Requirements and recommendations for the submission of financial statements by public interest entities

Requirements and recommendations for the submission of financial statements by public interest entities

The Committee for Internal State Audit of the Ministry of Finance of the Republic of Kazakhstan exercises state control over accounting and financial reporting, including oversight of Public Interest Entities (PIEs).

PIEs hold a special place in the economy due to their significant roles in finance, subsoil use, and the social sector. As of today, according to the Financial Reporting Depository Information System (FRDIS), there are 4,452 active PIEs registered in the Republic of Kazakhstan.

To ensure transparency and public trust in the financial position of these organizations, the Rules for the Submission of Financial Statements by Public Interest Entities to the Depository (approved by Order No. 94 of the Ministry of Finance of the Republic of Kazakhstan dated January 28, 2022) establish the procedure for submitting financial statements.

In accordance with these Rules, submission of financial statements is mandatory for PIEs. The deadline is August 31 of the year following the reporting period.

Furthermore, organizations for which an audit is mandatory under the Law of the Republic of Kazakhstan “On Auditing Activity” must also submit an auditor’s report in PDF format, in accordance with the requirements of the Rules.

It is important to note that non-compliance with these requirements may result in administrative penalties. Specifically, failure to submit financial statements or to undergo a mandatory audit is subject to sanctions under Articles 239 and 250 of the Code of Administrative Offenses of the Republic of Kazakhstan.

In this regard, and in order to avoid violations of the legislation of the Republic of Kazakhstan, all Public Interest Entities are advised to:

  • establish an internal deadline for submission of financial statements no later than August 31;

  • regularly enhance the financial and legal literacy of employees responsible for accounting and auditing;

  • take proactive measures to ensure the timely audit of financial statements and their approval by the governing body.

By following these recommendations, organizations can not only avoid fines, but also strengthen their market position and enhance public and investor trust.