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

National accounting standard No. 2 for the commercial organizations for "Statement of changes in equity"

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"

Accounts presentation

2. 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

3. The purpose of this Standard is ensuring the sequence and transparency of recognition, assessment and representation of equity changes by the companies.

Scope of the Standard

4. This Standard is applied to the Statement of changes in equity as component of the annual 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. The terms used in the Standard belong to joint-stock companies, and concerning other companies equivalent terms are used.

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

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

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