Accounting System Evolution in Emerging and Transition Economies: A Comparative Analysis of Indonesia and Uzbekistan
Abstract
This study provides a comprehensive qualitative comparative analysis of the accounting systems and financial reporting frameworks in Indonesia and Uzbekistan. Grounded in Institutional Theory and Economic Determinism Theory, this paper examines how an emerging market giant, Indonesia, and a high-growth transition economy, Uzbekistan, navigate global pressures for accounting harmonization. Utilizing a four-pillar analytical framework comprising regulatory architecture, corporate IFRS convergence, public sector accrual accounting, and SME bookkeeping practices the findings reveal fundamental structural divergences. Indonesia enforces a professionally led, gradualist approach featuring a multi-tiered framework (SAK/IFRS, SAK EP, PSAK Syariah, SAK EMKM) with continuous technical updates (e.g., PSAK 72, 73, and 1) to protect its deep capital markets. Conversely, Uzbekistan executes a state-driven, top-down accelerated transition under presidential decrees (Resolution No. PP-4611), mandating direct IFRS compliance for large taxpayers, state-owned enterprises, and commercial banks while retaining National Accounting Standards (NAS) for general entities. Despite these diverging corporate trajectories, both nations face parallel institutional frictions in public sector accrual implementation due to deeply rooted traditions of centralized control, alongside shared SME bottlenecks characterized by tax-driven bookkeeping dependencies and severe human capital constraints. This paper contributes to international accounting literature by illuminating how macroeconomic scale and institutional history shape accounting evolution in developing and transition economies.
How to cite
oʻgʻli, A. S. O., Widyaningsih, A., Heryana, T., & Ugli, Y. K. B. (2026). Accounting System Evolution in Emerging and Transition Economies: A Comparative Analysis of Indonesia and Uzbekistan. Journal of Islamic Contemporary Accounting and Business, 4(2). https://doi.org/10.30993/jicab.v4i2.568
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Copyright (c) 2026 Accounting System Evolution in Emerging and Transition Economies: A Comparative Analysis of Indonesia and Uzbekistan © 2026 by Abdimuradov Shohjahon Olimjon oʻgʻli, Aristanti Widyaningsih, Tony Heryana, Yusupov Komaliddin Bakhtiyor Ugli is licensed under Creative Commons Attribution-NonCommercial 4.0 International
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