Approved by the order of the Ministry of Finance of the Azerbaijan Republic of April 18, 2006 No. I-38

National accounting standard No. 1 for the commercial organizations "On Accounts Presentation"

General provisions

Standard purpose

1. This standard is developed according to the Law of the Azerbaijan Republic "About financial accounting" and is based on the International accounting standard No. 1 "Accounts presentation"

2. This Standard is intended for improvement of quality of the financial reporting represented according to National accounting standards of the commercial organizations for the account:

(a) providing that the financial reporting represented according to National accounting standards of the commercial organizations conformed all to requirements of the corresponding standards of national financial accounting;

(b) provisions of management on structure of the financial reporting, including the minimum requirements for each primary form of the reporting, accounting policy and other records

(c) establishments of practical requirements for such questions as materiality, continuity, the choice of accounting policy in the absence of the Standard, the sequence and representation of comparative information.

Accounts presentation

3. According to the Law of the Azerbaijan Republic "About financial accounting" the commercial organizations represent the annual financial reporting and the summary (consolidated) financial reporting to state bodies in cases, procedure and in the terms established by legal acts, and to other persons - their charters.

Purpose

4. The purpose of this Standard is ensuring base for accounts presentation of general purpose to reach comparability of the financial reporting for accounting year as with own financial reporting of this organization for preceding periods, and with the financial reporting of other companies.

Scope of the Standard

5. This Standard is applied to the financial reporting and the summary (consolidated) financial reporting constituted by the commercial organizations, except for structures of social significance and small business entities according to National accounting standards.

6. This Standard is applied taking into account the Rules of accounting and additional provisions reflected in Interpretations and recommendations about application of National accounting standards for the commercial organizations.

7. In case of contradictions between the existing regulatory legal acts regulating financial accounting with these National accounting standards, National accounting standards are applied to the commercial organizations.

8. The commercial organizations, except for structures of social significance and small business entities, the financial reporting and summary (consolidated) the financial reporting can be represented at its sole option according to International accounting standards.

Main determinations

9. The main determinations used in this Standard have the following values:

The company - the commercial organization which is not relating to socially significant structures and small business entities.

The financial reporting - the reporting of general purpose constituted for the purpose of satisfaction of specific information needs if the user has no right to demand the report meeting these requirements.

Accounting policy - set of the principles, bases, conditions, rules and practice accepted by the company for preparation and accounts presentation.

Assessment bases - the settlement methodology used for the purpose of reflection in the financial reporting in terms of money of assets, obligations, the income, expenses and the capital of the company.

The operational period - the period between acquisition of the materials used in production process and the moment of the address of products made of them to money or cash equivalents.

The asset - stocked (resource), managed by the company as result of last event and expected as obtaining by the company in the future economic benefit.

The obligation - the corresponding obligation of the company caused by disposal of the inventories (resources) which arose from last events and bringing economic benefit out of limits of the company.

The capital - asset cost of the company after deduction of all obligations.

The income - increase in the cost efficiency which is not connected with capital deposits of owners, but caused by increase in the capital in the form of increase, receipts of assets or reduction of obligations during the accounting period. The income consists of the basic and other incomes.

Basic income - the income which is formed in case of regular activities of the company, and also classified under different headings including sale, commission charges, percent, dividends, royalty and the rent. If there is probability of permanent formation of the income from regular activities of the company, then such income is considered the basic.

Other income - the income which is formed not constantly from regular activities of the company and not corresponding to determination of basic income.

Other incomes according to the conforming National accounting standard shall be reflected in the Report on profit and loss or in the Statement of changes in equity.

Expense - the reduction of cost efficiency which is not connected with capital allocation between owners and caused by capital reduction, happened due to disposal or reduction of assets and increase in obligations during the accounting period.

The main expense - the expense which is formed in case of regular activities of the company and classified under different headings including for elements or functions.

Other expense - the expense which is formed not regularly from regular activities of the company and not corresponding to determination of the main expense.

Other expenses according to the conforming National accounting standard shall be reflected in the Report on profit and loss or in the Statement of changes in equity.

Change in storage of the capital - the increase or capital reduction corresponding to determination of the income or expense, but which is not specified in the Report on profit and loss according to the concept of storage of the corresponding capital.

Capital investments of owners - increase in the capital of the company due to transfers of owners in the share.

Capital allocation between owners - capital reduction due to transfers of owners from the share and distribution between them net profit.

Hedzhing - the transaction performed for insurance of the losses which are formed from change in value of assets and liabilities.

Representation net - bases - representation according to the National accounting standard for the commercial organizations of exchange difference in the financial reporting by offset (deduction) of movement on receipts and asset retirements and obligations, the income and expenses, money and their equivalents.

Purpose of the financial reporting

10. The financial reporting represents the structured representation of financial position and the transactions performed by the company. The purpose of the financial reporting is submission of information on financial position, financial results of activities and cash flow of the company, useful for a wide range of users in case of adoption of the correct economic decisions. For achievement of this purpose the financial reporting provides information on the following indicators of the financial reporting of the company:

(a) assets;

(b) obligations;

(c) capital;

(d) income and expenses;

(e) equity changes;

(f) cash flow;

(j) the applied accounting policy in case of creation of the financial reporting.

Objective accounts presentation and compliance to national accounting standards

11. The financial reporting shall represent authentically financial position, financial results of activities and cash flow of the company.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info