BANK OF BAKU AUDITORS REPORT AND
FINANCIAL STATEMENTS AT
31 DECEMBER 1999
Note 23 -
Reconciliation of Azeri Accounting Rules to
International Accounting Standards
The following is a reconciliation of the Bank's profit before
taxation and reserves under Azeri accounting rules to profit before taxation and
reserves under International Accounting Standards. The profit before taxation is
before allocation of profits for the year to the reserve accounts. Reserves per
Azeri accounting regulations include the total of the reserve accounts and the
profit undistributed during the year.
1999
1998
Profit before taxation
Reserves
Profit before taxation
Reserves
Azeri accounting rules
413,282
486,615
1,169,241
182,085
Accrual of interest and commission income net
851
64,082
51,028
63,231
Additional depreciation on premises and equipment
8,318
(41,443)
(36,887)
(49,762)
Provision for impairment on loans to customers - net of statutory
provision
(156,731)
(353,242)
(52,731)
(115,953)
Provision for impairment on loans to banks
(86,650)
(145,000)
(28,419)
(58,350)
Reclassification of expenses charged directly to reserves
(184,018)
-
(193,127)
-
Accrual of other expenses net of reversals
12,203
(104,497)
(114,890)
(116,700)
Elimination of capitalized foreign exchange differences
610,223
581,321
73,499
(28,901)
Reclassification of depreciation recorded in reserves
-
(166,067)
-
(48,248)
Reclassification of premises and equipment fund to reserves
