Interview with Parvin Abbasov, Tax Manager

23.04.2022,18:05


April 23, Fineko/abc.az. Interview with Parvin Abbasov, Tax Manager.

Editor: Hello, thank you for accepting our offer and participating in the interview. We would like to know you first, can you tell us about yourself?

PA: Hello, I, Parvin Abbasov, have higher education in accounting and auditing. I have about 10 years of experience in this field and a Professional Accountant Certificate (PMS).

Editor: Why did you choose accounting/auditing instead of other professions?

PA: I believe that the development path of our country, the growing diversification of the market economy and the formation of business entities in different spheres have increased the prestige of accountants/auditors, as well as actualized the demand for this profession.

Editor: Now, please tell me about PMS.

PA: First of all, I would like to say that there are several requirements for obtaining the right to work as a professional accountant in our country. Thus, candidates must first have a certificate for professional accountants, based on the Law of the Republic of Azerbaijan "On Accounting", and then register as a member of one of the professional accounting organizations accredited as a professional accountant. The mentioned issues are regulated by the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan No. 237 on the organization of the process of issuing a professional accountant's certificate, conducting examinations and maintaining the state register of individuals holding a professional accountant certificate. In addition, I would like to note that candidates who want to get a PMS must obtain an acceptable result in the certification exam. The following types of certificates are issued to those who successfully pass the PMS exam:

 

- Certificate of professional accountant in accordance with International Financial Reporting Standards for Small and Medium Business Entities;

- Certificate of professional accountant in accordance with International Financial Reporting Standards;

- Certificate of professional accountant Level I in accordance with International Accounting Standards for the Public Sector;

- Certificate of professional accountant Level II in accordance with International Accounting Standards for the Public Sector.

 

Professional accountants who have obtained the above-mentioned certificates may hold the position of chief accountant in the following organizations:

- in legal entities in which the control package of shares (stocks) belonging to micro and small business entities belongs to the state;

- in large and medium business entities;

- in public legal entities that publish annual financial statements or consolidated financial statements (except for enterprises established by the state and municipalities);

- in public institutions;

- in public legal entities (enterprises established by the state and municipalities) that publish annual financial statements or consolidated financial statements, etc.

 

Editor: What do you think are the importance and benefits of PMS?

PA: It is clear that in today's highly competitive economic environment, business decision-making is one of the most important factors in business management. The basis of decision-making in business entities is not provided with the necessary information. Given that accounting information is the "language" of the economy, we can say that the necessary information we provide is provided to companies by accounting. Consequently, there is always a need for professional accountants to provide businesses with this information. In our country, the main source that confirms this professionalism, of course, is PMS. Therefore, when companies announce vacancies for accountants, they unequivocally require candidates to have a PMS. As for the advantages of PMS, of course, accountants who have received PMS have an absolute advantage in the labor market, and having this certificate will always be one of the main tools for them to compete with their colleagues.

Editor: What professional knowledge should people who want to get PMS to have?

PA: First of all, I would like to say that accountants who want to get a PMS must go through a two-stage examination process. Candidates who successfully pass the exam and wish to obtain PMS International Phase I Public Accounting Standards; must have professional knowledge of International Financial Reporting Standards for Small and Medium Business Entities or existing International Financial Reporting Standards and Accounting Laws. These laws include the Law of the Republic of Azerbaijan “On Accounting”, “Rules for Reporting Period and Financial Reporting for Budget Organizations”, “Rules for Accounting in accordance with International Accounting Standards for the Public Sector”, “Instructions on depreciation rates applied to fixed assets and intangible assets in organizations that prepare annual financial statements in accordance with International Accounting Standards for the Public Sector”, “Procedure for conducting synthetic accounting on the basis of the memorial order form in accordance with International Financial Reporting Standards and International Public Sector Accounting Standards”, “Repair cost accounting”, “Rules for conducting cash operations in organizations financed from the state budget”, “Rules for inventory of assets and liabilities”. Candidates wishing to obtain a PMS must have professional knowledge of the legislation, i.e., the Tax Code of the Republic of Azerbaijan, the Law of the Republic of Azerbaijan on the Budget System, the Labor Code of the Republic of Azerbaijan and the Civil Code of the Republic of Azerbaijan in order to successfully pass the second stage of the exam.

Editor: Can you tell me about the PMS exam?

PA: PMS exam is conducted by the State Examination Center. The SEC determines the set of tasks for the examinations for each type of certificate and the technology of the examinations in coordination with the Ministry of Finance. The set of tasks is compiled by the SEC with the involvement of specialists recommended by the Ministry of Finance. In connection with the organization of the process of issuing a professional accountant certificate, the SEC carries out the following:

  • determines the schedule of examinations;
  • regularly examines the set of tasks, updates at least 20 percent annually;
  • compiles a list of correct answers to the set of tasks and ensures their storage in a specially allocated database, subject to confidentiality;
  • announces the acceptance of documents at least one month before the exam date;
  • accepts documents related to the examination;
  • issues professional accountant certificates within 15 days based on the results of the exam, etc.

As I mentioned earlier, certification is carried out through a two-stage exam. The first stage of the exam covers accounting, and the second stage covers questions on budget, tax, and civil and labor legislation.

Candidates applying for a Certificate of Professional Accounting for International Financial Reporting Standards or a Certificate of Professional Accountant for International Financial Reporting Standards for Small and Medium-Sized Entities are exempt from the first stage of the examination if they have any of the following certificates:

  • “DipIFR” certificate or Document of the Association of Privileged and Certified Accountants on passing successfully the FR - Financial Reporting exam;
  • F2 "Advanced Financial Reporting" certificate of the Institute of Privileged Management Accountants (CIMA - Chartered Institute of Management Accountants);
  • Certified Public Accountant (CPA);
  • Certificate of the Association of Privileged Accountants;
  • Certificate of the Institute of Certified Financial Managers (ICFM) - "Diploma in IFRS".

According to International Public Sector Accounting Standards - Candidates applying for a Level I or II Professional Accountant Certificate are exempt from the first stage of the examination if they have a certificate from the Institute for Preferential Finance and Accounting for the Public Sector (CİPFA- Chartered Institute of Public Finance & Accountancy).

I would like to note that the exam is open to candidates with secondary special education in economics and at least 5 (five) years of work experience in the field of accounting or higher education.

Each stage of the certification exam consists of test tasks. There are closed (i.e., test tasks that require 1 (one) correct answer to be identified and marked) and open (i.e., test tasks that do not provide answer options and require the correct answer to be written).

40 test tasks are presented at each stage of the exam. Of the test tasks submitted in the first stage of the exam, 30 are closed-type, 10 are open-type, and of the test tasks presented in the second stage of the exam, 35 are closed-type and 5 are open-type.

In the second stage of the exam, 15 of all open and closed type test assignments are submitted according to the tax legislation, and other test assignments are submitted according to the following division:

- if the first stage of the examination covers International Financial Reporting Standards or International Financial Reporting Standards for Small and Medium Business Entities, 15 closed-type test assignments on civil law and 5 (five) closed-type test assignments on labor legislation;

- if the first stage of the examination covers International Accounting Standards for the Public Sector, 10 closed-type test assignments on budget legislation, 5 (five) closed-type test assignments on civil law and 5 (five) closed-type test assignments on labor legislation.

Test tasks for each stage of the exam are evaluated on a 100-point scale. In the first stage of the exam, 20 of the closed-type test tasks are evaluated with 1 point, 10 with 2 points, 8 of the open-type test tasks with 5 points, and 2 with 10 points. For the second stage of the exam, 20 of the closed-type test tasks are evaluated with 1 point, 15 with 2 points, and each of the open-type test tasks with 10 points.

In addition, candidates must earn 50 or more points in both stages to obtain International Level II Professional Accounting Certificates in International Financial Reporting Standards for Small and Medium Business Entities, International Financial Reporting Standards and International Public Sector Accounting Standards.

According to the International Accounting Standards for the Public Sector - Candidates wishing to obtain a Level I Professional Accountant Certificate must score 35 or more on both stages.

The exam is conducted in a centralized manner on a paid basis by the SEC in Baku or by regions. The fee for each stage of the exam is set at 50 AZN. However, candidates who are exempted from the first stage of the exam pay only for the second stage of the exam.

 

Editor: What courses can you recommend to prepare for the PMS exam?

PA: I think that there are enough professional courses in this field in our country. One of the professional courses I recommend for candidates seeking PMS is Baker Tilly Academy. Baker Tilly Academy has been operating since 2019 and has quickly found its place in the existing market with its professionalism. The academy conducts training by professional trainers in many areas. Thus, training such as accounting, taxation, internal audit, business management and evaluation, PMS, etc. are provided to the participants by the academy. I would like to note that the academy has created all conditions for the participants to conduct the training at a perfect level. Training are held on weekends during the day and on weekdays in the evening. You can get information about the training center and training on the website of the academy (https://bakertillyacademy.az) and on other social media pages (Instagram, Facebook, etc.).

Editor: So, what is the next step after getting PMS?

PA: Candidates who have successfully passed the examination process and received a certificate must be members of one of the non-profit organizations accredited by the Ministry of Finance. Accredited non-profit organizations are:

- “Association of Professional Financial Managers” Public Union;

- “Azerbaijan Association of Accountants and Risk Professionals” Public Union;

- “Young Accountants” Public Union.

Editor: How can business entities obtain information about PMS-certified individuals?

PA: Business entities can obtain information on those who have received a professional accountant certificate from the state register. The state register is compiled by the Ministry of Finance on paper and electronic media and posted on the official website of the Ministry of Finance. When there is a discrepancy between the records on paper and electronic media, the records on paper have the upper hand. The SEC submits monthly information on persons who have received a certificate of professional accountant to the Ministry of Finance by the 15th of each subsequent month, and this information is included in the state register within 7 (seven) working days. After submitting the name of the professional accounting organization, of which the person receiving the PMS is a member, to the Ministry of Finance, this information shall be included in the state register within 5 (five) working days.

Editor: Finally, what would you like to say to our audience?

PA: I wish the audience to constantly develop, be open to innovations and achieve success and achievements in their future endeavors.

Keywords: Bakertilly