Azerbaijan to develop new methodology to assess transition to IFRS
Azerbaijan, Baku, Dec. 15 / Trend U.Ismayilova /
The Azerbaijani Society of Appraisers (ASA) is beginning to develop a new assessment methodology in connection with the transition to International Financial Reporting Standards (IFRS) in the country, ASA Coordinator Amil Ismayilov said today.
"The ASA is starting to develop a new methodology due to the number of applications from large enterprises, as the new financial reporting standards require changes in the property assessment methods," Ismayilov said.
The objective accounting of assets at market value is a major principle of the IFRS.
According to the Cabinet of Ministers, socially important organizations must start submitting their financial statements based on IFRS. The list of companies that must make the transition includes the State Oil Company of the Azerbaijan Republic (SOCAR), Azerenergy, Bakielektrikshebeke, Azercell JV, SOCAR units on pipelines and marketing and economic operations, the Azneft Production Unit, the Heydar Aliyev and Azneftyag refineries, Azerbaijan Railways, Baku Metro, AZAL, Caspian State Shipment Company, Azerigas, Azerigaznagl, Azersu, Aztelecom PU, and Azerkimya and its ethylene-polyethylene plant.
Based on the law on appraisal activity, the introduction of national accounting standards based on global practice had to be completed in commercial organizations by late 2007. In this regard, a state program on the implementation of national accounting standards indicated the order for applying the standards from 2005-2008. Budgetary and non-governmental organizations had to complete this process by late 2008, small- and medium-sized enterprises by Jan.1, 2006 and municipalities, budget organizations and public funds by Jan.1, 2009.
Appraisal activity in Azerbaijan is regulated by the law on appraisal activity adopted in 1995.