"We are closer than ever to moving from 'international' financial reporting standards to 'global' financial reporting standards" - Hans Hoogervorst, Chairman of the IASB, said at the conference held by Ernst & Young and the IFRS Foundation
Moscow, 23 January 2012 – In December 2011, Russia completed the process of official adoption of IFRS. This means that a significant part of Russian enterprises listed on stock markets as well as all Russian credit institutions and insurance companies will have to publish IFRS consolidated financial statements starting from the 2012 reporting year.
On 23 January 2012, the fifth annual IFRS Conference IFRS in Russia 2012, organised by Ernst & Young in association with the IFRS Foundation, was held at Lotte Hotel Moscow. This year the Conference focused on the adoption of IFRS in Russia in accordance with the Federal Law On Consolidated Financial Statements.
Speakers at the Conference included Hans Hoogervorst, Chairman of the International Accounting Standards Board (the IASB), Leonid Schneidman, Director of Department of the Ministry of Finance of Russia, Raisa Yerokhina, Deputy Chief Accountant of the Bank of Russia, Askold Birin, Chairman of the National Accounting Standards Board of the NOFA, Alan Teixeira, Senior Technical Director of the IFRS Foundation, as well as Ernst & Young's leading experts.
Mr. Hoogervorst, while mentioning the fact of Russia's transition to IFRSs, stated in his speech that "reflecting this commitment to IFRSs, the IASB is fully committed to working in close cooperation with Russian stakeholders throughout the standard-setting process… You have committed yourselves to using our standards in full. My commitment to you is that we will support you every step of the way." In addition, Hans Hoogervorst briefed the audience on the progress under the important IASB's projects including Leases, Revenue Recognition, Financial Instruments and Insurance Contracts. Discussing the future activities of the IASB, Mr. Hoogervorst mentioned that within the process of consultations on the future work program, the IASB recognized specific challenges faced by emerging economies such as Russia when applying IFRSs. He also said that the IASB addressed these issues through the Emerging Economies Group (EEG) and direct consultations on IFRS policy matters.
In his presentation at the Conference, Leonid Shneidman, Director of Department of the Ministry of Finance of Russia, emphasized that the endorsement of IFRS provided an official status to the international financial reporting in Russia. At the same time, legal entities will still be obliged to prepare financial statements according to Russian Accounting Standards, which are steadily converging with IFRS.
The discussion of the official transition to IFRSs in Russia starting from 2012 offered to the Conference participants an opportunity to address their questions directly to the representatives of the Russia's Ministry of Finance, the IASB, the National Accounting Standards Board of the NOFA, as well as to the leading IFRS experts of Ernst & Young.
The final part of the Conference was devoted to practical aspects of applying IFRSs. Gary Schweitzer, Partner, Deputy Director for the CIS Capital Markets Group, Ernst & Young, briefed the Conference participants on the information disclosure issues as related to the initial public offering (IPO), highlighting the role of IFRS financial statements in the process. In his presentation Maxim Savostianov, Partner of Ernst & Young's Finance and Accounting Advisory Services addressed organization and methodology issues of preparing the first IFRS consolidated statements by Russian companies.
When closing the Conference, Dmitry Weinstein, Partner, Head of CIS Financial Reporting Group, Ernst & Young, mentioned: "Today, when IFRSs have become a part of the Russian legal framework, it is difficult to overestimate the importance of IFRS application skills. During many years Ernst & Young assists Russian companies in adoption of IFRSs. Ernst & Young welcomes the official adoption of IFRSs in Russia and is ready to provide further support to the successful application of the IFRSs by our clients to ensure high quality financial statements for investors."
IFRS-related information materials prepared by Ernst & Young, in Russian, are available at IFRS web-page: www.ey.com/ru/ifrs. Materials of the Conference IFRS in Russia 2012 will be published shortly.
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