With independent auditor’s report

4. 
Critical estimates and judgements
The preparation of the Group’s consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and
the disclosure of contingent liabilities and assets, at the reporting date. However, uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of the asset or liability affected in future periods.
Consolidation of subsidiaries
Management judgment is involved in the assessment of control and the consolidation of subsidiaries in the
Group’s consolidated financial statements taken into account voting rights and contractual arrangements with
other shareholders and other relevant facts and circumstances in assessing whether it has control over the
entity in accordance with IFRS 10
Consolidated Financial Statements
.
Oil and gas reserves
Oil and gas reserves are a material factor in the Group’s computation of depreciation, depletion and
amortization expenses and impairment losses. The Group estimates its oil and gas reserves in accordance
with the methodology of the Society of Petroleum Engineers (“SPE”). In estimating its reserves under SPE
methodology, the Group uses long-term planning prices. Using planning prices for estimating proved reserves
removes the impact of the volatility inherent in using year-end spot prices. Management believes that long-
term planning price assumptions, which are also used by management for their business planning and
investment decisions are more consistent with the long-term nature of the upstream business and provide the
most appropriate basis for estimating oil and gas reserves.

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JSC “Uzbekneftegaz”
Consolidated financial statements