Support in improving Accounting System in Turkmenistan

What is the project about

The number of privately owned enterprises and individual entrepreneurs in Turkmenistan has increased significantly in recent years. Recent government policies, including provision of subsidized credits and loans to businesses and tax incentives, have led to an increase in the number of legal entities registered in Turkmenistan, with construction and manufacturing showing more dynamism in new firm creation.

Turkmenistan adopted the Law «On Accounting and Financial Reporting” on November 27, 2010 with main tasks of regulation and the phased introduction of the national accounting and reporting system in line with market economy requirements and international standards. Also, in 2013 Turkmenistan adopted the State Program for Privatization of Enterprises and Objects of State Property in Turkmenistan for 2013-2016 outlining the government’s goals—with the primary intention of increasing the share of non-state sector in the economy (with the exception of hydro-carbons) to 70% by 2020.

Taking into account the growth rates of the private sector and the need for economic reforms, the goal of this project is to support the Ministry of Finance of Turkmenistan in improving the national accounting system in accordance with international standards under the UNDP program for Turkmenistan for 2016-2020.

Expected result and Project components

The understanding of private and state-owned commercial enterprises on the implementation of new National Financial Reporting Standards shall improve, and the quality of financial reports that meet international standards for main users such as the Ministry of Finance, the State Statistics Committee and the Tax Service of Turkmenistan will improve. The project will also help attract potential foreign investment in the business sector of Turkmenistan.

Component 1: Preparing methodologies for the new NFRS implementation, including the following:

Double-entry accounting guidelines;

Guidelines for preparation financial statements according to the NFRS for commercial enterprises;

Tax verification guidelines to link tax accounting and financial reporting.

Component 2: Providing recommendations for establishing the National Accountants Certification System.  

Who Finances it



 

Government Cost-sharing:

UNDP:

2017-2018

TMT 399 000 TMT 143 500
   

 

TOTAL:

TMT 542 500 ($155 000)   

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