On Accounting and Financial Reporting

The Law of the Republic of Kazakhstan dated 28 February, 2007 No.234

      This Law regulates the system of accounting and financial reporting in the Republic of Kazakhstan, establishes the principles, basic qualitative characteristics and rules of maintenance of accounting and preparation of financial reporting.

Chapter 1. GENERAL PROVISIONS

Article 1. Basic concepts used in this Law

      The following basic concepts shall be used for the purposes of this Law:
      1) accreditation – recognition by the authorized body of powers of professional organizations of accountants and organizations on professional certification of accountants, provided by this Law, approved by the certificate on the form, approved by the Government of the Republic of Kazakhstan;
      2) primary accounting documents (hereinafter – primary documents) - documentary witness both on paper, and on electronic media of the fact of commission of transaction or events and rights on its commission, on the basis of which the accounting is maintained;
      3) accredited organization on professional certification of accountants (hereinafter – organization on certification) – a legal entity, carrying out certification of candidates for the professional accountants, accredited in the manner, established by the Government of the Republic of Kazakhstan;
      4) accredited professional organization of accountants (hereinafter – professional organization) – noncommercial organization, which is association of accountants and (or) accounting organizations, accredited in the manner established by the Government of the Republic of Kazakhstan;
      5) accounting registers – form for generalization, systematization and accumulation of information, contained in the primary documents, accepted for accounting, for its recognition in the system of accounting and financial reporting;
      6) accounting organization – organization, providing the services in the scope of accounting, being a member of professional organization;
      7) organization of public interests – financial organization (except for the legal entities, an exclusive type of activity of which is organization of exchange operations with foreign currency), joint stock companies (except for the noncommercial), organization - subsoil user ( except for the organizations, producing common useful minerals) and organization, in the authorized capitals of which is a participation share of the state, as well as the state enterprises, based on the right of economic management;
      8) professional accountant – a legal entity, having certificate of professional accountant, being a member of professional organization;
      9) certificate of professional accountant (hereinafter – a certificate) – a document, issued by organization on certification, certifying professional qualification of accountant;
      10) depository of financial reporting (hereinafter - depository) - electronic database, contained an annual financial reporting and audit reports, annually submitted by organizations, as well as information on corporate events of joint stock companies, with the open access for users;
      11) standards of financial reporting – a document, establishing principles and methods of maintenance of accounting and preparation of financial reporting;
      12) national standards of financial reporting (hereinafter – national standards) – standards of financial reporting, approved by the authorized body;
      13) international standards of financial reporting (hereinafter – international standards) and international standards of financial reporting for organization of small and medium business (hereinafter – international standards for small and medium business) – standards of financial reporting, approved by the Council on international standards of financial reporting;
      14) an authorized body – central state body, carrying out regulation of activity in the scope of accounting and financial reporting.
      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication).

Article 2. The scope of this Law

      1. Effect of this Law shall be distributed to:
      individual entrepreneurs;
      legal entities, branches, representatives and permanent institutions of foreign legal entities, registered in the territory of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan (hereinafter – organization).
      2. Individual entrepreneurs shall have a right not to carry out maintenance of accounting (except for the preparation and storage of primary documents) and preparation of financial reporting upon correspondence at the same time to the following conditions:
      1) apply the tax regimes on the basis of patent, summary declaration in accordance with the tax legislation of the Republic of Kazakhstan;
      2) do not be registered on the value added tax;
      3) do not be the subjects of natural monopolies and regulated markets.
      Upon inconsistency to the one of conditions, specified in this paragraph, individual entrepreneur shall be obliged to carry out maintenance of accounting and preparation of financial reporting from the month following the month in which there was such inconsistency.
      Individual entrepreneur conforming to the conditions, specified in this paragraph, and make its own decision on maintenance of accounting and financial reporting shall have a right to carry out maintenance of such accounting from the month following the month, in which such decision was adopted.
      3. Subjects of small business, as well as legal entities, an exclusive type of activity of which is organization of exchange operations with foreign currency shall carry out preparation of financial reporting in accordance with the national standard, unless otherwise provided by this Article.
      3-1. Subjects of medium business, as well as the state enterprises, based on the right of operative management (public enterprise) shall prepare financial reporting in accordance with international standards for small and medium business, unless otherwise provided by this Article.
      4. Subjects of large business and organization of public interests shall be obliged to prepare financial reporting in accordance with international standards.
      5. By the decision of governing bodies, approved accounting policy:
      1) organizations, specified in paragraph 3 of this Article shall have a right to prepare financial reporting in accordance with international standards or international standards for small and medium business;
      2) organizations, specified in paragraph 3-1 of this Article shall have a right to prepare financial reporting in accordance with international standards.
      Footnote. Article 2 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 101-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013).

Article 3. The legislation of the Republic of Kazakhstan on
accounting and financial reporting

      1. The legislation of the Republic of Kazakhstan on accounting and financial reporting shall be based on the Constitution of the Republic of Kazakhstan and consist of this Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. If by the international treaty, ratified by the Republic of Kazakhstan, made other rules than those that contained in this Law, the rules of the international treaty shall be applied.

Chapter 2. SYSTEM OF ACCOUNTING AND FINANCIAL REPORTING

Article 4. Purpose of accounting and financial reporting

      The purpose of accounting and financial reporting shall be ensuring of interested persons by complete and reliable information on financial position, results of activity and changes in the financial position of individual entrepreneurs and organizations.

Article 5. Principles and basic qualitative characteristics
of accounting and financial reporting

      1. Principles of maintenance of accounting and preparation of financial reporting shall be accrual and continuity.
      2. Basic qualitative characteristics of financial reporting shall be understandability, relevance, reliability and comparability.

Article 6. System of accounting

      1. Accounting shall represent an ordered system of collection, registration and generalization of information on transactions and events of individual entrepreneurs and organizations, regulated by the legislation of the Republic of Kazakhstan on accounting and financial reporting, as well as accounting policy.
      2. Accounting policy shall represent specific principles, bases, regulations, rules and practices, accepted for application by individual entrepreneur or organization for maintenance of accounting and preparation of financial reporting in accordance with requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, international or national standards, international standards for small and medium business and model chart of accounts of accounting, based on their needs and features of activity.
      3. Transactions and events are recorded in the system of accounting, upon that shall be ensured:
      1) adequate reinforcements accounting records by original primary documents and recognition in the accounting records of all transactions and events;
      2) chronological and timely registration of transactions and events;
      3) bringing to conformity of synthetic (final) accounting with analytical (detailed).
      4. Transactions and events shall be recorded on the synthetic accounts by method of double record on the basis of model chart of accounts accounting of organizations, conforming to the requirements, established by the authorized body and (or) National Bank of the Republic of Kazakhstan.
      Procedure of maintenance of analytical accounting of transactions and events shall be established by individual entrepreneur or civil servants of legal entity (hereinafter – management), which in accordance with the legislative acts of the Republic of Kazakhstan and constitutive documents carry out current management and conducting of cases, based on the needs of the individual entrepreneur or organization.
      5. Individual entrepreneurs and organizations shall ensure maintenance of accounting and preparation of financial reporting on the State and (or) Russian languages.
      Footnote. Article 6 as amended by the Laws of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013).

Article 7. Accounting documentation

      Note of RCLI!
      Until 1 January, 2013 throughout the text of Article 7 of the Law of the Republic of Kazakhstan “On accounting and financial reporting” the words “identification number” shall consider as the words “registration number of taxpayer” in accordance with the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      1. Accounting documentation shall include primary documents, registers of accounting, financial reporting and accounting policy.
      Accounting records shall be made on the basis of primary documents.
      2. Forms and requirements to primary documents, applied for execution of transactions or events shall be approved by the authorized body and (or) National Bank of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan.
      3. Individual entrepreneurs and organizations shall develop primary documents both on the paper, and on electronic media, the forms or requirements of which are not approved in accordance with paragraph 2 of this Article, or apply the forms or requirements, approved in accordance with the legislation of the Republic of Kazakhstan independently, which shall contain the following compulsory requisites:
      1) the name of document (form);
      2) the date of preparation;
      3) the name of organization or surname and initials of individual entrepreneur, on behalf of which a document is prepared;
      4) content of transaction or event;
      5) unit of measurement of transaction or event (in quantity and value terms);
      6) the name of posts, surnames, initials and signs of persons, responsible for commission of transaction (approval of event) and correctness of its execution;
      7) identification number.
      3-1. Depending on the nature of transaction or event, requirements of regulatory legal acts of the Republic of Kazakhstan and method of processing of accounting information, if it does not contradict to the legislation of the Republic of Kazakhstan, additional requisites may be included to the primary documents.
      4. Primary documents shall be prepared at the moment of commission of transaction or event or immediately after their termination.
      5. Information contained in the primary documents received for accounting shall be collected and systematized in the accounting registers.
      Data of accounting registers in the grouped type shall be transferred to the financial reporting.
      6. Upon preparation of primary documents and registers of accounting on electronic media, individual entrepreneurs and organizations shall make copies of such documents on paper for other participants of transactions, and well as at the request of the state bodies, to which such right in action is provided in accordance with the legislation of the Republic of Kazakhstan.
      7. Corrective action in the cash and bank primary documents shall not be allowed. In other primary documents corrections may be made only by coordination with participants of transactions, that shall be approved by the signatures of the same persons, which are signed the documents with specification of the date of making corrections.
      Footnote. Article 7 as amended by the Laws of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication).

Article 8. Organization of accounting

      1. Management or individual entrepreneur shall:
      1) coordinate and (or) approve accounting policy;
      2) ensure organization of accounting, as well as existence of approved internal documents, regulating procedure of recognition in the accounting of all committed transactions of organization.
      2. Management or individual entrepreneur depending on the amount of accounting work may:
      1) establish an accounting service as structural subdivision, headed by the chief accountant;
      2) introduce position of chief accountant in the staff;
      3) transfer maintenance of accounting and preparation of financial reporting of accounting or audit organization or professional accountant on the contract basis;
      4) maintain accounting personally.
      Effect of subparagraphs 1), 2), 3) and 4) of this paragraph shall not be distributed on the Bulletin of the National Bank of the Republic of Kazakhstan.
      Effect of subparagraphs 3) and 4) of this paragraph shall not be distributed on the organization of public interests.
      Organization – a member of foreign institute, being a member of International Federation of Accountants shall be equated to the accounting organization.
      Footnote. Article 8 as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 9. The head of the accounting service

      The head of the accounting service (hereinafter – chief accountant) shall be the chief accountant or other civil servant, ensuring maintenance of accounting, preparation and presentation of financial reporting, formation of accounting policy.
      Professional accountant shall be assigned to position of chief accountant of organization of public interest.

Article 10. The right to sign the accounting documents

      1. Management or individual entrepreneur shall determine persons, having the right to sign the accounting documents. Upon that hierarchy of the right to sign may be established depending on position held, sums of money, scope and nature of transaction.
      2. Individual entrepreneurs or organizations, using electronic signatures shall establish appropriate measures of precautionary and control, concerning the rights of the use and access to the electronic signatures in accordance with the legislation of the Republic of Kazakhstan.

Article 11. Storage of accounting documentation

      Individual entrepreneurs shall be obliged to store the primary documents, registers of accounting on paper and (or) electronic media, financial reporting, accounting policy, programs of electronic processing of accounting data during period established by the legislation of the Republic of Kazakhstan.

Article 12. The secret of accounting information

      1. The content of primary documents and registers of accounting shall be information, consisting trade secret, an access of which is provided only to the persons, which have permission of management or individual entrepreneur, as well as civil servants of the state bodies in accordance with the Laws of the Republic of Kazakhstan.
      2. Persons having an access to the specified documents shall be obliged not to disclose information contained in them without the consent of their owner and do not have a right to use it in the personal interests. Persons having an access to information, consisting trade secret shall bear responsibility for its disclosure in accordance with the Laws of the Republic of Kazakhstan.

Chapter 3. FINANCIAL REPORTING

Article 13. Elements of financial reporting

      1. Elements of financial reporting related with assessment of financial position shall be assets, liabilities and capital.
      Assets – resources, controlled by individual entrepreneur or organization in the results of past events, from which reception of future economic benefits is expected.
      Liability – existing obligation of individual entrepreneur or organization, arising from past events, regulation of which will led to retirement of resources, contained economic benefits.
      Capital – a share in the assets of individual entrepreneur or organization, remaining after deduction of all liabilities.
      2. The elements directly related with measurement of results of activity in the profit and loss report shall be incomes and expenditures.
      Incomes – increase of economic benefits during accounting period in the form of inflow or increase of assets or reduction of liabilities, which lead to capital increase, other than increasing related with contributions of persons, participating in the capital.
      Expenditures – reduction of economic benefits during accounting period in the form of outflow or reduction of assets or occurrence of liabilities, which lead to the capital reduction, other than increasing related with distribution to the persons, participating in the capital.

Article 14. Assessment and accounting of elements
of financial reporting

      1. Assessment of elements of financial reporting – determination of sums of money, on which these elements shall be recognized and recorded in the accounting and financial reporting. Methods and procedure of application of assessments shall be established in accordance with international standards, international standards for small and medium business and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      2. Methods of accounting and procedure of recognition of elements of accounting shall be established in accordance with international standards, international standards for small and medium business and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      Footnote. Article 14 as amended by the Law of the Republic of Kazakhstan dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013).

Article 15. Financial reporting

      1. Financial reporting shall represent information on financial position, results of activity and changes in the financial position of individual entrepreneur or organization.
      2. Financial reporting, except for the accounting of the state institutions shall include:
      1) accounting balance;
      2) profit-and-loss report;
      3) statement of cash receipts and disbursements;
      4) statement on changes in the capital;
      5) explanatory note.
      Procedure of preparation of financial reporting and additional requirements for it shall be established in accordance with international standards, international standard for small and medium business and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      3. Amount, forms and procedure of preparation of financial reporting of the state institutions, except for the National Bank of the Republic of Kazakhstan shall be established by the budget legislation of the Republic of Kazakhstan.
      4. Financial reporting shall be signed by the management and the chief accountant of organization, individual entrepreneur.
      Financial reporting of organization, in which accounting is maintained by the accounting organization or professional accountant, as well as the head of accounting organization or professional accountant.
      Financial reporting of organization of public interest shall be signed by the management and chief accountant, being professional accountant.
      Footnote. Article 15 as amended by the Laws of the Republic of Kazakhstan dated 04.12.2008 No. 97-IV (shall be enforced from 01.01.2013); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013).

Article 16. International standards of financial reporting

      Preparation of financial reporting shall be carried out by organizations in accordance with international standards and international standards for small and medium business, published in the Kazakh and Russian languages of organization, having written permission on their official translation and (or) publication in the Republic of Kazakhstan from the Fund of international standards of financial reporting.
      Footnote. Article 16 is in the wording of the Law of the Republic of Kazakhstan dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013).

Article 17. Consolidated financial reporting

      Organizations having subsidiary organizations, except for the financial reporting on activity of basic organization shall be obliged to prepare and present consolidated financial reporting in accordance with requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting

Article 18. Accounting period

      1. Accounting period for the annual financial reporting shall be calendar year from 1 January to 31 December.
      2. First accounting year for the new created organization shall be begun from the date of its state registration to 31 December of the same years.

Article 19. Presentation of financial reporting

      1. Organization shall present financial reporting to:
      1) incorporators (participants) in accordance with constituent documents;
      2) authorized body in the field of the state statistics on place of the state registration;
      3) bodies of the state control and supervision of the Republic of Kazakhstan in accordance with their competence.
      2. Financial reporting shall be presented in national currency of the Republic of Kazakhstan.
      3. Organizations (except for the financial organizations, microfinance organizations, special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, and Islamic special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on security market) shall present annual financial reports not later than 30 April of the year following the accounting year.
      3-1. Financial organizations, microfinance organizations, special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, and Islamic special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on security market shall present financial reports in the terms established by the National Bank of the Republic of Kazakhstan.
      4. Within the terms, specified in Article 18, incorporators (participants) shall have a right to determine the terms of presentation of interim financial reporting and establish other periodicity, but at least once a year.
      5. Presentation of consolidated financial reporting shall be conducted in accordance with paragraphs 1, 2, 3 and 3-1 of this Article.
      6. Financial organizations, special financial companies, Islamic special financial companies, the state enterprises and legal entities, fifty and more percent of shares (share of participation in the authorized capital) or controlling block of shares of which belong to the National Bank of the Republic of Kazakhstan shall publish financial reporting in the manner established by the Laws of the Republic of Kazakhstan.
      7. Depository for organization of public interest, which is obliged to present financial reporting in it in the manner established by the Government of the Republic of Kazakhstan shall be created by the decision of the Government of the Republic of Kazakhstan.
      Footnote. Article 19 as amended by the Laws of the Republic of Kazakhstan dated 19.03.2010 No. 258-IV; dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.11.2012 No. 57-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication).

CHAPTER 4. REGULATION OF SYSTEM OF ACCOUNTING AND FINANCIAL REPORTING

Article 20. The state regulation of the system of accounting and financial reporting

      1. The state regulation of the system of accounting and financial reporting in the Republic of Kazakhstan shall be created by the President of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan and authorized body.
      1-1. The Government of the Republic of Kazakhstan shall:
      1) Is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V(shall be enforced upon expiry of ten calendar days after its first official publication);
      2) approve procedure of presentation of financial reporting in the depositary;
      3) Is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V(shall be enforced upon expiry of ten calendar days after its first official publication);
      3-1) Is excluded by the Law of the Republic of Kazakhstan dated 29.12.2014 No. 269-V (shall be enforced from 01.01.2015);
      3-2) Is excluded by the Law of the Republic of Kazakhstan dated 29.12.2014 No. 269-V (shall be enforced from 01.01.2015);
      4) exercise other functions, imposed on it by the Constitution, the Laws of the Republic of Kazakhstan and acts of the President of the Government of the Republic of Kazakhstan.
      2. The state regulation of the system of accounting and financial reporting in the state institutions, except for the National Bank of the Republic of Kazakhstan shall be established by the legislation of the Republic of Kazakhstan.
      3. The state regulation of the system of accounting and financial reporting in the National Bank of the Republic of Kazakhstan and its departments shall be carried out by the Board of directors (Directorate) of the National Bank of the Republic of Kazakhstan.
      4. The state regulation of the system of accounting and financial reporting in the financial organizations, microfinance organizations, special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, Islamic special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on the security market, investment funds and Development Bank of Kazakhstan shall be carried out by the National Bank of the Republic of Kazakhstan by adoption of regulatory legal acts and guidelines for them.
      5. An authorized body shall:
      1) ensure formation and implementation of the state policy in the field of accounting and financial reporting;
      2) develop and approve procedure of maintenance of accounting;
      3) adopt regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting;
      4) develop and approve the national standards and guidelines to them;
      5) ensure introduction of relevant changes to the legislation of the Republic of Kazakhstan in recognition of suggestions of consultative body in the case of existence of contradictions of the legislation of the Republic of Kazakhstan on issues of accounting and financial reporting to the requirements of international standards, international standards for small and medium business;
      6) develop and approve the model chart of accounts of accounting;
      7) publish the national standards in the periodic printed publications in the manner established by the legislation of the Republic of Kazakhstan;
      8) Is excluded by the Law of the Republic of Kazakhstan dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      9) consider suggestions of consultative body on development of projects of regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting;
      10) conduct accreditation of professional organizations, organizations on certification;
      11) develop and approve the rules of accreditation of professional organizations, organizations on certification;
      11-1) approve the rules of conducting of certification of candidates for the professional accountants;
      12) approve qualifying requirements, presented to the professional accountants, in recognition of recommendations of consultative body;
      12-1) approve the rules of raising of qualification of professional accountants;
      13) give prevention to the professional organizations, organizations on certification in the case of facts of non-observance of rules of accreditation;
      14) adopt decision on withdrawal of certification on accreditation of professional organization, organization on certification;
      15) develop and approve the list, forms and periodicity of presentation of reporting by the professional organizations, organizations on certification;
      16) publish the list of professional organizations, organizations on certification in the periodic printed publications, distributed throughout the territory of the Republic of Kazakhstan, received the right of official publication of regulatory legal acts in the established procedure, in the state and Russian languages;
      17) approve provision on consultative body;
      18) develop procedure on presentation of financial reporting in the depository;
      18-1) develop and approve the list and forms of annual financial reporting for publication by the organizations of public interests (except for the financial organizations);
      19) coordinate the form of certificate;
      20) carry out the state control in the field of accounting and financial reporting and for activity of professional organizations and organizations on certification;
      21) Is excluded by the Law of the Republic of Kazakhstan dated 29.12.2014 No. 269-V (shall be enforced from 01.01.2015);
      22) exercise other powers, provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
      6. National Bank of the Republic of Kazakhstan:
      1) for financial organizations and microfinance organizations shall:
      develop and approve the standards of financial reporting on issues, not regulated by the international standards, as well as guidelines to them in coordination with the authorized body;
      develop and approve the regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting, as well as the model charts of accounts of accounting in accordance with requirements of this Law;
      2) for the state enterprises and legal entities, fifty and more percent of shares (share of participation in the authorized capital) or controlling block of shares of which belong to the National Bank of the Republic of Kazakhstan shall:
      establish the lists and forms, relevant to the international standards of financial reporting, as well as terms and procedure of presentation of financial reporting;
      approve the regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting, as well as the model charts of accounts of accounting in accordance with requirements of this Law;
      3) for the special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization shall:
      develop and approve the regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting, as well as the model charts of accounts of accounting in accordance with requirements of this Law;
      3-1) for the Islamic special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on the security market shall develop and approve the regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting as well as the model charts of accounts of accounting in accordance with requirements of this Law;
      3-2) for the investment fund and Development Bank of the Republic of Kazakhstan shall develop and approve the regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting as well as the model charts of accounts of accounting in accordance with requirements of this Law;
      4) carry out control of observance of requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting and international standards by the financial organizations, microfinance organizations, special financial companies, Islamic special financial companies, investment funds and Development Bank of the Republic of Kazakhstan.
      5) exercise other functions, provided by this Law, other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
      Footnote. Article 20 as amended by the Laws of the Republic of Kazakhstan dated 04.12.2008 No. 97-IV (shall be enforced from 01.01.2013); dated 17.07.2009 No. 188 (the order of enforcement see Article 2); dated 19.03.2010 No. 258-IV; dated 06.01.2011No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.07.2012 No. 36-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.11.2012 No. 57-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013); dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication); dated 29.09.2014 No. 239-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.12.2014 No. 269-V (shall be enforced from 01.01.2015).
      See the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2).

Article 20-1. The state control in the field of accounting and financial reporting

      1. The state control in the field of accounting and financial reporting shall be carried out in the form of verification and other forms.
      2. Verification shall be carried out in accordance with the Law of the Republic of Kazakhstan “On the state control and supervision in the Republic of Kazakhstan” and other Laws of the Republic of Kazakhstan. Other forms of the state control shall be carried out in accordance with this Law and other Laws of the Republic of Kazakhstan.
      Footnote. Article 20-1 is in the wording of the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188 (the order of enforcement see Article 2); as amended by the Laws of the Republic of Kazakhstan dated 06.01.2011 No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 21. Non-state regulation of the system of accounting
and financial reporting

      1. Consultative body shall be created in the form of consultative-advisory body, the composition of which is approved by the authorized body in coordination with the National Bank of the Republic of Kazakhstan and operates on the basis of provision on it.
      2. The composition of consultative body shall include the state bodies, non-commercial organizations, subjects of private enterprise, and organizations with the share of participation of the state, state enterprises.
      3. Consultative body shall have a right to:
      1) submit proposals on improvement of the legislation of the Republic of Kazakhstan on issues of accounting and financial reporting to the authorized body;
      2) submit proposals on revision and development of guidelines on application of standards of financial reporting to the authorized body;
      3) participate in development of the national standards and guidelines to them;
      4) carry out interaction with international organizations in the field of accounting and financial reporting.
      4. Consultative body shall be obliged to:
      1) carry out analysis on existence of contradictions of the legislation of the Republic of Kazakhstan on accounting and financial reporting to the requirements of international standards, international standards for small and medium business and submit relevant suggestions to the authorized body;
      2) participate in development of regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting.
      5. Professional organization shall comply with the following permitting requirements:
      1) presence in the composition of professional organization at least three hundred professional accountants;
      2) existence of the Code of ethics of professional accountants, relevant to the international practice and being the compulsory for all members, approved in accordance with the charter of organization;
      3) existence of the system of raising of qualification of their members;
      4) compliance with the rules of accreditation.
      6. Structure and working bodies of professional organization shall be determined by its charter and shall comply with the rules of accreditation.
      7. The head of professional organization shall be elected for the term not more than four years and may not be re-elected for two consecutive terms.
      8. Professional organization shall have a right to:
      1) carry out functions in relation of its members, provided by its charter and not contradicted to this Law;
      2) participate in development of national standards and guidelines to them;
      3) participate in development of regulatory legal acts of the Republic of Kazakhstan on issues of accounting and financial reporting;
      4) analyze, generalize and distribute the positive experience in the scope of accounting and financial reporting;
      5) participate in consideration of materials on accreditation of organizations on certification.
      9. Professional organization shall be obliged to:
      1) observe the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      2) delegate the members of professional organization to the composition of consultative body in the amount, established by the rules of accreditation and ensure their full work;
      3) present reporting on their activity in the procedure established by them, to the authorized body;
      4) consider requests on application of international and national standards;
      5) conclude agreements on interaction with one or several organizations on certification;
      6) require observation of the Law of the Republic of Kazakhstan “On counteraction of legalization (laundering) of incomes, received by illegal means and financing of terrorism” by the accounting organizations and professional accountants, carrying out entrepreneurial activity in the scope of accounting, being its members;
      7) inform the authorized body on financial monitoring on details on violation of the Law of the Republic of Kazakhstan “On counteraction of legalization (laundering) of incomes, received by illegal means and financing of terrorism” by the accounting organizations and professional accountants, carrying out entrepreneurial activity in the scope of accounting, being its members.
      10. Organization on certification shall be obliged to:
      1) observe the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      2) present reporting on its activity in the established procedure to the authorized body;
      3) provide information on measures taken on complete elimination of violations and disadvantages.
      Footnote. Article 21 as amended by the Laws of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication); dated 10.06.2014 No. 206-V (shall be enforced upon expiry of six months after its first official publication).

Article 22. Conditions of certification of candidates for
the professional accountants

      1. Certification of candidates for the professional accountants shall be carried out by the organization on certification.
      2. Organization on certification shall carry out development, publication and distribution of materials on programs of certification of candidates for the professional accountants, organize examination process.
      3. Organization on certification shall comply with the following permitting requirements:
      1) existence of examination system not dependent on education;
      2) existence of exam modules, including review of the legislation of the Republic of Kazakhstan on accounting and financial reporting, system of their updating;
      3) existence of agreement on interaction with one or several professional organizations;
      4) compliance with the rules of accreditation, approved by the authorized body.
      Compliance with requirement on existence of agreement on interaction with one or several professional organizations is compulsory upon expiry of six months from the date of issuance of certificate on accreditation.
      4. An access of candidates for the professional accountants to participation in exams for reception of certificate shall be carried out in accordance with the qualifying requirements, presented to the professional accountants.
      5. Persons passed the exams shall receive certificate of united sample on the form, coordinated with the authorized body. Term of validity is not limited.
      Footnote. Article 22 as amended by the Laws of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication); dated 29.09.2014 No. 239-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 23. Withdrawal of certification on accreditation

      1. An authorized body shall make decision on withdrawal of certification on accreditation of professional organization, organization on certification in the case, if:
      1) during the term, established by the rules of accreditation, professional organization did not delegated their representatives in the composition of consultative body;
      2) systematically (more than three times) during last three years violated the rules of accreditation;
      3) provide knowingly false information to the authorized body about themselves and its activity;
      4) not eliminated the reasons, on which the prevention of the authorized body was given or administrative punishments are imposed.
      2. Professional organization, organization on certification shall have a right to appeal decision of the authorized body in the judicial procedure.

Article 24. Internal control

      1. Organization for ensuring of observance of the legislation of the Republic of Kazakhstan on accounting and financial reporting, accounting policy, effective conducting of operations, including measures on preservation of assets, prevention and revelation of the cases of theft and errors upon maintenance of accounting and preparation of financial reporting shall have a right to organize internal control.
      2. Management shall ensure organization of internal control.
      3. Control of the state institutions shall be conducted by the state bodies in accordance with the legislation of the Republic of Kazakhstan.

Chapter 5. FINAL PROVISIONS

Article 25. Responsibility for violation of the legislation
of the Republic of Kazakhstan on accounting and
financial reporting

      Violation of the legislation of the Republic of Kazakhstan on accounting and financial reporting shall entail responsibility, provided by the Laws of the Republic of Kazakhstan.

Article 26. Transitional provisions

      1. This Law shall be enforced upon expiry of ten calendar days after its first official publication, except for the second part of Article 9, which is enforced from 1 January, 2012.
      2. Documents approving qualification of professional accountant and recognized by the authorized body, issued before enforcement of this Law are valid.
      3. Standards of accounting shall be applied before enforcement of national standards by the individual enterprises and organizations, specified in paragraph 3 of Article 2 of this Law.
      4. Shall be deemed to have lost force the Law of the Republic of Kazakhstan from 26 December, 1995 “On accounting and financial reporting” (Bulletin of Supreme Council of the Republic of Kazakhstan, 1995, No. 24, Article 171; Bulletin of the Parliament of the Republic of Kazakhstan, 1997, No. 13-14, Article 205; 1999, No. 20, Article 727; 2001, No. 24, Article 338; 2002, No. 12, Article 116; 2003, No. 15, Article 139; 2004, No. 11-12, Article 66; 2006, No. 4, Article 24; No. 8, Article 45).
      Footnote. Article as amended by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Article 2).

      The President
      of the Republic of Kazakhstan