Approved by the Order of the Ministry of Finance of the Azerbaijan Republic of December 29, 2007, No. I-130

National accounting standard No. 3 for the commercial organizations for "Tax on current profit"

General provisions

Purpose of the standard

1. This Standard is prepared according to the Law of the Azerbaijan Republic "About financial accounting" and is based on No. International accounting standard 12, referred to as "Income tax".

Purpose

2. The purpose of this Standard is establishment of accounting on the current tax on profit connected with having impacts on current tax and found reflection in financial statements of the company transactions for current period, remaining balance, etc.

Scope of standards

3. This Standard is applied to accounting of current tax on profit both in the financial statements which are separately submitted by the company, and in the integrated (consolidated) group financial statements.

4. All local and foreign taxes based on taxable profit enter tax on current profit. Also the tax on current profit includes the corresponding payments levied from source the taxes paid by the company which submitted the report including its subsidiary and associated companies, joint businesses.

5. This Standard does not belong to accounting methods of government subsidies or the investment tax credits. Despite it, this Standard belongs to determination of temporary distinctions which can be caused by similar subsidies and the tax credits.

6. This Standard shall will be applied, in view of Rules of Accounting.

7. In case of contradictions between the existing regulatory legal acts of financial accounting and this National Accounting standard, this Standard is applied.

Basic concepts

8. The concepts used in this Standard make the following sense:

Accounting profit - the net profit or loss received for the period, preceding deduction of tax expenses.

Taxable profit (tax loss) - profit or loss for the accounting period, determined according to the rules established by tax authorities.

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