Azerbaijan, Baku, Sept. 18 / corr Trend U.Ismayilova /
The second component of the accounting system in corporative and state sector (CAP/SAP) project, implemented with the support of the World Bank and the State Secretary of Switzerland for Economic Affairs (Seco), was discussed at the Azerbaijani Accounting Chamber, the Chamber announced.
"The second component of the project envisages accountability in the state sector," the Chamber said.
The discussions were held between the head of the Azerbaijan Accounting Chamber, Heydar Asadov, and a delegation led by SECO program manager Lorenz Vidmer.
During the meeting SECO appraised work done by the Chamber and stated its willingness to cooperate with the Chamber to strengthen its potential.
The meeting focused on improvement of standard legal basis of the Accountancy Chamber, strengthening of personnel, as well as realizing strategic development plan of the Chamber.
Under a joint project to improve accounting system in corporative and state sector (CAP/SAP), the World Bank will allocate additional financing for the Azerbaijan Accounting Chamber in the amount of $24 million. The grant agreement was signed in September, 2008.
The project is financed by the WB loan totaling $11 million, grant of Japanese PHRD Fund ($3 millio), Seco ($2 million) and the government of Azerbaijan ($8 million).
Some $6 million is considered to spend to introduce IFRS into the commercial sector, $10 million to introduce IPSAS (International Public Sector Accounting Standards), and internal financial control (Public Internal Finance Control) to upgrade external audit in the state sector, as well as $9mln to improve accounting and audit managing systems. Finance of State Secretary of Switzerland will be spent to improve internal finance control on the management of state revenues (state budget and state-owned companies). Consulting services is meant to support Accounting Chamber to become independent institute of high audit.
Azerbaijan has already developed 28 national standards for commercial sector. Totally there are 35 standards of financial accounting and audit. Azerbaijan switched to IFRS from 1 January in the state sector.
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