Azerbaijan to reach new level of development in accounting


Amendments to the law “On accounting”, will help Azerbaijan to reach a new level of development in this area, the Director of the Financial scientific-educational center under the Ministry of Finance Elman Huseynov said in the course of a joint event of the Association of Accountants and Risk Professionals of Azerbaijan (ARPA) and the Ministry of Finance.

“I think that in the near future we will be able to see a positive effect of the changes. In particular, they will help to create a core HR of professional accountants in Azerbaijan, and to reduce costs due to the one-time transition to international standards of accounting. In short, I believe that the adoption of these changes is the right decision. In this process, foreign experience was studied, and consultations were held with experts of the World Bank,” Huseynov said.

Changes to the law “On accounting”, adopted on May 4 at the plenary meeting of the Azerbaijani Parliament, provide for the obligatory presence of professional accountants in enterprises where the controlling stake belongs to the state, except those companies whose securities are traded on the stock exchange, as well as in other major public agencies, large businesses, budget organizations and public entities that publish annual financial or consolidated reports.

According to the bill, accountants must undergo appropriate licensing. Maintenance of the state register of accountants who have received the relevant certificate and accreditation of a professional accounting organization is provided by the relevant executive authority.

The bill also provides for elimination of the rules of simplified accounting in small and medium-sized businesses, elimination of articles on the establishment of the Advisory Council on Accounting and regulation of its activities, in connection with the rejection of the provisions on the application of national accounting standards.

The project also involves the transition of accounting entities operating in the country to international accounting standards.