An accounting policy is mandatory for every company in Uzbekistan: the Law "On Accounting" directly obliges the director to ensure it is developed. It is an internal document, approved by an order of the director, that sets out how the company keeps its books: the working chart of accounts, forms of primary documents, inventory valuation and depreciation methods, stocktaking procedure and tax rules. The policy applies from 1 January, and 2026 brings a special context: from 1 January 2027 NSBU No. 1 ceases to apply, and the rules for choosing an accounting policy are set by the new standard NSFO No. 2 — the document must be revised before year-end.
Is an accounting policy mandatory?
Yes. Article 11 of the Law "On Accounting" makes the head of the reporting entity responsible for organising accounting and for developing the accounting policy and the internal accounting and reporting system. Under Article 21, internal control is also built on the adopted accounting policy. Under the current NSBU No. 1, the policy is approved by the director's order and applies from 1 January each year. A newly created company approves it in the first weeks after registration — it is needed for the first entries and the first reports (more in our article on LLC registration).
Lacking an accounting policy rarely leads to a separate fine on its own, but breaching accounting law makes officials liable under Article 175¹ of the Code of Administrative Liability — 3 to 7 BRV, and 7 to 10 BRV for a repeat breach within a year. More importantly, without a policy the company has nothing to justify its methods with during an audit.
Which standards apply in 2026 and 2027
| Document | What it governs | In force |
|---|---|---|
| Law "On Accounting" (ZRU-404 of 13.04.2016) | director's duties, reporting period, composition of statements | in force |
| NSBU No. 1 (Order No. 130 of 14.06.2024, reg. No. 3544) | presentation of financial statements and accounting policy | until 31 December 2026 |
| NSFO No. 1 (Order No. 392 of 23.07.2026, reg. No. 3923) | presentation and disclosure in financial statements | from 1 January 2027 |
| NSFO No. 2 (reg. No. 3810 of 11.04.2026) | accounting policy and accounting estimates | from 1 January 2027 |
| NSBU No. 21 (Order No. 191 of 14.11.2024) | chart of accounts | in force; replacement planned |
The NSFO standards are based on IFRS for SMEs and from 2027 apply to all legal entities except public-interest entities and budget organisations; public-interest entities apply full IFRS. National standards on inventories, fixed assets, revenue and leases are also due to be replaced, so the accounting policy will likely need updating more than once in 2027–2028.
What an accounting policy must contain
Accounting section
- who keeps the books: a chief accountant, an accounting department or an outsourcing firm under contract;
- accounting software and the form of registers;
- a working chart of accounts based on the standard one;
- forms of primary documents, the document-flow schedule and retention rules (accounting documents and registers are kept for at least 5 years);
- valuation methods for inventories, fixed assets and intangibles, depreciation methods and useful lives;
- how revenue and expenses are recognised and provisions are made;
- stocktaking procedure and timing;
- accounting estimates and judgements that materially affect the statements;
- the composition, deadlines and sign-off of financial statements.
Tax section
- the regime used: turnover tax, or VAT and profit tax (compared in "Turnover tax or VAT");
- how tax registers are kept and the differences between accounting and tax records;
- how input VAT is allocated if there are both taxable and exempt supplies;
- tax agent duties: PIT on salaries, tax on payments to self-employed persons, tax on non-residents' income;
- who is responsible for e-invoices, reconciling the tax account and filing returns.
Key choices and what they affect
| Issue | Options | What it affects |
|---|---|---|
| Inventory valuation on disposal | weighted average cost or FIFO | cost of sales and profit when purchase prices rise |
| Depreciation of fixed assets | method and useful lives | expenses by period, profit tax |
| Provisions | whether to provide for doubtful debts and how to measure it | reliability of receivables |
| Stocktaking | frequency beyond the mandatory annual count, committee members | detecting shortages, quality of balances |
| Document flow | paper or electronic, deadlines for passing documents to the accountant | timely bookkeeping and reporting |
The chosen method must be applied consistently: you cannot switch inventory valuation mid-year to get a better result.
When to change the accounting policy
- From 1 January of the next year — the standard approach; changes are approved by order before the year starts.
- When laws and standards change — above all, the move to NSFO from 1 January 2027.
- When the business changes materially: a new line of business, imports, manufacturing, moving from turnover tax to VAT.
NSFO No. 2 distinguishes three situations. Changes in accounting policy are applied retrospectively — as if the new method had always been used — with limits where that is impracticable. Changes in accounting estimates (for example, a useful life) are applied prospectively. Current-period errors are corrected before the statements are approved; prior-period errors are corrected retrospectively by restating comparatives.
Accounting policy template structure
- General provisions: basis, scope, who keeps the books.
- Organisation of accounting: software, working chart of accounts, primary documents, document flow, retention.
- Methods by item: fixed assets, intangibles, inventories, settlements, revenue and expenses, provisions.
- Accounting estimates and judgements.
- Stocktaking: timing, committee, how results are documented.
- Financial statements: composition, deadlines, sign-off.
- Tax section: regime, registers, VAT, tax agent duties.
- Appendices: working chart of accounts, document forms, document-flow schedule, order on the committee.
Common mistakes
- a downloaded template that was never adapted — it describes transactions the company does not have and omits those it does;
- the tax section was not updated after the 2026 changes;
- the policy was not approved by order or has not been reviewed for years;
- the methods in the document and in the accounting software do not match.
How WealthWise helps
We draft the accounting policy around the company's actual operations and update it when rules change — this is part of bookkeeping and accounting outsourcing (plans from UZS 3,890,000 per month). For a new company, our first-year checklist is also useful.
Frequently asked questions
Does a small company need an accounting policy?
Yes. The duty to ensure an accounting policy is developed rests with the head of any reporting entity, regardless of size or tax regime.
Does a sole proprietor need an accounting policy?
A sole proprietor does not keep accounts under national standards, so a full accounting policy is usually not needed. Internal rules for recording income, cash and documents are still useful.
What should be done with the accounting policy before 2027?
Compare it with NSFO No. 1 and NSFO No. 2, which take effect on 1 January 2027, update the sections on presentation, accounting estimates and error correction, and approve the new version by order before the year begins.
Can the accounting policy be changed mid-year?
As a rule, changes take effect from 1 January. During the year the policy is supplemented when new types of transactions appear that did not occur before.
National accounting standards in Uzbekistan are changing actively. This information is current as of publication; before approving an accounting policy, check the standards in force or consult a specialist.