Flaws have been identified in the financial reporting of the republican budget.

“The necessary amendments to the regulations were made by the Ministry of Finance as instructed by the State Audit Chamber. Previously, the state audit identified a number of deficiencies that affected the objectivity and accuracy of the financial statements of the Republic of Bashkortostan. Additionally, there were no specific regulatory norms required to enhance the accuracy of the reports being generated,” the State Audit Chamber stated.

In this regard, the State Audit Chamber tasked the Ministry of Finance with making the appropriate changes and additions to the Accounting Rules for state institutions.

In particular, it is now necessary to:

• account for the depreciation of roads using the recommended useful life periods;
• reflect received loans in accordance with international standards: first at fair value, then at amortized cost;
• record financial investments in entities of the quasi-public sector made through equity participation;
• reassess the value of residential buildings listed at zero cost using the valuation methodology from the Tax Code for taxing individuals' property;
• include requirements for separate accounting of structures, including roads and the land on which they are located.

“All these and other points are necessary to ensure the objectivity of the consolidated financial reporting of the republican budget and to reflect the assets in their real, current state. By order of the Minister of Finance, these changes have been incorporated into the Accounting Rules for state institutions,” the State Audit Chamber added.