Resolution of the Board of the Central Bank of the Republic of Uzbekistan on Approving the Regulation on Accounting Policy and Financial Reporting of Banks

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on 03.09.2003, registration number 1270

Date of entry into force

01.01.2004

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01.01.2022

01.01.2004

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Document lost its force 01.01.2022

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Bank Activity / 07.21.00.00 Bank Activity / 07.21.17.00 Accounting and Reporting in Banks; 2. 07.00.00.00 Legislation on Finance and Credit. Bank Activity / 07.29.00.00 Accounting. Financial Reporting / 07.29.05.00 Financial Reporting] [ TSZ: 1. Economy / Accounting, statistics and reporting; 2. Finance / Banks and other credit institutions. Credits]

Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On Approving the Regulation on the Accounting Policy and Financial Reporting of Banks

[Registered by the Ministry of Justice of the Republic of Uzbekistan on September 3, 2003, registration number 1270]

This resolution has lost its force based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 20/3 dated November 18, 2021 "On Approving the Regulation on Requirements for the Accounting Policy and Financial Reporting of Commercial Banks" (registration number 3337, dated 27.11.2021).

Based on Articles 3, 7, and 51 of the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. Approve the Regulation "On the Accounting Policy and Financial Reporting of Banks" in accordance with the Appendix.

2. The Department of Accounting, Reporting, and Execution of the State Budget (D.A. Oriop) shall submit this Regulation on the Accounting Policy and Financial Reporting of Banks to the Ministry of Justice of the Republic of Uzbekistan for state registration within 10 days.

3. This resolution enters into force from January 1, 2004, after being registered by the Ministry of Justice of the Republic of Uzbekistan.

4. Control over the execution of this resolution is entrusted to the First Deputy Chairman of the Central Bank M.R. Jumagaliev.

Chairman of the Central Bank Board F. MULLAJONOV

Tashkent city, July 19, 2003, No. 15/9

Approved by the Board of the Central Bank of the Republic of Uzbekistan July 19, 2003, No. 15/9

REGULATION

On the Accounting Policy and Financial Reporting of Banks

This Regulation is developed to establish requirements for the development and implementation of accounting policy and procedures for financial reporting in commercial banks (hereinafter referred to as "banks") in accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", "On Banks and Banking Activity", and "On Accounting".

The fundamental principles (rules) of accounting reflect a set of rules (principles), concepts, and definitions, enabling the identification, measurement, recognition, presentation, and disclosure of financial information clearly, progressively, timely, and understandably. Accounting reflects a process through which useful financial information is formed using the rules that form the basis of accounting. The purpose of financial reporting is to provide information useful to a wide range of users in making economic decisions, i.e., information about the financial position, performance, and changes in the financial position of the bank.

To carry out this process effectively, requirements must be viewed from the perspective of providing financial information to interested parties. These requirements are usually divided into two categories: those of internal users of financial information (bank management) and those of external users.

Although internal users have the right to obtain additional management and financial information to help them fulfill their responsibilities in planning, decision-making, and control, they are also interested in obtaining information available in financial reports.

External users are interested in obtaining information about bank activities and indicators that may be useful to a wide range of users in making economic decisions, and about changes in the bank's financial position. Financial reports should meet the general needs of most users.

I. General Rules

1. In accordance with Article 41 of the Law of the Republic of Uzbekistan "On Banks and Banking Activity", the Central Bank of the Republic of Uzbekistan establishes rules for accounting and financial reporting in banks.

2. This Regulation applies only to the accounting and financial reporting of banks and does not include tax issues, nor does it cover regulation, operational, control, and settlement matters.

3. The basis for accounting in banks of the Republic of Uzbekistan is the Law of the Republic of Uzbekistan "On Accounting" and International Financial Reporting Standards (hereinafter referred to as "IFRS"). Financial reports published by banks, as well as the basic principles (rules), concepts, and definitions used by banks in the process of accounting and reporting, must comply with the Law of the Republic of Uzbekistan "On Accounting" and IFRS.

4. The Central Bank establishes the fundamental principles (rules) of accounting in banks and basic rules. The normative documents of the Central Bank on accounting are not intended to present a specific set of accounting procedures, i.e., a sequence of steps to achieve certain goals, or methods/forms of conducting accounting operations by the bank.

5. Normative documents on accounting developed by the Central Bank in accordance with Appendix 1 are intended to present rules and directions for applying the principles (rules), concepts, and definitions of accounting in banks. These principles (rules), concepts, and definitions should be applied uniformly and progressively in all accounting processes in the bank, as much as possible, in an automated manner.

6. Appendix 1 provides a list of normative documents on accounting in banks. Banks must develop their own accounting policies and detailed procedures for practices based on the normative documents of the Central Bank.

II. Obligations for Organizing Work in accordance with the Fundamental Principles (Rules) of Accounting

7. To achieve the objectives of the fundamental principles (rules) of accounting, the Bank Council, Bank Management, and the Bank's Accounting and Internal Audit Departments (Directorates, Divisions) must have clearly defined responsibilities.

8. According to the directive of the Bank Council, the Bank Management must identify and define issues regarding the application of this Regulation in establishing the bank's accounting activity policy and procedures.

9. Banks are responsible for the development of their accounting policy in accordance with this Regulation.

10. The approved accounting policy and procedures of the bank must be complied with by the bank's officials and employees, and they should help them apply the relevant principles (rules) of accounting and avoid making unjustified decisions.

11. To ensure the uniform and progressive application of standard methods across the bank, the Bank Management approves accounting procedures. To achieve effective (successful) results for these purposes, a large part of the accounting process must be automated.

12. All banks must develop and implement documents regulating their accounting activities. If necessary, the Central Bank provides clarifications on technical issues related to the application of normative documents developed in accordance with IFRS.

1-§. Bank Council

13. The Bank Council is responsible for the application in the bank's accounting activities of this Regulation and other normative documents of the Central Bank on accounting in accordance with Appendix 1.

14. The Bank Council must develop accounting policy and procedures, including including their application in the responsibilities of the Management. The Council approves the accounting policy and reviews it at least once a year, by February 1, to ensure full compliance with normative documents developed by the Central Bank in accordance with IFRS on accounting.

15. The delegation of authority by the Bank Council to the Management for the development of accounting policy and procedures does not relieve the Council of the obligation to ensure the development and implementation of the bank's policy and procedures in accordance with this Regulation.

16. The Bank Council must approve the bank's annual financial reports before publishing them. In doing so, the Council must take all measures to ensure that the published financial reports fully comply with normative documents developed by the Central Bank in accordance with IFRS.

2-§. Bank Management

17. The Bank Management is responsible for developing and approving accounting procedures in accordance with the requirements of the Central Bank's normative documents.

18. The Bank Management is responsible for preparing and submitting the bank's financial reports. The Bank Management must take all necessary measures to ensure that the issued financial reports fully comply with normative documents developed by the Central Bank in accordance with IFRS.

3-§. Bank's Accounting Department (Directorate, Division)

19. The Bank's Accounting Department (Directorate, Division) is responsible for appropriately explaining and correctly applying technical issues related to this Regulation and the bank's internal policy on accounting.

20. The Bank's Accounting Department (Directorate, Division) is responsible for internal control in the application of normative documents on accounting developed by the Central Bank in accordance with IFRS, developing accounting and reporting procedures, and implementing them within the bank.

4-§. Bank's Internal Audit

21. The internal audit of each bank is responsible for checking internal control in the application of normative documents on accounting developed by the Central Bank in accordance with IFRS, the adequacy of accounting policy and the bank's procedures, accounting and reporting procedures, and their use in the bank.

22. Internal audit is responsible for conducting fair inspections, evaluating, and reporting to the Bank Council on audit results. Based on audit reports, the Bank Council of the bank adopts relevant decisions that are mandatory for execution in the bank.

23. Internal audit sends inspection materials, suggestions, and objections to the Council. The Council must request periodic reports from the Bank Management on the resolution of deficiencies and issues identified by auditors.

Appendix 1 to the Regulation on the Accounting Policy and Financial Reporting of Banks

List of Normative Documents on Accounting in Commercial Banks

Balance Sheet Report

1.010 *

Normative document on accounting of funds

1.020

Normative document on accounting of funds borrowed from banks

1.100

Normative document on accounting of financial instruments

1.300

Normative document on accounting of loans

1.400

Normative document on leasing accounting

1.500

Normative document on accounting of fixed assets

1.600

Normative document on accounting of reserves

1.620

Normative document on accounting of property acquired through deprivation of the borrower's right to collateral

1.650

Normative document on accounting of investments in real estate

1.700

Normative document on factoring accounting

1.750

Normative document on accounting of intangible assets

1.800

Normative document on accounting of investments in branch economic societies

1.810

Normative document on accounting of investments in joint economic societies

1.820

Normative document on accounting of shares in joint activities

1.900

Normative document on accounting for impairment of assets

2.010

Normative document on deposit accounting

2.200

Normative document on accounting of borrowed funds

2.300

Normative document on employee compensation accounting

2.500

Normative document on income (profit) tax accounting

2.600

Normative document on reserves/contingent liabilities accounting

2.800

Normative document on long-term debt accounting

3.000

Normative document on capital accounting

Report on Profit and Loss

4.100

Normative document on interest calculation accounting

4.200

Normative document on non-increase of interest accounting

4.400

Normative document on income accounting

4.500

Normative document on expense accounting

Others / Disclosure

9.010

Normative document on reflecting information in financial reporting

9.030

Normative document on preparing the cash flow statement

9.040

Normative document on accounting for net profit or loss for the period

9.050

Normative document on preparing interim financial reports

9.050

Normative document on segment reporting

9.060

Normative document on preparing consolidated financial reports

9.100

Normative document on information disclosure

9.110

Normative document on accounting for events occurring after the balance sheet date

9.120

Normative document on disclosure of information about related parties

9.130

Normative document on accounting for profit per share

9.140

Normative document on accounting for fundamental errors

9.150

Normative document on accounting for changes in accounting policy

9.160

Normative document on accounting for discontinued operations

9.170

Normative document on monetary items accounting

9.190

Normative document on preparing financial reports in hyperinflationary economies

9.200

Normative document on revaluation due to changes in exchange rates

9.220

Normative document on restating foreign operations reports

9.300

Normative document on recognition and measurement of financial instruments

9.330

Normative document on derivative instruments accounting

9.350

Normative document on hedge accounting

9.400

Normative document on government grants and assistance accounting

9.410

Normative document on construction contract accounting

9.420

Normative document on borrowing costs accounting

9.500

Normative document on business combinations accounting

9.900

Normative document on off-balance sheet items accounting

Chart of Accounts

10.100

Chart of Accounts

• Conditional numbering is provided