Media: Turkmenistan to complete transition to international accounting standards by 2014

Business Materials 28 January 2011 17:01

Turkmenistan, Ashgabat, Jan. 28 / Trend H.Hasanov /

All enterprises, organizations and institutions (excluding banks) in Turkmenistan - irrespective of ownership - will carry out a phased transition to a new system of accounting and auditing standards meeting the relevant principles of international standards, the local media reported on Friday.

The process will be launched on Jan. 1, 2013, and the full transition to this system is planned for Jan. 1, 2014.

The Neytraliniy Turkmenistan newspaper notes that banking institutions should organize the transition to international standards starting from Jan. 1, 2011. They should draw up financial statements on the results of 2011 in accordance with international standards, as well, starting with financial statements in 2011, to provide audits of annual financial statements in accordance with international auditing standards.

"Improvement of the national system of financial reporting is an essential prerequisite for improving the effectiveness of monetary policy and Turkmenistan's active integration in the system of world economic relations, and intensive expansion of partnership with foreign companies and investors," the paper wrote.

The International Financial Reporting Standards (IFRS) is an instrument was developed and has perfected the best method of accounting applied by developed countries to obtain information on the performance of the company, its financial position and changes in equity for management decisions to provide the necessary information to users.

Complete financial reports are consistent with the IFRS and consist of the balance sheet (statement of financial condition), income report, report of cash flows, changes in equity, as well as accounting policies and explanatory notes.

Turkmenistan is preparing a new edition of the Law on Accounting and Financial Reporting.