Approved by the Ministry of Finance of the Republic of Uzbekistan of October 30, 1998, No. 57

National Accounting standard of the Republic of Uzbekistan No. 16 NSBU "Contingencies and the taking place events of economic activity after date of creation of the balance sheet"

General provisions

1. This National Accounting Standard (NAS) is developed on the basis of the Law of the Republic of Uzbekistan "About financial accounting" and is element of system of normative regulation of financial accounting in the Republic of Uzbekistan.

Standard purpose

2. The purpose of this standard is determination of procedure for creation of the financial reporting:

- on contingencies;

- on the events of economic activity which are taking place after date creation of the balance sheet.

Coverage

3. This standard is applied to accounting and disclosure of contingencies and the taking place events of economic activity after date of creation of the balance sheet.

4. The following phenomena (indicators) leading to emergence of contingencies do not fall within coverage of this standard:

- the obligations of insurance company on life insurance arising according to the issued insurance policies;

- the obligations arising under long-term leasing contracts (See NSBU "Leasing Accounting");

- taxes on income (profit) gained as a result of contingencies.

Determinations

5. The terms used in this Standard;

The contingency is situation which resulting effect (profit or loss) will be confirmed only upon making of one or more uncertain events in the future. That is, this circumstance as a result of origin of uncertain events after creation of the balance sheet the business entity gets profit or loss.

The events of economic activity occurring later dates of creation of the balance sheet are such events, both favorable, and adverse which occur on interval between date of creation of the balance sheet and approval date of the financial statement to the publication.

Two types of such events differ:

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