Regulatory Alerts2021-03-29
Regulations on the Accrual Method of Accounting in Azerbaijan's Banking System
The Management Board of the Central Bank of Azerbaijan issued these regulations to require banking institutions to apply the accrual method for all financial operations. Under this framework, income and expenses are recognized when incurred rather than upon cash exchange, with interest recorded daily and profit or loss verified monthly. The updated rules replace the 1995 directive, enforce specific accounting entries for receivables and payables, and ensure alignment with the national Tax Code.
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