THE EFFECT OF MANDATORY IFRS ADOPTION ON EQUITY GROWTH OF UZBEK PUBLIC INTEREST ENTITIES (PIES)
DOI:
https://doi.org/10.5281/zenodo.22669436Abstract
This study examines the effect of mandatory International Financial Reporting Standards (IFRS) adoption on capital formation in Uzbekistan, with a particular focus on total equity growth among Public Interest Entities (PIEs). Using a panel dataset comprising 12 listed companies over the period 2017–2024, a fixed-effects regression model was employed to assess the transition from National Accounting Standards (NAS) to IFRS. The results indicate a statistically significant contraction in reported equity growth following mandatory IFRS adoption in 2021, which is interpreted as a “transparency correction” arising from stricter IFRS recognition and measurement requirements. IFRS adoption is associated with a 32.8% decrease in reported equity growth rates, while profitability, measured by return on equity (ROE), remains a highly significant positive determinant of equity growth. The findings suggest that IFRS adoption has contributed to improving the reliability and transparency of financial reporting in the Uzbek market by promoting more rigorous recognition and measurement practices compared with the pre-mandatory reporting period.Keywords
IFRS adoption, mandatory transition, equity growth, Public Interest Entities (PIEs), financial reporting quality, fixed-effects model, signaling theory, accounting reformReferences
Al-Refiay H. A., N., Al-Shaikh S. S., K., & Abdulhussein A., S. (2023). The International Financial Reporting Standards (IFRS) adoption and value relevance. Corporate & Business Strategy Review, 4(1), 69–86. https://doi.org/10.22495/cbsrv4i1art7
Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting and Business Research, 36, 5–27. https://doi.org/10.1080/00014788.2006.9730040
Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of Accounting Research, 46(5), 1085–1142. https://doi.org/10.1111/j.1475-679X.2008.00306.x
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2), 275–326. https://doi.org/10.1016/j.jacceco.2014.09.002
Khasanova, N. (2026). Improvements to the Statement of Comprehensive Income. International Journal of Social Science & Interdisciplinary Research (IJSSIR), 15(1), 1–5.
Jensen M., C., & Meckling W., H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Leuz, C., & Verrecchia R., E. (2000). The economic consequences of increased disclosure. Journal of Accounting Research, 38, 91–124. https://doi.org/10.2307/2672910
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010
Turgunovna, S., & Abrorovna, M. (2022). IFRS as a universal language for financial reporting in Uzbekistan. Eurasian Journal of Learning and Academic Teaching, 9, 41–44.
Republic of Uzbekistan. Resolution of the President of the Republic of Uzbekistan No. PQ-4611 dated February 24, 2020, “On Additional Measures for the Transition to International Financial Reporting Standards”. (2020). National Database of Legislation of the Republic of Uzbekistan.
Republic of Uzbekistan. Decree of the President of the Republic of Uzbekistan No. PF-60 dated January 28, 2022, “On the Development Strategy of New Uzbekistan for 2022–2026”. (2022). National Database of Legislation of the Republic of Uzbekistan.
Republic of Uzbekistan. Resolution of the President of the Republic of Uzbekistan No. PQ-282 dated September 15, 2025, “On Measures to Improve the Financial Accounting System in Accordance with International Requirements and Standards”. (2025). National Database of Legislation of the Republic of Uzbekistan.
Ministry of Economy and Finance of the Republic of Uzbekistan; Central Bank of the Republic of Uzbekistan. Regulation on the Criteria for Classification as Public Interest Entities, Requirements for Their Financial Statements and Audit, and the Procedure for Forming and Maintaining the Register of Public Interest Entities: Joint Resolution No. 311 of the Ministry of Economy and Finance and No. 34/7 of the Board of the Central Bank dated December 16, 2025. Registered by the Ministry of Justice of the Republic of Uzbekistan on December 27, 2025, Registration No. 3736. — [Electronic resource]. Available at: LexUZ — Regulation No. 3736 (official PDF) (accessed: 05.09.2026).
Bazarov, D. G. (2026). CONCEPTUAL FOUNDATIONS FOR ENSURING THE FUNCTIONAL INTEGRATION OF OPERATIONAL AND STRATEGIC MANAGEMENT IN SMALL BUSINESS ENTITIES. ECONOSCITECH INTEGRATION, 3(8), 595–602. https://doi.org/10.5281/zenodo.22664709
Olimjanova, S. (2026). REDUCING FOOD LOSS AND WASTE IN UZBEKISTAN: CHALLENGES AND POLICY SOLUTIONS. ECONOSCITECH INTEGRATION, 3(8), 462–469. https://doi.org/10.5281/zenodo.22123870
Djumaniyazova, J. (2026). IMPROVEMENT OF PERSONAL MANAGEMENT IN TEXTILE INDUSTRY ENTERPRISES BASED ON CHOICE OF ORGANIZATION MODELS. ECONOSCITECH INTEGRATION, 3(8), 88–92. https://doi.org/10.5281/zenodo.21853140
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 ECONOSCITECH INTEGRATION
This work is licensed under a Creative Commons Attribution 4.0 International License.