The Tax Code of the Republic of Azerbaijan

Article 137. Distribution of income from joint ownership
In the case of joint ownership agreements or agreements that involve ownership by more than one person without establishing a legal person, income and expenditures resulting from said agreements shall be attributed to owners according to the agreement and tax shall be imposed according to the participating interest of such owners.
Article 138. Income and deductions under long-term contracts
138.1. «Long-term contract» - shall mean a contract on production (manufacture), installation or construction, or the performance of related service, which is not completed within a tax year. Contracts to be completed within 6 months of the date on which work under such contracts commenced shall be an exception.
138.2. If taxpayer uses the accrual method of accounting, income and deductions with respect to long-term contracts shall be accounted for during the tax year in accordance with the actual percentage of completion of such contracts.
138.3. Percentage of a completion of a contract shall be determined by comparing the expenditures borne by the end of the tax year against the total expenditures under the contract.
138.4. Provisions of Article 138 of this Code shall not be applied to simplified tax payers for operations in building constructions.
Article 139. Procedure for Recording Stocks of Commodities and Materials
139.1. Taxpayer shall be obliged to include in stocks of commodities and materials any goods in its possession and to be used for subsequent sale or for production of goods, doing work or providing services.
139.2. When accounting for commodity and material stocks, taxpayer shall be obliged to reflect in tax accounting the value of goods produced or acquired by it, such value being determined on the basis of the production cost or purchase price of these goods, respectively. Taxpayer shall also be obliged to include storage or transportation costs on these goods in their value.
139.3. When recording commodity and material stocks, the taxpayer may assess the value of obsolete, defective or out-of date goods (or products), that cannot be transferred at a price higher than their production cost or purchase price for the same reasons, on the basis of the price at which said goods (or products) can be transferred.
139.4. The taxpayer holds the right to keep the accounting of commodity and material stocks using the method of valuation at average cost if he is not keeping the individual record of goods on which he has the authority.