OREANDA-NEWS. July 25, 2008. The Azerbaijani and World Bank Group’s (WBG) have approached to start of CAP/SAP Project (an accounting project in corporate and state sector) focusing on introduction of national standards in accordance with International Financial Reporting Standards (IFRS) in Azerbaijan and approved on WBG Board of Directors on March 27.

Baku-based WBG office informs that the Ministry of Finance of Azerbaijan has been empowered for signing a credit agreement on the project.

“Currently we expect empowering for signing of a grant agreement as a supplementary document to the credit agreement. If everything is successful, then next week the credit agreement will be signed,” the WB office said.

Earlier this June project supervisor John Hagerty visited Baku for consultations.

As it was agreed the WBG loan amounts USD 11 million on the International Development Association (IDA) standards. The Project budget will total USD 24-25 million. Originally it was expected to direct USD 6 million for IFRS introduction in commercial sector. Another USD 10 million was designed for introduction of IPSAS (International Public Sector Accounting Standards), Public Internal Finance Control and improvement of foreign audit in state sector and USD 9 million for improvement of accounting and auditing management system.

Preliminarily the Bank was ready to finance USD 20 million for these ends. The Azerbaijani government was to finance another USD 18 million and the Japanese government a USD 3 million grant.

Last December Azerbaijan signed  USD 895 000 grant agreement with the Japanese government on IFRS/ISA introduction. Earlier WBG financed \\$1.2 million grant for the same ends. By the present Azerbaijan has prepared 28 national standards for commercial sector. There are 35 IFRS/ISA standards applied around the world. Transfer to IFRS in Azerbaijani state sector was started on January 1, 2008.