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WB Holds Final Assessment into CAPSAP project for Azerbaijan

Business Materials 27 November 2007 10:56 (UTC +04:00)

Azerbaijan, Baku / corr Trend I.Khalilova / The World Bank (WB) is going to hold a final assessment to the project on Accountancy in the Corporate and State Sector of Azerbaijan (CAPSAP), and the WB mission led by Ida Hjeri Muhoho will pay a visit to Azerbaijan early this December in this connection, the WB Baku office reported on 26 November.

The necessity to assess the project rose in connection with the Government's appeal to reconsider the expenses for consultative services and considerable capital allocated to this project. "As of the initial data, up to 70% of the WB loan is allocated for consultative services," the government said.

In this respect the Finance Ministry of Azerbaijan, which is the beneficiary of the project, was recommended to reconsider the components jointly with experts from the bank. The delays in the development of the project held back the adoption of the project at the Board of Directors of the bank in 2008, whereas there was a possibility to approvee it in October.

The bank plans to allocate a $20mln privileged loan, though WB's Baku office did not exclude the possibility of reducing this sum.

The project is comprised of three components.Wwithin the first segment it is planned to reform the accounting in the corporative sector, including the application of the International Accounting Standards in the organizations of public importance, assistance in the development and adoption of the new law on audit and the development and reformation of the Auditor Chamber.

The second component envisages restructuring the accounting system in the state sector. 

The third segment stipulates the creation of a Centre of Research, Education and Professional Accounting Training in Azerbaijan, transiting to the International Accounting Standards, devising national accounting standards and auditors and supporting special programs to conduct the training.

To intensify the implementation of the project the Government is interested to establishing a schedule on the application of the International Accounting Standards. In accordance with the new law on Book-keeping, by the end of 2007 the application of national accountancy standards at commercial organizations will be complete. The budget and non-governmental organization should conclude this process by the end of 2008.

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