Financial Reporting and Audit Enhancement Project

The Kyrgyz Audit and Reporting Enhancement Project (Karep) seeks to improve access to reliable and transparent financial information of both the public and the private sector, thereby improving transparency and the investment climate for both sectors. This is achieved with the implementation of international standards for financial reporting and audit. Karep is implemented by the Centre for Financial Reporting Reform that is part of the World Bank Group.

Country/region Period Budget
01.04.2016 - 30.06.2020
CHF 3'135'000
Background Intransparent and low quality financial information coupled with poor governance and unprofitable operations still limit Kyrgyz’ private and public sector’s access to finance and deter further investments. While International Financial Reporting Standards (IFRS) as well as International Standards on Auditing (ISA) were adopted in 2002, Kyrgyzstan did not yet establish a clear framework for these standards, such as translation, publication and adoption of changes in IFRS/ISA. Local knowledge and expertise need to be build up to establish such a framework on the implementation of IFRS and ISA.
Objectives The overall goal is for Kyrgyz businesses (both private and state owned enterprises) to benefit from an improved investment climate and better access to capital through increased availability of reliable financial information as well as increased transparency of the public and the private sectors.
Medium-term outcomes Improved legal framework for financial reporting and audit.Institutional capacity of regulators and profession enhanced and financial reporting capacity and public accountability improved.Improved accounting curricula and literacy.

Expected results:   Statutory framework, standards, and rules governing corporate financial reporting are fully aligned with international best practices, namely IFRS (for SMEs) and ISA.Preparers, auditors, regulators and others, for both SOEs and the private sector, are given the tools to apply IFRS and ISA.The accounting and auditing curricula for university and professional education programs is assessed and enhanced, didactic materials for university sector developed and implemented.

Directorate/federal office responsible SECO
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
  • World Bank - International Bank for Reconstruction and Development

Budget Current phase Swiss budget CHF   3'135'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   6'600'000
Project phases Phase 10 01.04.2016 - 30.06.2020   (Current phase)