Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

62 DOING BUSINESS IN AZERBAIJAN
receivable and other assets. IFRS requires, among other things,
that long-lived assets and certain identifiable intangibles that are
held and used by an entity be reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable.
In addition, allowances may also be made upon the carrying value
of short-term assets (for example, accounts receivable) when it is
likely that the full carrying value of the asset will not be recovered.
Deferred taxes
Deferred tax assets and liabilities under IFRS are recorded for the
expected future tax consequences of existing differences between
financial reporting and tax reporting basis of assets and liabilities,
and loss or tax credit carry forwards. Under AAL rules, there are no
such provisions dealing with deterred tax accounting.
Equity
In the balance sheet of an Azerbaijani company equity is generally
represented by charter capital, paid-in-excess capital, reserve
capital, appropriated earnings, social funds and retained earnings
for the current and previous years. Deductions can be made
directly from reserve funds for non-tax deductible expenses. Under
IFRS, equity is generally represented only by Share capital,
additional paid-in capital and retained earnings for the current and
previous years.
Intellectual property
In 1996 and 1997 Azerbaijan started implementation of the national
system for registration and protection of intellectual property
rights. Intellectual property rights in Azerbaijan include: all rights
to industrial property (including inventions, industrial designs,