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LAW OF THE AZERBAIJAN REPUBLIC

On June 29, 2004 No. 716-IIG

About financial accounting

(as amended on 05-06-2025)

Chapter I. General provisions

Article 1. Purpose of the Law

1.1. This Law regulates rules of the organization and conducting financial accounting, including creation and submission of financial statements by the legal entities acting in the territory of the Azerbaijan Republic, irrespective of pattern of ownership and legal form, and also the physical persons who are engaged in business activity without formation of legal entity (further - subjects of financial accounting).

1.2. In the territory of the Azerbaijan Republic all regulatory legal acts developed by executive bodies within their powers connected with financial accounting can be applied after approval and the approval of the executive authority by relevant organ, except as specified, provided by the law.

1.3. This Law does not extend to the Alyatsky free economic zone. The organization and conducting financial accounting, including preparation and submission of financial statements in the Alyatsky free economic zone are regulated according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

Article 2. Basic concepts

2.1. The concepts used in this Law express the following values:

2.1.1. Rules of accounting - legal acts on conducting financial accounting in subjects of financial accounting, to creation of documents of financial accounting, and also on reflection in financial accounting of separate financial and economic activities.

2.1.2. Group - the main managing society (partnership) and all its subsidiaries.

2.1.3. International accounting standards - The international accounting standards, International accounting standards accepted by the international organization specializing in this area, and the comment of this international organization for these standards.

2.1.4. International accounting standards for the public sector - the international standards accepted by the international organization specializing in this area and provided for the public sector.

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