transferred part of the contract amount and promised to pay the rest the following month. The firm is not in the disciplined taxpayer category. Input VAT on the raw materials bought for this batch is credited step by step as follows:

Note: Article 266 of the Tax Code does not give a formula specifying the ratio of which indicators the proportion is calculated by. Therefore clarify the calculation method with your tax authority in advance and record it in your accounting policy.

Practical tip: keep a table for each export contract: amount shipped, proceeds received, date and number of the bank extract, VAT credited. When filling in the VAT return, this table helps check the calculation.

Source: Tax Code, Article 266.

They do not have to be. Even before the result of an expert examination ordered before release is received, the customs authority releases the goods if two conditions are met (Customs Code, Article 271¹, Part One): 1. the customs payments calculated in the cargo customs declaration have been paid; 2. security has been provided for the amount that may have to be paid additionally based on the result of the examination.

Exception: if signs are identified indicating that prohibitions or restrictions may apply to the goods and the declarant does not provide evidence that they have been complied with, the goods are not released (Part Two).

Rules to know about the expert examination:

Example (prepared by the author, amounts are illustrative). "Jizzax elektro" LLC paid the 18 million soums of customs payments calculated under the declaration. The inspector said that if the goods fell under another code, an additional payment of 7 million soums might arise. The firm provided security for 7 million soums and took the goods to its warehouse the same day. The examination confirmed the code in the declaration, and no additional payment was required.

The methods of security are listed in Article 339 of the Customs Code; agree on a convenient one with your bank in advance.

Source: Customs Code, Articles 208, 211, 212, 215, 271¹ and 339.

The simplest way to value a small business is to answer two questions: "how much profit does this business make a year, and what minimum annual return do I expect on my own money?" If the profit stays roughly the same from year to year, a rough value is found like this:

Value ≈ stable annual profit ÷ the annual return you expect.

The 300 million soums the seller is asking means a 20% annual return on 60 million of profit (60 ÷ 300). Now ask yourself: how much would you earn if you put this money somewhere else, and how risky is a small bakery? The higher the risk, the higher the return you expect, and so the lower the price you would agree to pay.

But first the profit has to be "cleaned". Very often the owner of a small business works from dawn to dusk himself and pays himself no salary. If you buy it, you will have to hire someone for that work or spend your own time.

Example (prepared by the author, hypothetical figures). The owner of "Tandir nafasi" kneads the dough himself every day. If a baker doing this work has to be paid 2 million soums a month, that is 24 million a year. The real profit, that is, the profit left without the owner's labour: 60 − 24 = 36 million soums.

As you can see, 300 million is justified only when two conditions hold together: the profit really is 60 million, and a 20% annual return is enough for you. If the owner's labour is taken into account, at the same 20% the business is worth 180 million soums.

Before negotiating the price, check:

1. Where does the profit figure come from: do the bank statements, cash register data and tax reports match each other?
2. Will the tandir oven, the dough mixer and other equipment need replacing in the coming years? If so, deduct that cost from the annual profit too.
3. Are the premises rented? For how long is the lease, and in whose name?
4. Who are the customers attached to: the bakery or the owner himself?

This method is only a rough estimate: if the profit is growing or fluctuating, discounting the cash flows of future years gives a more accurate result.

No, this comparison is wrong. You produced 20% more output, so it is natural for volume-related costs — in this workshop, raw materials and piece-rate wages — to rise. The right question is: "how much should it have cost to produce 12,000 units?" For this a flexible budget is prepared: the plan is recalculated for the actual volume and then compared with the actual costs.

To do this, the planned costs have to be split in two: those that change with volume (how much per unit) and those that stay the same month after month regardless of volume.

Example (prepared by the author, hypothetical figures). The monthly plan of the "Ko'k gumbaz qadoq" workshop:

• raw materials: 6,000 soums per unit;
• piece-rate wages: 2,000 soums per unit;
• fixed costs (rent, management): 40 million soums a month.

For 10,000 units: 60 + 20 + 40 = 120 million soums. For 12,000 units: 72 + 24 + 40 = 136 million soums.

The result is the opposite of what the manager thought: taking volume into account, the workshop saved 4 million soums. But the table also shows one real problem: 2 million extra was spent on raw materials. Now the reason has to be found: did the price go up or did waste increase?

Do not rush to praise the 4 million saving on piece-rate wages either: if wages were not paid at the planned rate, this may be a calculation error or a delayed payment. A large variance is checked even when it is favourable.

Practical tip: keep the monthly budget in Excel with two columns, one for "per unit" rates and one for fixed amounts. Then, as soon as you enter the actual volume, the flexible plan calculates itself.

Do not rush: in most cases such a decision does not increase profit but reduces it. The reason is that this workshop's overheads — rent, salaries of management staff and security — do not disappear when shelving units are stopped. They now fall on the remaining products.

The right question: how much money do the shelving units leave towards overheads after covering their own variable costs (materials, piece-rate wages, packaging)? This amount is called the contribution margin.

Example (prepared by the author, hypothetical figures). Monthly figures of the "Chinor mebel" workshop, million soums. Overheads are 120 million and are allocated in proportion to revenue:

If shelving units are stopped: the contribution margin is 80 + 60 = 140 million, while overheads remain the same 120 million. Profit falls from 45 to 20 million soums. Even though the shelving units show a "loss", they were in fact contributing 25 million soums every month towards covering overheads.

When stopping shelving units may make sense:

1. If part of the overheads exists only because of the shelving units and really disappears when they are stopped. For example, if a separate warehouse for shelving units is rented for 10 million soums, profit becomes 140 − 110 = 30 million. This is still less than the current 45 million, so even in this case keeping the shelving units is more profitable.
2. If the freed-up machines and workers' time go to an even more profitable product. For example, if demand for tables is unlimited and extra tables instead of shelving units give more than 25 million soums of contribution margin.
3. If the contribution margin of shelving units is negative, that is, they do not even cover their own variable costs.

Allocating overheads is needed for accounting, but for the question "which product do we close?" allocated costs are misleading.

When money is limited, the goal is to maximise not the net present value (NPV) of a single project but the total NPV of the selected set of projects. Two methods are used for this, and they sometimes give different answers.

The first method: calculate how much NPV each project gives per 1 soum of investment (NPV ÷ investment) and choose starting from the most efficient. The second method: go through all the combinations that fit.

Example (prepared by the author, hypothetical figures). "Oltin vodiy savdo" is looking at four projects; NPV has already been calculated with discounting, million soums:

Under the first method, B (50) is chosen first, then C (50). Neither A (100) nor D (60) fits into the remaining 50 million. Total NPV = 38 million, and 50 million stays idle.

Now let us compare the combinations that fit into 150 million:

The best choice is A + B: a total NPV of 50 million. Even though A is in third place by "efficiency per 1 soum", it uses the money in full.

Conclusions:

1. If projects cannot be split (you cannot open half a shop), ranking by the ratio alone is not enough: go through the combinations. With four or five projects this is easy to do by hand or in Excel.
2. Take the leftover money into account too: in B + C the remaining 50 million could be put on deposit, but deposit interest is usually lower than the discount rate, so this money hardly increases NPV.
3. If projects depend on each other (for example, the online system is needed only if the new shop is opened), evaluate them as one package rather than separately.

The accountant is right: this is customer concentration risk. If one customer leaves, demands a sharp price cut or delays payment, the whole company suddenly finds itself in difficulty. It can be measured with three simple calculations.

1. The share of the largest customer and the share of the three largest. This is the quickest indicator.
2. The sum of squared shares. You take each customer's share in percent, square it and add them up. The bigger the result, the fewer customers the revenue depends on. If all customers are equal, the result is small; if there is only one customer, it reaches the maximum value — 10,000.
3. A "what if they leave?" stress test. This is the most important one.

Example (prepared by the author, hypothetical figures). The annual revenue of "Sarbon qadoq" is 1,000 million soums. Customer shares: 55%, 15%, 10%, 8%, 7%, 5%.

• Largest customer — 55%, three largest — 80%.
• Sum of squares: 3,025 + 225 + 100 + 64 + 49 + 25 = 3,488.

Stress test. The contribution margin is 30 percent of revenue, fixed costs are 200 million soums a year.

So if one customer leaves, instead of 100 million of profit there is a 65 million loss. Fixed costs do not fall quickly.

Ways to reduce the risk:

1. Look for new customers on purpose: for example, plan to reduce the largest customer's share by 5 percentage points every year.
2. A long-term contract with the large customer: it should set out volumes, the procedure for price changes and payment terms.
3. Monitor their debt separately: set a receivables limit and take action at once if it is exceeded.
4. A cash reserve: a reserve covering at least several months of fixed costs gives time to find a new customer if this one leaves.

Banks also look at this when lending: a company whose revenue depends on one customer looks riskier as a borrower.

Here the market price is not the right yardstick. The key question in building insurance is: "how much money will be needed to rebuild the building after a fire or another event?" The market price also includes other things: the land plot, the location, the surrounding infrastructure. Land does not burn and is not lost in a flood, so insuring its value may be pointless.

How the sum insured is set depends on the contract conditions, so read how the value is determined in the policy. The general logic is as follows.

Example (prepared by the author, hypothetical figures). The "Ipak yo'li servis" building has an area of 400 m². The estimated cost of constructing a building of this type is 2.2 million soums per m². We add another 10% for removing debris and design work.

• Rebuilding: 400 × 2.2 = 880 million soums.
• Demolition, clean-up, design (10%): 88 million soums.
• Total reinstatement value: 968 million soums.

The rest of the 1.5 billion soum market price is mainly the price of the land and the location.

Insuring at the market price means about 1.06 million soums of extra premium a year, while in the event of a loss the compensation still does not exceed the actual loss.

There is also the opposite mistake: insuring the building at its carrying amount on the balance sheet. If the policy has a proportional cover condition and the loss amounts to 300 million soums, the compensation will be about 300 × 400 ÷ 968 ≈ 124 million soums. The company covers the rest itself.

Practical tip: determine the reinstatement value with an independent valuer or a construction cost estimator, and review it every year when renewing the policy.

Yes, there is a risk that is hard to notice but serious. The prices of building materials, wages and equipment keep rising, while the sum in the policy stays the same. As a result, the warehouse is insured for a smaller percentage year after year. This is especially dangerous if the policy has a proportional cover condition: compensation is reduced even for a partial loss.

Example (prepared by the author, hypothetical figures). The reinstatement value of the "Yashil dala agro" warehouse was 400 million soums three years ago. Suppose construction costs rose by a hypothetical 10% every year:

Now a 100 million soum loss occurs in the third year. If the policy has a proportional cover condition, the compensation is about 100 × 400 ÷ 532.4 ≈ 75.1 million soums. That is, simply because it changed nothing, the company bears nearly 25 million soums of the loss itself.

To avoid this:

1. Recalculate the reinstatement value every year before renewing the policy: area × current construction cost, plus clean-up and design costs.
2. Ask the insurer whether there is a condition for automatic indexation of the sum or one that allows the sum to rise up to a certain limit during the year. Such conditions differ from insurer to insurer, so read their exact wording in the policy.
3. If a major repair or extension of the warehouse is carried out during the year, inform the insurer at once and increase the sum.
4. Estimate the difference in premium: raising the sum from 400 to 532 million raises the premium in roughly the same proportion, but this may be much smaller than the risk of losing 25 million soums.

This also applies to equipment and stocks of goods: their prices change too, while the sum insured does not update itself.

At such a moment a hasty mistake can make it harder to get compensation. Every policy sets out what to do when an insured event occurs: whom to notify, by what method and within what time. So one of the first steps is to open the policy and read it. The general practical procedure is as follows.

1. Stop and reduce the damage. Shut off the water and move the dry goods to a safe place. This is in your own interest too: every item saved reduces the loss.
2. Notify the insurer by the method stated in the policy. Even if you have phoned, also send a written notice and keep a copy.
3. Record everything. Take photos and videos of the wet goods, the burst pipe and the condition of the warehouse.
4. Do not throw away or sell the damaged goods until the insurer's representative has seen them, unless he permits otherwise.
5. Draw up a report: what was damaged, how much and in what condition, signed by the members of the committee.
6. Carry out a stocktake: compare the balance after the event with the balance in the records. The amount of the loss comes from this comparison.
7. Collect the documents: purchase documents for the goods (invoices), warehouse cards, information on who installed or repaired the pipe.
8. Identify the party that may be at fault. For example, if a contractor recently replaced the pipe, preserve the right to claim against him: the insurer that paid compensation may later recover from the party at fault under this right.

Example (prepared by the author, hypothetical figures). The "Bahor tekstil" warehouse held 80 million soums worth of fabric. The storekeeper immediately shut off the water and moved part of the fabric to a dry room; the movers were paid 2 million soums for this. As a result, 50 million soums worth of fabric was saved and the loss came to 30 million soums. Had nothing been done, the loss could have reached the full 80 million. Such costs incurred to reduce the loss may also be covered, but check this in the policy conditions and keep the receipts.

Keep in mind: if the policy has a deductible, compensation is paid for the part above it; the exact amount becomes known after the insurer's calculation.

Yes, this is exactly one of the most important parts of the policy. The first page of the policy says what is insured, while the exclusions section says in which cases the insurer will not pay. Disputes over compensation often arise from this very section.

When reading the exclusions, it is convenient to group them. The checklist I recommend consists of five questions:

1. Which causes are not covered? It matters which event caused the loss: a sudden event and a gradual process may be treated differently in the policy.
2. Which property is not covered? Check separately what your policy says about cash, documents and property in open areas.
3. In what situations does the policy "fall asleep"? Look for what happens if the building stands empty for a long time or the alarm is switched off.
4. What obligations are required of you? If the policy requires an alarm, a fire extinguisher or storing goods above the floor and this is not met, compensation may be reduced or refused.
5. Which types of loss are not covered? Even if the property is covered, profit lost because of a business stoppage may not be included in the policy.

Example (prepared by the author). After reading its policy, the "Shirin non" café made the following table. The third column contains questions to be put to the insurer in writing:

Practical tips:

1. Rely on the text of the policy, not on the agent's verbal promise. Get important answers in writing.
2. If a risk that matters to you falls under an exclusion, ask whether it can be added to the policy with an extra condition and compare the price.
3. When comparing offers from several insurers, look not only at the premium but also at the list of exclusions: a cheap policy is often cheap because of more exclusions.

Choosing on the annual premium alone can be a mistake. The real price of insurance is the premium plus the part you bear yourself when a loss occurs (deductible, amounts above the limit, exclusions). Besides, the insurer must actually be able to pay, and on time, when a loss occurs.

Example (prepared by the author, hypothetical figures). The "Nur savdo" shop received three offers. Based on the shop's experience, there is roughly one small incident a year, with a loss of around 6 million soums (a broken display window, a water leak).

Offer B looks the cheapest, but because of the 10 million soum deductible, the usual 6 million soum loss stays entirely with the shop. As a result, B turns out the most expensive. A and C are almost equal, and now they need to be compared on other criteria.

Things to check besides price:

1. Scope of cover: which risks are included and which are excluded. A cheap offer may be cheap because of narrow cover.
2. Limits: do the limits for the whole policy and for individual types of property (goods, equipment, cash) match your values?
3. Financial stability: check the insurer's published financial statements, its capital and that it has a licence to operate.
4. Payment practice: ask acquaintances, partners and other entrepreneurs how it paid when a loss occurred: did it pay on time and without unjustified refusals?
5. Service: how quickly is the loss assessed, how clearly are the document requirements written, does it have a representative in your region?

Practical tip: put the offers into one table and compare each by "premium + your expected own share". Then choose among the two or three with similar prices on the basis of reliability. Choosing an insurer that cannot pay in order to save a few hundred thousand soums defeats the whole purpose of insurance.

To decide, you need to count not only the bank commission but also the hidden costs of paying in cash. With cash payments, the money is withdrawn from the bank, transported, kept in the cash desk, counted and handed to each employee against a payroll sheet. Each of these takes time, money and risk.

Bank tariffs and conditions vary, so redo the calculation below with your own bank's tariff.

Example (prepared by the author, hypothetical figures). "Oqtepa mebel" has 40 employees, and the monthly payroll (the amount paid out to employees) is 240 million soums.

Under these conditions, transferring to cards is about 1.7 million soums a month cheaper. In addition, there are benefits that do not fit into the table:

1. Risk falls: no large amount of cash is kept in the cash desk, and there is no risk of loss or theft while transporting it.
2. Errors fall: disputes over shortfalls when counting cash and over overpaid amounts disappear.
3. A trail remains: every payment is visible in the bank statement, which is convenient for internal control and inspections.
4. Convenient for employees: the salary arrives on the card on the set day, and there is no need to queue during working hours.

Questions to ask when agreeing with the bank:

1. Who bears the commission: the company or the employee? How much do opening a card, annual servicing and cash withdrawals cost for employees?
2. Does the commission fall or disappear if the number of employees or turnover exceeds a certain level?
3. When does the salary reach the employee's card: the same day or the next day?
4. How is the list sent: through the bank's software, or can a file be uploaded from the accounting software?

Cash may be more convenient for some employees. Explain to them in advance how to withdraw money from the card and where they can pay with it.

This is a risky choice. There is a simple rule in finance: the term of the debt financing an asset should be close to the period over which the asset generates money. The equipment returns money gradually over several years, while a 1-year loan must be repaid in full within a year. The company has to find the difference elsewhere.

Example (prepared by the author, hypothetical figures). "Sharq tikuv" is buying a sewing line for 600 million soums. The line generates net cash inflows of 25 million soums a month, 300 million soums a year. Two options; in both, the principal is repaid in equal instalments (the differentiated method):

Yes, the amount of interest on the short loan is much smaller. But in the first year the company has to find another 365 million soums on top of the money the line generates. This money is taken from working capital: there may not be enough money for raw material purchases, salaries and taxes.

Companies often try to solve this problem with "at the end of the year we'll take a new loan and close the old one". This is refinancing risk: after a year the bank may refuse a new loan, raise the interest rate or ask for additional collateral. At that moment the company is forced to agree to expensive solutions.

When a short-term loan is appropriate:

1. For working capital: if raw materials are bought, turned into products and sold within a few months.
2. For a seasonal need: for example, to increase stocks of goods before the season.
3. To cover a short gap when revenue is definitely expected.

For an asset that will serve for several years (in this example, the sewing line), compare the loan term with the cash flow from the asset: the monthly payment should not exceed the monthly inflow.

In both, the money drawn is repaid. The difference is in the limit: whether the repaid amount can be drawn again or not.

• In a non-revolving line, the total amount drawn does not exceed the limit. If you draw 200 million and then repay 150 million, you can now draw only 100 million: the limit is not restored by the amount repaid.
• In a revolving line, the limit applies to the outstanding debt. The money you repay is added back to the limit and can be drawn again.

The exact conditions differ from bank to bank and from contract to contract, so check in the contract how the limit is restored.

Example (prepared by the author, hypothetical figures). A 300 million soum line was opened for "Gulzor ulgurji":

On a non-revolving line, in April the company will have to find 80 million soums elsewhere. On a revolving line, money can be drawn and repaid several times during the year.

Which suits when:

1. A non-revolving line — for a one-off project: for example, construction or paying for equipment in stages. The money is drawn in stages, but there is no need to draw it again.
2. A revolving line — for working capital: for trade or a seasonal business where goods are bought, sold, the money repaid and goods bought again.

Questions to look at in the contract:

1. Is there a commission on the unused limit, and how is it calculated?
2. Is a separate application and documents needed for each drawdown?
3. How is the balance repaid when the line expires?
4. In what cases can the bank reduce or suspend the limit?

The more flexible option may be more expensive, so compare the interest and commissions too.

As early as possible, before a payment is late. Once arrears begin, the late payment interest provided for in the contract may be charged and your credit history may be damaged, and negotiating with the bank becomes harder. For a client who flags the problem in advance, the bank may offer to restructure the loan, but this is the bank's decision, not its obligation.

Prepare the following for the bank:

1. The cause of the problem and how long it will last: correspondence with the customer, the customer's payment obligation.
2. A cash flow forecast for the coming months: when and how much money will come in, and how much will go out.
3. A specific proposal: which option suits the company and why.

Options that may be discussed with the bank:

• extending the loan term: the monthly payment falls, but total interest rises;
• temporarily paying only interest and deferring the principal;
• aligning the payment schedule with the revenue season;
• selling part of the collateral to reduce the debt.

Example (prepared by the author, hypothetical figures). "Ohangaron qurilish" has 240 million soums of debt left, 12 more months, 24% a year, annuity payments:

For a three-month difficulty, the last option in the table (3 months interest only) is a better fit: in the first months the payment falls to 4.8 million soums, and total interest is much lower than when the term is doubled. Extending the term suits a problem that will last a long time.

Before signing a restructuring agreement, check: do the new interest rate, any extra commission, and the collateral and guarantee conditions change? Also ask whether the option to repay the debt early is kept, in case surplus money appears once the problem is solved.

Both serve the same purpose: the customer makes sure it can cover its losses if you do not perform the contract. But the cost to the company is different.

1. Transferring the money. The money is tied up for the whole period of the security. Its cost is the income that could have been earned with this money, or the interest on a loan taken in its place. This is called opportunity cost.
2. A bank guarantee. The bank gives the customer a written undertaking: "if our client does not perform, I will pay up to the specified amount". The company pays the bank a commission. The bank may require collateral or the blocking of part of the money for this, which changes the cost.

Example (prepared by the author, hypothetical figures). "Mehnat yo'li" LLC has to provide 100 million soums of security for a 6-month contract.

Under these conditions the guarantee is 7–10 million soums cheaper. In addition, working capital is freed up and used to buy raw materials.

Cases where a guarantee may turn out expensive:

1. If the bank blocks a large part of the guarantee amount in your account: then the money is tied up anyway, and the commission is paid on top.
2. If the guarantee term is short and the commission has a minimum amount.
3. If there is no reliable collateral and the bank requires a costly collateral valuation or insurance.

One more difference: if money has been transferred, getting it back depends on the customer's action; a guarantee, however, stops being valid once the term written in it expires (read the exact condition in the text of the guarantee). If you do not perform the contract, the loss falls on you in both cases: the bank that paid under the guarantee will then claim this amount from you.

Such a conclusion resembles "survivorship bias". You are only looking at the cafés that did not close. Among those that closed there may also have been many cafés with large halls and expensive interiors, but they are no longer visible. To find the reason for success, the survivors must be compared with those that closed.

Example (prepared by the author, hypothetical figures). Three years ago 50 cafés opened in the city. Today 20 of them are operating and 30 have closed.

Among the survivors, those with large halls are 70% (14 out of 20) — this is your observation. But among those that closed they are also exactly 70% (21 out of 30). That is, because there were many cafés with large halls, there are many of them among the survivors too. The probability of survival is the same in both groups — 40%. According to these data, the size of the hall does not predict success.

This mistake is common in business:

1. Reading only the biographies of successful entrepreneurs and saying "they get up early, so getting up early makes you rich".
2. Surveying only the remaining customers and concluding "everyone is satisfied": the dissatisfied have already left.
3. Analysing only the goods currently on sale and saying "goods in this category sell well": the ones that did not sell well have already been removed from the range.

How to protect yourself:

1. Always ask: "Who did not make it onto this list?"
2. Try to find information about those that closed, left or were removed too: old lists, archives, conversations with former customers.
3. Always calculate the share relative to the starting group: not "how many among the survivors" but "how many of those who started survived".

So far there are no grounds to say so. The statistical phenomenon of "regression to the mean" may have been at work here. Each month's result consists of two parts: the branch's permanent level and random factors, that is, circumstances specific to that month that need not repeat the next month. A branch that shows a very bad result in one month has often simply been unlucky. The next month chance may not be so bad, and the result moves back towards its usual level without any measures at all. With the best result it is the other way round.

Example (prepared by the author, hypothetical figures). The average annual plan fulfilment of six branches is around 100%. Results for two months:

The average of the "worst three" rose from 81.7% to 94.3%, and that of the "best three" fell from 115.7% to 104%. But the overall average of the six branches barely changed: 98.7% and 99.2%. Every branch simply moved closer to its usual level.

How to check whether the measures really worked:

1. Compare the result not with a single month but with the branch's own long-term average.
2. Set up a comparison group: apply the measure to some branches with similar results and not to others. If both groups improve equally, the cause is not the measure.
3. Observe for several months: if the measure really has an effect, the improvement will be lasting.

This phenomenon occurs elsewhere too: the day after the day with the most rejects is better, and a new advertising campaign looks "effective" because it started after the worst month. Before making a decision, ask: "Would it not have happened anyway, even if we had done nothing?"

This question can be answered with a control chart. The idea is simple: even when a process is stable, the daily reject share fluctuates randomly. Statistics calculates the usual limits of this fluctuation. If a result goes outside the limits or shows a strange pattern, it is suspected that something in the process has changed.

A simple formula for the reject share:

• average share p = 0.03;
• daily sample n = 400;
• standard deviation = √(p × (1 − p) ÷ n) = √(0.03 × 0.97 ÷ 400) ≈ 0.0085, that is, 0.85 percentage points.

In a widely used approach, the control limits are set at a distance of ± 3 standard deviations from the average.

Example (prepared by the author, hypothetical figures). For the "Temir usta" workshop:

Today's 20 rejects are below the upper control limit (22), but above the warning level (19). So there are not enough grounds to stop the machine at once, but attention should be stepped up: watch tomorrow's result and check the work shift, the raw material batch and the condition of the tools.

Another useful sign is the sequence of results. If the process has not changed, the chances of being above or below the average on any day are roughly equal. The probability of being above the average 8 days in a row is 0.5⁸ ≈ 0.4%. If that happens, the process may have deteriorated even if no single result goes outside the limits.

Going below the lower limit is also a signal: if there are very few rejects, it may mean the inspector has become inattentive or a new, better method is working. That should be checked too.

Practical tip: in Excel, plot the daily reject share and the three lines (average, upper and lower limit) on one chart and hang it on the workshop wall. The foremen will see for themselves when to worry.

Usually this is not an error but the result of rounding. Each share is rounded separately, and a small difference appears in each. When they are added up, the total can differ from 100% by one or two percentage points.

Example (prepared by the author, hypothetical figures). The monthly revenue of the "Lola savdo" shop is 250 million soums:

Three equal parts, on the other hand, are 33.33...% each and are rounded to 33%, giving a total of 99%.

The same thing happens with amounts. If three expenses are 1.4 million soums each, the total is 4.2 million. If "million soums" in the table is rounded to whole numbers: 1 + 1 + 1, while the total is 4. The rows add up to 3, but the "Total" row shows 4.

How to deal with this:

1. Write a note under the table: "Totals may differ from 100% due to rounding".
2. Show one decimal place: 40.6% + 30.6% + 28.8% = 100.0%. Often this alone is enough.
3. If the total in a chart must be exactly 100%, use the largest remainder method: round everything down (40 + 30 + 28 = 98), then add the missing 2 percentage points, one each, to the two with the largest fractional parts: drinks (0.84) and food (0.60); the fractional part of household chemicals (0.56) is the smallest. Result: 41%, 30%, 29% — a total of 100%.
4. Never calculate the "Total" by adding the rounded rows: calculate it from the exact amount and then round it.

This is especially important in accounting reports: if a report is prepared in thousands of soums, it is advisable to set out in advance in the accounting policy a method of adjusting the difference in one line item, so that the assets and liabilities of the balance sheet do not end up differing by a few units because of rounding.

One sentence is enough to explain it to the manager: "Each figure has been rounded separately; the exact figures add up to 100%."

No, it does not. This is one of the most widespread confusions in statistics. "It finds 96 percent of real errors" and "96 percent of flagged receipts are real errors" are completely different things. The second depends on how common erroneous receipts are in general and on how often the software mistakenly flags clean receipts.

Example (prepared by the author, hypothetical figures). "Barakali do'kon" has 10,000 receipts a month. About 50 of them are real errors (0.5%). The software finds 96 percent of real errors, but also mistakenly flags 2 percent of clean receipts as suspicious.

Of the 247 flagged receipts, only 48 are real errors: 48 ÷ 247 ≈ 19.4%. That is, roughly one in five receipts flagged by the software is an error, not 96%.

Why is this so? There are very many clean receipts (9,950), so even a small 2 percent of them gives 199 false signals. That is four times more than the real errors.

Practical conclusions:

1. Do not treat a flagged receipt as an error straight away and blame the salesperson. It is merely in the queue for a first check.
2. When evaluating software, ask for two indicators: what share of real errors it finds and what share of clean receipts it flags by mistake.
3. Estimate in advance how much work the inspecting employee will get: 247 receipts a month have to be checked, 199 of them in vain.
4. If the share of erroneous receipts rises (for example, when a new cashier arrives), the share of real errors among flagged receipts rises too. That is, the same software looks "accurate" to different degrees under different conditions.

This logic applies to any automated check: how many real errors there are among flagged transactions depends on how rare errors are in general.

There is an economic explanation. Apart from the price of the product, the purchasing process itself also involves costs. In economics these are called transaction costs: searching for a new partner, checking their reliability, concluding a contract, quality control and the losses that arise if a promise is not kept. With the old supplier, most of these costs have already been incurred: you know them, and they know you.

So the right comparison is not "price against price" but "price + transaction costs".

Example (prepared by the author, hypothetical figures). The "Issiq somsa" bakery buys 80 million soums worth of flour a month. The new supplier is 3% cheaper: a saving of 2.4 million soums a month. But extra costs arise with the new supplier:

In this case the new supplier gives a benefit of 2.4 − 1.9 = 0.5 million soums a month. But if the probability that the new supplier fails to deliver is 10%, the risk is 2 million, the total cost becomes 2.9 million, and switching causes a loss.

Practical routes:

1. A trial batch: buy part of the monthly requirement from the new supplier. This gathers real information about their reliability and lets you assess the risk.
2. Two suppliers: buy the main volume from the reliable partner and part from the new one. This both creates price competition and reduces dependence on a single supplier.
3. Talk to the old supplier: tell them there is a cheaper offer on the market and ask them to reconsider the price.

The concept of transaction costs also explains why firms do some work themselves and buy other work from outside: if the hidden cost of buying from the market is very high, doing the work in-house is cheaper.

Economists call this phenomenon price "stickiness": even when costs or demand change, prices change not immediately but with a delay and in jumps. There are several reasons for this:

1. Changing prices itself costs money: printing a new menu, replacing price tags, updating the cash register software, training staff. In economics these are called "menu costs".
2. Customers do not like frequent price changes. Each increase may send some customers to a competitor.
3. If competitors do not raise prices, the café that raises them first loses customers.
4. Some prices are fixed by contract: a corporate order or rent.

But not changing prices at all is also expensive: as ingredients get more expensive, the margin keeps shrinking. So the question is not "do we change them?" but "how often?".

Example (prepared by the author, hypothetical figures). The monthly revenue of "Kamalak kafe" is 200 million soums. Ingredients make up 40 percent of the price and get 2% more expensive every month. Each month of delay in raising prices adds a loss of 0.8 percentage points of revenue, that is, 200 × 40% × 2% = 1.6 million soums a month. The full cost of one price change (menu, price tags, staff time) is 3 million soums.

If prices are updated every k months, the losses in one cycle are 0 + 1.6 + 3.2 + ... . Average cost per month:

If only the technical cost is counted, updating prices every 2 months is cheapest. If the revenue lost through customer dissatisfaction is added as well (5 million soums each time), the best interval lengthens to 3 months.

Practical conclusions:

1. Make changing prices cheaper: an electronic menu or screen, replaceable price tags.
2. Do not raise everything at once: start with the dishes whose ingredients have risen most.
3. Changing portion size is also a kind of price change, and customers notice it; openness preserves loyalty.

The same stickiness can be seen at the level of the whole economy: when inflation speeds up, prices rise not all at once but at different times in different sectors.

This is the "bullwhip effect", common in supply chains. Each link in the chain (shop, distributor, factory) sees only the orders of the next link down, not the demand of the end customer. And each one increases its stock "just in case" to match expected future demand. As a result, a small change grows larger as it moves up the chain, just as the tip of a whip makes a large swing from a small movement of the hand.

Example (prepared by the author, hypothetical figures). Each link keeps stock equal to 2 times the last weekly order it saw and places its order accordingly. At the start, weekly demand everywhere is 100 boxes, and stock is 200 boxes. In the first week customer demand rose to 110 boxes and stayed at that level.

In the first week the shop ordered 130 boxes to bring its stock from 200 to 220. The distributor saw 130, decided "demand is now 130", raised its stock to 260 and placed an order for 190. The factory saw 190 and produced 370 boxes. In the second week the shop's order fell back to 110, while excess stock piled up at the distributor and the factory, and the factory stopped for a week. Yet customer demand had risen by only 10% and remained stable.

Ways to reduce this effect:

1. Share end-sales data: if the factory and the distributor see the shops' actual till sales, they will not mistake a wave of orders for genuine demand.
2. Plan stock not on a single week's change but on a moving average of several weeks.
3. Smaller, regular orders instead of large, infrequent ones.
4. Announce promotions and discounts in advance, so that a spike during a promotion is not mistaken for a lasting rise in demand.

The takeaway for a factory or a wholesaler: when you see a sharp rise in orders, first ask — is this end-customer demand or a stock wave in the chain?

Yes, it can. In economics this is called inflation expectations. When people and companies expect prices to rise:

1. Buyers bring purchases forward and stock up, so current demand rises.
2. Sellers raise prices in advance so as not to sell cheaply goods that will become more expensive later.
3. Employees ask for higher wages to allow for the expected rise in the cost of living, and companies add this cost to prices.
4. Contracts are concluded taking the expected price rise into account.

In this way an expectation partly fulfils itself. That is why central banks monitor people's inflation expectations and pay great attention to explaining their policy.

The practical question for a company: is it worth stocking up before an expected price rise? This should be checked with a calculation.

Example (prepared by the author, hypothetical figures). The "Qurilish bozor" shop is thinking of buying 1,000 bags of cement now, at 60,000 soums each, for a total of 60 million soums. They will be sold within 3 months.

If the price really rises by 8%, the gain is only 0.1 million soums. If the price rises by only 4%, the saving is 2.4 million and there is a loss of 2.3 million soums. That is, building up large stocks because "everyone is saying so" often does not bring the expected gain, while the risk stays with the company.

Conclusions:

1. Before stocking up, calculate the cost of money (loan interest or forgone deposit income), storage and the risk of spoilage.
2. When forecasting price rises, rely not on rumours but on official statistics and contracts with suppliers.
3. If customers are buying a lot now, also plan for them buying less in the coming months: demand may have been brought forward rather than increased overall.

Supply and demand work in the labour market just as in other markets. Wages are the price of labour. If demand for people in a certain trade rises (more construction, new factories opening) while supply does not increase quickly (learning the trade takes time, craftsmen may leave to work elsewhere), wages go up.

Is it temporary? That depends on how quickly supply responds. Higher wages attract young people to the trade, but it takes years to become a skilled craftsman. That is why a shortage of qualified staff does not disappear quickly. If demand falls (construction slows down), wage growth may stop.

The company's options:

1. Raise wages and retain its craftsmen.
2. Train young people itself.
3. Replace labour with machinery (automation).
4. Outsource part of the work to an external organisation.

To choose among them, compare the cost of each in the same units.

Example (prepared by the author, hypothetical figures). The "Po'lat qurilish" workshop employs 2 welders, each earning 12 million soums a month. A semi-automatic welding machine costs 180 million soums and makes it possible to do the same volume of work with 1 welder.

If salaries rise further, the machine pays for itself faster. But if servicing, spare parts and additional electricity for the machine are taken into account, the period becomes longer. Include them in the calculation too.

Other factors to watch:

1. Dependence on a single welder increases: if he falls ill or leaves, the workshop stops. So a second employee will need to be trained as well.
2. In a tight labour market, it is not only pay that keeps an employee, but also working conditions, timely payment and opportunities to grow. The cost of finding and training a new craftsman is often higher than raising pay a little.
3. Rising wages are not only your problem but your competitors' too: it means prices in the sector will also gradually rise, and this can be taken into account in pricing policy.

A demand is the tax authority's official notice to you of the amount of arrears and the obligation to pay it within the set period (Tax Code, Article 116, Part One). It is sent regardless of whether you have been held liable.

What the demand must contain (Article 116): the amount of tax arrears; the late payment interest accrued up to the time it is sent; the amount of the fine; the measures to collect the arrears and secure performance of the tax obligation that will be taken if the demand is not met.

The chain of deadlines:

Note: collection from the bank account does not wait for the sixty-day period to expire. If you have not sent a payment order to pay the tax yourself, the tax authority's collection order is placed on your account no later than three working days after the tax payment deadline expires (Article 121, Part Six). Money on a term deposit is not collected until the deposit term expires (Article 121).

Example (prepared by the author). "Qamar Savdo" LLC received the demand on 15 February 2027. The sixty calendar days are counted from 16 February and end on 16 April. The firm checked the amount, found an error in the late payment interest calculation and sent a written appeal to the tax authority; it paid the principal without waiting, because late payment interest grows every day.

Tip: compare the amount in the demand with your own account 6410 data. If there is a difference, give a written explanation immediately — under Article 118, if the amount changes, a clarified demand must be sent or the previous one withdrawn.

Source: Tax Code, Articles 116, 117, 118, 119, 120 and 121.

Yes. Article 121¹ of the Tax Code gives a legal entity and an individual entrepreneur exactly this right: to apply to the tax authority asking for the arrears to be collected from their own debtor (Part One).

The procedure step by step:

1. The application is accompanied by a reconciliation statement of mutual settlements — signed by both parties or only by you (Part One).
2. No later than three working days, the tax authority sends the statement and the documents confirming the debt to the debtor's personal account (Part Two).
3. Within ten working days the debtor confirms the statement or refuses with reasons. If the debtor does not respond, the debt is deemed acknowledged and consent to collection deemed given (Part Three).
4. No later than three working days, the tax authority places a collection order on the debtor's account: the amount exceeds neither your tax arrears nor the debtor's debt (Part Six).

When this route does not work (Article 121¹, full list): the debtor has refused the debt with reasons; the limitation period has expired; a court act on the debt is under compulsory enforcement, the period for presenting it for enforcement has expired, or enforcement has been suspended, terminated or deferred (spread into instalments); the debtor is not a taxpayer of Uzbekistan; the debtor is an individual; the debtor is in liquidation or insolvency proceedings have been initiated against it; the debtor's activity has been terminated or it has been removed from the state register.

Example (prepared by the author).

"Bog'bon Qurilish" did not respond within ten working days, so the debt was deemed acknowledged. The remaining 7,000,000 soums of its debt to "Nurafshon Mebel" remains outstanding.

Important: directing collection at the debtor does not release you from the obligation to pay the tax until the arrears are fully repaid (the last part of Article 121¹).

Source: Tax Code, Article 121¹.

Article 215 of the Tax Code protects you in this situation. It lists four circumstances that exclude a person's guilt in committing a tax offence:

Your case is item 3. If these circumstances exist, the person is not liable (Article 215, Part Three). The explanation is taken into account regardless of the date it was issued, if by its meaning it relates to the period in which the offence occurred.

Two important limitations:

• If the explanation was based on incomplete or inaccurate information you provided, items 3 and 4 do not apply (Part Two). So describe the situation fully and accurately in your request.
• Article 215 releases you from liability. The question of recalculating the tax itself is not governed by this article.

Example (prepared by the author). "Shirin Non" LLC sent the tax authority a request about free lunches for employees, received a written answer and followed it. Two years later an auditor put forward a different interpretation. The firm presented its request letter (which set out all the facts in full) and the tax authority's answer; the question of a fine was closed on the basis of item 3 of Article 215.

Tip: keep written explanations, together with a copy of your request letter, in a separate folder indefinitely.

Source: Tax Code, Article 215.

In the Tax Code these are two different periods, both three years long, but the starting point may differ.

Example (prepared by the author). "Oqtosh Avto" LLC understated its tax base for one tax period in 2023. The period for holding it liable is counted from the day following the end of that tax period and lasts three years (Article 217, Part Three). The decision to hold it liable must be issued within those three years: if it is issued after the period has expired, the fine is not applied.

Practical conclusion: keep the primary documents underlying the tax calculation for at least the limitation period. If you applied a tax relief, bear in mind that under Part Three of Article 88 this period may be extended.

Source: Tax Code, Article 84 (Part Two), Article 88 (Parts One to Four), Article 144 (Part Three), Article 217.

It can. Under Article 14 of the Tax Code, transactions are taken into account for tax purposes not by the name of the contract but by their actual economic substance (Part One).

The main rules of Article 14:

Example (prepared by the author). "Ipak Yo'li Tekstil" LLC received 300 million soums from a buyer and recorded it as an "interest-free loan"; two months later it shipped fabric for that amount and closed the "loan" by offset. The correspondence shows that the buyer placed an order and that the price and shipment date were agreed. In substance this is an advance payment for goods, so the tax authority is entitled to treat it as such. The safest course for the firm is to document the money as an advance payment from the start and calculate tax accordingly.

There is another side too: if both parties have fully performed the contract and only one of the non-tax rules was breached, your expense cannot be disallowed for that reason alone (Part Four).

Source: Tax Code, Article 14.

No. Goods bought for resale are carried in account 2910 "Goods in the warehouse" at purchase cost (NAS No. 21, paragraph 145). If you use them yourself or process them, they are no longer goods for sale, so they are removed from 2910. The table in paragraph 154 of NAS No. 21 has a separate line for each case.

Note: the table in paragraph 154 has no line that charges goods directly to administrative expenses. The table shows the goods first being transferred to materials and then the materials being used.

Example (prepared by the author). At "Rangin Qurilish Mollari" LLC the purchase cost of one bucket of paint is 120,000 soums. During the month, 15 buckets were used to paint the office and 40 buckets were given to the colour-mixing workshop.

The paint mixed in the workshop is received into the warehouse as finished goods: Dt 2810, Ct 2010. Its amount is the actual cost made up of the 4,800,000 soums of paint and the workshop's other costs attributable to this product, because finished goods in 2810 are carried at actual production cost (paragraph 138).

Why does this matter? If the paint stays in 2910, the stocktake will show a shortage of 15 + 40 = 55 buckets, and the "Goods" line in the balance sheet will be overstated. If you charge the paint given to the workshop to the cost of goods sold, the gross profit from trading will be wrong.

Tip: document every issue from the warehouse with an internal delivery note and state its purpose clearly (own needs or processing) — the account is chosen on the basis of exactly this document.

Source: NAS No. 21, paragraph 104 (line 13), paragraph 138, paragraph 141 (line 1), paragraph 145, paragraph 154 (lines 8 and 10).

No. In all three cases the products leave account 2810 "Finished goods in the warehouse", but the account debited depends on where the products went (NAS No. 21, table in paragraph 141).

Line 6 lists accounts 2010, 2310, 2510, 2710 and 9410–9430 for internal needs: which one is used depends on which department used the products.

Example (prepared by the author). At "Paxtaoy To'qimachilik" LLC the actual production cost of one towel is 45,000 soums.

As a result, 1,350,000 soums is allocated to the cost of products together with the workshop's expenses, 450,000 soums becomes an administrative expense and 2,250,000 soums an other operating expense. If you record everything in 9430, the cost of products looks too low and other expenses too high.

Tip: document every issue with an internal requisition and delivery note and state the receiving department clearly — the account is chosen on the basis of exactly this document. The tax consequences of a free transfer are examined separately.

Source: NAS No. 21, paragraphs 138 and 141.

No. Products given to an agent for sale are still yours; they are not in the warehouse but remain on your balance sheet. Account 2830 "Finished goods transferred under agency (commission) agreements" exists for this (NAS No. 21, paragraph 140). The sale is recognised when the agent sells the products, and the same entries are made as for 2810.

Example (prepared by the author). "Lola Keramika" LLC gave 200 vases (cost 80,000 soums each) to the "Uy Bezagi" shop. At the end of the month the shop sent a report that 150 of them had been sold at 130,000 soums each. Amounts exclude VAT.

In the books of the principal ("Lola Keramika"):

At the end of the month, 50 vases remain in 2830: 16,000,000 − 12,000,000 = 4,000,000 soums.

In the books of the agent ("Uy Bezagi"), the vases are not its property, so they are carried in off-balance sheet account 004 "Goods accepted under agency (commission) agreements" at the price stated in the acceptance and transfer certificate (paragraph 441). The shop's own income is the agency fee: Dt 4010, Ct 9010 (paragraph 383, line 5).

Tip: obtain a sales report from the agent every month and reconcile the balance in 2830 with the actual stock in the shop. Analytical accounting for 2830 is kept by responsible persons, product types (grades, batches) and storage locations (paragraph 140); you can additionally set a separate breakdown for each agent in your accounting policy.

Source: NAS No. 21, paragraphs 140, 141, 383 and 441.

It is not a sale. A branch is a separate division of the legal entity, so transactions between them are kept as intra-company settlements. At head office, the branch's debt is recorded in account 4110 "Receivables from separate divisions": it holds settlements for property and tangible assets transferred to the division, payment of wages to the division's employees and other current transactions (NAS No. 21, paragraph 176). Debt in the opposite direction — the organisation's current liabilities to its branches — is recorded in account 6110 "Payables to separate divisions" (paragraph 259).

Example (prepared by the author). "Sarbon Savdo" LLC sent its branch goods worth 60 million soums and transferred 25 million soums for wages. Later the branch returned 40 million soums to head office's account.

In the books of head office:

Balance of 4110 at head office: 60 + 25 − 40 = 45 million soums.

If the branch sends goods to head office, head office records Dt 2910, Ct 6110 (paragraph 154, line 3). If the branch keeps a separate balance sheet, set out the entries in its own books in the accounting policy.

Why not 9020? 9020 "Revenue from sale of goods" is for sales to customers. Goods transferred to a branch do not leave the legal entity; they only move from one place to another within it. If you record this as a sale, revenue will appear twice when the branch sells the goods to a real customer.

In the balance sheet these amounts have separate lines: "Debt of separate divisions (4110)" — line 230, "Debt to separate divisions (6110)" — line 620 (Regulation approved by Order No. 181, Appendix 1).

Tip: analytical accounting for 4110 is kept for each separate division (NAS No. 21, paragraph 177), and for 6110 also separately for each division (paragraph 260). At the end of the month, check the head office and branch balances with a reconciliation statement.

Source: NAS No. 21, paragraphs 154, 176, 177, 178, 259 and 260; Regulation approved by Order No. 181, Appendix 1.

No. 9010 is for sales of finished products and 9020 for sales of goods. But for you the yarn is a raw material (1010 "Raw materials and supplies"), and selling it is not your core activity. Under NAS No. 21, the value of materials disposed of to outside parties is written off to account 9220 "Disposal of other assets" (paragraph 104, line 16). The debit of 9220 records the carrying amount of the asset sold and the credit the sales proceeds, and the difference is closed as a gain or loss (paragraph 393).

Example (prepared by the author). "Gilam Nur" LLC sold yarn with a cost of 18,000,000 soums for 21,000,000 soums (excluding VAT; VAT is not considered in this example).

If the yarn had been sold for 16,000,000 soums, there would have been a loss of 2,000,000 soums: Dt 9430, Ct 9220 (line 27, b).

As a result, 9220 is closed with a zero balance. In the statement of financial results this sale does not increase net revenue; the gain appears within "Other income from core activities" (line 090).

Why does this matter? If you record the yarn in 9020, net revenue and gross profit are artificially inflated and profitability ratios are distorted.

Source: NAS No. 21, paragraphs 104 (line 16), 393 and 394; Regulation approved by Order No. 181, Appendix 2.

A requirement of the standard. The auditor's communication with those charged with governance (in an LLC, usually the founders or the supervisory board) is governed by ISA 260. The standard treats communication as two-way: the auditor provides information, and they in turn tell the auditor about important matters.

What the auditor must communicate:

Form: if, in the auditor's judgement, oral communication of significant findings is not adequate, it is made in writing.

Example (prepared by the author). At "Navro'z Agro" LLC, the auditor told the founders at the start that this year the main risks were livestock accounting and a large bank loan. One of the founders mentioned a plan to sell a branch the following year — this was new information for the auditor, who extended the work on subsequent events. At the final meeting, the auditor shared observations on the approach management had used to value inventories.

Benefit: these meetings are the best opportunity to avoid surprises in the report. The founders can ask questions too.

Source: ISA 260 (Revised); Law "On Auditing Activity" (ZRU-677), Article 9.

Yes. Handling the prior-year comparative figures in the financial statements is governed by ISA 710. If last year's statements were not audited, the auditor states in an "Other Matter" paragraph of the report that the prior-year figures are unaudited.

What this paragraph means and what it does not:

An important point: this paragraph does not release the auditor from checking the opening balances. The current year's statements rely on the opening balances, so the auditor obtains sufficient evidence for them under ISA 510.

Example (prepared by the author). "Tong Logistika" LLC commissioned an audit for the first time at the bank's request. To check the stock of goods at 1 January, the auditor reviewed January sales and purchases, having not attended the count at the start of the year. In the report, an "Other Matter" paragraph stated that the prior-year figures were unaudited.

Practical tip: before the first audit, prepare the stocktake reports at the end of last year and the reconciliation statements with the bank and counterparties — checking the opening balances starts with these.

Source: ISA 710, ISA 510; Law "On Auditing Activity" (ZRU-677), Article 9.

It is different. If a report is prepared on special principles (a special purpose framework) designed for the needs of specific users (here, the grantor), the auditor applies ISA 800. This standard builds on the standards for general purpose reporting (ISA 700) and adds further requirements to them.

The main differences in the report:

This paragraph does not qualify the opinion: it only reminds users of the basis on which the report was prepared.

Example (prepared by the author). The "Yashil Vodiy" farm bought irrigation equipment with a grant. The grantor asked only for a report on money received and spent. The auditor wrote in the report that it had been prepared under the rules of the grant agreement and therefore might not be suitable for another purpose. When the farm wanted to show this report to a bank for a loan, the bank asked for a separate report on the annual financial statements.

Tip: when agreeing the terms of the engagement with the auditor, state in writing which principles the report is prepared under and to whom the auditor's report is issued.

Source: ISA 800 (Revised), ISA 700; Law "On Auditing Activity" (ZRU-677), Article 9.

Yes. An audit of a single financial statement or of a specific element, account or item of a financial statement is governed by ISA 805. If that element is prepared on special principles, ISA 800 also applies.

Features of such an audit:

Example (prepared by the author). "Oltin Don" LLC wants to obtain a credit line secured by its receivables. The bank asked for a report on the balance of account 4010 at 31 December. The auditor sent confirmation letters to major customers for 4010, matched January cash receipts against December debts and checked how the allowance for doubtful debts had been calculated. The materiality level was also set on the basis of the 4010 balance itself.

Practical tip: in such an engagement, do not assume it is enough to "just confirm the balance" — the auditor also looks at how the balance was built up. Prepare an ageing schedule of customer debts in advance.

Source: ISA 805 (Revised), ISA 800; Law "On Auditing Activity" (ZRU-677), Article 9.

The group auditor. Audits of group financial statements are governed by ISA 600 (Revised). Under it, the group auditor is responsible for the direction, supervision and performance of the group audit and for issuing a report appropriate in the circumstances. The fact that a subsidiary is audited by another auditor (in the standard, a component auditor) does not divide this responsibility.

What this means in practice:

Example (prepared by the author). The subsidiary of the "Bek Invest" holding in Namangan is audited by a local audit firm. The group auditor sent it in writing the materiality level and the risks to focus on, then reviewed the part of its working papers dealing with inventories. Additional information was requested on a significant matter at the subsidiary.

Practical tip: at year end, reconcile intra-group sales and debt balances with the subsidiaries in advance — when eliminating intra-group transactions on consolidation, the group auditor asks for exactly these schedules.

Source: ISA 600 (Revised); Law "On Auditing Activity" (ZRU-677), Article 9.

This is the "Information on the movement of cash in foreign currency" section of Appendix 4 (Regulation approved by Order No. 181). It has only one column, "Amount", and amounts, like the whole statement, are given in thousands of soums.

Lines:

Example (prepared by the author, thousand soums). "Atlas Eksport" LLC:

Self-check: line 290 must equal the total foreign currency balances at year end. If the currency is held only in a foreign currency bank account, reconcile it with balance sheet line 350 "Cash in foreign currency (5200)"; if there is also currency in the cash desk, add it.

Note: the main part of the statement also has a line for exchange differences — 221 "Net exchange differences from revaluation of cash in foreign currency". Line 280, by contrast, shows only the revaluation within the currency table.

Source: Regulation approved by Order No. 181, Appendix 4; Appendix 1 (line 350).

In the statement of equity (Regulation approved by Order No. 181, Appendix 3), the cells not to be filled in for each line are marked "x". These marks show which column to use.

Columns: 3 — charter capital; 4 — additional capital; 5 — reserve capital; 6 — retained earnings (uncovered loss); 7 — treasury shares; 8 — targeted receipts and other; 9 — total.

Example (prepared by the author, thousand soums). "Zarafshon Agro" LLC:

The logic is simple: an allocation to the reserve moves an amount from one part of equity to another, so the total in line 050 does not change. Dividends, however, leave equity and become a debt to the founders, so the total decreases by 45,000 and affects line 120 "Increase (+) or decrease (−) in equity".

Check: columns 5 and 6 of line 110 "Balance at the end of the year" must equal the year-end amounts in balance sheet lines 430 "Reserve capital (8500)" and 450 "Retained earnings (uncovered loss) (8700)".

Note: micro-firms and small enterprises do not submit this statement — their annual financial statements consist of the balance sheet and the statement of financial results (Regulation, paragraph 10).

Source: Regulation approved by Order No. 181, paragraph 10; Appendices 1 and 3.

No. Balance sheet line 180 "Goods" is filled in as group 2900 minus 2980 (Regulation approved by Order No. 181, Appendix 1). 2980 "Trade markup" is a contra-asset account: it separates the markup not yet earned from the value of goods at selling price, so in the balance sheet the goods are brought back to purchase cost.

Example (prepared by the author). At "Mehr Market" LLC as at 31 December:

If you put in the full amount of 2920, goods will be overstated by 31 million soums: the balance sheet will also show the profit on goods not yet sold as an asset.

For the correct amount, the balance of 2980 must be accurate. Under NAS No. 21, account 2980 is credited with the markup amount when goods are received and debited for goods sold or written off for other reasons; the markup attributable to the remaining stock is adjusted on the basis of the stocktake report (paragraph 152). So after the year-end stocktake, recalculate the balance of 2980 and only then fill in the balance sheet.

Note: line 180 is part of line 140 "Inventories, total" (140 = 150 + 160 + 170 + 180).

Source: Regulation approved by Order No. 181, Appendix 1; NAS No. 21, paragraph 152.

Under paragraph 5 of the Regulation approved by Order No. 181, an organisation that is liquidated, reorganised or merged into another organisation during the reporting year prepares its final statements for the period from 1 January to the date this process is completed, using the current forms of annual financial statements.

What is done in practice:

Example (prepared by the author). The liquidation of "Shams Print" LLC (a small enterprise) is being completed on 14 August 2027. The final statements cover the period from 1 January to 14 August 2027 and consist of two forms: the balance sheet and the statement of financial results.

Another subtle point. Paragraph 6 of the Regulation sets out how the first reporting period of newly established organisations is determined, but this procedure does not apply to organisations established on the basis of a liquidated or reorganised organisation or of its separate divisions. For example, the first reporting period of a new company that arose from a reorganisation cannot be determined under the scheme in paragraph 6.

Note: paragraph 5 does not separately specify the deadline for submitting such statements. Determine the deadline from the documents governing the liquidation procedure.

Source: Regulation approved by Order No. 181, paragraphs 3, 4, 5, 6, 10 and 13.

You do. Fixed assets received under a finance lease are recorded by the lessee in account 0310 "Fixed assets received under finance lease" (NAS No. 21, paragraph 33). On receipt: Dt 0310, Ct 6950 "Long-term liabilities – current portion" and 7910 "Finance lease payable" (paragraph 34). Depreciation is accumulated in 0299 "Depreciation of fixed assets received under finance lease" (paragraph 28).

Balance sheet lines (Regulation approved by Order No. 181, Appendix 1):

Example (prepared by the author). On 1 July, "Olmaliq Metall" LLC leased a machine tool worth 240 million soums. At 31 December, accumulated depreciation is 12 million soums and the remaining lease debt is 210 million soums, of which 60 million soums is payable in the next 12 months.

Why is it on the balance sheet if the property belongs to the leasing company? NAS No. 21 carries this item among the lessee's assets in group 0300: the company uses the machine tool and pays its price. When the lease ends and ownership passes to you, its value is transferred from 0310 to the relevant account in group 0100, and its depreciation from 0299 to the relevant depreciation account (paragraph 37).

Source: NAS No. 21, paragraphs 28, 33, 34 and 37; Regulation approved by Order No. 181, Appendix 1.

Yes, but by decision of the customs authority. The Customs Code distinguishes two options: deferral of payment (the payment deadline is extended for an additional period) and payment in instalments (the amount is split into parts within that period) (Article 329, Parts Two and Three).

The application is accompanied by a written undertaking to pay and a document confirming the security (Article 330). There are two grounds for refusal: failure to comply with the requirements of Article 330, or the existence of customs payment arrears at the time of the application (Article 331).

Interest: charged for each day at fifty percent of the Central Bank's refinancing rate. However, no interest is charged for the 14-day period, for authorised economic operators and in the cases set out in Parts Five and Eleven of Article 329 (Article 332).

Example (prepared by the author). "Samo Tekstil" LLC imported raw materials for yarn production. As a manufacturer, it requested the 120-day period and provided a bank guarantee as security; in this case no interest is charged. If the firm applied under Part Ten and had paid 1,200 million soums over the last three years, the amount payable in instalments without security would not exceed 600 million soums.

Note: if an amount under the schedule is not paid on time, customs collects the entire debt from the security (Article 333).

Source: Customs Code, Articles 329–333.

Yes, under certain conditions. Article 201 of the Customs Code provides for customs control after the release of goods, including customs audit.

Example (prepared by the author). "Elektron Uy" LLC imported televisions in March 2025. In February 2027 the customs authority ordered an inspection under this contract: it compared the customs value in the declaration with the firm's receipt amount in 2910, the bank payments and the reconciliation statement with the supplier. The three-year period has not yet expired, and this is the first inspection under the contract — so the demand is lawful.

Practical tip: for each import contract, keep the cargo customs declaration, invoice, transport and insurance documents, payment orders and receipt documents in one folder for at least three years. Check the period under review and the contract in the decision: if there has already been an inspection under this contract, refer to Part Four.

Source: Customs Code, Article 201.

The right to appeal against decisions of customs authorities and actions (inaction) of officials is set out in Articles 409¹–409⁷ of the Customs Code. There are two routes: a higher customs authority and the court.

What the complaint contains (Article 409³, in full): the name of the customs authority; the name and address of the complainant (for an individual — full name and place of residence); the circumstances on which the objections are based; a list of attached documents (if any); your demands; the date.

Decisions of the appeals commission (Article 409⁶): to dismiss the complaint; to amend the decision; to cancel the decision and, if necessary, adopt a new decision; to declare the official's action unlawful and issue a decision on the merits. The decision is sent in writing within three days and is binding on customs authorities.

When a complaint is not considered (Article 409⁴): the deadline has been missed and there is no petition to restore it; it does not meet the requirements of Article 409³; it is withdrawn before a decision is made; it is filed by an unauthorised person; it has already been filed earlier on the same grounds; it is filed within a criminal case or with a court.

Example (prepared by the author). "Bahor Kimyo" LLC was handed a customs audit report on 3 March. The firm filed a complaint on 25 March, attached the transport documents and asked for a hearing (Article 409⁵, Part Two). The commission partially reduced the additionally assessed amount.

Source: Customs Code, Articles 409¹–409⁷.

Yes. This is preliminary declaration — declaring goods before they arrive in the customs territory. It is used at the declarant's discretion (Customs Code, Article 262, Part One).

Example (prepared by the author). "Pamir Plast" LLC filed a preliminary declaration for a container of granules on 5 April 2027 and paid the customs payments. The thirty calendar days are counted from 6 April and end on 5 May. The container was delayed in port and arrived on 12 May. The declaration was deemed not filed, and the firm had to declare the goods again.

Practical tip: file the preliminary declaration after getting the exact arrival date from the carrier, and check copies of the invoice and transport documents in advance — if the declaration lacks required information or the documents are not submitted in full, the "single document" advantage under Part Three of Article 262 does not apply.

Source: Customs Code, Articles 262 and 328.

Yes. In the Customs Code this money is called "advance funds": an amount the payer transferred in advance, before a declaration is accepted, to the customs authority's personal treasury account for future customs payments (Article 334, Part One).

What it can be used for (Article 334, Part Two, in full): paying customs payments; paying late payment interest and interest; repaying customs payment arrears; securing customs payments. Until the payer gives an instruction, this money is not considered a customs payment; filing a declaration or a relevant application counts as an instruction (Part Three).

Refund procedure (Article 335):

Example (prepared by the author). "Sirdaryo Mashina" LLC transferred 80 million soums to customs, of which 52 million soums was used for payments under one declaration. After that declaration, imports stopped. The firm also owed 1.5 million soums in late payment interest. It filed an application and a reconciliation statement, consented to the late payment interest being deducted and got back 80 − 52 − 1.5 = 26.5 million soums.

Important: the three-year period is counted from the day following the day of last use. Keep track of the remaining balance in your books — money forgotten for years will not come back.

Source: Customs Code, Articles 334 and 335.

This question is answered by the internal rate of return (IRR). It is the interest rate at which today's value of the future inflows is exactly equal to the money invested. In other words, IRR is the project's "own interest rate". You compare it with the cost of raising money: if IRR is higher than the loan rate, the project covers the debt and leaves a profit on top.

The fact that 140 million is more than 100 million does not mean anything yet, because 35 million arriving in year 4 is not equal to 35 million today.

Example (prepared by the author, hypothetical figures). "Qorasuv quti" LLC spends 100 million soums on a packaging line, and the line generates net cash inflows of 35 million soums every year for 4 years. To find the IRR, we discount the inflows at different rates and look for where the net present value (NPV) falls to zero:

NPV falls to zero between 14% and 15%: IRR ≈ 14.96%. In Excel this can be found with a single IRR function: enter −100, 35, 35, 35, 35 in the cells.

Conclusion: the project "earns" about 15% a year, while the loan costs 18%. If it is financed with a loan, the difference turns into a loss every year; at an 18% rate the NPV is −5.85 million soums. The "140 million in total" figure was misleading.

What can change the decision:

1. If the line keeps working after 4 years or is sold at the end, add that inflow to the table as well. For example, if 60 million (25 million from selling the old line) arrives in year 4 instead of 35 million, the IRR rises to about 21.3% and the project beats the 18% loan.
2. If there are negative years among the cash flows (a major repair in the middle), there may be more than one IRR. In that case, rely on NPV.
3. When choosing between two projects, do not look only at IRR: a small project can have a high rate but little profit in soums. Compare NPV too.

This is currency (exchange rate) risk. You work in soums, but the obligation is in dollars: if the rate rises, you pay more soums for the same debt. There are essentially three ways to reduce the risk:

1. Buy the dollars now. The cost in soums becomes known today. The price: those soums cannot work anywhere else for 3 months (for example, they earn no interest on a deposit).
2. Buy in instalments. You buy part of the amount now, part in the middle, and the rest on the payment date. The result will be close to the average rate: neither the best nor the worst.
3. Wait and leave the risk open. If the rate falls you win, if it rises you lose.

There are also two "natural" routes: agreeing to set the contract in soums or at a fixed rate, and, if you have dollar revenue (exports), closing the payment with that revenue.

Example (prepared by the author, hypothetical figures). For "Chorvoq jihoz" LLC, today's rate is hypothetically 12,000 soums. Soums taken out now would have earned 2% on a deposit over 3 months, so the extra cost of buying now is 240 million × 2% = 4.8 million soums. When buying in instalments, one third is bought now, one third after 1.5 months (at the average rate at that time, lost income 1%), and the rest on the payment date.

The table shows the choice: "buying now" costs 244.8 million in every case — certain, but more expensive if the rate falls. The result of "waiting" is spread from 230 to 260 million. "Buying in instalments" narrows the range.

How do you choose? The main question: would an unexpected difference of 30 million soums put the company in a difficult position? If this amount is larger than your monthly profit, do not leave the risk open. When exchanging, also take into account the difference between the bank's selling and buying rates: buying dollars and selling them back several times is an extra cost.

The accountant is right. When sales grow, it is not so much cash that grows as "paper" assets: there is more stock in the warehouse and customers owe more. Money is needed to finance them. The credit period given by suppliers covers part of this, and the company has to find the rest itself.

The working capital needed can be estimated through days:

• customer receivables = annual sales : 365 × payment days;
• stock in the warehouse = annual cost of sales : 365 × stock days;
• payables to suppliers = annual cost of sales : 365 × days to pay them;
• funds needed = customer receivables + stock − payables to suppliers.

Example (prepared by the author, hypothetical figures). At "Bekobod plitka" LLC, cost of sales is 75% of sales, customers pay in 30 days on average, goods stay in the warehouse for 45 days, and suppliers are paid in 20 days. The cash conversion cycle: 30 + 45 − 20 = 55 days.

Growth needs about 240.41 − 160.27 = 80.14 million soums extra. This money is needed before the sales start or during the growth, while the profit comes later. That is why even fast-growing, profitable companies run short of cash.

Ways to reduce the need:

1. Shorten the payment period with customers: with 20 days instead of 30, almost 49 million soums are freed up at 1.8 billion of sales.
2. Reduce stock: order slow-moving goods more often but in smaller quantities.
3. Ask suppliers for a longer credit period, but check that you are not giving up an early payment discount.
4. Arrange financing for the remaining shortfall in advance: rushing to the bank in the middle of growth is usually more expensive.

Advertising is conveniently evaluated with two figures:

• customer acquisition cost = advertising spend : number of new customers;
• customer lifetime value = the gross profit a customer brings in a month × the average number of months they stay with us.

If lifetime value is greater than acquisition cost, the advertising pays off. Importantly, gross profit is used, not revenue, because the cost of the goods is spent anyway.

Example (prepared by the author, hypothetical figures). The "Lola gul" shop:

Every 150 thousand soums of advertising brings 384 thousand soums of gross profit. But this is profit before fixed costs are deducted, so a ratio just above 1 is not enough.

The most sensitive point is "how many months they stay". If customers stay 3 months instead of 8: 48,000 × 3 = 144,000 soums, a ratio of 0.96. The advertising now makes a loss, even though the number of customers is the same. So keeping customers (quality, service, reminder messages) can have a stronger effect than increasing the advertising budget.

Practical tips:

1. Ask every new customer "where did you find us?", otherwise you will not know how many of the 40 customers came from the advertising.
2. Count advertising channels separately: one may bring a customer for 100 thousand, another for 300 thousand soums.
3. Update the calculation every quarter: if the margin or how long customers stay changes, the conclusion changes too.

There is no single correct amount, but you can find it from your own data. The clearest method: take last year's monthly net cash flow (inflows minus outflows) and determine the most money that consecutive bad months "ate up". The reserve should not be less than this amount.

Example (prepared by the author, hypothetical figures). Monthly net cash flow of "Zomin asal" LLC last year, million soums:

Overall the year closed at +18 million, but from month 7 to month 10 consecutive outflows took the balance from 19 down to −9, that is, by 28 million soums. In months 3–5 the fall also reached 27 million. So if you moved surplus money to a deposit each time and kept only the reserve in the bank account, the reserve would have needed to be at least 28 million soums.

It makes sense to add a safety layer on top of this: next year may turn out worse than last year. It is convenient to measure it by the most unavoidable payments: one month's salaries and rent.

Where to keep the reserve:

1. Part of it in the bank account, for day-to-day payments.
2. The rest in short-term deposits that can be withdrawn quickly: the money is available when needed and earns a little income.
3. Money above the reserve can be placed for a longer term or put into the business itself.

Update the table every year and add new loan repayments and the salaries of new employees in advance.

This situation is called subrogation: once the insurer has paid compensation, the right to recover from the party at fault passes to the insurer up to the amount paid. The logic is simple: you should not get paid twice for one loss (by both the insurer and the party at fault), and the party at fault should not escape liability just because there is insurance.

So for the part covered by the insurer, it is now the insurer, not you, who claims from the transport company. But if the compensation did not fully cover the loss, the claim for the uncovered part usually stays with you.

Example (prepared by the author, hypothetical figures). The loss at the "Bo'ston ulgurji" warehouse (wall and goods) was assessed at 48 million soums. The policy has an unconditional deductible of 3 million soums.

What to watch out for:

1. Do not agree with the party at fault that "we forgive you" without telling the insurer, and do not sign a paper waiving the claim. This affects the insurer's ability to recover; the consequences may be set out in the policy and the law, so agree with the insurer first.
2. Keep all evidence of the incident, including the photos you took and the damaged parts. They will be needed both by the insurer and for your 3 million claim.
3. If the loss exceeds the sum insured, you also go to the party at fault yourself for the uncovered difference.

The exact procedure (how the claim is made, which documents are needed) is written in the policy conditions: read that section before receiving compensation.

To compare the two properly, you first need to understand what endowment life insurance consists of. Each year's premium is split into three parts:

• the risk part — the price of the protection paid to the family if the insured person dies during the term;
• the insurer's expenses — the agent's commission, administration;
• the savings part — money that is returned at the end of the term and on which income is credited.

A deposit only has savings, no protection. So the right comparison is not "is 75 million a lot or a little" but the "protection + savings" package versus "separate protection + deposit".

Example (prepared by the author, hypothetical figures). 6 million soums is paid at the start of each year, for 10 years.

The policy's internal return: paying 60 million and getting 75 million after 10 years equals about 4.0% a year. The third row has both protection and more money at the end. In this example the package turned out more expensive.

But the decision is not made on figures alone:

1. Discipline. It is easy to withdraw a deposit at any time and spend it. A policy is like compulsory saving; for someone who finds self-control hard, that can be useful.
2. Early exit. If the policy is cancelled early, the amount returned may be less than the premiums paid. Ask for the contract's table of surrender values by year and review it.
3. Guaranteed and non-guaranteed part. Find out how much of the 75 million is firmly written into the contract and how much is "expected income".
4. Inflation. 75 million in 10 years is not today's 75 million: estimate what it will be worth in today's prices.

When talking to the agent, ask for three figures in writing: the annual risk part, the share of expenses and the guaranteed amount. Then you can build the table above with your own figures.

Both approaches have drawbacks:

• if you insure for the highest stock (400 million), for most months of the year there is much less stock in the warehouse, yet the premium is paid for 400 million;
• if you insure for the average, the premium is cheaper, but if a loss happens exactly in the season when stock is high, the sum insured may not be enough.

Example (prepared by the author, hypothetical figures). Month-end stock at the "Sharq mevalari" warehouse, million soums: 80, 90, 120, 180, 260, 340, 400, 380, 260, 160, 120, 100. Average: 2,490 : 12 = 207.5 million. Hypothetical annual rate 0.3%.

The reduction in the second row only happens when the policy contains the condition "if the sum insured is less than the actual value, compensation is reduced proportionally". Find this clause in your contract.

Practical routes:

1. Seasonal sum. Some insurers may agree to set different sums insured for different periods of the year: say, a high sum in months 5–8 and a low sum in the other months.
2. A policy with regular stock declarations. The high sum (400 million) is taken as a limit, the company reports the actual stock to the insurer every month, and at the end of the year the premium is recalculated on the actual average stock. Ask your insurer whether such a condition exists.
3. An additional agreement before the season. The main policy is for the average, and a separate additional agreement is made for the months when stock grows.

Whichever is chosen, keep accurate warehouse stock records every month: when a loss occurs, it is exactly these records that prove how much stock was in the warehouse.

These two policies differ in the logic of cover:

• a "named perils" policy — only the risks written in the list are covered; there is no compensation for an event that is not on the list;
• an "all risks" policy — everything is covered except what is written in the list of exclusions.

Do not let the name mislead you: an "all risks" policy also has exclusions. So the main question when comparing is: how likely are events at your warehouse that are not in the first policy's list but are not excluded in the second, and how much loss would they cause?

Another difference shows up in a dispute. In international insurance practice, under a named perils policy the policyholder must show that the loss arose from a risk on the list, while under an all risks policy it is usually the insurer that must show the loss falls under an exclusion. Ask the insurer in writing how this is handled in your policy.

Example (prepared by the author, hypothetical figures). At the "Chust do'ppi" wholesale warehouse, three events not on the first policy's list could occur. We assume these events are not in the second policy's list of exclusions. The probabilities are estimated from past years' experience:

On average, if the first policy is chosen, the company bears about 3.2 million soums of losses a year itself, that is, 6 + 3.2 = 9.2 million in total. The second policy costs 9 million. The difference is small, but the main point is not the average. If we assume the events are independent, the probability that at least one of them happens during the year is 1 − 0.7 × 0.9 × 0.98 ≈ 38%. The worst case is the roof collapse: the probability is small, but can the company cover a 60 million soum loss out of its own pocket? If not, the extra 3 million justifies itself as the price paid for that risk.

Before choosing:

1. Read the second policy's list of exclusions in full and compare each item with the real risks at your warehouse.
2. Read the definition of each risk in the first policy: which situations "flooding" includes is written in the policy itself.
3. Build your own table: depending on the warehouse location, the condition of the roof and the work routine, the probabilities will be different.
4. Check that the deductible and the sum insured are the same in both policies, otherwise the premiums cannot be compared directly.

No. The basic principle of property insurance: compensation does not exceed the actual loss. Insurance is for covering a loss, not for getting rich. If one property is insured against the same risk under two separate policies (double insurance), the two insurers together will not pay more than the loss either.

Usually the loss is shared between the insurers in proportion to the sums insured. The exact procedure is written in the policy conditions.

Example (prepared by the author, hypothetical figures). The building of "Oltinsoy un" LLC is worth 600 million soums. It is insured with insurer A for 600 million and with insurer B for 400 million, 1,000 million in total. The fire loss is 150 million soums.

The company receives 150 million, not 250 million. The fact that a building worth 600 million is insured for 1,000 million in total means that part of the premium was paid for nothing.

What to do:

1. Notify both insurers in writing about the second policy. Check whether your policies contain a condition requiring notice of other insurance: hiding such information can cause problems with compensation.
2. Talk to the bank: often the bank may be satisfied not with a separate policy but with being named as beneficiary under the existing policy. Ask the bank itself which condition it will accept.
3. If two policies remain, make sure the total sum is close to the property's value: say, by reducing one from 600 million to 200 million, you can save on the premium.

In factoring, the company hands over to the bank the money due from the customer (the receivable) and gets the money without waiting for the payment date. The cost usually has two parts: a one-off commission on the amount and interest charged on the money the bank has advanced. To compare, you need to add the two together and convert them into an annual rate.

Example (prepared by the author, hypothetical figures). "Yangiyo'l kabel" LLC shipped goods worth 200 million soums to a customer, with payment in 60 days. The factoring terms: 85% advance, a commission of 1.5% of the invoice amount, and 24% a year interest on the money advanced.

Although the stated rate is 24%, together with the commission the money costs us almost 34.7% a year. Because the commission is spread over a short period, it rises sharply in annual terms.

Questions for the decision:

1. Can this money be found more cheaply another way: a credit line, an overdraft, a discount to the customer for early payment?
2. What do we lose by waiting 60 days? If a lack of money means we cannot buy raw materials and fulfil an order, factoring may justify itself even though it is expensive.
3. Who is responsible if the customer does not pay? If the bank can demand the money back from you (recourse factoring), the risk stays with you. With non-recourse factoring the risk passes to the bank, and the bank may charge an extra fee for that risk.

Before signing the contract, ask the bank in writing for all charges (commission, interest, additional fees) in one table and do the calculation above with those figures.

Working with one bank is convenient: one client-bank program, one statement, one tariff. But then all the money moves through a single "pipe". If that bank's program fails, or operations on the account are temporarily stopped for some reason, the company cannot make payments and cannot receive incoming money. A second account is a backup route against that risk.

The decision can be made not by feel but by comparing two figures: the annual cost of the second account and the loss from one day when the main bank is not working.

Example (prepared by the author, hypothetical figures). In the "Shovot gilam" chain of shops, daily card revenue is 25 million soums, and gross profit is 20% of revenue.

If payments through the main bank could stop for more than half a day a year, the second account pays for itself. Add delayed salaries, contractual penalties for late payment to a supplier and lost customer trust, and the backup route becomes even more valuable.

An important condition: a second account does not help just because it has been opened. For the backup to really work:

1. Make sure card payments can also be accepted through the second bank, otherwise revenue will be lost anyway when the main bank stops.
2. Keep a balance on it that covers at least several days of unavoidable payments.
3. Make sure the main suppliers and employees know the second account's details too, or have a procedure ready for changing them quickly.
4. Once or twice a year make a test payment from the second account to check that access to the client-bank program and the signature keys work.

Working with two banks has an extra benefit too: it becomes easier to compare loan, tariff and currency exchange terms and ask for a better offer.

There is; it is called a deposit "ladder". The money is divided into several equal parts and placed in deposits with different terms. When each part matures, it is placed again in a long-term deposit. As a result, after a year all the money is in the highest-interest deposits, but every few months one part becomes free.

Example (prepared by the author, hypothetical rates). "Bo'ka sut" LLC divides 300 million soums into four parts of 75 million each. Hypothetical annual rates: 3 months — 14%, 6 months — 16%, 9 months — 17.5%, 12 months — 19%. A part that matures is placed again for 12 months. Interest is calculated by the simple method, in proportion to the term.

If everything is placed for 12 months at once: 300 × 19% = 57 million soums. In the first year the ladder gives about 2.9 million soums less interest. This is the price of flexibility: every 3 months 75 million soums comes into hand without an early withdrawal penalty. From the second year all parts are in 12-month deposits and the difference almost disappears.

What to watch out for:

1. Read the early withdrawal conditions in advance: if money is needed urgently, it is cheaper to withdraw the part that matures soonest.
2. Match the number of parts and the intervals to your payment calendar: if you know when large payments (taxes, rent, raw materials) are due, choose terms that fall on those dates.
3. Rates may change: the rate at the time of reinvestment will be different, so update this calculation each time.

This kind of choice is conveniently solved with a "break-even point": at how many payments a month do the two tariffs cost the same?

No-package tariff: 90,000 + 12,000 × number of payments. Package: 450,000 (up to 30).

90,000 + 12,000 × n = 450,000 → n = 30. So with fewer than 30 payments a month the no-package tariff is cheaper, with more than 30 the package is cheaper. But drawing a conclusion from one average month is a mistake, because the number of payments changes from month to month.

Example (prepared by the author, hypothetical figures). The number of payment orders of "Qamashi mebel" LLC over the last 6 months: 18, 25, 34, 41, 22, 29.

The package was cheaper in only two months, while over 6 months the no-package tariff saved 282 thousand soums. The average number of payments is 169 : 6 ≈ 28, slightly below the break-even point.

Before choosing, check:

1. Will the number of payments change in the coming months? New suppliers, moving salaries to cards or a new branch may increase the number of payments.
2. Read the full content of both tariffs: services other than payments may also be priced differently. Add every service you need to the comparison.
3. Can payments be combined: paying a supplier once a month instead of several times reduces the number of payments.

Charges for bank services are recorded in the accounts on account 9430 "Other operating expenses" (NAS No. 21, paragraph 410), so the amount saved directly reduces period expenses.

Such conditions are called covenants. Even after the loan has been granted, the bank wants to make sure the company's position does not deteriorate: covenants are the tool for that control. They fall into two types:

• financial covenants — measured with a number (the "ratio of debt to EBITDA" in your agreement is such a covenant);
• action covenants — things the company must not do without the bank's consent or must do (your dividend condition is such a covenant).

The full list of covenants that apply to you is only in the loan agreement itself.

What happens if a condition is breached — a demand for early repayment of the loan, a higher interest rate or other measures — is written precisely in the agreement itself. That is why the covenants section must be read carefully both before and after signing.

Example (prepared by the author, hypothetical figures). The total debt of "Parkent shisha" LLC is 900 million soums, and annual EBITDA is 330 million soums.

To keep the condition with the new debt, EBITDA must be at least 1,100 : 3 ≈ 366.7 million soums.

Monitoring procedure:

1. At the end of each quarter, calculate the covenant ratios exactly as the bank calculates them: what is included in "debt" (leasing, other loans), for what period EBITDA is taken — see the definition in the agreement.
2. If a ratio is approaching the limit, talk to the bank before taking new debt or making a large expenditure. Consent requested in advance is much easier than explanations after a condition has been breached.
3. Make the list of action covenants a separate reminder for the accounting department and management: the decision on dividends is taken by the founders, and they also need to know about this condition.

This is called sales funnel analysis. At each stage some people "drop out". The conversion of each stage is the share of those who move on to the next stage:

Conversion = number of people at the next stage : number of people at the previous stage

The overall result equals the product of the conversions of all stages. So an improvement at one stage affects the final result through the whole chain.

Example (prepared by the author, hypothetical figures). On the "Ipak yo'li kitoblari" website, the average purchase is 250,000 soums.

Now let us calculate what happens if we improve each stage separately by 5 percentage points:

The biggest effect is at the stage of moving from the cart to payment. The reason: the lower the conversion, the larger the relative growth the same 5 percentage points give (from 25% to 30% is one fifth more). Check what is stopping customers at this stage: does the delivery cost pop up only at the end, is registration compulsory, is the form long?

Practical tips:

1. Measure the funnel every month with the same definitions, otherwise the months cannot be compared.
2. Split the stages by customer type as well: the conversion of visitors on phones and on computers can differ greatly.
3. After making a change, observe for long enough to separate the result from random fluctuations.

This kind of test is called an A/B test. The difference between 5% and 6.5% looks large, but with a few dozen clicks chance can produce such a difference too. To check this, statistics uses a test for the difference between two proportions.

The idea: first we assume that "there is actually no difference" (the null hypothesis) and measure how unexpected the observed difference is under that assumption.

Example (prepared by the author, hypothetical figures). The ad test of the "Chimyon sayohat" firm:

Usually, to call a difference "not chance" at a 95% confidence level, the absolute value of z must be greater than 1.96. 1.44 does not reach this threshold. So for now we cannot say with certainty that "B is better". Nor does this mean "B is worse": there is not enough data.

How many people were needed? To reliably detect a difference of 1.5 percentage points (95% confidence, 80% probability of detecting the difference), each group needs approximately:

(1.96 + 0.84)² × (0.05 × 0.95 + 0.065 × 0.935) : 0.015² ≈ 3,773 people.

If each text is seen by 4,000 people and the proportions stay the same, z ≈ 2.88 and the difference is considered reliable.

Rules for a proper test:

1. Show both texts at the same time to a randomly selected audience, otherwise differences between days or weeks will distort the result.
2. Calculate the number of people needed before the test and do not stop it on the day the result "looks good".
3. Besides clicks, track the next step too: a text that gets many clicks may lead to few purchases.

If the data is grouped into intervals, the values within each interval are assumed to lie at its midpoint. After that an ordinary weighted average is calculated:

Average ≈ Σ (interval midpoint × number of people) : total people

This is not an exact value but a good estimate. The narrower the intervals, the more accurate the estimate.

Example (prepared by the author, hypothetical figures). 125 members of the "Baquvvat" gym. The last group was written open-ended in the questionnaire as "over 60"; we took it as equal in width to the previous group, that is, 60–75 years.

Average ≈ 3,935 : 125 ≈ 31.5 years.

The median (the age below which half of the members are) can also be found from a grouped table. Half of 125 is 62.5. The first group has 34 people, so the median is in the second group (25–35). There we need to count another 62.5 − 34 = 28.5 people:

Median ≈ 25 + 28.5 : 58 × 10 ≈ 29.9 years.

The average (31.5) is greater than the median (29.9) because a few members who are much older pull the average up. When planning advertising and the class timetable, the median better represents the "typical" member. Small groups should be looked at separately: in this example there are 12 people over 45 (9.6%), and you might consider whether they need a separate class time.

Tip: if possible, ask for the exact age (or year of birth) in the questionnaire. You can group the data any way you like later, but exact values cannot be recovered from grouped data.

Not so fast. The "average of past days × days in the month" method assumes that every day sells the same. If your sales on weekends are different, the forecast changes noticeably depending on how many such days fell in the past 12 days.

A more accurate method is to give the days a "weight". From the data of your own past months, you find how many times more a weekend day sells compared with an ordinary day, and count the days with that weight.

Example (prepared by the author, hypothetical figures). At the "Yunusobod pishiriqlari" café, data from past months show that Saturday and Sunday bring in 1.5 times the revenue of an ordinary day. The month has 30 days: 22 working days and 8 weekend days. The past 12 days included 8 working days and 4 weekend days.

The simple calculation says 115 million, the weighted one 111.7 million. The reason: half of the 8 weekend days have already passed in the first 12 days of the month, and only 4 remain in the other 18 days. So until the end of the month each day will on average bring in less revenue than before.

What to watch out for:

1. Update the forecast every week: the closer you get to the end of the month, the more accurate it becomes.
2. Take into account not only days of the week but also events specific to the month: mark every day in past months when revenue differed sharply from usual and write down the reason.
3. If the forecast says "not enough", it is a signal to act: in the remaining 18 days you need about 1.29 million : 18 ≈ 71 thousand soums of extra revenue a day, which can be planned through a promotion or a new dish.

Not quite. Finding no faulty lamps in 20 checks does not show that the batch has no faulty ones, only that their share is not very large. This can be checked with probability.

If the share of faulty lamps in the batch is q, the probability that one randomly chosen lamp works is (1 − q). The probability that all 20 work is approximately (1 − q)²⁰. Because the batch is large (1,000 units), this approximation is accurate enough.

Example (prepared by the author, hypothetical figures). The calculation for the "Nurli uy" shop:

Reading the table: even if every twentieth lamp in the batch (5%) is faulty, the probability that all are fine in 20 checks is 36%. That is, you would miss such a "bad" batch in one case out of three.

How many should be checked? If you want to conclude with 95% confidence that "faulty lamps are below 5%", all n lamps must work, with 0.95ⁿ less than 5%:

n > ln(0.05) : ln(0.95) ≈ 58.4, that is, at least 59.

There is also a quick rule of thumb: if not a single faulty item is found in n checks, the 95% upper limit for the share of faulty items is approximately 3 : n. For 20 this is 3 : 20 = 15%. So your result is consistent with the conclusion "up to 15% may be faulty".

Practical tips:

1. Take the lamps to be checked at random from different places in the boxes: taking them from the top boxes distorts the result.
2. Agree the acceptance procedure with the supplier in the contract in advance: how many are checked and how many faulty ones mean the batch is returned.
3. Keep count of lamps returned by customers too: this is the cheapest and most continuous quality control.

It may not fall and may even rise. This is called bundling (bundle pricing). The reason lies not in the discount but in the fact that customers value each product differently.

One customer is willing to pay a lot for coffee and little for a pastry, another the other way round. With separate prices, you have to fit each product's price to one group, and the other group does not buy that product. In a bundle, however, the valuations of the two products add up and the difference between customers shrinks: one price suits more people. As economists point out, this effect is strongest when customers' valuations are opposite (one values coffee highly, another the pastry).

Example (prepared by the author, hypothetical figures). "Bodom qahva" serves three types of customers a day. The cost of a coffee is 5,000 soums, the cost of a pastry is 4,000 soums. A customer buys if the price is below the amount they are willing to pay.

Daily profit (revenue minus cost) of three pricing policies:

The mixed option gives 160,000 soums more profit a day than selling separately. The reason: group A previously did not buy pastries and group B did not buy coffee; the bundle encouraged them to buy the second product as well, while group C kept buying coffee separately. The bundle price is well below the sum of the separate prices (32,000), but each bundle is above cost.

Practical tips:

1. Bundle products that customers value differently. Bundling products that everyone values the same brings little profit.
2. Keep separate sales too: if only the bundle is left, you lose customers who need a single product, like group C.
3. Be careful if the cost of each product in the bundle is high: even if someone wants only one and the second goes to waste, the cost is still incurred.
4. Track the result in the till data: after the bundle was introduced, did the average receipt amount and daily gross profit change?

In economics this is called the "principal–agent problem". The owner (principal) entrusts the work to another person (the agent), but cannot fully see how much effort that person is making, only the result. If pay does not depend on the result, extra effort gives the manager nothing, while the extra work is their own "cost". That is why pay linked to results is considered the usual solution to this problem.

Example (prepared by the author, hypothetical figures). It was estimated that the "Qumqo'rg'on savdo" branch, before the manager's salary, brings in 30 million soums of profit a month with normal effort and 40 million if the manager makes extra effort. The new offer: a fixed salary of 5 million + 10% of the branch's profit (before the manager's salary).

Under the current system, the manager sees no reason to make extra effort and the branch stays at 30 million: the owner gets 22 million. Under the new system, in a normal month the manager's pay does not change, while extra effort gives the manager 1 million and the owner 9 million more (from 22 to 31). In a bad month the manager also bears part of the risk.

But pay linked to results has its own risks:

1. Factors the manager cannot control. If profit falls because of the season, the rent or decisions by head office, the manager is "punished". If this seems unfair, a good manager may leave. So keep the fixed part sufficient to live on.
2. Short-term "pretty" profit. Postponing repairs, cutting stock too far or worsening customer service raise profit for a few months and then cause losses. To prevent this, measure the result over a quarter or a year and also add the number of customer complaints and shortages found in stocktakes to the conditions.
3. Accuracy of measurement. How "branch profit" is calculated (whether a share of head office costs is included or not) must be agreed in writing in advance, otherwise disputes will arise.
4. Formalisation. Agree with a lawyer and an accountant on how to reflect the bonus procedure in the employment contract and internal documents.

Choose the percentage share by calculation too: if it is too small, extra effort is not worth it for the manager; if it is too large, the profit left for the owner shrinks. Build a table like the one above with your own figures for several shares.

First the difference needs to be clarified. One product becoming cheaper (for example, phones thanks to new technology) is not deflation. Deflation is a prolonged fall in the general level of prices in the economy. The danger lies precisely in this general and sustained fall.

Three main reasons:

1. Postponing purchases. People and companies expecting that "it will be cheaper next month" put off their purchases. Demand falls, companies cut prices again, and this strengthens the waiting.
2. The real burden of debt increases. A debt in soums is fixed, while the company's revenue falls together with prices. To repay the same debt, more output has to be sold.
3. Wages are hard to cut. If revenue falls but salaries are hard to reduce, the company cuts staff numbers. Unemployment rises and demand falls again.

Example (prepared by the author, hypothetical figures). "Qoraqamish mebel" has annual revenue of 500 million soums, a bank debt of 200 million soums and a loan rate of 10% a year. The general price level fell by 5% in a year, the company was also forced to cut its prices by the same amount, and it sold the same volume.

The company took on no new debt, yet the debt burden became heavier. A nominal 10% loan in conditions of falling prices became equal to 15.8% in reality: every soum repaid is now worth more goods.

Practical conclusions for a company:

1. If a general fall in prices is expected, be careful about increasing long-term fixed debt in soums.
2. Do not hold a lot of stock: the value of goods in the warehouse falls over time.
3. If you notice customers postponing purchases, consider competing not on price but with additional services (delivery, warranty).

In economics, knowledge and skills are called human capital. Money spent on them, like money spent on equipment, brings income in the future, except that this "equipment" sits in the employee and can leave with them. So the risk is sensed correctly, but it can be assessed by calculation.

Economists divide skills into two types:

• general skills — needed in any firm (negotiation, communicating with customers). They raise the employee's market value, and the risk of leaving is high;
• firm-specific skills — related only to your product, software and customers. They are valued little elsewhere, so even if the employee leaves they lose little, but they are also less inclined to leave.

Example (prepared by the author, hypothetical figures). At the "Sirdaryo maishiy texnika" shop, after the course each salesperson sells an extra 4 million soums a month, the gross margin is 25%, that is, an extra 1 million soums of profit a month from each.

Even if two salespeople leave, the extra profit is more than three times the course price. The main risk is if most of them leave in the first 2–3 months.

Ways to reduce the risk:

1. Add a firm-specific part to the course: internal training on your product, customer base and sales standards.
2. After the course, introduce an incentive system linked to results: those who sell more get more, and there is less reason to leave.
3. Run the course in stages: first the two or three longest-serving employees, and the rest once the results are seen.
4. Before making any agreement with an employee on reimbursing training costs, check the requirements of labour law with a lawyer.

In the accounts, staff training and retraining costs are recorded on account 9430 "Other operating expenses" (NAS No. 21, paragraph 410). So in the accounts this is a period expense, while in the economic sense it is an investment.

This is the network effect. The value of some products depends on the number of their users: the usefulness of a phone depends on the number of people you can call, and the usefulness of an ordering app depends on the number of cafés and customers on it. In such a market it is not the "better" product but the one "with more users" that prevails.

In apps the effect is two-sided: if there are many cafés, customers come; if there are many customers, cafés come. A new app has no one, so no one comes. This is the "chicken and egg" problem.

The number of possible connections between users grows much faster than the number of users: among n users there are n × (n − 1) : 2 pairs.

That is why the difference between a large and a small network is felt even more than the difference in the number of users.

Example (prepared by the author). The "Mazali yetkaz" app wants to enter a new market. Cutting the commission alone is not enough, because for a café the number of orders matters more than a low commission. The app can choose one of the following strategies:

1. Start in a narrow area. Not the whole city but one district or one student campus: in a small area it is easier to reach the "everyone is here" state quickly.
2. Subsidise one side. For example, in the first months work commission-free for cafés or make delivery free for customers. The cost goes to one side, and the other side comes by itself.
3. A service others do not have. If the app gives cafés not only delivery but also stock accounting, a café has a reason to use it even while the network is small.
4. Allow parallel work on both apps. If a café does not have to leave the old app, joining the new one feels safe.

As a consumer, also keep in mind: markets with strong network effects tend to end up with one or two large players, and competition may decline.

No, they cannot: the Tax Code sets clear limits on a tax audit.

Note: the text does not say that "thirty days" means calendar days. Under Part Seven of Article 5 of the Code, such a term is counted in working days.

Example (prepared by the author). A tax audit has started at "Oltin Vodiy Tekstil" LLC. The inspector requested export contracts from the company itself, and on that basis the term was extended once by order of the head. Now he wants to request information from a foreign tax authority under an international agreement and extend the term again. This is a different ground (Article 142, Part Three, item 2), so it is allowed. But the term cannot be extended a second time because of another document request to the company itself, and with all the extensions the audit cannot exceed six months.

Tip: keep a record of the day the audit order reached you and every extension order in a separate folder. Check which ground from Article 142 is stated in the extension order.

Source: Tax Code, Article 5 (Part Seven), Articles 141, 142 and 143.

Article 146 of the Tax Code regulates this situation step by step.

1. Deadline. You are given 5 days from the day you receive the request to submit the documents (Part Seven). Since it does not say calendar days, under Part Seven of Article 5 these are working days.
2. If you cannot make it. During the day following the day you received the request, you send a written notice stating why you cannot provide the documents on time and when you will be able to provide them (Part Eight).
3. Response. Within two days of receiving the notice, the head (deputy head) of the tax authority issues a separate decision to extend the deadline or to refuse the extension (Part Nine).
4. Consequence. A refusal to provide documents is recorded in a protocol. A refusal or failure to provide them within the set deadline is a ground for seizing the documents under the procedure of Article 148 (Part Ten).

How to submit the documents:

Example (prepared by the author). "Shohrux Qurilish" LLC received the request on Monday. Of the 60 documents, 52 are in the office and 8 are in the archive of the branch in Samarkand. On Tuesday the accountant sends a notice: 52 documents will be provided within five working days, and 8 within another three working days after they are brought from the branch. Because the notice was sent on time, the deadline question is resolved by the head's decision. A delay without a notice could have been a ground for seizing the documents.

Note: the term of a tax audit may be extended because documents are requested (Article 142, Part Three, item 1).

Source: Tax Code, Article 5 (Part Seven), Article 142, Article 146.

You do. Under Article 77 of the Tax Code, the taxpayer determines its accounting policy for tax purposes independently and approves it in any form. Part Two provides for amending it through the accounting policy (or a section of it) developed in accordance with accounting legislation. So in practice it is convenient to keep it as a separate section of the accounting policy for bookkeeping.

Under Part One, it must reflect the following (full list):

1. The form of the tax registers developed by the taxpayer and the procedure for preparing them (unless the tax legislation provides otherwise).
2. The officials responsible for compliance with the accounting policy.
3. The procedure for keeping separate records, if the Code imposes such an obligation.
4. The chosen methods of including costs in expenses for corporate profit tax and of accounting for VAT.
5. The hedging policy: the hedged risks, items and instruments, and the methodology for assessing hedge effectiveness (if there are hedging and other financial risk operations).
6. Depreciation rates or methods of calculating depreciation: separately for each group and subgroup of assets.
7. How income from Islamic finance activities and from Islamic securities is accounted for separately (this item came into force on 29 June 2026).

When it applies:

Example (prepared by the author). On 20 December 2026, by order, the director of "Ko'k Gumbaz Mebel" LLC changed the depreciation rate for trucks in the tax accounting policy within the limits set by the Code. The new rate applies from 1 January 2027, while December 2026 is calculated at the old rate. Had the director approved the same change in March 2027, with no change in legislation it would have applied only from 1 January 2028.

Source: Tax Code, Article 77.

Under Article 92 of the Tax Code, the tax obligations of the absorbed legal entity are fulfilled by the legal entity that absorbed it, that is, by you (Part Seven).

A successor is also defined for other forms: in a merger, the newly formed entity (Part Six); in a division, the new entities (Part Eight; shares according to the separation balance sheet, Part Nine); in a transformation, the new entity (Part Thirteen). In a spin-off, however, succession generally does not arise (Part Eleven).

Example (prepared by the author, hypothetical figures). "Chinor Savdo" LLC absorbed "Bog'bon Agro" LLC. "Bog'bon Agro" had arrears of 14 million soums and a fine of 2 million soums on one tax, and an overpayment of 5 million soums on another tax.

Since payment deadlines do not change, delaying payment until the merger is completed brings no benefit. Before the merger, obtain the old firm's reconciliation statement with the tax authority: both the arrears and the overpayment are visible in it.

Source: Tax Code, Article 92.

Under Part One of Article 80 of the Tax Code, a taxpayer simultaneously carrying on several activities with different tax regimes must keep separate records of the objects of taxation for each activity. These records are kept on the basis of accounting data, and the income and expenses of each activity are supported by accounting documents (Parts Two and Three).

There are two methods (Part Four):

The chosen procedure is written into the tax accounting policy: under Article 77, Part One, item 3, the procedure for keeping separate records must be reflected in the accounting policy.

Example (prepared by the author, hypothetical figures). In a quarter, "Nurafshon Servis" LLC received revenue of 720 million soums from activity A and 480 million soums from activity B (excluding VAT and excise). Raw materials and direct labour costs were assigned directly to each activity according to documents. Common expenses: office rent of 54 million and chief accountant's salary of 36 million soums.

Tip: keep the allocation table for each period and link the revenue figures in it to the accounting registers, so that it is documented how the allocation was calculated.

Source: Tax Code, Article 77 (Part One, item 3), Article 80.

No. The line is the customer's property; you received it only for installation. When another party's property is temporarily with you, paragraph 437 of NAS No. 21 provides for keeping it on an off-balance sheet account using the simple (single-entry) system. There is a separate account for the contractor: 005 "Equipment accepted for installation" (paragraph 442).

Rules of paragraph 442:

Your own installation costs and income are kept on the ordinary accounts:

Example (prepared by the author, hypothetical figures). "Ustoz Montaj Servis" LLC is installing a packaging line in the workshop of "Qo'rg'ontepa Sut" LLC. In the customer's handover document, the line is divided into three units.

For the installation, the firm used cables and fasteners worth 18 million soums from its own warehouse and accrued 42 million soums in wages to the installers: the debit of 2010 accumulated 18,000,000 + 42,000,000 = 60,000,000 soums. When the work is finished and the line is handed over to the customer under an act:

Gross profit from installation: 90,000,000 − 60,000,000 = 30,000,000 soums. The example is simplified: mandatory payroll contributions and VAT calculations are not included.

Note: the line worth 1 billion soums never goes to 9030 or 4010. The income is only your service, the installation fee. If records are kept by unit, it is clear which unit has been returned when the installation is handed over in stages.

Source: NAS No. 21, paragraphs 120, 174, 437 and 442.

Such a workshop is auxiliary production. Under paragraph 123 of NAS No. 21, the costs of production that is auxiliary to primary production are summarised on account 2310 "Auxiliary production"; the activities listed in paragraph 124 include the repair of fixed assets.

Step 1. Costs are accumulated in the debit of 2310 (table to paragraph 126):

Step 2. At the end of the month, the actual cost of the workshop's services is transferred from the credit of 2310 to the users. Paragraph 125 lists 2010, 2510, 2810, 9130 and 9420 among the accounts that correspond with the credit of 2310.

Example (prepared by the author, hypothetical figures). October costs of the repair workshop of "Temir Qanot Mash" LLC: materials 9.6 million, wages 12 million, depreciation 2.4 million — 24 million soums in total. The workshop worked 200 hours. Working hours were taken as the allocation base (this is the author's choice; set the base in your accounting policy). Cost of one hour: 24,000,000 / 200 = 120,000 soums.

If a balance remains on 2310 at the end of the month, it represents the value of work in progress (paragraph 125). Analytical accounting is kept by cost elements, cost items and product types (same paragraph).

Source: NAS No. 21, paragraphs 75, 120, 123, 124, 125 and 126.

Under paragraph 121 of NAS No. 21, semi-finished products produced by the organisation itself in a full cycle may be recorded on account 2110 "Semi-finished products of own production". The examples given in the paragraph include spun yarn in the textile industry — exactly your case.

Under the same paragraph, the debit of 2110 records the costs of producing semi-finished products in correspondence with 2010; the credit records those transferred for processing in correspondence with 2010, and those sold in correspondence with 9110.

Example (prepared by the author, hypothetical figures). In October, "Marg'ilon Ipak" LLC spun 10 tonnes of yarn at an actual cost of 42,000 soums per 1 kg.

Under line 1 of the table to paragraph 174, the journal entry for sales revenue is Dr 4010 – Cr the relevant account of the 9010–9030 group. Since the cost is recorded on 9110, it is consistent to show the revenue on the matching account 9010 (author's interpretation; set this in your accounting policy).

In the balance sheet, the balance of 2110 is not shown on a separate line but in the line "Work in progress (2000, 2100, 2300, 2700)" (line 160) (Appendix 1 to the Regulation approved by Order No. 181).

Source: NAS No. 21, paragraphs 120, 121, 122 and 174; Regulation on the Deadlines for Submission, Composition and Content of Financial Statements, approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, Appendix 1.

Yes, but not on the balance sheet. The furniture does not belong to you, so it is not recorded as an asset on accounts of the 1000 or 2900 groups. Under paragraph 437 of NAS No. 21, valuables that do not belong to the organisation but are temporarily at its disposal are accounted for on off-balance sheet accounts, and records on them are kept using the simple (single-entry) system. The account for your case is 002 "Inventories accepted for safekeeping".

Requirements of paragraph 439:

Do not confuse it with similar off-balance sheet accounts intended for other situations (paragraphs 440–441):

Example (prepared by the author, hypothetical figures). "Sharq Mebel" LLC handed over 300 chairs to the warehouse of "Bek Logistik" LLC; in the act, the value of one chair is 320,000 soums. "Bek Logistik" records a receipt on 002: 300 × 320,000 = 96,000,000 soums, with the analytics "Sharq Mebel", chair, warehouse No. 2. A month later the owner took away 120 of them: a disposal on 002 of 120 × 320,000 = 38,400,000 soums, leaving 180 chairs or 57,600,000 soums.

The storage fee, however, is "Bek Logistik"'s own service income: show it on the ordinary balance sheet accounts and do not mix the value of the furniture with income.

Source: NAS No. 21, paragraphs 437, 439, 440 and 441.

If a numbered form is lost, money may be lost with it. That is why NAS No. 21 has a separate off-balance sheet account for such forms: 006 "Strict-accountability forms" (paragraph 443).

Rules of paragraph 443:

Example (prepared by the author). By order, the director of "Toza Mashina" LLC included the coupon forms in the list of strict-accountability forms and set a conventional value of 100 soums per form.

At the end of the month the cashier hands in the remaining forms, counted by number: the safe should contain No. 1451–2000. If any number is missing, it shows up immediately.

Note: on 006 the forms are kept not at purchase price but at a conventional value and by quantity. The money paid to the printing house is reflected as an ordinary expense on balance sheet and transit accounts; the money a customer pays for a coupon is a separate matter related to service income.

Source: NAS No. 21, paragraphs 437 and 443.

This is the normal procedure. International Standard on Auditing ISA 501 requires the auditor to perform specific procedures on litigation and claims, because claims directly affect liabilities and disclosures in the financial statements. Under Article 9 of the Law "On Auditing Activity" (O'RQ-677), international standards on auditing are the standards of auditing activity in Uzbekistan.

What the auditor does:

What happens if you do not agree? If management does not allow contact with the lawyer, or the lawyer refuses to respond appropriately, and the auditor cannot obtain sufficient evidence by other means, the auditor modifies the audit opinion in accordance with ISA 705.

Example (prepared by the author). A customer has filed a claim against "Bahor Qurilish" LLC for poor-quality work, but there is nothing about it in the accounts. The auditor noticed a payment to a law firm in the records of legal service expenses and asked management for an explanation. A letter was then sent to the lawyer; based on the reply, the company added a note about the claim to the financial statements.

Tip: warn your lawyer in advance — a quick and precise reply to the auditor's letter is in the company's own interest.

Source: ISA 501 (requirements on litigation and claims), ISA 705; Law "On Auditing Activity" (O'RQ-677), Article 9.

These are two different specialists, and the standards treat them differently.

Why does the auditor bring in an expert of their own? Valuing real estate requires expertise in a field other than accounting and auditing. If this valuation is material to the financial statements and the auditor cannot obtain sufficient evidence alone, ISA 620 allows the auditor to use a specialist in that field. Your valuer was hired by the company, so the auditor approaches the valuer's conclusion critically.

Important point: using an auditor's expert does not reduce the auditor's responsibility; the auditor is solely responsible for the audit opinion. That is why, in an unmodified report, the auditor does not refer to the expert (except where the legislation requires it).

Example (prepared by the author). "Samarqand Savdo Markazi" LLC revalued its building; an independent valuer doubled its value. The auditor's expert reviewed the prices of comparable properties and showed that the valuer had taken an overly optimistic expected rental income. Management asked the valuer to recalculate.

Source: ISA 500, ISA 620; Law "On Auditing Activity" (O'RQ-677), Article 9.

Yes. If another organisation processes transactions that are material to your financial statements, from an audit point of view it is a "service organisation", and this situation is governed by ISA 402. Payroll directly affects wage expenses and the balance of 6710.

What the auditor (in the standard, the "user auditor") does:

1. Obtains an understanding of the nature of the service: which transactions the outside firm performs, how data is transferred, which of the company's controls check its work.
2. If unable to obtain a sufficient understanding from the company itself, uses one or more of the following: obtains the service auditor's report (if available); contacts the service organisation through the company; visits its office and performs procedures; has another auditor perform those procedures.
3. If using the service auditor's report, evaluates its adequacy. Such reports come in two types: Type 1 — on the description of controls and their design; Type 2 — in addition, on whether the controls operated effectively throughout the period.

In an unmodified report, the auditor does not refer to the work of the service auditor (except where the legislation requires it); the responsibility remains with the auditor anyway.

Example (prepared by the author). "Navro'z Tikuv" LLC has the payroll for its 140 employees calculated by the outsourcing firm "Hisob Pro". The auditor asked who has access to the "Hisob Pro" software and how timesheet data is sent, then compared the payroll for several months with the timesheets and employment contracts.

Tip: write into the outsourcing contract the service firm's obligation to provide information to the auditor.

Source: ISA 402; Law "On Auditing Activity" (O'RQ-677), Article 9.

It is his job. ISA 250 requires the auditor to consider compliance with laws and regulations in terms of their effect on the financial statements. The standard divides laws into two groups, and the auditor's work differs for each:

At the same time, the standard sets a clear limit: ensuring compliance with laws is the responsibility of management and those charged with governance; the auditor is not expected to detect all breaches.

If the auditor finds a breach or signs of one, the auditor investigates the situation, discusses it with management, assesses the effect on the financial statements and communicates it to those charged with governance. Where the legislation requires it, the auditor also considers reporting to the competent authorities.

Example (prepared by the author). The fact that one of the pharmacies of "Sog'lom Dori" LLC had not met one of the licence conditions came to light from a regulator's letter after the auditor's inquiry. The auditor discussed with management how a possible fine would affect the financial statements and asked them to consider whether a note on it is needed in the financial statements.

Source: ISA 250; Law "On Auditing Activity" (O'RQ-677), Article 9.

This situation is covered by ISA 560. After the date of the report, the auditor is not obliged to perform further audit procedures on the financial statements. But if the auditor becomes aware of a fact that, had it been known at the date of the report, might have caused the auditor to change the report, the auditor must act.

If the financial statements have already been issued, the sequence is as follows:

1. The auditor discusses the matter with management and, where necessary, with those charged with governance.
2. Determines whether the financial statements need amendment; if so, asks how management intends to address the matter.
3. If management amends the financial statements, the auditor performs the necessary procedures, reviews the steps taken by management to ensure that everyone who received the previous financial statements is informed, and issues a new report on the amended financial statements. The new report refers, in an "Emphasis of Matter" or "Other Matter" paragraph, to the note explaining why the financial statements were revised.
4. If management does not take the necessary steps, the auditor notifies management and those charged with governance that the auditor will seek to prevent future reliance on the previous report, and takes appropriate action.

Example (prepared by the author). After the report was issued, it emerged that the finished goods balance in the warehouse had been counted twice in the financial statements of "Oqsaroy Qandolat" LLC. Management prepared amended financial statements and informed the founders and the bank that had received the previous ones. The auditor checked the amendment and issued a newly dated report referring to the note explaining why the financial statements were revised.

Tip: if you find an error, be the first to contact the auditor — fixing the problem is much cheaper than hiding it.

Source: ISA 560; Law "On Auditing Activity" (O'RQ-677), Article 9.

The form itself answers this. The statement of financial results in Appendix 2 to the Regulation approved by Order No. 181 has two columns for each period: "Income (profit)" and "Expenses (losses)". Line 030 "Gross profit (loss) from sales of products (goods, works and services)" is found by subtracting line 020 from line 010, and both columns are open in this line (no "x" is placed in the form). So a gross loss is written not with a minus sign but in the "Expenses (losses)" column.

Other lines of the form where both columns are open: 100 (profit (loss) from core activities), 220 (profit (loss) from general business activities), 230 (extraordinary gains and losses), 240 (profit (loss) before corporate profit tax) and 270 (net profit (loss) for the reporting period). In these, too, a loss is written in the "Expenses (losses)" column.

Example (prepared by the author, hypothetical figures, million soums).

Line 100 is found using the form's formula "030 − 040 + 090"; since 030 is a loss, it is taken as a negative number in the calculation.

If the gross loss recurs, this is not just a reporting matter: review your price and cost structure. If inventories are carried above net realisable value, the question of writing them down also arises (NAS No. 4, paragraph 49).

Source: Regulation on the Deadlines for Submission, Composition and Content of Financial Statements, approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, Appendix 2 (form of the statement of financial results); NAS No. 4, paragraph 49.

You change it. Under NAS No. 1, comparative information for the previous period must be presented in the financial statements (paragraph 25). When the classification of items changes, comparative amounts are reclassified to ensure comparability, and at the same time the nature, amount and reason for the reclassification are disclosed (paragraph 26).

If it is impracticable to reclassify the prior-year data (for example, if it was collected differently), the reason for the reclassification and the nature of the adjustments that could have been made to the comparative amounts are disclosed (paragraphs 26, 28 and 29).

One more condition: under paragraphs 38–39, the presentation and classification of items must be retained from period to period; it may be changed because of a significant change in operations, or if the new structure will be retained for a long time or is more appropriate.

Example (prepared by the author, hypothetical figures, million soums). Last year "Baraka Non" LLC reported administrative expenses of 140 and selling expenses of 90. Administrative expenses included 25 of delivery department costs.

The note reads: "From the current year, the delivery department's costs are presented within selling expenses. For comparability, the prior-year amount of 25 million soums was moved from administrative expenses to selling expenses. Reason: the department delivers products to customers."

Note: total period expenses and net profit do not change; only the split between lines changes. This is not the correction of an error, so no adjustment is made to retained earnings.

Source: NAS No. 1, paragraphs 25, 26, 28, 29, 38 and 39; Regulation on the Deadlines for Submission, Composition and Content of Financial Statements, approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, Appendix 2 (lines 040, 050, 060).

In NAS No. 1 this is called a "discontinued operation". Under paragraph 93, a discontinued operation is the result of selling or transferring to another party a separate, major line of the organisation's business whose assets, net income or loss and activities (including its figures in the financial statements) can be distinguished. The car wash chain was a separate line of business, so your case falls under this.

Where it is shown. Under paragraph 94, the results of a discontinued operation are usually included in income and losses from general business (ordinary) activities. Only if the discontinuance results from events clearly distinct from ordinary activities or not occurring in them may the result be classified as an extraordinary item. A planned sale is generally not such an event (author's interpretation).

What is written in the notes. Under paragraph 95, for each discontinued operation (full list):

1. The nature of the discontinued operation.
2. The industry to which it belonged and its geographical location.
3. The date from which the discontinuance took effect for accounting purposes.
4. The method of discontinuance (the standard names sale and transfer to another party).
5. Income or losses from the discontinuance and the accounting basis used in measuring them.
6. For each period presented, the operation's sales revenue and income or loss from general business activities, with amounts.

Example (prepared by the author, hypothetical figures). Table in the notes of "Yulduz Treyd" LLC:

The text states that the chain consisted of three outlets in Tashkent city, that it is treated as discontinued for accounting purposes from 30 June, and that it was discontinued by sale.

Source: NAS No. 1, paragraphs 93, 94 and 95.

Yes. Paragraph 92 of NAS No. 1 lists the significant business transactions that must be disclosed in the notes (full list):

1. Writing down inventories to net selling value or fixed assets to replacement value, and also reversing such write-downs.
2. Restructuring of activities, and also reversing any provisions for restructuring costs.
3. Disposal of long-term investments.
4. Discontinuance of operations.
5. Litigation.
6. Reversal of provisions.

Both of your cases are on the list: the write-down of inventories corresponds to item 1, and the reversal of the provision to item 6.

How should the note be written? The standard does not give a fixed form: explanations, notes and calculations are presented in free form (paragraph 14). The most useful thing for the reader is what happened, what amount, which item it affected and for what reason.

Example (prepared by the author, hypothetical figures). Note of "Gulzor Kosmetika" LLC:

A short table and one or two sentences are enough. The main thing is that the reader can find these amounts within the figures of the financial statements.

Source: NAS No. 1, paragraphs 14 and 92.

NAS No. 1 has a separate rule for this situation.

General rule: a liability to be settled within 12 months of the reporting date is current (paragraph 73). That is why the part of a long-term loan repayable in the next 12 months is normally shown in the balance sheet in line 750 "Current portion of long-term liabilities (6950)" (Appendix 1 to the Regulation approved by Order No. 181).

Exception (paragraph 77): if, under a loan agreement, the organisation provides for refinancing the liabilities on a long-term basis, the current portion of long-term liabilities may be excluded from current liabilities. In that case, the amount of the liabilities and the refinancing terms are disclosed in the notes.

Conditions (paragraph 80, full list). A liability due within 12 months after the reporting date is classified as non-current only when all three conditions are met:

1. Its original term is longer than 12 months.
2. The organisation plans to settle it on a long-term basis.
3. This intention is supported by an agreement to refinance or reschedule payments concluded before the financial statements are approved.

So the basis is a loan agreement; negotiations or a verbal promise are not enough. The amount excluded from current liabilities is disclosed in the notes together with the information supporting it (paragraph 80).

Example (prepared by the author, hypothetical figures, million soums). The loan balance of "Qo'qon Tekstil" LLC on 7810 as of 31 December is 600, of which 300 is due next year. In December, that is, before the financial statements were approved, an agreement was signed with the bank: these 300 will be repaid from a new three-year loan. Since the original loan was for three years, all three conditions of paragraph 80 are met.

The note states the loan amount and the date and terms of the refinancing agreement. In addition, under paragraph 78, the notes disclose interest rates on long-term liabilities, the terms for settling contractual obligations, the order of repayment, recourse conditions, and the amounts of premiums and discounts.

Why this matters: when current liabilities decrease, liquidity ratios look better. So if such a choice is not openly disclosed in a note, a bank or founder reading the financial statements may draw the wrong conclusion.

Source: NAS No. 1, paragraphs 73, 77, 78 and 80; Regulation on the Deadlines for Submission, Composition and Content of Financial Statements, approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, Appendix 1 (lines 570 and 750).

There could. Under Article 22 of the Customs Code, goods whose use and disposal are restricted because an exemption from customs payments was granted are considered conditionally released goods (Part Two, sub-item "a"). The full list of conditionally released goods is given on the page for the term "Release of goods"; here we look only at the rule for exempted goods.

Example (prepared by the author, hypothetical amount). "Zarafshon Tikuv" LLC imported a sewing line with an exemption; thanks to the exemption, 180 million soums of customs payments were not paid. Let us assume the condition of the exemption is that the line is used in the company's own production. If two years later the firm leases the line to another company, this is a purpose that does not match the exemption condition, and since it happens within the three-year term, the obligation to pay 180 million soums is restored.

Accounting note: record the date the line was imported (the day of conditional release) on the fixed asset card. The three-year term starts from that day: before a decision is made to lease the asset or use it for another purpose, the accountant should check this date.

Tip: before any transaction with exempted goods, read the conditions in the document that granted the exemption. The three-year term comes from Part Three of Article 22, but the exemption document itself may contain additional conditions.

Source: Customs Code, Article 22 (Parts Two, Three and Five).

During this time the goods are under the temporary storage customs procedure (code 70 in the CCD). Under Article 83 of the Customs Code, under this procedure goods are stored under customs control without payment of customs payments from the moment they are presented to the designated customs authority until they are released under the chosen procedure.

The money side: the classifier of customs payments (Appendix 13 to the CCD filling Instruction) has two separate fee codes for storage: 40 "Customs fee for storing goods in a customs warehouse owned by the customs authority" and 52 "Customs fee for temporary storage of goods at a border customs post". Determine the amount using the current tariff.

Example (prepared by the author). "Meva Savdo Import" LLC received two shipments: household appliances and freshly picked mandarins. A term of 30 days was declared for preparing the documents for the appliances (within the 60-day limit). If the mandarins are treated as perishable goods, a term longer than 10 days cannot be declared for them, so their documents are prepared first.

Source: Customs Code, Articles 83–89; CCD filling Instruction, Appendix 3 (procedure code 70) and Appendix 13 (fee codes 40 and 52).

Not necessarily. The Customs Code has a "destruction" procedure (code 76 in the CCD): under Article 121, foreign goods are destroyed or rendered unfit for use under customs control without payment of customs payments.

The main condition (Article 122, Part One): the goods must have completely lost their consumer properties, and their original condition cannot be restored in an economically viable way.

Cases where destruction is not allowed (Article 122, Parts Two and Three, in full):

These four restrictions of Part Three do not apply to goods irretrievably lost as a result of an accident or force majeure.

Procedure:

1. Documents (Article 123): the CCD, the shipping documents for the goods, a destruction act in the established form.
2. For goods damaged as a result of an accident or force majeure, an opinion of the competent authority on these circumstances and their consequences is also needed (Article 125).
3. The CCD is submitted and registered before destruction, while clearance takes place after destruction (Article 126).
4. Transport and destruction take place under customs control (Article 126); destruction is carried out at the expense of the authorised person (Article 122, Part Five).
5. The destruction act is signed by the customs officer, the authorised person and those present; after the goods have actually been destroyed, it must be handed to customs within one working day (Article 126).
6. Waste produced is placed under another procedure as if it had been imported in that condition; waste processed to a state unfit for use is not declared (Article 127).

Example (prepared by the author). "Rangli Dunyo" LLC declared 12 tonnes of paint for the destruction procedure. The ecology authority's opinion specified the destruction method and a special landfill. The paint was taken to the landfill under customs control, and the act was handed to customs on the (working) day after destruction. The remaining waste had been rendered unfit for use, so it was not declared.

Source: Customs Code, Articles 121–127; CCD filling Instruction, Appendix 3 (procedure code 76).

You can: this is the "abandonment in favour of the state" customs procedure (code 75 in the CCD). Under Article 128 of the Customs Code, the authorised person abandons the goods and transfers them free of charge to state ownership without payment of customs payments.

Conditions (Article 129):

Documents (Article 130): the CCD, the act of transfer of the goods, the shipping documents for the goods. On transfer, the act is drawn up in two copies: one stays with the customs authority, the other with you (Article 131). The goods are then handed over to the competent authority for state property management.

Difference from the destruction procedure: there the goods must have completely lost their consumer properties and are destroyed; here the goods become state property.

Example (prepared by the author). "Bog'ishamol Savdo" LLC imported a batch of office chairs, and the customer cancelled the contract. The chairs are in a customs warehouse. The firm itself pays its storage debt to the warehouse owner (the customs authority does not reimburse this cost), takes the chairs at its own expense to the place specified by the customs authority, and receives its copy of the act. There is no going back after this decision, so first work out the options of returning the goods abroad or importing them and selling them on the local market.

Source: Customs Code, Articles 128–131; CCD filling Instruction, Appendix 3 (procedure code 75).

Yes. In the Customs Code, the first is called a customs examination (Article 193) and the second a customs inspection (Article 195).

Cases where an inspection is carried out before the declaration is accepted (Article 195, Part Two, in full): identifying the goods for customs purposes; establishing the accuracy of the declared information; checking available information about a breach of customs legislation; selective control under the risk management system; when it is necessary for exercising the declarant's rights under Article 275.

Inspection without you, in the presence of two attesting witnesses (Part Five, in full): if you do not appear even after five working days following the day the goods were presented; where there is a real threat to state security, public order, human life and health, animals and plants, the environment or the preservation of cultural property, and in other urgent cases; when the goods are sent in international postal and courier items; in respect of goods and vehicles left in the territory in breach of the conditions of a procedure requiring their export.

Three more useful rules: live animals and perishable goods are inspected first (Part Three); if part of a consignment of goods under one name is inspected, the result may be applied to the whole consignment, and if you disagree you may demand an additional inspection of the remaining part (Part Six); costs related to the inspection are borne by the authorised person (Part Nine).

Example (prepared by the author). "Chilonzor Elektro" LLC declared 400 boxes of light bulbs under one name. During the inspection, 40 boxes were opened, and 3 of them turned out to contain a different model. So that the result would not be applied to the whole consignment, the firm demanded that the remaining boxes be inspected as well; the costs of this are borne by the firm itself.

Source: Customs Code, Articles 193 and 195.

This is a "target savings" problem. If you put in the same amount every month and interest is credited on it, the final sum consists of two parts: the money you put in yourself and the interest earned on that money. The more the interest works, the less you need to set aside each month.

Without interest the calculation is very simple: 240,000,000 : 36 months = 6,666,667 soums a month. With interest, however, each month's payment works for a different length of time: the amount put in during the first month earns interest for 35 months, while the last one earns almost none. This is calculated with a single factor:

Factor = ((1 + monthly rate)^number of months − 1) : monthly rate Monthly amount = target : factor

Example (prepared by the author, hypothetical figures). "Sarbon non" LLC puts money into a savings account at the end of each month; we assume, hypothetically, that interest of 1.5% a month is added to the balance every month.

So with interest, setting aside about 5.08 million soums a month is enough, not 6.67 million.

Practical tips:

1. Base the target amount not on today's price but on the expected price three years from now: the price of the oven may also change.
2. Keep the savings in a separate account from your everyday working money, otherwise they will "quietly" be spent.
3. Update the calculation every year: if the rate changes or a month is missed, recalculate the amount for the remaining months.

Finance has a simple rule of thumb for this: if a company consistently earns the same return on every soum of its equity, its profit grows at roughly this rate:

Growth rate ≈ return on equity × share of profit retained

The logic is this: money paid out as dividends leaves the company, while retained money is added to equity and earns profit again the next year.

Example (prepared by the author, hypothetical figures). The equity of "Yashil vodiy" LLC is 500 million soums, the return on equity is hypothetically 20%, so the annual profit is 100 million soums.

Let us check the second row with the formula: 20% × 0.6 = 12%.

An important condition: this calculation holds only if the retained money can also be put to work at the same return. If the business has no way to invest new money profitably (the market is saturated, no extra equipment is needed), the retained profit sits idle in the bank account and no growth comes of it. In that case it makes more sense to pay the founders more dividends.

Questions for the decision: where will we spend the new money and how much will it return? Is that higher than the alternative income the founders could earn themselves? If the answer is "yes", retaining part of the profit pays off.

The difference between budgeted and actual costs can be split into three parts: the price variance (a kilogram bought dearer or cheaper), the usage variance (more or less than the standard used per product) and the volume variance (more or fewer products made than planned). Each has a different owner: purchasing for price, the workshop for usage, sales for volume.

How to calculate:

• price variance = (actual price − budgeted price) × actual usage;
• usage variance = (actual usage − standard usage for the actual volume) × budgeted price;
• volume variance = (standard usage for the actual volume − budgeted usage) × budgeted price.

Example (prepared by the author, hypothetical figures). The budget of the "Oqtepa pishiriqlari" workshop: 1,000 cakes, 2 kg of flour each, 25,000 soums per 1 kg. Actually: 1,050 cakes were made, 2,150 kg of flour was used, bought at 26,000 soums per 1 kg.

Check: 2,150,000 + 1,250,000 + 2,500,000 = 5,900,000 soums.

Conclusion: the supplier's price explains only 2.15 million soums of the difference. 2.5 million soums is due to making 50 extra cakes, which is not bad, since sales grew too. The real question is the usage variance of 1.25 million soums: the workshop used 2,150 kg of flour instead of the standard 2,100 kg. The cause needs to be found together with the workshop.

Practical tip: build the budget not just as a "total amount" but as "volume × standard × price"; then this analysis takes only a few minutes at the end of the month.

This is shown by the discounted payback period. In the simple payback period, each year's inflow is treated as equal to today's money. In the discounted method, each year's inflow is first brought to its present value, and then you count how many years it takes for these discounted amounts to cover the investment:

Discounted inflow = inflow of the year : (1 + discount rate)^year number

The discount rate is usually the alternative return on that money: the loan interest rate or the return the founders expect.

Example (prepared by the author, hypothetical figures). "Tog'ay sut" LLC bought packaging equipment for 120 million soums. The equipment works for 6 years and brings in 40 million soums of net cash inflow every year. The discount rate is hypothetically 20% a year.

Simple calculation: 120 : 40 = 3 years.

At the end of year 5 the balance is still −0.38 million; in year 6 it turns positive: 5 + 0.38 : 13.40 ≈ 5.03 years. In other words, instead of the 3 years of the simple calculation, the money actually comes back in almost 5 years, while the equipment's useful life is 6 years. Very little margin is left.

What to watch for:

1. The higher the discount rate, the longer the period. Justify your choice of rate and test the decision at two or three different rates.
2. If the discounted payback period exceeds the equipment's useful life, the project does not pay off at this rate.
3. The method ignores the years after payback. So for the final decision use it together with net present value: in this example the net present value over 6 years is +13.02 million soums.

Scenario analysis and expected value are used for this. Several possible situations (good, average, bad) are written down, each is given an outcome and a probability, then the outcomes are multiplied by the probabilities and added up:

Expected value = outcome₁ × probability₁ + outcome₂ × probability₂ + outcome₃ × probability₃

The probabilities must add up to 100%.

Example (prepared by the author, hypothetical figures). "Gulzor kiyim" LLC plans to spend 80 million soums on a branch. For the first year's result the team agreed on three scenarios.

The expected result is 25 million soums a year. Now it can be compared with an alternative: say expanding the existing shop would almost certainly bring 22 million soums. By expected value the branch is better (25 > 22), but its result ranges from −20 to +60.

So do not look only at the expected value; ask two more questions:

1. Can the company survive the worst scenario? How much would a loss of 20 million soums plus an investment of 80 million soums drain the cash?
2. What are the probabilities based on? Tie them to the history of similar branches or to market observation; a probability written down "roughly" spoils the whole calculation.

Practical tip: track the scenarios during the year. Whichever scenario the first quarter's result comes closest to, adjust the decision for the rest of the year (for example, on additional spending) accordingly.

Insurance practice has "key person insurance" for this. It is insurance a company takes out on the life or health of the person who matters most to it: the policyholder is the company, the company pays the premium and the payout also goes to the company. Its purpose is not to help the employee's family but to cover the loss the business itself suffers in his absence: the drop in income while a new specialist is found and trained.

Which risks such insurance covers (death, disability) is written separately in each contract. An employee leaving of his own accord, however, is usually not an insured event: that risk is reduced not by insurance but by working conditions and by passing knowledge on to others.

Estimating the sum insured (prepared by the author, hypothetical figures). Say that at "Bek-soft" LLC the clients brought in by the lead programmer generate 150 million soums of annual profit. If he cannot work, finding a replacement and winning the clients back will take 2 years, and finding and training a new specialist will cost another 30 million soums.

It makes sense to ask for a sum insured close to this estimated loss. A much larger sum means paying excess premium, while a smaller one leaves part of the loss uncovered.

Practical tips:

1. Talk openly with the employee and get his written consent: the insurance relies on information about his health.
2. Do not rely on insurance alone: have at least two employees work with key clients and document work processes. This reduces the risk itself.
3. When you receive an offer, ask in writing which events are covered, which are excluded and when the payout is made.
4. Find out in advance with your accountant how the premium is reflected in the accounts and for tax purposes.

If the sum insured is less than the actual value of the property, the payout can be calculated under two different systems. Which one applies is stated in the policy conditions.

1. Proportional system. The payout is the part of the loss equal to the ratio of the sum insured to the actual value: payout = loss × sum insured : actual value. In other words, you bear the loss for the uninsured part of the property yourself.
2. First loss system. The loss is covered in full up to the sum insured, and no ratio is applied. Anything above the sum insured stays with you.

Example (prepared by the author, hypothetical figures). The warehouse of "Bog'ishamol savdo" is worth 500 million soums, the sum insured is 200 million soums, there is no deductible.

As you can see, for partial losses the first loss system covers much more. That is why the insurer sets a different rate for such insurance: it takes into account that the probability of a partial loss is high. It is natural that, for the same sum insured, the premium for a first loss policy differs from that of a proportional policy.

When first loss makes sense:

• the property is large, but only part of it can be damaged at the same time (several separate rooms or buildings, goods kept in different places);
• insuring the full value is expensive and the probability of a total loss is very low.

For the decision: ask the agent in writing for the premium under both systems for the same sum insured, then build a table like the one above using your own most likely loss amounts.

The insurance rate (gross rate) is made up of two parts:

• the net rate — the part that covers the claims the insurer expects to pay. It is calculated from the frequency of events and the average size of the loss;
• the loading — the insurer's operating costs, fees to agents and intermediaries, a reserve for unexpected large losses and profit.

Net rate = probability of an event × average payout : sum insured Gross rate = net rate : (1 − loading share)

Example (prepared by the author, hypothetical figures). The insurer's statistics for 2,000 similar shops: on average an event occurs in 30 of them a year, the average payout is 40 million soums, the average sum insured of the shops is 400 million soums. The loading share is hypothetically 30%.

So roughly 70 percent of the rate goes to future payouts and 30 percent to the insurer's costs and profit.

Why your rate differs from the average: the insurer compares your shop with the average shop. A fire alarm, security and new electrical wiring lower the probability of an event, so the net rate may go down too. Conversely, if you had many losses in previous years, the insurer will rate your frequency higher.

Practical tip: when you receive an offer, state your risk-reduction measures in writing and ask how they affect the rate.

The reason is the law of large numbers and risk pooling. For a single café the outcome is "all or nothing": either the year passes quietly or a big loss occurs. When thousands of similar cafés that do not depend on one another are pooled, the number of events falls within a much narrower range around the average, and the insurer can plan payouts in advance fairly accurately.

Example (prepared by the author, hypothetical figures). The probability of a fire in each café during the year is 1%, and the loss from one fire is 50 million soums. Expected payout per policy: 1% × 50 million = 0.5 million soums.

The standard deviation is calculated with the binomial distribution formula: √(n × p × (1 − p)).

What this means:

• In a small portfolio of 100 cafés, the probability of 3 or more fires is about 7.9%. Then payouts exceed 150 million soums when only 50 million soums was expected, so the year's result depends on chance.
• In a portfolio of 10,000 cafés, the number of events lies between 80 and 120 in about 95% of cases (average ± 2 standard deviations). The payout per policy stays within 0.4–0.6 million soums.

That is why it is enough for the insurer to set the rate slightly above each client's expected loss. For the café, the policy turns an uncertain large risk into a certain, small annual expense.

The limitation: the law only works when events are independent of one another. If a single earthquake or flood damages thousands of clients at once, pooling does not help. Insurers share such risks with others through reinsurance.

Insurance is only one way of dealing with risk. The classic risk management framework distinguishes four approaches:

1. Avoidance — giving up the risky activity altogether (for example, not storing flammable goods at all).
2. Reduction — lowering the probability of an event or the size of the loss (alarms, a suppression system, storing goods in several places).
3. Transfer — shifting the loss to someone else (insurance, allocating liability in a contract).
4. Retention — bearing small losses at your own expense (deductible, reserve money).

In practice they are used together: reduction measures make insurance cheaper, and insurance covers the remaining large risk.

Example (prepared by the author, hypothetical figures). The "Qo'qon gilam" warehouse is worth 600 million soums. The annual premium is currently 7.2 million soums. An automatic suppression system costs 16 million soums, lasts 8 years, and annual maintenance is 0.4 million soums. Say the insurer has confirmed in writing that it will cut the premium to 4.2 million soums if the system is installed.

On money alone, the system saves 0.6 million soums a year. But the main benefit does not show in the table: losses that insurance does not cover also fall — days of downtime, lost customers, the deductible amount, time to restock goods.

One more calculation: if the probability of a fire is hypothetically 2% and the average loss is 300 million, the expected annual loss is 2% × 300 = 6 million soums. If the system cuts the probability to 0.5% and the loss to 100 million, the expected loss becomes 0.5% × 100 = 0.5 million soums.

Practical tip: before spending on risk reduction, get the insurer's discount condition in writing and keep the system's documents (installation certificate, maintenance log), because if an event occurs you will need to prove the system was working.

Shortening the term usually saves more. The reason is simple: if the monthly payment stays the same, the principal falls faster each month and the balance on which interest is charged runs out sooner. If the payment is reduced, the remaining debt is stretched over the old term and interest is charged on it for longer.

Example (prepared by the author, hypothetical figures). "Chorvoq mebel" LLC took a loan of 360 million soums for 36 months at a hypothetical 2% a month, with annuity repayments: ≈ 14,123,827 soums a month. After 12 months the outstanding balance is ≈ 267,137,012 soums. At that point the company pays an extra 100 million soums and the balance falls to ≈ 167,137,012 soums.

Calculation formula: in option A the new payment = 167,137,012 × 0.02 : (1 − 1.02^(−24)). In option B, with the old payment, the debt is closed in 13 full months plus a small payment in month 14.

Savings: ≈ 26.9 million in option A, ≈ 46.3 million soums in option B. The difference is ≈ 19.4 million soums in favour of B.

When option A is still the right choice:

• the company's monthly cash flow is tight and a smaller payment leaves a cash reserve;
• large payments (seasonal purchases, taxes) are expected in the coming months.

Practical tips:

1. Read the early repayment terms in the agreement: is there a fee, do you need to give advance notice, from what date is it calculated.
2. Get a new repayment schedule for both options from the bank in writing and compare the total interest.
3. Think before putting spare money into the loan: if it can earn more in the business than the loan interest rate, there may be no need to rush to repay the loan.

In such a loan the principal does not decrease over the whole term, so interest is charged on the full amount every month. As a result, total interest is the highest of the three options. Its advantage is that the monthly payment is the smallest and the money keeps working in the company until the end of the term.

Example (prepared by the author, hypothetical figures). Loan of 300 million soums, term 24 months, interest hypothetically 24% a year (2% a month).

The annuity payment is calculated with the formula: 300,000,000 × 0.02 : (1 − 1.02^(−24)).

So the first option is about 63.3 million more expensive than the annuity and 69 million soums more expensive than differentiated repayment. This difference is the price of holding on to the principal longer.

When this option pays off:

• what was bought with the loan brings in a large sum at the end of the term (a property that is built and sold, goods sold at the end of the season);
• you can turn over the freed-up money at a return higher than the interest rate.

The main risk is the last month. You need to find 300 million soums on a single day. If the money is not there at that moment, you will have to close the old loan with a new one, and the terms may be worse.

Practical tip: if you choose this option, open a separate savings account from the first month and set money aside for the principal every month. Then the final payment will not come as an unexpected blow.

No, it depends on how much the soum exchange rate changes. You repay a dollar loan in dollars, and if your income is in soums, your debt in soums grows when the soum falls. So the two options should be compared through the "break-even exchange rate": the rate at which the cost of the dollar loan in soums equals the cost of the soum loan.

Example (prepared by the author, hypothetical figures). Term 1 year, interest and principal repaid in one lump sum at the end of the year. Soum loan hypothetically 24% a year, dollar loan hypothetically 10% a year, today's rate hypothetically 1 dollar = 12,000 soums.

Result depending on the year-end exchange rate:

So under these terms, if the dollar rate rises by more than about 12.7% during the year (that is, the soum loses more than about 11.3% of its value), the dollar loan ends up more expensive.

Who faces less risk with a dollar loan: a company whose income is also in dollars (for example, an exporter). Its revenue rises with the exchange rate and itself offsets the growth of the debt. A company whose income is only in soums bears the currency risk entirely on its own.

One more point: a foreign currency loan is a monetary item in foreign currency (NAS No. 22, paragraph 9), and monetary items are remeasured every month at the Central Bank rate on the last date of the reporting month (paragraph 8), with the exchange difference recognised in the financial result as income or expense from financial activities (paragraph 11). So profit can jump during the year purely because of the exchange rate.

Purchases made with a corporate card are handled like accountable amounts. Under paragraph 183 of NAS No. 21, account 4230 "Advances for general business expenses" reflects advances issued for buying small tools and supplies for general business needs in cash, "as well as advances issued for purchases using corporate bank cards". Analytical accounting for these advances is kept for each advance issued (paragraph 184).

Procedure: when a card payment appears in the bank statement, the amount moves from the bank account to 4230. Then the employee submits an advance report with receipts, and what was bought is transferred to the relevant account depending on its type.

Example (prepared by the author, hypothetical figures). During the month, the office manager of "Navro'z dizayn" LLC paid by card for desk lamps of 1,800,000 soums, extension cords of 600,000 soums and taxis for taking documents to the bank of 350,000 soums (the amounts are final; VAT is not considered in the example).

Once the advance report is approved, no balance remains in 4230: 2,750,000 − 2,400,000 − 350,000 = 0.

If a payment went through by mistake and the seller refunds the money to the card, the refunded amount is credited to the bank account and 4230 is credited (paragraph 185, line 7).

Practical tips:

1. Write internal rules for the cardholder: what may be paid for, the monthly limit, the deadline for handing in receipts.
2. Every month, match the card payments in the bank statement against the receipts in the advance report one by one. A payment not backed by a receipt will remain as a balance in 4230 and will stand out immediately.