Why is this important
Defining the scope of public interest organizations directly impacts economic transparency and the quality of corporate reporting. Such organizations have significant socioeconomic impact, and the requirements for their financial reporting and auditing foster trust among the government, investors, and society. Establishing clear criteria and maintaining a public registry help standardize the regulatory approach and reduce legal uncertainty.
What happened
- The Ministry of Justice of Uzbekistan approved the resolution “On approval of the Regulation on the criteria for inclusion in the category of organizations representing the public interest, requirements for their financial reporting and audit, as well as the procedure for forming and maintaining the Register of Organizations Representing the Public Interest”.
- The document establishes the criteria for classifying organizations into this category and clarifies the requirements for their financial reporting and audit, including the application of International Financial Reporting Standards.
- The Resolution also establishes the procedure for the formation and maintenance of the Register of Organizations of Public Interest, as well as the list of organizations to be included in it.
Numbers and facts
- Organizations of public importance include companies whose shares are admitted to public trading, as well as commercial banks, microfinance banks, microfinance and factoring organizations, organizations refinancing mortgages and providing guarantees, payment system operators and payment organizations.
- The list includes investment funds and exchanges.
- The criteria apply to enterprises with state participation if the book value of their assets exceeds 1 million times the BCV, and the total annual net income from the sale of products, goods and services and income in the form of dividends also exceeds 1 million times the BRV.
- Over the past two years, the category includes organizations with a book value of assets equal to or greater than 1 million times the BCV, annual net income equal to or greater than 1 million times the BCV, or an average annual number of employees of at least 500 people.
- Organizations that meet the established criteria are subject to inclusion in a special register.
Context
- The approved regulation establishes a unified list of organizations for which increased requirements for financial reporting and auditing are established.
- For businesses, this means a clear understanding of whether a company falls under the category of socially significant and what obligations follow from this.
- For the state, it is a tool for systematic control over the financial transparency of large and socially significant market participants.
