Approved by Board of National Bank of the Azerbaijan Republic the Protocol No. 20 of December 10, 2003

Rules of accounting of the stopped activities in the financial reporting of credit institutes of the Azerbaijan Republic

1. General provisions

1.1. These rules are prepared according to the Laws of the Azerbaijan Republic "About National Bank of the Azerbaijan Republic", "About banks and banking activity in the Azerbaijan Republic", other legal acts of the Azerbaijan Republic, and also regulations of National Bank of the Azerbaijan Republic and requirements of the International Accounting Standards (IAS) and establish rules of accounting of the stopped activities in the financial reporting in bank system (further "bank") the Azerbaijan Republic.

1.2. Submission of separate information on the stopped and continuing activities provides to the user of the financial reporting increase in capability to predict cash flow, profitability and general financial position of bank.

2. Concepts

For the purposes of these rules the following concepts are used:

2.1. The stopped activities are understood as the following:

the bank, according to unified plan on the activities termination, sells the component forming separate activity or the geographical territory capable to be allocated operationally and for the purposes of the financial reporting:

i. based on the one-time transaction about sale sells entirely or liquidates entirely by transfer to shareholders of bank the property rights belonging to it;

ii. sells in parts, performing several transactions by realization of individual assets and settlement of obligations;

iii. stops use by refusal of it.

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