Harmonization of capital accounting in Azerbaijan commercial enterprises in accordance with IFRS requirements

Abstract

The topic of the research related to capital accounting in commercial enterprises is relevant, as the harmonization of this process in accordance with the requirements of International Financial Reporting Standards (IFRS) becomes an integral component for attracting investment, increasing the transparency of financial reporting, and maintaining competitiveness in the global market. The purpose of the study is to develop and implement the methodology of capital accounting in the accounting activities of commercial enterprises of the Republic of Azerbaijan. Among the methods used, analytical method, statistical method, functional method, method of system analysis, method of deduction, method of synthesis and method of comparison were applied. The research was aimed at in-depth analysis of the essence of capital accounting in Azerbaijani commercial enterprises in the context of modern conditions of market economy. The main attention was paid to the study of the legal and regulatory framework, peculiarities of the authorized capital of limited and joint stock organizations. Within the framework of the research, the key elements of development of financial accounting of capitals complying with IFRS requirements were identified. In addition, specific examples of synthetic accounting of business transactions for capital formation at commercial enterprises are provided, as well as the rules of their reflection in the financial statements are outlined. Special attention is paid to the fundamentals of new accounting rules developed to meet IFRS requirements. As a result of the study, solutions have been proposed to eliminate problems related to capital accounting in accordance with IFRS requirements in the activities of Azerbaijani commercial enterprises. These solutions are oriented to harmonize accounting practices with international standards, improve transparency of financial statements and increase attractiveness for potential investors. The results can be used for Azerbaijani commercial enterprises, contributing to the improvement of financial transparency, attractiveness for investors and harmonization of accounting practices with global standards