Central Asia Accounting Reform

Client: United States Agency for International Development

CARANA managed and implemented two seminal accounting reform projects in Central Asia. Under these projects, we introduced and disseminated new accounting standards and methodologies based on International Accounting Standards (IAS) in Kazakhstan and Kyrgyzstan, and created self-regulatory organizations of accounting and auditing professionals. Over the life of the project, CARANA converted more than 2,000 companies from the former Soviet-style statutory accounting to new national standards based on IAS. We trained over 8,000 local accountants, auditors, and finance specialists in IAS, financial accounting, managerial accounting, tax accounting, financial management, and conversion methodology. In addition, CARANA helped establish the first ever self-regulatory system of professional accountancy in Kazakhstan and Kyrgyzstan. We provided technical assistance to the Kazakhstan Chamber of Auditors to acquire legal status as an independent professional organization, with responsibility for promulgating accounting and auditing standards and practices. In Kyrgyzstan, CARANA supported the formation of the Union of Accountants and Auditors and the Association of Accounting and Audit Teachers.

In Uzbekistan CARANA promoted legal adoption of the new national accounting standards in accordance with IAS and promulgated these standards throughout the region. In all three countries, CARANA helped establish a solid regulatory and technical basis for implementing modern market-oriented financial accounting and auditing, including adoption of internationally compliant accounting standards, the modern chart of accounts, tax reconciliation forms, and accounting conversion methodologies. Direct technical assistance was provided for conversion of 1,400 enterprises in Kazakhstan, 1,000 enterprises in Kyrgyzstan, and over 400 enterprises in Uzbekistan to IAS. The centerpiece of the project has been a highly professional accountancy training and certification program that has won recognition of reputable international accounting organizations such as the International Federation of Accountants (IFAC). We have also assisted national accounting organizations in obtaining IFAC membership at the full or associate member levels.