Improve Uzbekistan's Long-term Equity Investment Equity Method Accounting

With the rapid development of Uzbekistan's economy and the accelerating marketization process,investment activities have gradually become an indispensable economic activity for enterprises outside the daily production.According to the new version of Uzbekistan's Accounting Law of the Republic of Uzbekistan,which came into effect in 2016,the provisions on equity investment can be seen in the cost measurement method and equity method.Regarding the use of the equity method,there are significant differences between the international accounting standards and the accounting standards of China and Uzbekistan.Uzbekistan's accounting standards have never explained its essence and principle since the introduction of the equity method.The application of the equity method in daily accounting exists.With a large theoretical flaw,and in practice,more and more joint-stock companies use the equity method to manage earnings,manipulate profits,and whitewash financial statements.Therefore,this thesis attempts to explore the essence and principle from the birth of the research equity method,point out the defects and problems in the daily accounting,and analyze it.Finally,the suggestions and countermeasures for improvement are given.This paper begins with international and foreign developed countries and Chinese accounting standards,sorts out the provisions of these standards on the equity law,and then compares them with Chinese accounting standards,pointing out the differences,and provides corresponding criteria for the analysis.Then it deeply analyzes and focuses on the lack of equity method as the daily accounting method of the enterprise,which is divided into theoretical level and practical application level.On the theoretical level,the accounting data calculated by the equity method does not meet the requirements of the measurement attribute;the confirmed investment income does not meet the "return on investment" accounting subject;the accounting method lacks the factual basis.On the practical level,the choice of equity method has subjective judgment;managers are easy to manage earnings;exaggerate corporate profits.Subsequently,it is pointed out that the root cause of these problems is that the essence of the equity law is not recognized;the corporate governance is lacking;the enterprise is too pursuing profit maximization;and the supervision is lacking.Finally,the problem is pointed out in the targeted problem.It is recommended to cancel the equity method as the method of daily accounting of the enterprise,and only regard it as a means of compiling the consolidated financial statements;increase the information disclosure degree of the listed company;improve the supervision system;Guiding mechanism.