BANK OF BAKU AUDITORS REPORT AND
FINANCIAL STATEMENTS AT
31 DECEMBER 2001
Note 23 - Reconciliation of Azerbaijanian Accounting Rules to International Accounting
Standards
The following is a reconciliation of the Bank's income before taxation and reserves under Azerbaijanian Accounting Rules with income before taxation and reserves under International Accounting Standards. The income before taxation is before allocation of profits for the year to the reserve accounts. According to Azerbaijanian Accounting Rules, reserves include the total of the reserve accounts and the profit undistributed during the year.
2001
2000
Income before taxation
Reserves
Income before taxation
Reserves
Per Azerbaijanian Accounting Rules
132,338
1,279,660
997,805
1,224,680
Accrual of interest income net
(198,578)
-
134,440
198,576
Accrual of interest expense net
5,374
(115,827)
(16,249)
(133,274)
Provision for impairment on loans to customers
789,872
(215,535)
(809,188)
(1,162,430)
Additional
depreciation/amortization expense
(41,360)
(81,187)
1,619
(39,826)
Reclassification of expenses charged to reserves
(40,659)
-
(48,191)
44,713
Elimination of
capitalized foreign exchange differences
-
-
79,916
-
Reclassification of allowance
for impairment on loans to customers
