Q&A: financial reporting

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.

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.

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.

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).

Paragraph 6 of the Regulation approved by Order No. 181 gives a clear answer. The key date is 1 October of the reporting year:

In your case the LLC was registered after 1 October. So the first annual statements cover the period from 15 October 2026 to 31 December 2027.

For comparison (an example compiled by the author): if "Ko'k gumbaz" LLC was registered on 20 March 2026, its first statements cover the period from 1 March to 31 December 2026.

Note: this procedure does not apply to liquidated or reorganised organisations or to organisations created on the basis of their separate divisions (paragraph 6).

Submission deadline: annual statements under NAS are submitted no later than 1 March, and those under IFRS no later than 1 May, of the year following the reporting year (paragraph 7).

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, paragraphs 6 and 7.

No. Under paragraph 10 of the Regulation approved by Order No. 181, the annual financial statements of micro-firms and small enterprises consist of two forms:

1. the balance sheet (Appendix 1 to the Regulation);
2. the statement of financial results (Appendix 2 to the Regulation).

For comparison, other organisations that report under NAS submit five parts under paragraph 9:

Which category an enterprise belongs to is determined by the legislation on categories of business entities (Presidential Decree PF-21). Before reporting, check your category against that document.

The deadline is not shortened: annual statements under NAS are submitted no later than 1 March of the following year (paragraph 7).

Example (compiled by the author). "Gulobod non" LLC, which is in the small enterprise category, submits only the balance sheet and the statement of financial results for 2026, no later than 1 March 2027. At the same time, it is useful for the manager to keep a cash flow table for internal use, to understand where the money is going.

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, paragraphs 7, 9 and 10.

The Regulation approved by Order No. 181 answers both questions.

1. Blank lines. Under paragraph 13, all details, lines and columns of the financial statement forms must be filled in. If a line (column) is not filled in because there is no data, it is crossed out. So leaving it blank is wrong — a line with no data is crossed out.

1. Unit of measurement. The balance sheet and statement of financial results forms are prepared in thousand soums (headings of Appendices 1 and 2 to the Regulation). The reporting currency is the soum, and assets and liabilities in foreign currency are translated into soums at the Central Bank rate (paragraph 3).

Example (compiled by the author). "Bek-avto servis" LLC converted its year-end balances into thousand soums:

Signature: the forms are signed by the head and the chief accountant (or the person performing the accounting and financial management function). If the head has taken on this function, he also signs in place of the chief accountant (paragraph 4).

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, paragraphs 3, 4, 13 and Appendices 1, 2.

Line 220 "Amounts owed by buyers and customers" is filled in as group 4000 less 4900 (Appendix 1 to the Regulation approved by Order No. 181). In other words, the allowance is deducted from the amount of the debt, and the balance sheet shows the net amount.

Calculation (an example compiled by the author, "Durdona tekstil" LLC):

Overdue debt. On the balance sheet, under "Receivables, total" (line 210), there is line 211 "of which: overdue". If there are overdue receivables or payables, the appendix to the balance sheet — "Breakdown of overdue receivables and payables" — is filled in (note in Appendix 1).

In the appendix, debts are grouped as follows:

• debtors with overdue debts, total;
• overdue debts within the republic, including by name of debtor and intra-departmental debts;
• overdue debts outside the republic, including by name of debtor.

Payables have the same structure.

Continuing the example: if 30,000,000 soums of the 90,000,000 soums is overdue (other debtors have no overdue debts), that amount is shown in line 211 as "of which" and is entered in the appendix with the name of each debtor. Line 211 is not added to the total of line 210. The form does not say separately whether the line 211 amount is shown before or after the allowance, so set the chosen approach in the accounting policy and apply it the same way every year.

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, Appendix 1 and its appendix.

In the form in Appendix 2 to the Regulation approved by Order No. 181, the calculation is built like a staircase. The formula for each step is written in the form itself.

Example (compiled by the author, "Samarqand chinni" LLC, in thousand soums; hypothetical figures):

Check: 188,000 − 124,000 + 6,400 = 70,400; 70,400 + 3,100 − 21,500 = 52,000; 52,000 − 7,800 = 44,200.

Note: net profit is not even a quarter of gross profit (44,200 / 188,000 ≈ 23.5%). The main "eaters" are administrative expenses (73,500) and loan interest (18,600). The staircase form shows exactly this: at which step profit falls the most.

Checking the total lines: 040 = 050 + 060 + 070; 110 = 120 + 130 + 140 + 150 + 160; 170 = 180 + 190 + 200 + 210. Lines for which the example has no data (130, 140, 160, 190, 210, as well as 230 and 260) add nothing to the calculation and are crossed out under paragraph 13 of the Regulation.

Tip: compare the net profit in line 270 with line 060 of the statement of equity ("Retained profit (loss) of the current year", Appendix 3) — if there is a difference, you should be able to explain why.

Source: Regulation approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, paragraph 13, Appendices 2 and 3.

No. Paragraph 52 of NAS No. 1 ("Presentation of Financial Statements and Accounting Policies") states: "The accounting policy is not changed during the calendar year". A change is allowed in the following cases (paragraph 52, full list):

1. when the organization is reorganized (merged, divided, acquired);
2. when the owners of the property change;
3. when there are changes in legislation or in the regulatory legal acts governing accounting;
4. when new methods of accounting are developed;
5. when the changes help to present information in the financial statements more reliably.

The change must be justified and formalized in the manner set out in paragraph 51: by order of the head, and the chosen method is applied from 1 January of the year following the year in which the order was issued (except for organizations newly established during the year).

Example (prepared by the author). "Sirdaryo qurilish savdo" LLC:

The consequences of a change not related to a change in legislation are assessed on the basis of verified data as at the time the changed method begins to be applied (the first day of the month) (paragraph 52). The amount of the adjustment is taken into account either by changing the opening balance of retained earnings or in calculating the net profit (loss) of the reporting period (paragraph 109).

Tip: if you are planning to switch to a new method, issue the order before the end of the year and get your accounting software ready for 1 January.

No. Under paragraph 47 of NAS No. 5 ("Fixed Assets"), the useful life may be reviewed, including to take account of technological changes that shorten the useful life. This is considered a change in an accounting estimate. Under paragraph 111 of NAS No. 1, the effect of a change in an accounting estimate is taken into account in the reporting period in which the change occurred and, if it also affects later periods, in later periods. The statements of past years are not reopened.

Example (prepared by the author, hypothetical figures). Equipment of "Chinor print" LLC: initial cost 120,000,000 soums, no residual value, straight-line method, life 10 years — 12,000,000 soums a year. Depreciation over 4 years is 48,000,000 soums, carrying amount 72,000,000 soums. Under the new estimate the remaining life is 4 years: 72,000,000 : 4 = 18,000,000 soums.

For comparability, depreciation continues to be shown in the same line of the statement of financial results that was used before (paragraph 112). If the change has a significant effect on the current period or leads to material changes in later periods, its nature and amount are disclosed in the notes (paragraph 113).

Do not forget the difference: if the 10-year life was clearly wrong even on the basis of the information available at the time, this is not a change in estimate but an error, and it is corrected differently (NAS No. 1, paragraphs 114–116).

It depends on whether this error is material (significant) or not. Under paragraph 114 of NAS No. 1, material errors are errors identified in the current reporting period that cause the financial statements of past periods not to be considered reliable.

Example A (prepared by the author, hypothetical figures). At "Mirishkor servis" LLC a service worth 3,000,000 soums provided in 2025 was not recorded. Because annual revenue is large, management assessed this as not material. It is recorded in 2026: Dt 4010 – Ct 9340 "Prior-year profits" 3,000,000 soums (NAS No. 21, paragraph 405, line 4). Conversely, if an expense or loss relating to the previous year is found, it is recorded with Dt 9430 (NAS No. 21, paragraph 412, line 20).

Example B (hypothetical). At another company, contract revenue of 180,000,000 soums was recorded twice in 2025, while 2025 profit had been reported as 250,000,000 soums. Such an error makes the previous year's statements unreliable, so it is material. It is corrected by reducing the retained earnings balance at the beginning of 2026, and the 2025 column in the 2026 statements is shown with the corrected figures and explained in a note.

Tip: it is useful to write the criterion for assessing in advance which error is material into your accounting policy. Consider the effect of the error on tax returns separately.

There is the indirect method for this. Under paragraph 15 of NAS No. 9 ("Statement of Cash Flows"), the cash flow from operating activities is shown using the direct or the indirect method. Under paragraph 17, in the indirect method profit or loss is adjusted for three kinds of items: changes in inventories, current receivables and payables; non-cash items such as depreciation; items relating to cash flows from investing or financing activities.

Example (prepared by the author, hypothetical figures, million soums). "Yashnobod tekstil" LLC:

Calculation: 50 + 12 − 3 − 35 + 5 + 8 = 37 million soums.

The money received from selling the fixed asset itself (for example, 10 million soums) is shown in the investing activities section, because under paragraph 11 of NAS No. 9 cash flows from the sale of fixed assets are included in investing activities.

The table answers the question precisely: the main difference between profit and cash is the 35 million soums of uncollected receivables. So first of all you should focus on settlements with buyers.

For checking: the sum of the cash flows of all three activities must equal the change in cash on the balance sheet from the beginning to the end of the year. Under paragraph 31, the amounts in the statement are disclosed in reconciliation with the corresponding items of the balance sheet.

No, it is shown separately. Under paragraph 88 of NAS No. 1, gains or losses from extraordinary events are income or expenses arising from events that are clearly distinct from the organization's ordinary activities, i.e. that do not occur frequently or regularly. Under paragraph 89, they are shown separately in the statement, and the nature and amount of each is disclosed in the notes. In the sequence in paragraph 85, this line comes after the result of general business activities and before the total result before payment of corporate profit tax.

In the accounts, the loss is accumulated in account 9720 "Losses from extraordinary events" and closed to 9910 at the end of the period (NAS No. 21, paragraph 430).

Example (prepared by the author, hypothetical figures, million soums). At "Sayxun savdo" LLC goods worth 30 million soums were destroyed by the storm:

In the statement (simplified view):

Why this matters: a founder or a bank reading the statements immediately sees that the company's ordinary activities produce a result of 70 million soums, while 30 million soums is a one-off event. If the loss were lumped in with other expenses, the company would look as if it were performing worse than usual.

Note: regularly recurring losses (for example, normal spoilage in storage) do not meet this criterion and are not shown as extraordinary.

No, the two are treated differently. NAS No. 9 (paragraph 3) defines cash equivalents as "short-term (3 months or less), highly liquid investments" that are readily convertible into a known amount of cash and subject to an insignificant risk of changes in value.

Therefore:

• the two-month deposit is a cash equivalent and appears together with cash in the statement;
• the six-month deposit does not fall within this limit; it is an investment.

An important conclusion follows. Under paragraph 8, movements between cash and cash equivalents are not cash flows; they are part of cash management. Money placed on the six-month deposit, however, is shown as an outflow from investing activities, because it is the purchase of an investment that is not a cash equivalent (the definition of investing activities in paragraph 3).

Example (compiled by the author, hypothetical figures). At the beginning of December "Zarafshon qandolat" had 120 million soums in its account. In December it placed 30 million soums on a two-month deposit and 50 million soums on a six-month deposit.

The 30 million soum transfer does not appear in the statement as any flow at all: the money merely changed form.

Tip: at year-end, sort your deposit agreements by term; then the closing balance in the statement of cash flows can easily be reconciled with the balance sheet (paragraph 31 requires this).

No. Under NAS No. 9 (paragraph 18), gross cash receipts and gross cash payments from investing and financing activities are shown separately; net presentation (difference only) is permitted only in the cases listed in paragraph 19, and replacing a vehicle is not among them.

Both transactions belong to investing activities: paragraph 13 lists both payments to acquire fixed assets and receipts from their sale as investing flows, and paragraph 11 specifically stresses that cash flows from the sale of a fixed asset are included in investing activities.

Example (compiled by the author, hypothetical figures). "Marg'ilon yuk tashish" sold its old truck for 40 million soums, and the money was received in its bank account. The truck's carrying amount was 30 million soums. Then 150 million soums was paid for a new truck.

There is one more subtle point. The sale produced a gain of 40 − 30 = 10 million soums, which appears in the statement of financial results (9310 "Gain on disposal of fixed assets"). If operating cash flow is prepared using the indirect method, these 10 million soums are deducted from net profit: under paragraphs 15 and 17, an adjustment is made for income related to investing cash flows. Otherwise this amount would appear twice in the statement.

Exception: payments and receipts for assets acquired to be leased out and then sold belong to operating activities (paragraph 11).

No. Under NAS No. 9 (paragraph 30), investing and financing transactions that do not require the use of cash or cash equivalents are excluded from the statement of cash flows. The first example of a non-cash transaction given in that paragraph is the acquisition of assets under a finance lease.

But the transaction is not hidden: under paragraph 30 it is disclosed, with all relevant information, elsewhere in the financial statements (in practice, in the notes).

Subsequent lease payments, however, are real cash outflows. Paragraph 14 lists cash payments under a finance lease among the main flows of financing activities. The company chooses once, under paragraphs 23–24, which activity to include the interest portion of the payment in, and consistently keeps that approach every year.

Example (compiled by the author, hypothetical figures). In November "Shahrisabz plastik" took moulding equipment worth 240 million soums on lease. In December the first payment of 20 million soums was transferred.

So a bank or founder reading the statements finds the answer to "where did the equipment come from?" in the notes, while the cash flows show only the money that actually left.

This is a "contingency" under NAS No. 16: under paragraph 4, a situation whose final outcome (gain or loss) will be confirmed only by the occurrence of one or more uncertain future events. The standard treats gains and losses differently, that is, prudently.

If we are the claimant (an expected gain). Under paragraph 9, a contingent gain is not shown as income in the statements. Exception: a situation where the gain is highly probable. Then it is not considered a contingent gain and is recognised in the statements.

If there is a claim against us (an expected loss). Under paragraph 11, the amount of the loss is treated as a liability in the statements if:

• at the balance sheet date it is probable that future events will reduce the value of assets;
• it is possible to determine the value (estimate) of the future loss.

Even if the loss is not recognised in the statements, its nature and estimate are disclosed in the notes; the only exception is where the probability of loss is remote (paragraphs 12 and 17). What the note says (paragraph 18): the nature of the contingency; the uncertain events that may affect the future outcome; an estimate of the financial effect, or evidence that it cannot be estimated. The estimate is made by the head of the organisation (paragraph 8).

Example (compiled by the author, hypothetical figures). "Qo'qon qadoq" has sued a supplier to recover 60 million soums for poor-quality raw materials; the outcome is uncertain. At the same time, a customer has sued it for 25 million soums for a late delivery; the lawyer considers the probability of losing high and the amount in the statement of claim certain.

Tip: get the lawyer's opinion in writing. The head's estimate rests on exactly this document, and it is the first thing the auditor will ask for.

An exchange difference is not a cash flow: nobody transferred money to you. NAS No. 9 (paragraph 22) says so: unrealised gains and losses arising from changes in exchange rates are not cash flows.

But the opening and closing balances in the statement must agree. Therefore, under paragraph 22, the effect of exchange rate changes on cash held in foreign currency is shown in the statement of cash flows on a separate line: outside the operating, investing and financing flows.

In the accounts, a positive exchange difference on a monetary item is recorded in account 9540 "Foreign exchange gains" (NAS No. 21, paragraph 417): Dt 5210 – Ct 9540. This income increases net profit but brings in no cash. For that reason, under the indirect method it is adjusted as a non-cash item, being an unrealised exchange difference (NAS No. 9, paragraph 17).

Example (compiled by the author, hypothetical rates). "Buxoro gilam" held 10,000 US dollars in its foreign currency account throughout the year. At the beginning of the year the hypothetical rate was 12,000 soums, at year-end 12,500 soums.

When the rate falls it works the same way, except that the effect is negative and the loss is recorded in account 9620 "Foreign exchange losses".

In December's. Under paragraph 16 of NAS No. 1, transactions are recorded not when money is received or paid but when they occur. This is called the accrual basis. Under paragraph 15, all financial statements except the statement of cash flows are prepared on this basis.

Therefore the revenue is recognized in December, and at year-end the buyer's debt sits on the balance sheet as accounts receivable. In the statement of cash flows, however, this receipt falls into January, that is, into the next year's figures.

Example: on 28 December "Bekobod sement savdo" shipped goods worth 60 000 000 soum, and the money arrived on 10 January. In the annual statements: the statement of financial results includes the revenue, the balance sheet shows 60 mln of receivables, and the statement of cash flows does not include this receipt.

Under paragraph 18 of NAS No. 1, when preparing the statements, management assesses the company's ability to continue its activities. Unless management plans to liquidate the company or cease its activities (or has no realistic alternative but to do so), the statements are prepared on a going concern basis.

If, when making the assessment, management is aware of material events or conditions that affect the continuation of activities, this fact is disclosed in the notes to the statements.

Example: the only major customer of the "Mohir tikuv" factory cancelled its contract. The manager is not planning to close, so the statements are prepared as usual. But because this event may affect the continuation of the business, the notes describe the situation and management's plans.

Under paragraph 22 of NAS No. 1, prudence means not allowing assets and income to be overstated or liabilities and expenses to be understated.

But the same paragraph also states its limit: this principle does not give the right to create hidden reserves, to deliberately understate assets or profit, or to deliberately overstate liabilities and expenses. In other words, prudence means neutrality, not "recording more expenses just in case".

Example: one of the buyers of "Lazzat qandolat" has not paid its debt for two years. Showing it as a fully collectible debt would overstate the asset. But cutting all buyers' debts by half "to be on the safe side" is also wrong: the valuation must be based on the actual situation.

No. Under paragraph 42 of NAS No. 1, assets and liabilities are not offset (netting), except in cases provided for by another NAS. Accounts receivable are shown separately under assets and accounts payable under liabilities.

There is a similar rule for income and expenses (paragraph 43): they are offset only if a NAS requires or permits it, or if the relevant amounts are not material either individually or in aggregate.

Example: "Paxtakor ip" owes "Navbahor tekstil" 80 mln soum, while "Navbahor" owes it 50 mln soum. On the balance sheet, 80 mln of receivables appear under assets and 50 mln of payables under liabilities. If the parties sign a mutual settlement certificate and actually close the debts, this then becomes a transaction and is recorded with a journal entry; only after that does the balance sheet show just the remaining 30 mln.

The main criterion is timing. Under paragraph 73 of NAS No. 1, liabilities to be settled within 12 months from the reporting date are current liabilities. The portion payable after the next 12 months is shown in the long-term liabilities section.

So a single loan may be split into two parts: the portion repayable within the next 12 months is current, and the rest is long-term. NAS No. 21 has account 6950 "Long-term liabilities – current portion" for this.

Example: as at 31 December, "Sirdaryo don" owes the bank 90 mln soum, of which 30 mln is repayable next year. On the balance sheet: 30 mln current liability, 60 mln long-term liability. A 3-month debt to a supplier, by contrast, is entirely current.

Under NAS No. 1 (in line with the Law "On Accounting"), a complete set of annual financial statements consists of five parts: the balance sheet; the statement of financial results; the statement of equity; the statement of cash flows; the notes to the financial statements.

Each has its own job. The balance sheet shows the position at a given date, the statement of financial results shows how much profit or loss was made during the year, the statement of equity shows how the owners' interest changed, and the statement of cash flows shows where cash came from and where it went. The notes explain the details behind the figures.

If any one of them is missing, the set of statements is not complete.

The balance sheet is like a photograph: it shows the position at a single date, for example how much in assets, liabilities and equity the company has as of 31 December.

The statement of financial results is like a video: it shows, for the whole period, for example January to December, how much income was earned, how much expense was incurred and how much profit or loss remained at the end.

The two are linked. Say the "Kumush qaychi" barbershop made a net profit of 40 000 000 soum for the year. This figure appears at the bottom of the statement of financial results, and on the balance sheet retained earnings increase by the same amount (if no dividends were paid and there were no other changes in equity).

The statement of cash flows. Under NAS No. 1, the other statements are prepared on the accrual basis: income is recorded on the day the goods are delivered, not the day the money arrives. The statement of cash flows is the exception: it shows only the cash that actually came in and went out.

Under NAS No. 9, cash flows are divided into three categories: operating activities (the main business: sales, purchases, wages), investing activities (buying and selling fixed assets and other investments) and financing activities (taking out and repaying loans, changes in equity).

Example: the "Mevali bog'" firm made a profit for the year, but its customers have not paid yet, while the firm itself bought a new refrigerator and repaid part of a loan. In the statement of cash flows each of these appears in its own section, and it becomes clear where the money went.

This statement shows how much the owners' funds were at the start of the year, how much at the end, and why they changed during the year. Under NAS No. 1, it presents the components of equity: charter capital, additional paid-in capital, reserve capital, retained earnings (uncovered loss), treasury shares bought back and other elements of equity.

For the changes, the standard requires showing: the issue of securities; revaluation of long-term assets; exchange differences arising when the charter capital is formed; transfers to reserve capital; retained earnings (loss) of the current year; property received free of charge; dividends paid in cash and in shares; other sources of equity.

Example: the founders increased the charter capital, the year closed with a profit, and dividends were paid. All three events appear as separate lines in the statement of equity.

They are not. A single balance sheet line such as "accounts receivable" does not show how many debts lie behind it, how much has been provided for as doubtful, or which assets are pledged. Under NAS No. 1, the notes are a mandatory part of the set of financial statements and are prepared in free form.

The notes reveal the detail behind the figures. Exactly what must be disclosed in them is set by NAS No. 1 and by the NAS covering each topic, so when preparing the statements their requirements are checked point by point.

Example: "Tong yulduzi" LLC has a large loan on its balance sheet. If the note gives the interest rate, the repayment date and the building pledged as collateral, a bank or investor can assess the company's position much more accurately.