Turkmenistan to adopt international financial reporting system in 2014
Turkmenistan, Ashgabat, October 22/ Trend, H. Hasanov /
Turkmenistan is preparing to adopt a financial reporting system from January 2014 that will correspond to international standards, the Neutral Turkmenistan newspaper reported.
'Turkmenistan's national economy is even more intensively interested in the world economic system. Nevertheless, the accounting system left behind was created under the conditions of a planned economy offsetting its value to the participants in the economic turnover', the newspaper said.
According to the newspaper, new norms were worked out on the basis of International Financial Reporting Standards (IFRS) and in this connection, Turkmenistan's Finance Ministry has approved nearly 30 standards each of which is dedicated to a particular side of accounting: reserves and main funds.
According to local experts, the preparation of financial information in the generally accepted format will ensure transparency and comparability and will contribute to attracting investments, as well as entry of national companies to world markets.
Turkmen companies will also be able to reduce expenditures for the preparation of accountability and in particular under the conditions of its consolidation when the activity covers different countries.
Turkmenistan's banking system has conducted accountability in accordance with international standards since 2011. Since January 1, 2013, within the pilot project, the leading state enterprises and six largest private companies of the country work in accordance with new financial standards.
Turkmenistan is at a transitional stage of development. There emerged an article in the country's Constitution about the transition to a market economy in recent years.
The Caspian country is rich in natural gas and export volumes of cotton and grain which are harvested there. The diversification of the economy is actively being carried out in the current stage; especially with the textile industry along with the oil and gas processing spheres also being improved.
Turkmenistan has carried out several reforms in its monetary policy such as the national currency denomination and the unification of exchange rates.