Bayramov: Continued Reforms in Financial Reporting Aligned with International Standards
Azerbaijan’s Financial Reporting Reforms: A Step Towards International Standards
Azerbaijan is set to enhance its financial reporting standards in alignment with global practices, as announced by Deputy Minister of Finance Azer Bayramov. This initiative comes during a crucial meeting with representatives from globally renowned auditing and consulting firms, including Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG.
Bayramov highlighted that the continuous reform of accounting and financial reporting according to international standards is among the principal challenges facing the Ministry of Finance today. This meeting marks a pivotal move towards addressing these challenges effectively.
Key discussions at the meeting focused on the reform of accounting and tax practices. Participants reviewed existing methodologies and provided proposals to align them with international standards. Some of the main topics addressed included:
- Effective Tax Mechanisms: There are plans to create more efficient mechanisms for accounting depreciation and repair expenses for tax purposes.
- Certified Software Implementation: The meeting emphasized the need for certified software in the accounting field to streamline operations.
- Government Resource Planning (GRP): An exploration of international practices in GRP was also a focal point.
Moreover, the dialogue extended to the implementation of international experiences in state funds concerning IPSAS (International Public Sector Accounting Standards) and IFRS (International Financial Reporting Standards). A significant goal of these reforms is to ensure that Public Legal Entities comply with international standards in both accounting and financial reporting.
As Azerbaijan embarks on this transformative journey, the collaboration with leading global firms is expected to spearhead significant advancements in the country’s financial landscape, ultimately enhancing transparency and efficiency in public financial management.
