Uzbekistan Identifies 425 Public Interest Companies, Mandates IFRS Adoption

Uzbekistan has identified 425 organizations as public interest entities (PIEs), according to a newly published register by the Ministry of Economy and Finance. This designation applies to companies listed on the stock market, financial institutions like banks and investment funds, and large enterprises that meet stringent financial and employment thresholds.

To qualify as a PIE, organizations must have simultaneously held assets and generated annual net revenue of at least 1 million basic calculation units (approximately $34 million) and employed a minimum of 500 people over the past two calendar years. The register includes various categories: 96 companies listed or admitted to public trading, 226 financial organizations, 14 investment funds and exchanges, 44 state-affiliated enterprises, and 132 large private organizations meeting the size criteria.

A significant requirement for these PIEs is the mandatory adoption of International Financial Reporting Standards (IFRS) for their accounting practices starting January 1, 2027. By the end of 2028, they will be obligated to prepare and publish IFRS financial statements along with auditor reports, unless legislation dictates earlier deadlines. This move is intended to significantly improve the transparency and quality of financial reporting and auditing in the country.

The Ministry stated that the creation of this register aims to ensure more effective oversight of entities impacting societal and investor interests, thereby fostering better corporate governance. Notable companies included are Anglesey Food (Korzinka), Uzum, Click, Paynet, Artel Electronics, Akfa Building Materials, Coca-Cola Ichimligi Uzbekistan, and Pepsi. However, financier Otabek Bakirov pointed out that some significant entities, such as Yandex, Wildberries, and Eriell, remain absent from the list despite their substantial operations.

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The creation of the register should improve the transparency and quality of financial reporting and auditing, ensure more effective monitoring of the activities of organizations affecting the interests of society and investors, and promote the development of corporate governance.