The Kyrgyz Republic : Accounting and Auditing

Abstract

This report provides an assessment of
 accounting, financial reporting, and auditing requirements
 and practices within the enterprise and financial sectors in
 the Kyrgyz Republic. The report uses International Financial
 Reporting Standards (IFRS) and International Standards on
 Auditing (ISA) as benchmarks and draws on international
 experience and good practices in the field of accounting and
 audit regulation to assess the quality of financial
 information and make policy recommendations. The main
 finding of this report is that enhancements in accounting
 and auditing legislation have often not been carried through
 to improvements in practice. Greater efforts need to be made
 to apply and enforce legal requirements properly.
 Compounding this challenge is the lack of compliance with
 existing public disclosure requirements and there is a need
 for greater public availability of financial information.
 Otherwise, even if accounting and auditing improves, users
 will not be able to access and make use of this information,
 reducing the overall benefits to society and the potential
 for private-sector-led economic growth. The Kyrgyz economy
 has achieved moderate growth (5.4 percent in 2004, -0.2
 percent in 2005, and 2.7 percent in 2006); however, in order
 to enhance growth, promote further economic development, and
 decrease the cost of capital, additional reforms in
 accounting and auditing are required to produce financial
 information of high quality.