Performance Evaluation of Organizations and Existing Financial Reporting Frameworks in Azerbaijan
Fail Imanov
Abstract. This paper presents a comprehensive examination of the organizational performance evaluation system and existing financial reporting frameworks in Azerbaijan. The study encompasses the normative-legal basis of the country's financial reporting architecture, the progress of its alignment with International Financial Reporting Standards (IFRS), and the quantitative and qualitative indicators employed in measuring enterprise performance. A combination of comparative analysis, statistical data processing, and theoretical synthesis was applied as the research methodology. The empirical base consists of financial statements from 50 enterprises operating across multiple sectors during the 2018–2023 period. The findings reveal that the integration of financial reporting with international standards remains incomplete, and systematic performance evaluation approaches have developed unevenly across sectors. The petroleum and gas sector demonstrates high levels of IFRS compliance, whereas the manufacturing and trade sectors exhibit persistently weaker reporting quality. The absence of domestic equivalents for IFRS 9, 15, and 16 within the national accounting standards framework is identified as the primary normative gap. Drawing on comparative evidence from Turkey, Poland, and Georgia, the paper advances a five-directional reform agenda encompassing the normative base, human capital development, non-financial reporting, digital transformation, and audit oversight. The research contributes to the transition economy financial reporting literature and provides actionable guidance for policymakers and professional associations.
Keywords: financial reporting, enterprise performance, IFRS, ANSS, performance evaluation, transition economy, Azerbaijan, audit quality, ESG reporting