BANK OF BAKU
AUDITORS REPORT AND FINANCIAL
STATEMENTS AT
31 DECEMBER 1997 Note 2 - Basis of presentation
The balance sheet has been prepared in accordance with
International Accounting Standards (IAS), and is presented in the thousands of
Azerbaijani Manats (AZM), unless otherwise indicated.
The Bank maintains its books of account and prepares
statements for regulatory purposes in accordance with Azerbaijani accounting and
banking legislation and instructions (AAL). The accompanying balance sheet is
based on the Banks accounting records, appropriately adjusted and
reclassified for fair presentation in accordance with the standards prescribed
by the International Accounting Standards Committee. Shareholders funds
(equity) are reconciled between AAL and IAS as follows:
