Kazakhstan CAP cheat sheet

IFRS conceptual framework: an asset is a present economic resource controlled by the entity as a result of past events; recognition requires relevance and faithful representation.

Revenue under IFRS 15 uses the five-step model: identify contract, identify performance obligations, determine transaction price, allocate price to obligations, recognise revenue on satisfaction.

IFRS 16 lessee accounting: recognise a right-of-use asset and a lease liability at the present value of lease payments; lessor accounting retains finance/operating classification.

IFRS 9 expected credit loss model applies to financial assets at amortised cost; Stage 1 uses 12-month ECL, Stages 2 and 3 use lifetime ECL.

IAS 2 inventory is measured at the lower of cost and net realisable value; FIFO or weighted average is permitted, LIFO is prohibited under IFRS.

IAS 36 impairment: recoverable amount is the higher of fair value less costs of disposal and value in use; goodwill impairment is never reversed.

IAS 12 deferred tax is computed on temporary differences using the liability method; deferred tax assets are recognised only if probable future taxable profit exists.

IFRS 16 and IAS 17 transition differences: IFRS 16 effective 1 January 2019; Kazakhstan-listed entities apply IFRS as endorsed for use in Kazakhstan.

Contribution margin = sales revenue − variable costs; contribution margin ratio = contribution ÷ sales; break-even units = fixed costs ÷ contribution per unit.

Break-even revenue = fixed costs ÷ contribution margin ratio; margin of safety = (actual sales − break-even sales) ÷ actual sales.

Absorption costing includes fixed production overhead in product cost; variable costing expenses fixed overhead in the period, causing profit differences equal to change in inventory × fixed overhead rate.

High-low method: variable cost per unit = (highest cost − lowest cost) ÷ (highest activity − lowest activity); fixed cost = total cost − variable cost per unit × activity.

Activity-based costing assigns overhead via cost pools and cost drivers; it is preferred where products differ in complexity and overhead is a large share of total cost.

Standard costing variances: material price = (standard price − actual price) × actual quantity; material usage = (standard quantity − actual quantity) × standard price.

Labour rate variance = (standard rate − actual rate) × actual hours; labour efficiency variance = (standard hours − actual hours) × standard rate.

Relevant costs for decisions are future, incremental and avoidable; sunk costs and allocated common fixed costs are irrelevant.

ISA 200 requires reasonable assurance that financial statements are free from material misstatement, whether due to fraud or error; audit risk = inherent risk × control risk × detection risk.

Materiality is set at overall financial statement level and performance materiality is lower; ISA 320 governs materiality determination.

Audit evidence is more reliable when obtained from independent external sources, when controls are effective, and when obtained directly by the auditor.

ISA 315 requires understanding the entity, its environment and internal control, including IT general controls and the risk of management override.

ISA 700 series governs the auditor's report; a modified opinion is qualified, adverse or disclaimer; key audit matters are required for listed entities under ISA 701.

Independence rules: a firm cannot audit an entity where a close family member of the engagement partner holds a direct financial interest in the client.

ISA 240 presumes a risk of fraud in revenue recognition; the auditor must evaluate management override of controls and journal entry testing.

Documentation under ISA 230 must be sufficient for an experienced auditor with no prior connection to understand the work performed and conclusions reached.

The Tax Code of the Republic of Kazakhstan (Code dated 25 December 2017, effective 1 January 2018, as amended) governs taxes; the State Revenue Committee administers collection.

Corporate income tax rate is 20% for resident legal entities; a reduced rate applies to certain agricultural producers and special tax regimes.

VAT standard rate is 12%; VAT registration is mandatory once turnover exceeds the threshold set in the Tax Code (currently 20,000 MCI per calendar year, subject to amendment).

Personal income tax: resident individuals pay 10% on most income; dividends and certain capital gains are taxed at 5%; non-residents generally 20% on Kazakhstan-source income subject to treaty relief.

Social tax and mandatory pension contributions are paid by employers; mandatory pension contributions are withheld from employee income and remitted to the Unified Accumulative Pension Fund.

Tax residency of an individual is generally determined by presence in Kazakhstan for 183 days or more in any consecutive 12-month period.

Withholding tax applies to payments to non-residents; rates and exemptions depend on income type and double tax treaties, with application of the treaty requiring documentary confirmation.

Tax returns are filed electronically; the deadline for corporate income tax return is generally 31 March of the year following the reporting year.

The Law on Limited Liability Companies (2010) governs LLCs; the highest body is the general meeting of participants, and the executive body is the director.

A joint-stock company is governed by the Law on Joint-Stock Companies; the supreme body is the general meeting of shareholders, and the board of directors may be established.

The Civil Code of Kazakhstan governs contracts, obligations and property; transactions may be declared invalid if they violate mandatory legal requirements.

Corporate governance in Kazakhstan follows the Corporate Governance Code recommended by the regulator; the Astana International Financial Centre has its own company law and court.

The Law on Accounting and Financial Reporting (2007) requires entities to maintain accounting records and prepare financial statements under IFRS and the Law's requirements.

Directors owe duties of care and loyalty; transactions with interested parties require disclosure and, where required, approval by the general meeting or board.

Employment relations are governed by the Labour Code; an employment contract must be in writing and include essential terms such as position, salary and workplace.

The Entrepreneurial Code regulates business activity, state inspections and permits; inspections are subject to risk-based scheduling and notification rules.

Net present value = present value of cash inflows − present value of cash outflows; accept a project when NPV > 0.

Internal rate of return is the discount rate at which NPV = 0; accept when IRR exceeds the cost of capital, but IRR can mislead with non-conventional cash flows.

Weighted average cost of capital = (E ÷ V) × cost of equity + (D ÷ V) × cost of debt × (1 − tax rate).

Cost of equity under CAPM = risk-free rate + beta × market risk premium.

Working capital = current assets − current liabilities; the cash conversion cycle = days inventory + days receivable − days payable.

The dividend growth model values equity as D1 ÷ (r − g), where D1 is next year's dividend, r the required return and g the constant growth rate.

Financial leverage increases both expected return and risk; the debt-to-equity ratio = total debt ÷ total equity.

Payback period measures time to recover the initial investment and ignores cash flows after payback; discounted payback uses present values.

The IESBA Code of Ethics applies to professional accountants; its fundamental principles are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

The conceptual framework requires identifying threats and evaluating safeguards; if threats cannot be eliminated or reduced to an acceptable level, the engagement must be declined or terminated.

Threat categories include self-interest, self-review, advocacy, familiarity and intimidation.

Independence comprises independence of mind and independence in appearance; it is required for audit and review engagements.

Confidentiality continues after the professional relationship ends; disclosure is permitted only when required by law or with client consent.

A contingent fee for an audit engagement creates a self-interest threat and is prohibited; contingent fees for non-assurance services may be permitted with safeguards.

Preparation of accounting records for an audit client creates a self-review threat; safeguards may include using separate teams and independent review.

Whistleblowing and responding to non-compliance with laws and regulations are addressed in IESBA sections on responding to NOCLAR.

Segregation of duties in IT: the person who initiates a transaction should not also authorise, record and reconcile it; system access rights must reflect this.

General IT controls cover access management, change management, backup and recovery, and IT operations; application controls cover input, processing and output.

A digital signature under Kazakhstan law has the same legal effect as a handwritten signature when issued by a registered certification authority.

Electronic invoices in Kazakhstan are issued through the information system of the State Revenue Committee (ESF) and must be registered before use.

Data integrity controls include hash totals, record counts, range checks and validation checks; audit trails must be retained and protected from alteration.

Cloud accounting requires evaluating data residency, encryption at rest and in transit, access logging, and the provider's continuity arrangements.

Spreadsheet risk: key financial models require version control, documented formulas, independent review and protection of formula cells.

Cybersecurity controls relevant to finance include multi-factor authentication, role-based access, periodic access reviews and phishing awareness training.