Anyone who starts learning accounting soon meets two words: IFRS and 1C. The first tells you which standard reports are prepared under; the second, which program the day-to-day bookkeeping is done in. In this article, based on official sources, we explain what IFRS is, who applies it in Azerbaijan and what is worth looking for when choosing a course.
What is IFRS?
IFRS stands for International Financial Reporting Standards (in Azerbaijani, MHBS). The Standards and the related Conceptual Framework are published on the official website of the IFRS Foundation (ifrs.org).
According to the IFRS Foundation, the Conceptual Framework sets out the fundamental concepts of financial reporting, helps keep the Standards consistent and helps companies develop accounting policies when no Standard applies. It is also where the definitions of asset, liability, equity, income and expenses are given.
You can read a simple explanation of these concepts in a separate article: Basic accounting concepts.
Who must apply IFRS in Azerbaijan?
The Law of the Republic of Azerbaijan "On Accounting" sets different rules for different entities:
| Entity | Reporting rule |
|---|---|
| Public interest entities | Prepare financial statements only in accordance with IFRS (Article 8.1) |
| Micro and small business entities | Keep accounts under the simplified rules approved for them or, if they wish, report under IFRS for SMEs or full IFRS (Article 9.1) |
| Large and medium business entities | The rule is set separately in Article 10 of the Law |
There is one more important point for micro and small business entities: the decision on which rules they will apply is made for the following year by 31 December of the current year (Law "On Accounting", Article 9.2). For example, if a small business entity wants to report under full IFRS from 2027, it must make this decision by 31 December 2026.
What is 1C and why is it needed in accounting work?
According to the official overview by the 1C company, the "1C:Enterprise 8" system of programs consists of a technology platform (the core) and applied solutions built on it — "configurations". The system is used to automate the work of manufacturing and trading companies and of budget and financial organisations, including keeping accounts with several charts of accounts.
Put simply: IFRS and the law define what and how to account for, while programs like 1C help do this work day to day. That is why it is useful for anyone learning accounting to know both the theory and how to work in the program.
What to look for when choosing an accounting course?
When reviewing a course programme, look for answers to these questions:
- Are the basic concepts covered? Asset, liability, equity, income and expenses — all later topics rely on them.
- Is the legislation explained? The Law "On Accounting" and tax rules are part of practical work.
- Is there practice in a program? Entering transactions in a program like 1C reinforces the theory.
- Does the format suit you? Online classes let you learn alongside work or studies.
Who benefits from this knowledge?
- Those who want to learn accounting from scratch and work in this field;
- Entrepreneurs who want to better understand their business's reports;
- Office staff who use, or will use, 1C in their daily work;
- Specialists who want to systematise their accounting knowledge and study IFRS concepts in more depth.
Summary
- IFRS (MHBS) are the International Financial Reporting Standards; the fundamental concepts are set out in the Conceptual Framework.
- Public interest entities prepare financial statements only under IFRS.
- Micro and small businesses can choose simplified rules, IFRS for SMEs or full IFRS; the decision for the following year is made by 31 December.
- 1C is a system of programs used for day-to-day bookkeeping.
To ask about our online "Accounting" and "1C Accounting" courses, write to us on WhatsApp: +994 77 754 10 12.
📚 Sources
🌐 The original article is in Azerbaijani; the official sources are available in Azerbaijani.
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