Financial Crime World

Kyrgyz Audit and Reporting Enhancement Project (KAREP) Aims to Strengthen Accounting Standards in Kyrgyz Republic

The Kyrgyz Republic has made significant strides towards strengthening its accounting standards, but still faces several challenges in implementing international best practices. The country’s audit and reporting landscape is set to undergo a major overhaul with the revision of the Law on Accounting No. 76, 2002.

Audit Standards

  • The Government of Kyrgyz Republic has authorized the adoption of International Standards on Auditing (ISA), but despite efforts to translate the standards into Kyrgyz, an official translation remains elusive.
  • The Russian translation of the 2016-2017 IAASB Handbook is currently being applied.
  • The State Service for Regulation and Supervision of Financial Market (SSRSFM) is working with the World Bank to translate the 2018 IAASB Handbook into Kyrgyz.

Code of Ethics

  • The Code of Ethics for Professional Accountants has not been adopted, but a new provision in the revised Law on Auditing requires auditors to abide by the International Ethics Standards Board for Accountants (IESBA) Code as adopted by the SSRSFM.
  • The Union of Accountants and Auditors (UAA), an IFAC Associate, reports that it will adopt the latest Russian language IESBA Code for its members once translated.

International Public Sector Accounting Standards

  • Budget institutions in Kyrgyz Republic are required to apply International Public Sector Accounting Standards (IPSAS), but there is no official translation of the standards.
  • The government has established a working group to develop a national accounting framework, which will incorporate IPSAS principles.

International Financial Reporting Standards

  • The Law on Accounting requires application of current versions of International Financial Reporting Standards (IFRS) and IFRS for Small and Medium-sized Entities (SMEs), but there is no official Kyrgyz translation.
  • The government has translated the 2015 IFRS for SMEs into Kyrgyz, which is currently being reviewed for adoption.

Kyrgyz Audit and Reporting Enhancement Project

The KAREP project aims to strengthen the accounting profession in Kyrgyz Republic by enhancing audit quality, promoting transparency, and improving financial reporting standards. The project provides technical assistance to the SSRSFM and supports the development of a national accounting framework.

Conclusion

The KAREP project demonstrates the commitment of the Kyrgyz Republic to strengthening its accounting standards and aligning with international best practices. As the country continues to implement these reforms, it is expected that the audit and reporting landscape will become more transparent and effective.