With independent auditor’s report

JSC “Uzbekneftegaz”
Consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
22
3. 
Significant accounting policies (continued)
Equity (continued)
Other distributions to the Shareholder
Expenditures incurred by the Group based on the respective resolution of the Government or decision and
instructions of Cabinet of Ministers or the President are accounted for as other distributions through equity.
Such expenditures include costs associated with non-core activity of the Group (construction of social assets),
acquisitions and transfer of investments.
Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s
chief operating decision maker. Segments whose revenues, results or assets are 10 per cent or more of all
the segments are reported separately.
Related parties
Related parties are defined in IAS 24
Related Party Disclosures
.
Governmental economic and social policies affect the Group’s financial position, results of operations and cash
flows. The Government imposed an obligation on the Group to provide an uninterrupted supply of oil and gas
to customers in Uzbekistan at government-controlled prices. Transactions with the state include taxes, which
are detailed in
Note 25
.
Related parties may enter into transactions, which unrelated parties might not, and transactions between
related parties may not be effected on the same terms, conditions and amounts as transactions between
unrelated parties.
It is the nature of transactions with related parties that they cannot be presumed to be carried out on an arm’s
length basis.
Subsequent events
The results of post-year-end events that provide evidence of conditions that existed at the reporting date
(adjusting events) are reflected in the consolidated financial statements. Post-year-end events that are not
adjusting events are disclosed in the notes to the consolidated financial statements when material.