ORDER OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of October 29, 2002 No. 542

About approval of the Conceptual basis for preparation and accounts presentation

For the purpose of implementation of the Law of the Republic of Kazakhstan of June 24, 2002 "About modification and amendments in the Presidential decree of the Republic of Kazakhstan which is valid the law "About financial accounting" I ORDER to No. 329:

1. Approve the enclosed Conceptual basis for preparation and accounts presentation.

2. Declare invalid the resolution of the National commission of the Republic of Kazakhstan on financial accounting of November 13, 1996 No. 2 "About the Conceptual basis for preparation and submission of financial statements".

3. This order becomes effective from the date of signing.

Approved by the order of the Minister of Finance of the Republic of Kazakhstan of October 29, 2002 No. 542

Conceptual basis for preparation and accounts presentation

Section 1. Introduction

Chapter 1. Purpose and status

1. The conceptual basis for preparation and accounts presentation (further - the Conceptual basis) determines fundamental provisions concerning preparation and accounts presentation for the external users mentioned in Item 9 of this Conceptual basis. The purpose of this Conceptual basis is assistance:

1) to the authorized state body regulating system of financial accounting and the financial reporting (further - authorized body), in development and approval of accounting standards (further - the SSU) and methodical recommendations to them, acceptance of regulatory legal acts of the Republic of Kazakhstan concerning financial accounting and the financial reporting, not settled by international accounting standards, and not contradicting them and their review;

2) to authorized body in promotion of harmonization of the rules and procedures connected with accounts presentation by providing basis for reducing number of the alternative approaches resolved the SSU;

3) to persons preparing the financial reporting in use of the SSU and reflection in financial accounting of the questions which are not reflected in the SSU;

4) to auditors in creation of opinion on compliance of the financial reporting of the SSU;

5) to users of the financial reporting in case of information analysis containing in the financial reporting constituted on the basis of the SSU;

6) the public in providing with information on approaches of authorized body to formulation of the SSU.

2. This Conceptual basis is not the SSU and does not establish on any specific question procedure for recognition, assessment and disclosure in the financial reporting. Any provision in this Conceptual basis does not replace any specific the SSU.

3. In some cases there can be contradictions between the Conceptual basis and the SSU. In these cases of the requirement of the SSU prevail over requirements of the Conceptual basis. As the authorized body will be guided by this Conceptual basis in case of development and approval of the SSU concerning financial accounting and the financial reporting, not settled by international accounting standards, and not contradicting them, and also in their review, contradictions between the Conceptual basis and the SSU will be reduced gradually.

4. The conceptual basis is periodically reviewed taking into account experience of activities of authorized body.

Chapter 2. Scope of application

5. In this Conceptual basis the following questions are considered:

1) purposes of the financial reporting;

2) the principles of creation of the financial reporting and the main quality characteristics determining usefulness of information containing in the financial reporting;

3) determination, recognition and assessment of the elements constituting the financial reporting;

4) concepts of the capital and maintenance of the capital.

6. This Conceptual basis is intended for creation of the financial reporting, including consolidated financial statements. The financial reporting is constituted and it is represented at least once a year and is directed to satisfaction of total information requirements of wide range of users.

Some users, with powers, the additional information having the right to demand, except containing in the financial reporting. However many other users are forced to rely on the financial reporting as on the main source of financial information, therefore, the financial reporting shall be constituted and be represented taking into account their total requirements. The special reporting different from the financial reporting, for example, the prospectuses of release and calculations prepared for the purposes of the taxation are not considered in this Conceptual basis. Nevertheless the Conceptual basis can be applied to preparation of special reports when it their requirements allow.

7. Forms of the financial reporting are part of the financial reporting. The complete packet of forms of the financial reporting includes the balance sheet, the income and expenditure statement, the report on movement of money, the report on changes in equity, information on accounting policy, the explanatory note, and also other reports and explanatory materials which are integral part of the financial reporting. Explanatory materials can include the additional materials based on financial statements or received from them and intended to reading with them.

Additional materials can include tables and financial information about economic and regional divisions, and also change in price influence disclosure, however the financial reporting does not include such elements as reports of directors, discussion and the analysis of management and other similar documents which can be included in reports following the results of year.

8. This Conceptual basis is applicable concerning the financial reporting of all commercial organizations irrespective of pattern of ownership.

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