The Enhancing Financial Reporting and Auditing in the Banking Sector in Uzbekistan was a technical assistance project aimed to create an adequate policy environment and to improve institutional capacity for corporate financial reporting in the banking sector in line with accepted international practice and based on the policy recommendations outlined in the Reports on the Observance of Standards and Codes (ROSC) Accounting and Auditing Program. The project ran from 2012 to 2014, and was financed through the FIRST Initiative - a multi-donor partnership that aims to support economic growth and poverty reduction in low- and middle-income countries by promoting robust and diverse financial sectors. At the time of the project, donors included: Canadian International Development Agency; Department for International Development of the United Kingdom; International Monetary Fund; Ministry of Foreign Affairs of The Netherlands; State Secretariat for Economic Affairs of Switzerland; Swedish International Development Cooperation Agency; The World Bank.
The specific objectives of the project were:
- Adoption of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) in the banking sector;
- Alignment to the possible extent of prudential and financial reporting requirements; and
- Strengthening the capacity of the banking sector regulator through targeted training activities.
The outcomes from carrying out the proposed activities were:
- Action plan developed for systematic reforms to be undertaken by the Central Bank of Uzbekistan (CBU) (potentially with some development partners support);
- A sustainable mechanism created to ensure the timely updating and translation of the IFRS and ISAs into Uzbek and adoption of standards;
- Initial steps taken for improved transparency and credibility of the information provided by financial statements of commercial banks;
- Improved understanding and strengthened links between general purpose financial reporting and prudential reporting; and
- Initial steps taken for improved ability of the CBU to monitor and enforce compliance of banks with financial reporting and auditing obligations, and to use the work of external auditors of the commercial banks which will contribute to financial stability in the long run.