THE RESOLUTION OF STATE COMMISSION UNDER THE GOVERNMENT OF THE KYRGYZ REPUBLIC ON ACCOUNTING STANDARDS AND AUDIT

of March 26, 2002 No. 6

About approval of the Recommendation about forming of accounting policy of subjects

With introduction of the International accounting standards approved by the Order of the Government of the Kyrgyz Republic of September 28, 2001 No. 593 "About International accounting standards in the Kyrgyz Republic" as accounting standards in the Kyrgyz Republic approaches to statement of financial accounting in business entities change, i.e. business entities (further subjects) independently develop accounting policy, the most suitable for them which in the best way will be able to reflect financial position and results of transactions.

The management of the subject shall choose and apply accounting policy so that the financial reporting strictly conformed to all requirements of each applicable International accounting standard.

For the purpose of rendering the methodological help to business entities when forming accounting policy the board of State commission under the Government of the Kyrgyz Republic on accounting standards and audit decides:

1. Approve Recommendations about forming of accounting policy of subjects for application in the territory of the Kyrgyz Republic.

2. Charge to Management on development and deployment of accounting standards and methodology of financial accounting:

carry out in accordance with the established procedure state registration in the Ministry of Justice of the Kyrgyz Republic;

publish these Recommendations about forming of accounting policy of subjects in mass media.

3. To impose control of execution of this resolution on the head of department on development and deployment of accounting standards and methodology of financial accounting Abekova Zh. T.

Approved by the Resolution of board of State commission under the Government of the Kyrgyz Republic on accounting standards and audit of March 26, 2002 No. 6

RECOMMENDATION ABOUT FORMING OF ACCOUNTING POLICY OF SUBJECTS

The order of the Government of the Kyrgyz Republic of September 28, 2001 No. 593 approves as accounting standards in the Kyrgyz Republic the International Accounting Standards (IAS) published by the International accounting standards board (London) and the schedule of transition of legal entities of the republic to IFRS.

With introduction of International accounting standards approaches to statement of financial accounting in business entities change, i.e. business entities (further subjects) independently develop accounting policy, the most suitable for them which in the best way will be able to reflect financial position and results of transactions.

The management of the subject shall choose and apply accounting policy so that the financial reporting strictly conformed to all requirements of each applicable IFRS.

Accounting policy promotes creation of rational system of accounting, the correct and timely reflection of movement of assets, their assessment, and also has significant effect on the size of indicators of financial condition of the subject.

I. CONCEPT OF ACCOUNTING POLICY

ACCOUNTING POLICY is set of the principles, bases, rules, conditions, procedures and methods accepted by the subject's management for conducting financial accounting (primary observation, cost measurement, the current group, assessment and final generalization of the facts of economic activity) and accounts presentation.

Methods of group and assessment of the facts of economic activity, cost repayment of assets, the organizations of document flow, inventory count, methods of application of accounts of financial accounting, system of bookkeeping registers, information processing and different corresponding ways and acceptances belong to methods of conducting financial accounting.

II. GENERAL PROVISIONS

This recommendation about forming of accounting policy of subjects, irrespective of forms of business, according to the legislation of the Kyrgyz Republic provides availability of the following Sections:

1. bases of forming of accounting policy;

2. choice of methods and evaluation methods of assets and liabilities;

3. choice of the equipment, form and organization of financial accounting;

4. changes of accounting policy;

5. disclosures of accounting policy.

a) Forming of accounting policy of the banks and other financial credit institutes licensed by National Bank is performed according to the bank law of the Kyrgyz Republic.

b) Branches and representative offices of the foreign organizations which are in the territory of the Kyrgyz Republic create accounting policy proceeding from the rules established in the country of finding of the head foreign company.

c) Accounting policy is subject to acceptance and approval by the corresponding organizational and administrative documentation (orders, orders, decisions) of the subject.

d) The methods of conducting financial accounting chosen subject when forming accounting policy are applied according to IFRS all its structural divisions, including branches, representations and other divisions of the subject (including allocated for separate balance), irrespective of their location. In the presence at the subject of the subsidiary and dependent (associated) companies, the subject shall approve single accounting policy.

e) The newly created subject draws up the chosen accounting policy according to this Item before the first publication of accounting records, but no later than 90 days from the date of acquisition of rights of the legal entity (state registration). The accounting policy accepted by the newly created subject is considered applied from the date of acquisition of rights of the legal entity (state registration).

1. BASES OF FORMING OF ACCOUNTING POLICY

1.1. Accounting policy is created on the basis of IFRS.

1.2. Accounting policy of the subject is created by management of the subject and affirms the order (order) (the working chart of accounts, samples of source documents and forms of accounting registers, the order on approval of the schedule of document flow, the order on approval of the list of persons having right to sign of source accounting documents etc. is attached to the order).

At the same time affirms:

the working chart of accounts of financial accounting developed on the basis of the Chart of accounts recommended by State commission under the Government of the Kyrgyz Republic on accounting standards and audit (further State commission), containing the constants and provisional accounts necessary for conducting financial accounting according to requirements of timeliness, completeness of accounting and the reporting;

forms of source accounting documents applied to registration of the facts of economic activity in which standard forms of source accounting documents, and also document forms for internal accounting records and form of the applied accounting registers are not provided;

procedure, terms of carrying out inventory count of assets, obligations and reflection of its results;

evaluation methods of assets and liabilities;

rules of document flow and technology of processing of accounting information;

procedure for control of economic activities;

other decisions necessary for the organization of financial accounting.

1.3. Treat the factors influencing forming of accounting policy:

legal and economic position of the subject;

pattern of ownership (state, private, utility and other);

activities scales (production volume and sales of products, number working, asset cost of the subject);

availability of branches;

the legislation regulating economic activity;

financial strategy of the subject (For example: aspiration of the subject to reduction of the income tax, value increase of securities, expansion or reconstruction of production, decrease in current costs etc.);

industry accessory or type of activity;

material resources (security with the computer equipment, program and methodical providing, etc.).

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info