Today, the International Financial Reporting Standards (IFRS) are the accepted standards in most countries throughout the 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. Thereafter in 2014, all companies of Turkmenistan regardless of the form of ownership transferred to NFRS. Then, after five years of practice and adoption of NFRS elaborated on the basis of IFRS, Turkmenistan was a first of CIS countries who moved forward with a total transfer in to IFRS starting in 2019.
Positive factors involving the transition to IFRS:
• First, thanks to IFRS we can attract long-term lending;
• Second, investors will have access to high quality information when making investment decisions, and the same is true for company management when making management decisions.
• Third, IFRS enables Turkmen companies to speak a common language when dealing with their foreign counterparts.
Appraisals for IAS 16 «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 IAS 38 "Intangible Assets"
This appraisal is done to provide a well-founded reflection of the company's intangible assets in compliance with financial reporting requirements.
Appraisals for IAS 40 "Investment Property"
The Standards require a revaluation of property intended for investment purposes.
Appraisals for IAS 36 "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 IFRS 9 "Financial Instruments"
This appraisal is completed to provide a well-founded reflection of the company's financial assets in compliance with financial reporting requirements.
Appraisals for IFRS 3 "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 IFRS 1 "First-time adoption of International 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 IFRS standards to reflect an adequate picture of the status of its property.