Financial Reporting Purposes
Today, the International Financial Reporting Standards (IFRS) are the accepted standard throughout the entire world. In 2010 Turkmenistan has initiated a program for transitioning into the IFRS. Thus, based on International Financial Reporting Standards there were elaborated National Financial Reporting Standards, and starting in 2012 all of the banks in Turkmenistan have transferred their reporting methodology to IFRS. As well several government and big private companies adopted NFRS in 2013. And starting in 2014, all companies in Turkmenistan will also make the switch regardless of the form of ownership.
Positive factors involving the transition to IFRS:
Appraisals for NFRS 8 «Property, Plant and Equipment»
In a number of cases, the Standard requires an annual revaluation of the Company's assets to be conducted by an independent expert.
Appraisals for NFRS 9 "Intangible Assets"
This appraisal is done to provide a well-founded reflection of the company's intangible assets in compliance with NFRS requirements.
Appraisals for NFRS 10 "Investment Property"
The Standards require a revaluation of property intended for investment purposes.
Appraisals for NFRS 14 "Impairment of Assets"
This appraisal is done with the intent to determine the size of the impairment of an individual asset or the business prospects of the entire company in the every of an economic downturn.
Appraisals for NFRS 16 "Financial Instruments"
This appraisal is completed to provide a well-founded reflection of the company's financial assets in compliance with NFRS requirements.
Appraisals for NFRS 27 "Business Combinations"
The primary objective of doing an appraisal is to reflect the true value of a company’s acquisitions on the balance sheet of the company doing the acquisitioning. In order to achieve this, the tangible assets and obligations of the company being acquired, as well as its intangible assets are identified and appraised.
Appraisals for NFRS 28 "First-time adoption of National Financial Reporting Standards"
Appraisals are made with the intent of reflecting a fair value of the primary assets of a company that is for the first time reporting under NFRS standards to paint an adequate picture of the status of its property.