Approved by Board decision of National Bank of the Azerbaijan Republic of January 31, 2001 the Protocol No. 3 31 of January, 2001

Rules of accounting of intangible assets in credit institutions of the Azerbaijan Republic

1. General provisions

1.1. These rules are prepared according to the laws of the Azerbaijan Republic "About National Bank of the Azerbaijan Republic", "About banks and banking activity in the Azerbaijan Republic", other legal acts of the Azerbaijan Republic and determine policy of accounting of intangible assets in all credit institutions of the Azerbaijan Republic (further - "Bank").

1.2. These rules regulate transactions of financial accounting on intangible assets and are applied for the purpose of reflection of intangible assets in financial statements.

1.3. When making in Banks of transactions on intangible assets for the purposes of the taxation provisions of the Tax code of the Azerbaijan Republic are taken as basis.

2. Concepts

2.1. Intangible assets are the non-current assets which do not have physical reasons, but creating cost on the basis of the privilege and the right of the entrepreneur.

The used in economic activity, revenue-producing rights to use by the parcels of land, natural reserves (riches), patents, licenses, "know-how", program products, the exclusive and exclusive (preferential) right (including licenses for special type of activity), organizational expenses, trademarks, trademarks, etc. belong to intangible assets dolgosrochno.

2.2. Book value (residual cost) of intangible asset is the cost of intangible asset less the depreciation which is saved up from its original cost reflected in the balance sheet (accounting) on reporting date.

2.3. Depreciation of intangible asset - means regular reduction of original cost of intangible asset during the term of its useful service.

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