RULES FOR RECOGNITION OF PROPERTY, PLANT AND EQUIPMENT IN FINANCIAL STATEMENTS IN ACCORDANCE WITH ACCOUNTING RULES OF IFRS FOR SME IN AZERBAIJAN

Abstract

Property, plant and equipment represent a critical component of enterprise activity and therefore occupy a central position in financial statements. This article presents a comparative analysis of the sections in which these assets are reported and the manner in which they are disclosed. Although the reporting forms and their required content are defined in the accounting rules aligned with the International Financial Reporting Standard for Small and Medium-sized Enterprises (IFRS for SMEs), the guidance lacks detailed instructions on how the information should be presented. The article highlights inconsistencies in reporting formats and issues arising from inaccurate translations of report titles that diverge from the original standards. It further examines the relationship between IFRS for SMEs and the forthcoming IFRS 18 “Presentation of Financial Statements,” which will replace IAS 1 in 2027. Using IFRS 18 as a reference, the study compares disclosure requirements and summarizes key sections related to property, plant and equipment through tabular analysis.