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

National accounting standard No. 4 for the commercial organizations for "The delayed income tax"

General provisions. Purpose of the standard

1. This standard is prepared according to article 6 of the Law of the Azerbaijan Republic "About financial accounting" and based on No. International accounting standard 12, referred to as "Income tax".

Purpose

2. The purpose of this Standard is establishment of accounting treatment for tax on delayed profit in connection with recovery (compensation) in the future of book value of the assets (obligations) recognized in the balance sheet.

Scope

3. This Standard is obligatory to application by all commercial organizations constituting the financial statements according to article 10 of the Law of the Azerbaijan Republic "About financial accounting" taking into account the additional provisions which found the reflection in rules of conducting financial accounting.

4. This Standard shall be applied in the financial statements constituted by the commercial organizations according to the National Accounting standard and integrated (consolidated) financial statements, except for structures of social significance and subjects of small business.

5. In case of contradictions between the National Accounting standard No. 4 and the existing regulatory legal acts regulating financial accounting this Standard is applied.

Basic concepts

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

Tax expense (tax receipt) - the total sum included in calculation of net profit or loss for the accounting period, connected with the current and delayed taxes;

Delayed tax - future estimated tax results of the transactions and events recognized in financial statements of the current and last periods;

The delayed tax liabilities - tax amount on profit, subject to payment in the future in connection with temporary taxable differences;

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