Problems of creating and operating an accounting system in Kyrgyz Republic in accordance with the requirements of international financial reporting standards

The transition to International Financial Reporting Standards (IFRS) will enable Kyrgyz Republic to strengthen investor confidence by increasing transparency, comparability, understandability, and reliability of financial reporting and will maintain a steady trend of integration into the world economy. It is well known that accounting is a product of socio-economic conditions. Therefore, each country needs to have an accounting system compatible with the environment in which they are applied. For the information presented in an organisation's financial statements to be helpful to users of this reporting, it is clear that the reports must be comparable. Both shareholders and potential investors, along with other users of financial statements, study not just the financial condition, cash flows and financial results of the organisation in one specific period but also evaluate the general trends in changes in financial performance. For these trends to be assessed, an entity must consistently apply the same accounting principles and policies, and any deviation from them must be clearly described in the notes to the financial statements.