Ernst & Young in conjunction with the Central Bank of Azerbaijan Republic for the first time in CIS held specialized seminar on new requirements of IFRS on financial instruments and consolidation for the banking sector of Azerbaijan
BAKU, March 1/2, 2012 ― In response to the challenges of the global financial crisis and related issues in the preparation of financial statements, International Accounting Standards Board has accelerated efforts to amend and replace a number of standards such as IAS 39 “Financial Instruments: Recognition and Measurement”. These changes in International Financial Reporting Standards (IFRS) framework will certainly have a significant impact on banks and other institutions of financial markets.
In connection with this, on 1-2 March 2012 Ernst & Young in conjunction with the Central Bank of Azerbaijan Republic held a specialized seminar on new requirements of IFRS for the banking sector of Azerbaijan. In particular, the new requirements of IFRS in the area of classification, measurement and impairment of financial instruments, as well as consolidation were highlighted. The seminar was attended by representatives of commercial banks and the Central Bank divisions and was delivered by Ernst & Young IFRS experts from Moscow and Paris offices.
“Given the rapid development and international integration of the economy of Azerbaijan, commercial banks of the country must comply with the leading trends of the global financial market. One of such trends is to increase the transparency of information through the application of new financial accounting standards and rules, the improvement of accounting and risk management systems of credit institutions, and staff development” - Executive Director of Business Advisory Services of Ernst and Young Moscow, Elnur Mustafayev believes. “We hope that the workshop was up-to-date and timely for the banking sector of Azerbaijan. For this purpose, we used the best practices of Ernst & Young in IFRS and attracted leading experts from our Western practices” - he said.
Charles Morel, Ernst & Young Partner of Financial Accounting Advisory services, in charge of IFRS Implementation in EMEIA region shared the experience: "Even though some standards still need to be finalized, banks need to understand already the operational and business impacts of the new rules taking into account that it will take some significant time to implement the new rules. Amongst all the various changes, the new impairment rules (moving to an expected loss model) are most likely to impact significantly the banks in Azerbaijan".
The audience was grateful for the presentations, training materials and appreciated contribution made by Ernst & Young in holding such a useful event.
Ulvi Mansurov, Deputy Director of accounting and budget forecasting department of the International Bank of Azerbaijan Republic said: “The topic of this seminar is one of the most relevant topics nowadays. The changes that are currently implemented in IFRS will have a significant impact on the whole methodology of financial accounting and analysis. I also would like to thank Ernst & Young and the Central Bank of Azerbaijan Republic for preparation and timely realization of this seminar, which highlighted very important innovations related to IFRS”.
Indira Hasanova, Chief Financial Officer of YapiKredi Bank added: “This was the fifth event (training & workshop) organized by Ernst & Young I have attended within last two years. I highly appreciate Ernst & Young’s efforts aimed at keeping the financial institutions of Azerbaijan in line with the latest updates and changes in IFRS. I liked both speakers and training materials provided. I hope this trend will be continued hereafter”.
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Ernst & Young has made a major commitment to Azerbaijan and the region with the opening of our office in Baku 17 years ago and the growth of our local financial service industry group. Today, in addition to being a leading audit firm in Azerbaijan, we are the leading firm in the region. Because of our experience and depth of knowledge, we have been able to assist both domestic and international companies as well as state-owned entities in developing them to face the challenges of the international economy.
We currently have more than 120 staff in our Baku practice, which served our clients, including banks and other financial institutions, in Azerbaijan. The strength of Ernst & Young in the Caspian Region and the firm's commitment of resources are important to the entities operating in the region. It means that as we grow, Ernst & Young will continue to demonstrate a tradition of hiring and training local professionals to be leaders in our practice.
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