The State Oil Company of Azerbaijan Republic (SOCAR) should transfer to international accounting standards from 1 July 2007. It is stated in the SOCAR report for 2005 that according to the working plan agreed with the Finance Ministry of Azerbaijan, by the end of 2006, SOCAR should hold the assessment of the accounting system within the application of international accounting standards, prepare accounting policy and create accounting registries, prepare Accounting indicators, as well as instruction for preparation of accounts, Trend reports.
Taking into consideration the difficulty of these works, SOCAR decided to attract companies who possess international experience as consultants. A tender was announced, which was attended by Ernst &Young, Deloitte& Touche, KPMC and Price-Waterhouse Coopers. Price-Waterhouse Coopers won the bid which resulted in a contract being signed between the two companies on implementation of the work.
At present, employees of SOCAR receive training in accounting in accordance with the national accounting standards prepared by the Finance Ministry of Azerbaijan pursuant to international accounting standards.
According to the list agreed by the Cabinet of Ministers, 20 organizations of public importance should, by 1 January 2008, hold accounting systems and should submit financial accounts in line with international standards. The list includes SOCAR, Azerenerji, Barmek Azerbaijan, Azercell JV, SOCAR Departments for Pipeline, Marketing and Economic Operations, Azneft, Oil Refineries Heydar Aliyev and Aznefyag, Azerbaijan State Railway Department, Baku Underground, AZAL State Concern and its National Aviation Company, Kaspar, Azerigaz, Azerigaznagl, Azersu, Aztelekom and Azerkimiya.