With independent auditor’s report

Measurement of liabilities under guarantees issued
As of 31 December 2020, the Company issued a number of guarantees to its related parties (see
Note 31,
Financial guarantee liabilities
). As of 31 December 2020, the Group recognized the financial liabilities in
respect of the issued guarantees amounting to UZS 268 billion (UZS 221 billion and UZS 87 billion in 2019
and 2018, respectively) as part of other current and non-current liabilities. ECL rate in the range of 1.9% -
2.43% was used to measure the book value of the financial guarantee liabilities as of 31 December 2020,
2019 and 2018. The Group is using general approach in calculation of expected credit losses for government
companies. Country rating with appropriate downgrade based on overdue bucket is assigned and was used
to estimate probability of default. Loss given default estimates are based on the external statistics using
weighted average of recovery rates specific to the country.
Taxation
In assessing tax risks, management considers to be probable obligations the known areas of tax positions
which the Group would not appeal or does not believe it could successfully appeal, if assessed by tax
authorities. Such determinations inherently involve significant judgment and are subject to change as a result
of changes in tax laws and regulations, amendments to the taxation terms of the Group’s subsoil use contracts,
the determination of expected outcomes from pending tax proceedings and current outcome of ongoing
compliance audits by tax authorities. Uncertainties related to taxation are disclosed in
Note 29
.
Taxable income is computed in accordance with the tax legislation enacted as at 1 January 2020. Deferred
income tax is calculated on temporary differences for assets and liabilities at the expected rates that were
enacted by tax authorities as at 31 December 2020.

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