Azerbaijan, Baku / Trend / Infosystem-Link, a professional training center together with the Chamber of Audit of the Azerbaijan Republic organized the first Eurasian Forum of Accountants and Auditors in Baku on 4-6 October 2007. The aim of the conference was to bring ideas together and utilize them on the eve of the expected transition to an IFRS-based financial reporting in Azerbaijan to commence from 1 January 2008. The Forum hosted participants from Turkey, Russia, Poland, the Ukraine, Slovakia, Canada, Lithuania, Kazakhstan, and the UK.
The speaker from Ernst & Young, Sohrab Farhadov made a presentation on problems and solutions faced by the country. The importance of high quality and transparent financial accounting information and benefits received by various beneficiaries was extensively discussed. Also, it was noted that the adoption of IFRS can impact earnings and capitalization of companies and not necessarily positively for all adopters.
The presenter also discussed the key practical problems faced by companies in the adoption process. These relate to quality translation of standards into Azerbaijani, shortage of IFRS-qualified accountants, complications with certain IFRS concepts and techniques (e.g. fair value accounting), and the necessity to implement complementary legislative initiatives related to education, licensing and qualification, and independence of the standard-setting process.
Ernst & Young has and is contributing to the implementation of IFRS in the country. The organization has developed an intermediate accounting course for the students of Azerbaijan State Economic University to educate a future generation of accountants and auditors; it collaborates closely on training programs with the Chamber of Audit and in developing new accounting standards with the Ministry of Finance. The firm also helps train employees of its clients in skills at the new financial reporting standards.
Ernst & Young, a global leader in professional services, is committed to the quality of financial reporting. Its 130,000 people in 140 countries pursue the highest levels of integrity, quality, and professionalism in providing a range of sophisticated services centered on core competencies of auditing, accounting, tax, and transactions. Ernst & Young CIS offers services in thirteen offices throughout the CIS with 3,000 professionals. For more information, please refer to http://www.ey.com/cis .