VZCZCXRO2941
RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1227/01 2591258
ZNR UUUUU ZZH
R 151258Z SEP 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 1545
INFO RUCNCIS/CIS COLLECTIVE
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 4295
RUEHBJ/AMEMBASSY BEIJING 2107
RUEHKO/AMEMBASSY TOKYO 1972
RUEHIT/AMCONSUL ISTANBUL 2543
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUETIAA/NSA FORT MEADE MD
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC
RUEHVEN/USMISSION USOSCE 2881

UNCLAS SECTION 01 OF 02 ASHGABAT 001227 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SCA/CEN, EUR/ACE, EEB 
AID/W FOR EE/EA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAID TX
SUBJECT:  TURKMENISTAN: SUPREME COUNCIL APPROVES USAID ACCOUNTING 
CERTIFICATION PROGRAM 
 
REF:  A. ASHGABAT 0534 
  ¶B. ASHGABAT 0564 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY: In response to a June 2 diplomatic note from 
USAID to the Supreme Council of Science and Technology, the Ministry 
of Foreign Affairs conveyed on September 4 the "Turkmen Side's 
consent to implementation of the Certified International Accountant 
Practitioner (CIPA) program in Turkmenistan and to organization of 
accounting training on the basis of a CIPA program for the lecturers 
of the higher educational institutions of Turkmenistan."  Official 
consent to the USAID-initiated accounting testing and certification 
program paves the way for expanded capacity-building activities 
required to support implementation of International Financial 
Reporting Standards in Turkmenistan.  The recognition will also 
allow private-sector training providers to expand their 
contributions to building these essential skills.  The Turkmen 
side's positive response highlights the importance of continuing 
USAID support for International Financial Reporting Standards 
transition despite current budget realities ($450,000 in FY08) that 
limit the potential scope of U.S. engagement.  END SUMMARY. 
 
REFORMS ARE CORNERSTONE FOR INVESTMENT AND TRANSPARENCY 
 
¶3.  (U) USG representatives have consistently stressed the 
importance of accounting reform as a fundamental step in creating a 
market economy capable of attracting investment and promoting a wide 
range of economic transparency issues, such as corruption, tax 
fraud, and money laundering.  Most of the countries in Central Asia 
have long recognized the benefit of having financial reporting based 
on international standards and of having well-trained, competent 
accountants and auditors to apply those standards objectively. 
 
¶4.  (U) Although it formally announced its intentions to introduce 
International Financial Reporting Standards by adopting a Law on 
Accounting in 2003, Turkmenistan has made few strides toward this 
goal.  Not only has the government not taken basic steps to prepare 
for implementing the law, it has not begun to build the capacity 
required to implement International Financial Reporting Standards 
outside the banking sector.   USAID's accounting reform project 
organized a conference dedicated to the introduction of 
International Financial Reporting Standards into the accounting 
system of Turkmenistan on April 29, which was a positive step in 
raising this key issue before a variety of stakeholders (Ref A). 
 
¶5.  (U) Another USAID goal is the integration of the CAP/CIPA 
courses into the curricula of higher education institutions (HEIs). 
Existing CAP course materials have been introduced into 46 
universities in four countries of Central Asia after training 276 
university professors.  In Turkmenistan, no universities have yet 
adopted the CAP courses, although plans for a new university 
curriculum are reportedly under development. 
 
¶6.  (SBU) COMMENT: Although CAP and CIPA courses are currently 
available for banking sector staff and interested private citizens 
on a limited basis, official consent to the USAID-initiated 
accounting testing and certification program paves the way for 
expanded capacity-building activities required to support 
implementation of International Financial Reporting Standards in 
Turkmenistan.  The program's formal recognition will also allow 
private-sector training providers to expand their contributions to 
building these essential skills.  Furthermore, the September 4 
reply, which agreed to USAID's offer to train university lecturers, 
raises the possibility of introduction of the CAP/CIPA courses into 
the new curriculum.  If institutionalized in this way, graduating 
students would be prepared to sit for certification exams 
immediately, without the need for retraining.  This would help 
Turkmenistan to make significant strides towards closing the gap in 
certified accountants it currently faces relative to its Central 
Asian neighbors.  END COMMENT. 
 
ASHGABAT 00001227  002 OF 002 
 
 
 
CURRAN