The Tax Code of the Republic of Azerbaijan

Article 134. Recording income and expenditures using the accrual basis method
Taxpayer maintaining records using the accrual basis method shall record income and expenditures based on the moment of the acquisition by taxpayer of the right to that income or of the acknowledgment of the expenditures, respectively, regardless of the moment that the income is received or the expenditures are incurred.
Article 135. Moment of the receipt of income when using the accrual basis method
135.1. The right to receive income shall be considered to have been acquired if the relevant amount is subject to unconditional payment to taxpayer or taxpayer has fulfilled all its obligations under the transaction.
135.2. If taxpayer fulfills work or provides services, the right to receive income shall be considered to have been acquired at the time when the fulfillment of such work under the agreement has been fully completed.
135.3. If taxpayer receives income, or has the right to receive interest income or income from the lease of property, the right to receive income shall be considered to be acquired at the moment of expiration of the term of the debt obligation or lease agreement. If the term of the debt obligation or lease agreement extends over several reporting periods, the income shall be distributed among these reporting periods according to the procedure for the calculation of this income.
Article 136. Moment of carrying expenditures when using the accrual basis method
136.1. When taxpayer uses the accrual basis method in tax accounting, the moment of carrying expenditures in respect of a transaction (agreement) shall, unless otherwise provided by this Article, be considered when all the following condition are fulfilled:
136.1.1. taxpayer’s acceptance of a financial obligation can be acknowledged indisputably;
136.1.2. the amount of the financial obligations can be valued with sufficient accuracy; and
136.1.3. all of the parties to the transaction (agreement) have actually fulfilled all their obligations under the transaction (agreement) or the relevant amounts are subject to unconditional payment.
136.2. In relation to the above mentioned, financial obligations shall be such obligations assumed according to a transaction (agreement), for the fulfillment of which the other party to the transaction (agreement) will be required to pay relevant income in monetary or other form.
136.3. When paying interest or rental on a leased property the debt obligation term or lease agreement term shall cover few reporting periods, the income shall be distributed among these reporting periods in accordance with the procedure for their calculation.