Turkmenistan to move to international financial reporting standards in 2014

Photo: Turkmenistan to move to international financial reporting standards in 2014
 / Turkmenistan

Ashgabat, Turkmenistan, Dec. 2

By Huseyn Hasanov - Trend:

Starting from January 1, 2014 all Turkmen enterprises, institutions and organisations, regardless of their ownership, will move completely to an accounting report, based on international financial reporting standards, according to the Turkmen Finance Ministry's message.

The country's credit institutions started this process back in 2011, the ministry said.

A phased transition of enterprises, institutions and organisations to international financial reporting standards was carried out over 2013.

"In January 2014 this transition will be completed," the ministry said.

The Turkmenistan's Finance Ministry has developed regulations, organised courses for specialists and created corresponding training centres, according to the message.

Turkmenistan's constitution, which has been updated in recent years, includes an article on a phased transition to the market economy. Currently the regulatory framework for functioning of various ownership forms is being improved.

The basis for privatisation and conversion from state ownership of light and food industries and services and trade areas, which conduct economic activity in the country's foreign and domestic markets, are also being developed.

Aside from that, Turkmenistan plans to privatise technologically obsolete small and medium enterprises by selling them at auctions. The country also plans to use mechanisms for trust management, corporatisation and management of large enterprises' corporate properties.

Attraction of foreign investments, creation and development of joint ventures are other aspects of the institutional transformation.

The second phase of this process covering 2016-2020 includes the creation of corporate companies in the areas of construction, building materials industry and others. The third phase from 2021 to 2030 will be characterized by deepening the adaptation of new enterprises to market conditions, and intensive development of domestic and foreign markets.

Turkmenistan is rich in natural gas. The harvest of export volumes of cotton and grains as well as diversification of the economy is being carried out in this country. The textile industry and oil and gas processing industries have significantly advanced in this area.

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