Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

As mentioned above separate chart of accounts based on western
accounting principles has been adopted by Azerbaijani commercial
banks few years ago.
AAL differs from IFRS and generally accepted accounting principles
in other countries (e.g., the United States). A summary of the most
significant differences is as follows.
Accounting policies
AAL do not require detailed disclosure of accounting policies used
in the preparation of the financial statements or footnote
disclosures that provide additional information, analysis and
clarification relating to the financial statements.
Property, plant and equipment (“PPE”)
Property, plant and equipment is maintained under the historical
cost convention (at acquisition price or at the cost of production
including transportation and assembly costs) as modified by the
revaluation of these assets, if re-valued. At various times since
1992, PPE in Azerbaijan have been re-valued in accordance with
Government decrees (the latest such revaluation occurred in 1996).
Indexes used for these revaluations did not properly account for the
changes in the value of Azerbaijani Manat nor did they result in
providing a market value for the fixed assets to which they were
applied. Revaluations of property, plant and equipment are
generally not required under IFRS and US GAAP under certain
circumstances.
Impairment of assets
AAL does not permit the recording of an allowance against the
carrying value of an impaired asset. This includes setting up an
allowance for tangible assets as well as inventories, accounts
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