Financial Crime World

Accounting Law of Azerbaijan Republic (2004)

The Accounting Law of Azerbaijan Republic was enacted in 2004 to regulate accounting practices in Azerbaijan. This law provides a framework for financial reporting by commercial and non-commercial organizations.

I. General Provisions

  • The law applies to all commercial and non-commercial organizations operating in Azerbaijan.
  • Accounting is mandatory for all subjects of accounting, including individuals and organizations.
  • The law requires financial statements to be prepared in accordance with national accounting standards.

II. Financial Statements of Commercial Organizations

  • Commercial organizations must prepare annual financial statements and consolidated financial statements.
  • Public interest entities and other commercial organizations that prepare consolidated financial statements must post their annual financial statements on their website or publish them in the press.
  • The governing body of a subject of accounting is responsible for preparing, presenting, and publishing its financial statements.

III. Financial Statements of Non-Commercial Organizations

  • Municipal organs, budget organizations, and off-budget state funds must prepare their financial statements in accordance with national accounting standards for budget organizations.
  • Non-government organizations must prepare their financial statements in conformity with national accounting standards for non-government organizations.
  • The rules concerning the submission, reporting periods, and publication of financial statements by budget organizations and off-budget state funds are determined by the relevant executive authority.

IV. Closings Clauses

  • The law protects the confidentiality of accounting data.
  • Courts, prosecutor’s office, tax authorities, and other plenipotentiary authorities have access to all accounting documents pursuant to procedures authorized by law.
  • The duly appointed auditor of a subject of accounting has the legal right of access to all accounting documentation.

V. Transitional Provisions

  • Until the effective date of national accounting standards, existing legal acts related to accounting remain in force.
  • In cases of contradictions between effective normative-legal acts and national accounting standards, national accounting standards should be applied.
  • The terms of phased introduction of national accounting standards are determined by the relevant executive authority.