Kazakhstan CAP key terms

A set of globally recognised accounting standards issued by the IASB that prescribe how transactions and balances are recognised, measured, presented and disclosed in general purpose financial statements.

The IASB document that sets out the objective of financial reporting, the qualitative characteristics of useful information, and the definitions of assets, liabilities, equity, income and expenses underlying all IFRS standards.

A simplified, self-contained standard derived from full IFRS, designed for entities without public accountability; Kazakhstan permits its use for qualifying non-public-interest entities under national accounting rules.

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, measured under IFRS 13's three-level hierarchy.

The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, recognised in profit or loss unless a revaluation surplus exists for the same asset.

A forward-looking probability-weighted estimate of credit losses under IFRS 9, recognised regardless of whether a loss event has occurred, using present value of cash shortfalls over the instrument's life.

The five-step model requiring an entity to identify the contract, identify performance obligations, determine transaction price, allocate it, and recognise revenue when control of goods or services transfers to the customer.

A promise in a contract with a customer to transfer a distinct good or service; each obligation is recognised separately and revenue is allocated to it based on relative standalone selling prices.

A present obligation to transfer goods or services to a customer for which the entity has already received consideration, presented separately from receivables and recognised as revenue when the obligation is satisfied.

The present value of lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease or the lessee's incremental borrowing rate, subsequently measured with interest accretion.

The lessee's asset representing its right to use an underlying asset for the lease term, initially measured at the lease liability plus initial direct costs and prepayments, then depreciated and tested for impairment.

The tax effect of temporary differences between the carrying amount of assets and liabilities and their tax bases, recognised as a deferred tax liability or asset using enacted or substantively enacted rates.

A difference between an asset's or liability's carrying amount and its tax base that will produce taxable amounts in future periods when the carrying amount is recovered or settled, creating a deferred tax liability.

The currency of the primary economic environment in which an entity operates; foreign currency transactions are translated into it and exchange differences arising on monetary items are recognised in profit or loss.

The assumption that an entity will continue in operation for the foreseeable future without liquidating or curtailing operations; management assesses it and auditors evaluate its appropriateness.

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence economic decisions of primary users; it is judged both quantitatively and qualitatively.

The risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated; it comprises inherent risk, control risk and detection risk.

The auditor's conclusion on whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework; it may be unmodified or modified.

The process designed by those charged with governance and management to provide reasonable assurance about the reliability of reporting, effectiveness of operations and compliance with laws and regulations.

The state of being free from relationships or interests that could compromise professional judgement or create the appearance of bias, comprising independence of mind and independence in appearance.

An attitude of questioning mind, alertness to conditions indicating possible misstatement, and critical assessment of evidence, required of auditors throughout the engagement.

A situation where personal, financial or other interests could improperly influence professional judgement; it must be identified, evaluated and addressed through safeguards or refusal of the engagement.

The ethical duty not to disclose confidential information acquired through professional relationships without proper authority, unless there is a legal or professional right or duty to disclose.

Kazakhstan's tax on taxable profit of legal entities, generally levied at 20 percent, with separate regimes for certain agricultural producers and special economic zone participants.

An indirect tax on the supply of goods, works and services and on imports into Kazakhstan, generally at 12 percent, with registration thresholds and input VAT offset rules.

The turnover level at which a business becomes obliged to register for VAT in Kazakhstan; once exceeded, the entity must register and charge output VAT on taxable supplies.

Kazakhstan's tax on income of individuals, generally at 10 percent on employment income, with separate rates for certain income types and social payment obligations borne by employers.

Mandatory employer and employee payments to Kazakhstan's social and pension systems, calculated on payroll and remitted monthly alongside withheld individual income tax.

A costing method that assigns predetermined costs to products and compares them with actual costs, producing variances that are analysed to explain performance and improve control.

The process of comparing budgeted or standard amounts with actual results and decomposing the difference into price and quantity components to identify causes and responsibility.

Sales revenue less all variable costs, representing the amount available to cover fixed costs and generate profit; it underpins break-even and cost-volume-profit analysis.

The level of sales at which total revenue equals total cost and profit is zero, calculated by dividing fixed costs by the contribution margin per unit or by the contribution margin ratio.

A budget adjusted to the actual level of activity achieved, allowing a like-for-like comparison between actual results and what costs should have been at that volume.

A costing method that assigns overhead to products or services based on the activities that consume resources, using cost drivers rather than a single volume-based allocation base.

The sum of discounted future cash flows of a project minus its initial investment, using the entity's cost of capital; a positive NPV indicates the project adds value.

The discount rate at which a project's net present value equals zero; a project is acceptable when its IRR exceeds the required rate of return, subject to reinvestment assumptions.

The blended after-tax cost of a company's debt and equity, weighted by their market values, used as the hurdle rate for investment appraisal and valuation.

Current assets less current liabilities, measuring short-term liquidity; its management involves balancing inventory, receivables and payables to sustain operations without excess financing cost.

A Kazakhstan legal form whose capital is divided into shares held by shareholders, with limited liability and governance through a general meeting, board of directors and executive body.

A Kazakhstan business form in which participants' liability is limited to their contributions to charter capital; it is governed by a charter and a general meeting of participants.

A set of principles and recommendations on board composition, independence, committees, risk oversight and shareholder rights that Kazakhstan companies, particularly listed ones, are expected to apply.

Integrated software that shares a single database across accounting, procurement, inventory, payroll and reporting functions, enabling consistent data and automated controls.

The core accounting application that records journal entries, maintains the chart of accounts and produces the trial balance and financial statements from which other reports are derived.

The use of software techniques to examine full populations of accounting data for patterns, anomalies and risk indicators, supporting audit evidence and management decision-making.

A structured invoice issued and transmitted through Kazakhstan's electronic invoicing information system, used for VAT administration and accepted as a primary accounting document.