In 2026, financial statements in Kazakhstan are prepared in accordance with the standards applicable to the organization’s category and submitted in accordance with the procedure established by the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting”; for tax accounting purposes, a special adjustment of financial statement data is provided for, in particular, for a non-resident legal entity applying the proportional allocation of expenses method (Article 710 of the Tax Code of the Republic of Kazakhstan).
Financial Statements in the Republic of Kazakhstan: Which Law Regulates Them
When people search for “financial statements law,” “law on financial accounting and reporting,” or “accounting financial statements law,” they are referring to the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting.” It regulates accounting, the preparation and submission of financial statements, as well as the retention of accounting records.
The following provisions of the Law are important for practicing accountants:
- Article 15 “Financial Statements” establishes the composition of financial statements and the general requirements for them.
- Article 17 “Consolidated Financial Statements” regulates the preparation of consolidated statements by organizations that have subsidiaries.
- Article 18 “Reporting Period” defines the reporting period for annual financial statements and the rules for newly established organizations.
- Article 19 “Submission of Financial Statements” establishes the requirements for submitting statements and identifies their recipients.
These article numbers refer specifically to the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting.” They must not be confused with articles bearing the same numbers in the Tax Code. In the Tax Code of the Republic of Kazakhstan, Article 15 regulates the recognition of an organization as carrying out activities in the social sphere (Article 15 of the Tax Code of the Republic of Kazakhstan), Article 17 defines the conditions for classifying a legal entity as an Astana Hub participant (Article 17 of the Tax Code of the Republic of Kazakhstan), and Article 18 contains concepts related to securities (Article 18 of the Tax Code of the Republic of Kazakhstan).
Financial Reporting Standards: IFRS or NFRS
In Kazakhstan, financial statements are prepared in accordance with the standards whose application is prescribed by law for the relevant category of organization:
- International Financial Reporting Standards (IFRS) are applied by organizations for which this is expressly provided by the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting.”
- National Financial Reporting Standard (NFRS) is applied by entities that are permitted by law to maintain accounting records and prepare statements under this standard.
- IFRS for Small and Medium-sized Enterprises is applied by organizations in the relevant category in cases established by law.
The applicable standard is determined not only by the amount of revenue or the number of employees. The accountant takes into account the business entity category, legal form, organization status, and special requirements for particular types of activities. The adopted accounting and reporting methods are set out in the accounting policy within the applicable standard.
A separate provision applies to individual entrepreneurs who, in accordance with the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting,” do not maintain accounting records or prepare financial statements. Article 725 of the Tax Code of the Republic of Kazakhstan establishes specific rules for recognizing their income in tax accounting, including the conditions for recognizing income from the sale of goods and the procedure for recognizing income from the performance of work and provision of services (Article 725 of the Tax Code of the Republic of Kazakhstan). This rule applies specifically to individual entrepreneurs who meet the condition specified in the article.
Organization’s Financial Statements: What They Include
An organization’s financial statements are a set of interrelated forms. The composition prescribed by law includes:
- balance sheet;
- profit and loss statement;
- cash flow statement;
- statement of changes in equity;
- explanatory note.
For certain organizations, the composition of the statements and the procedure for preparing them are specified by the applicable standards and regulatory legal acts. Therefore, the accountant uses the forms and rules effective for the organization as of the reporting date, taking into account its category and industry status.
Financial statements are prepared based on accounting data. Before preparing the annual forms, the completeness of primary documents, inventory results, settlements with counterparties and the budget, the accuracy of balances, and the closing of the reporting period are verified. Any discrepancies identified are corrected in the accounting records, after which the relevant statement figures are generated again.
Financial statements are signed by the persons vested with the relevant authority and responsibility under the law and the organization’s documents. When preparing the set of statements, the accountant should verify that all required signatures are present and that the organization’s established internal approval and authorization procedure has been followed.
The Tax Code uses financial statement data in certain special cases. For example, a non-resident legal entity adjusts the financial statement data used to calculate the management and general administrative expenses of a permanent establishment if the duration or the start and end dates of the tax periods in Kazakhstan and the country of residence do not coincide. The adjustment is made using the prescribed adjustment factor (Article 710 of the Tax Code of the Republic of Kazakhstan).
Consolidated Financial Statements
An organization that has subsidiaries prepares and submits consolidated financial statements in addition to its own financial statements in accordance with the requirements of the law and the applicable standards. These statements present the group’s financial indicators as those of a single economic entity.
During consolidation, the indicators of the parent organization and its subsidiaries are combined in accordance with the applicable standard. Intragroup balances and transactions are eliminated, while information on non-controlling interests is presented and disclosed in accordance with the procedure prescribed by the standard.
If an organization is part of a group, it is advisable to agree in advance on the following to ensure the timely preparation of consolidated statements:
- a uniform accounting policy for material transactions and items;
- the format and schedule for submitting reporting packages;
- a list of intragroup transactions and balances to be reconciled;
- the procedure for correcting discrepancies between the data of group members;
- a list of explanations required to disclose information about the group.
Financial Statements Depository: Who Must Submit and How
The Financial Statements Depository is an electronic database to which organizations included by law within the relevant scope of entities submit financial statements and other prescribed documents. The obligation to maintain accounting records does not in itself mean that an organization must submit statements to the Depository in all cases: the scope of obligated entities is determined by law.
Article 19 of the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting” regulates the submission of financial statements. The composition of the documents to be submitted, the recipient, the submission method, and the deadline for fulfilling the obligation are determined with due regard to the organization’s category and status, as well as the applicable rules for submitting statements to the Depository.
Procedure for the accountant:
- Determine the organization’s category and status, as well as whether it is required to submit statements to the Financial Statements Depository.
- Establish the reporting period, the composition of the documents, the recipient, and the submission deadline applicable specifically to the organization.
- Prepare the financial statements in accordance with the applicable standards and conduct an internal review of the interrelated figures.
- Ensure that the statements are signed and approved in accordance with the procedure prescribed by law and the organization’s documents.
- If the organization is subject to a statutory audit, include the preparation of the auditor’s report and compliance with the requirements for its submission in the work schedule.
- Submit the documents using the prescribed method and retain confirmation of their receipt.
Financial statements should not be confused with tax returns. Tax returns are submitted on paper or as an electronic document. Electronic submission is performed through a web application, a tax mobile application, or external information systems connected to the tax authority’s information system. Tax return forms, instructions for completing them, and the submission procedure are established by the authorized body (Article 115 of the Tax Code of the Republic of Kazakhstan).
Amendments and additions to previously submitted information are made by means of an additional tax return and/or a tax return submitted following a notification. When an amount is changed, the difference between the actual amount and the amount previously reported is indicated; when another value is changed, the new value is indicated. Article 116 of the Tax Code of the Republic of Kazakhstan also establishes cases in which an additional tax return may not be submitted (Article 116 of the Tax Code of the Republic of Kazakhstan).
Frequently Asked Questions
Which law regulates financial statements in Kazakhstan? — The Law of the Republic of Kazakhstan “On Accounting and Financial Reporting.” The composition of the statements is established by Article 15 of this Law, consolidated statements are regulated by Article 17, the reporting period by Article 18, and the submission of statements by Article 19. Articles bearing the same numbers in the Tax Code of the Republic of Kazakhstan regulate other matters.
Is the application of International Financial Reporting Standards mandatory? — IFRS is mandatory for organizations expressly classified by law under the relevant category. Other organizations apply NFRS, IFRS for Small and Medium-sized Enterprises, or IFRS, taking into account their status and the established requirements.
What is the Financial Statements Depository? — It is an electronic database of financial statements. Documents are submitted to it by organizations on which this obligation is imposed by law, in accordance with the composition and procedure established for them.
Who prepares consolidated financial statements? — An organization that has subsidiaries prepares consolidated statements in addition to its own financial statements. The group’s indicators are combined in accordance with the applicable standards.
Are financial statements and tax returns the same thing? — No. Financial statements are prepared in accordance with the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting” and the applicable standards. The submission of tax returns includes their filing by the taxpayer, acceptance by the tax authority, the making of amendments and additions, as well as the suspension and resumption of submission (Article 115 of the Tax Code of the Republic of Kazakhstan). Changes to previously submitted information are regulated separately (Article 116 of the Tax Code of the Republic of Kazakhstan).