Turkmenistan, Ashgabat, Feb. 11 / Trend H. Hasanov /
Turkmen President Gurbanguly Berdimuhamedov signed a decree to approve the accounting and financial reporting standards.
The matter rests in the approval of allowable limits of the main asset volumes in the calculation for local and foreign legal entities, irrespective of ownership, those who passed to international and national accounting standards, their branches and representative offices, as well as physical entities engaged in business activity unrelated to the simplified tax system.
These steps are being taken in accordance with the Turkmen law on "Accounting and Financial Reporting" to successfully implement the program of accounting and auditing reformation in Turkmenistan, to further improve the financial reporting system in the country, to use modern international experience in accounting, rational use of main funds.
At present, Turkmenistan gradually passes to a national system of accounting and auditing standards, corresponding to the principles of international standards. President Berdimuhamedov instructed to prepare the document for signing at a governmental meeting in January 2012.
All enterprises, organizations and institutions, regardless of ownership (except for banks), will gradually pass to a new accounting and auditing system. The process will begin from January 1, 2013. The full transition is scheduled for January 1, 2014.
The banking institutions began passing to international standards from January 1, 2011. They will make the financial statements as of 2011, in accordance with international standards.
The International Financial Reporting Standards (IFRS) are a tool developed and improved in accordance with the best accounting methods used by developed countries to obtain information about the results of the company's activity, its financial position and changes in equity to make decisions and to provide users with the information.
A complete set of financial accounting complying with IFRS consists of a balance sheet (report on financial state), profit and loss (report on financial results), reports on cash flows, changes in equity, as well as accounting policies and explanatory notes.