What is ifrs? IFRS (international financial reporting standards). Segmental information has the basis of such a plan

According to available official data, in 2015 the introduction of such regulations as special categories will become mandatory. Most often you can find the abbreviation of this concept - IFRS.

• stock market professional participants;
• commodity exchanges;
• non-state pension funds;
• clearing companies;
• joint stock investment funds;
• management organizations of the above categories.

It makes sense to first decide on the question: “IFRS - what is it?” This concept is deciphered as a complex of specialized documents, or rather standards, through which the procedure for creating financial statements that are freely available to external users is regulated.

IFRS versus the Russian accounting system

First of all, there is a difference in the end users of information, which includes relevant accounting indicators grouped according to the above standards. In particular, the Russian model was aimed at government agencies and statistics, and the international one at investors, enterprises and financial institutions. As a result, the associated differences in interests and needs for financial information also reveal different principles on which the procedure for generating this reporting is based.

Thus, a mandatory rule in IFRS is the priority of content regarding the form of presentation of previously specified information. When talking about the Russian accounting system, this point is most often omitted.

A practical example would be a situation in which PBU considers part of the capital of an enterprise, although regarding their economic nature there are very few distinctive features from bonds. Under IFRS, these features are significant enough not to be included in equity.

The purpose of introducing IFRS to Russian enterprises

In order to create something that is adequately perceived and understandable to users in different countries, international standards were introduced. Their goal is to unify the preparation of the considered set of documents and provide data on the activities of a company.

It is worth highlighting the list of documents defining IFRS aimed at their unification regarding the order of creation, namely:

• balance sheet;
• Report on ;
• Profits and Losses Report;
• report on changes in capital or other transactions in this area;
• accounting policy.

Along with the above reports, enterprises can also generate certain reviews for the management team, which display the profit indicators of a given company.

IFRS - what is it?

This accounting system looks like a specific set of documents, including the following elements:

• preface to the provisions of the standards under consideration;
• clarification of the fundamental principles of preparation and form of presentation of this type of reporting, in essence the concept of IFRS;
• standards and corresponding interpretations to these documents.

Each of the above documents has its own significance, but is used exclusively in conjunction with other elements. Thus, from the previously indicated list it means that IFRS are standards, each of which has a clearly established structure.

The semantic aspect of the standards of the accounting system under consideration

They establish rules that determine the procedure for deciphering individual transactions performed in the course of carrying out the core activities of the enterprise and reflected in the financial statements.

It is important to note that the standards adopted by the relevant body before 2001 are called International Accounting Standards or abbreviated IAS, and then, since 2001, International Financial Reporting Standards, the abbreviation of which has the same spelling - IFRS.

Current above standards

The main IFRSs developed before 2001 include:

International Financial Reporting Standards

The list of standards of the accounting system under consideration, adopted since 2001, is as follows:

1. “Adoption of International Financial Reporting Standards for the first time” (IFRS No. 1).
2. “Share-based payments” (IFRS No. 2).
3. Business Combinations (IFRS No. 3).
4. “Insurance Contracts” (IFRS No. 4).
5. “Non-current assets held for sale and discontinued operations” (IFRS No. 5).
6. "Exploration and Evaluation of Mineral Resources" (IFRS No. 6).

What is the significance of the current year regarding the accounting system in question?

From official sources it became known that the last volume of IFRS 2014, called the “Red Book,” is ready. It contains rules for international accounting, including those that will come into force after January 1 of the current year. An example is the amendments to the ninth standard, called “Financial Instruments,” adopted in 2001. There are also two sets of annual changes regarding IFRS 2011-2013 and IFRS 2010-2012, one interpretation of fees, the constitution of the IFRS Foundation, and a detailed work plan.

What's good about this accounting system?

In order to create a financial report that is correct by international standards, IFRS will be indispensable in helping.

It is worth highlighting a number of advantages of this accounting system, which may be associated with the activities of the following entities:

1. investors, as this is due to clarity, transparency, reliability and lower costs.
2. Companies, because the costs of activities to attract investment are reduced, there is a unified accounting system, there is no need to harmonize financial information, there is order in both internal and external accounting.
3. Auditors: due to the fact that there is uniformity in the fundamentals, there is an opportunity to participate in the adoption of relevant standards, large-scale trainings are conducted.
4. The developers of these standards themselves - due to the fact that this is an excellent opportunity to exchange experience, the basis for future national standards and the convergence of existing ones.

All of the above helps once again to get an answer to the question: “IFRS - what is it?”

How to smooth the process of transition to IFRS?

The reform objectives include the following:

1. Special training of accountants to the level of professional knowledge of the basics of the accounting system in question.
2. Strengthening in the minds of enterprise managers a real interest in providing truthful and objective information.
3. The final differentiation of accounting into tax, financial and management.

The importance of the transition is determined by the fact that IFRS are standards that are a compromise between the world's main accounting systems.

The appeal of accounting reform to businesses around the world

The IFRS financial statements under consideration can make it easier for companies from different countries to enter world-class capital markets, and will also increase the comparability of information and make it more transparent for external users.

Specifically, Russian enterprises will be able to speak the same language with their foreign colleagues and strengthen their business position in foreign markets from the point of view of equality of opportunity, as a result of which multiple prospects of international capital markets will become available.

The implementation of IFRS will have a positive impact on quality, in particular on its improvement, and will also contribute to updating information systems and motivating staff.

In addition, attracting foreign capital without reporting prepared in accordance with IFRS is currently very difficult. And it doesn’t matter whether this will be done either with the help of Western banks, or by entering the stock market located abroad, or by attracting private investment from abroad. A potential foreign investor will most likely not understand reporting prepared in accordance with PBU. Therefore, it is worth taking care of generating reports regulated by IFRS.

Companies are aware of the fact that in the near future, international standards will become national. For many firms, IFRS reporting is already required today in order to secure a significant competitive advantage by attracting resources in international borrowing markets such as bonds, loans or IPOs.

Thus, all of the above helps to understand in more detail the question: “IFRS - what is it?”

If you are going to prepare financial statements under IFRS, it is worth understanding the basic principles of its operation. And to do this, let us dwell on the main legislative provisions that regulate this issue.

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Often, companies prepare regular financial statements, the preparation of which is carried out in accordance with the requirements of Russian legislation.

If there is a need to submit reports in accordance with IFRS, then you need to adhere to several different rules.

Basic moments

A manager who plans to prepare reports in accordance with IFRS needs to know not only the definition and meaning of such reporting, but also the standards that can be referred to.

What it is?

Explanation of IFRS - International Financial Reporting Standards. This refers to accounting reports, the finances of which include report forms, financial performance reports, etc.

RAS standards differ from IFRS standards. What are IFRS standards?

IFRS are international financial reporting standards developed to define rules for the preparation of financial statements.

It examines what is included in financial statements, when and in what estimates certain accounting objects are taken into account, what information is disclosed in.

What do they regulate?

By submitting reports in accordance with IFRS, our enterprises will be able to enter the stock market in different countries. And cheaper outside the Russian Federation.

A foreign bank will not accept reports that were compiled in accordance with Russian standards. And in such cases, IFRS reports will be useful.

Another advantage is that such reporting is necessary to obtain reliable information about borrowing companies.

A large Russian bank will also require reporting in exactly this format. The original text of IFRS is issued in English.

Current standards

The main legislative document on which you can rely when improving your financial statements in accordance with the requirements of IFRS is (edition).

It is also worth relying on the provisions as well.

Features of document generation

IFRS reports are not necessarily prepared. The company itself decides on their use.

When moving to international standards, it is worth recognizing the general principles for filling out financial reports, which are in the nature of individual documents. But they don't have mandatory requirements

The standards are based on 2 main assumptions:

In order for data to be used at international IFRS levels, a number of conditions must be met:

The elements of IFRS are economic categories that are associated with the presentation of data on the financial position of the company and the result of its work.

There are 5 elements:

• assets;
• responsibilities;
• equity;
• profit;
• expenses.

Procedure for creating an international standard

The 1st standard was developed back in 1974. All standards must include the following elements:

• IFRS accounting objects - definitions;
• recognition of accounting objects - description of the criterion for an object to belong to a certain element;
• assessment of accounting objects;
• reflected in financial statements.

Effect of basic standards

Let's imagine the IFRS table:

IFRS 29 in conditions of hyperinflation

The goal is to establish rules for recalculating financial statements in the event of hyperinflation.

There are a number of criteria for calling an economy hyperinflationary:

The impact of inflation is expressed in a fall in the purchasing power of cash and cash equivalents.

And this is how income and loss arise on net cash positions (on the positive and negative difference between the monetary assets and liabilities of the enterprise).

The financial statements of a firm that reports in a hyperinflationary currency are translated into units in effect at the time of preparation. Such reports will replace regular financial reporting.

Ways to account for the impact of inflation:

• straight;
• indirect.

Data that must be disclosed in reports:

• the fact of recalculation of statements;
• the degree of price index at reporting dates;
• change in the price index in the current and previous periods;
• methods of preparing reports.

IFRS 10 consolidated financial statements

The goal is to determine the principles for filing and compiling consolidated financial statements in a situation where a company controls several enterprises.

For the goal to be achieved, it is worth:

• the company submits a consolidated type of reporting;
• define the principles of control and establish control as the basis for consolidation;
• specify how to use control principles to determine whether investors control investees;
• establish accounting organization requirements to prepare consolidated financial statements;
• define an investment enterprise.

This standard does not address the accounting requirements for combinations and their impact on consolidation.

The standard applies to all organizations except:

The parent company must prepare consolidated accounts using uniform accounting policies for similar transactions. Consolidation begins when investors gain control over the investees.

IFRS ias 1 reporting

This standard establishes a framework for the presentation of general purpose financial statements to ensure comparability with the firm's prior period reports and with the reports of other companies.

The standard contains data on reporting, recommendations for structure and content. The reports are prepared on the basis of the assumption of going concern unless the firm is about to go into liquidation.

The accrual principle is used. The purpose of the reports is to provide information about the financial situation and performance of the organization, as well as the flow of money.

The result is reflected in the management of resources that are entrusted by managers. The following indicators are reflected:

• assets;
• obligations;
• capital;
• profits and costs;
• contributions and distributions to owners and persons acting on behalf of owners;
• movement of money.

Reporting is submitted at least once a year. Fiscal years can start on any date. International standards do not prohibit the establishment of different dates.

Reporting periods may be less than a year if appropriate. Report forms reflect:

• name of the enterprise;
• currency;
• accuracy indicators;
• reporting date and period, etc.

IFRS 34 interim

Apply to all enterprises that publish financial statements for periods of less than a full calendar year.

This standard does not specify which organizations must publish their interim reports. When disclosing information, they take into account how significant it is.

Profits that the company does not receive constantly are not reflected in the preparation of reports of this type unless there is justification. Uneven expenses are reflected in interim reports, if so specified.

Interim financial statements are reports that contain complete or condensed information for a period of less than a year.

This standard defines the minimum content of reports and specifies the principles of recognition and measurement in accounting. Information that may be included:

• rules of use;
• explanations about the frequency of operations;
• characteristics and amounts of the position that affect assets, capital, etc.;
• an event that occurred after the reporting dates;
• the amount of dividends that were transferred;
• data on purchases and sales of a subsidiary, investments that are long-term, termination of the enterprise;
• change in a contingent liability or contingent asset;
• change regarding shares in light of facts regarding outstanding obligations;
• revenue and results by industry and geographic segment.

If estimated amounts change during the final interim periods of the year, the nature is disclosed in a note to the financial statements as to what is presented for the year.

Interim reports are required to provide an update on the latest annual accounts.

The standard does not limit the right to prepare interim reports in full. In such situations, forms and content must fulfill the requirements.

IFRS ias 16 property, plant and equipment

This is the main international standard that regulates asset accounting. The company can choose a certain model to take into account subsequent assessments:

• at the original price;
• at overpriced prices.

It is possible to use the model for accounting for fixed assets for individual groups of fixed assets.

The bottom line is this - after fixed assets are initially recognized, accounting is carried out at their original price minus accumulated depreciation and impairment losses, which are recognized in accordance with the impairment of assets.

In the balance sheet, fixed assets are reflected in non-current assets as separate positions at the balance sheet price, which equals:

• original with deductions for accumulation of depreciation and impairment losses;
• revalued less depreciation and loss.

Standards of this type are intended to ensure that the following information is disclosed:

• method of estimating the value on the balance sheet before depreciation;
• the depreciation method used;
• useful life and depreciation standards;
• OS movement;
• net exchange rate difference;
• method and date of revaluation;
• reflection of the fact of engaging an independent expert for assessment;
• the method that is used to determine the replacement price indicator, etc.

Users of the reports are provided with data on the balance sheet value of fixed assets that are temporarily not used, fully depreciated, but used, fixed assets that should be retired.

IFRS 14 segment reporting

The standard is applied by public enterprises if their shares are freely traded, as well as enterprises that issue shares.

Area of ​​use: diversified enterprises with different types of activities, each division of which operates in a different region.

The user needs differentiated information that will reveal the financial result of work in each area.

This standard specifies that when filing financial statements, it is necessary to summarize information regarding the different types of goods and services produced and the geographic region in which the company operates.

Reports help:

• understand the performance indicators of the enterprise in previous periods;
• assess the risk and profit of the organization;
• make more informed decisions regarding enterprises in general and their divisions.

Data segmentation – detailing, breakdown of information presented in reports:

• by type of product and service;
• geographical region where the enterprise operates.

The concept of industry and geographic segments is introduced. If consolidated reporting and separate reports of the parent enterprise are submitted, segment data must be presented on the basis of consolidated reports.

Discloses information about the profit, costs, assets, liabilities and results of segments.

Such data will be reliable and comparable when the accounting policies do not differ from the accounting policies of the organization.

When assessing assets and liabilities of segments, they include changes that are associated with revaluation and other types of procedures that are provided for by IFRS. During consolidation, mutual offsets will not be accepted in the calculation.

You should not include the result of an extraordinary event, profit from dividend amounts and interest in the profit of segments if the segments do not carry out financial plan operations.

Criteria according to which reportable segments are recognized:

Segment information is based on the following plan:

Statement of comprehensive income

Reporting includes articles that present:

• revenue;
• financing costs;
• the company's share of the income or losses of associates and joint ventures accounted for under the equity method;
• tax costs;
• profit and loss;
• components of other income taking into account the nature;
• total comprehensive profit.

In the event that income and cost items are significant, the company discloses their nature and amounts separately.

Implemented under the following circumstances:

• inventories are discounted to the amount of net sales value or fixed asset value to recoverable prices;
• the company is being restructured;
• OS objects are retired;
• business activities cease;
• disputes are resolved.

The reporting does not disclose data on the emergency item and does not reflect net profits and losses from operations performed.

The amounts of profit and costs that relate to activities that are discontinued are shown separately.

By distributing profit for the period, the company discloses income and losses that are attributable to the non-controlling interest, as well as to the owner of the parent company.

Transformation in accordance with IFRS formats

There are 2 methods of preparing reports in accordance with IFRS - the method of adjusting or transforming Russian reports, as well as maintaining parallel accounting and generating reports based on it.

The transformation of accounting reports is a procedure for preparing reports in accordance with IFRS by rearranging accounting information and changing report items that were created in accordance with the procedure of the Russian accounting system.

Adjustments and additional entries are made to bring assets, liabilities and equity to the level at which they are recorded under IFRS.

Transforming Russian reporting is difficult. To do this, it is worth knowing international standards for accounting for assets, liabilities, etc.

IFRS 1 First-time Adoption of IFRS and IAS 29 Financial Reporting in Hyperinflationary Economies must be followed.

Preparatory methodological and organizational work is being carried out. Transformation is a periodic process.

There are several stages of transformation:

• preparatory;
• basic;
• technical.

At the first stage, an IFRS accounting policy is developed, the requirements of IFRS 1 are met, an opening balance sheet is drawn up, a valuation currency is selected, opening balances are calculated as the basis for transformation, etc.

At the second stage, differences in the approach to accounting and reporting under IFRS and RAS are sought and determined, and adjustment entries are prepared based on differences in accounting that exist.

At the last stage, transformation records are prepared, adjustment entries are drawn up, a working transformation table is created, and reporting forms are filled out in accordance with IFRS requirements.

At the moment, there is no provision for the use of a single algorithm for transforming financial statements.

Conducting an audit

At each stage of the audit, audit reports are prepared, and after its completion, financial statements are prepared.

The main purpose of the audit, which is carried out in accordance with IFRS, is to formulate conclusions that the financial position of the company for the year is adequately reflected in the reports in a material respect.

When conducting an audit, it is worth relying on international standards regarding the scope of audit processes, the type and test, as well as the format of the submitted reports.

Who has the right to conduct? – Companies that employ at least 4 specialists with a diploma from an internationally recognized accounting and auditing association.

The audit is carried out on the basis of. The requirements of the regulatory document apply to credit, insurance, and other companies if their securities were admitted to organized trading.

IFRS were developed by a non-governmental non-profit organization - the International Accounting Standards Board (IASB) - on the initiative of large companies. Formally, no state can influence the decisions made by this organization.

The IASB is funded on a voluntary basis by international accounting firms, numerous large companies, banks, as well as governments of many countries.

The organization's primary purpose is to develop, in the public interest, a single set of high quality, understandable and enforceable internationally accepted financial reporting standards based on clearly stated principles.

Currently, more than 100 countries have officially prescribed or permitted the use of IFRS.

Basic rules for preparing financial statements according to IFRS

Reporting period

An entity may prepare its financial statements for a year ending on any date (Paragraph 36 of IAS 1). For example, the reporting year of Siemens begins on October 1 and ends on September 30.

Moreover, if we look at paragraph 37 of IAS 1, we will see that companies are allowed to prepare financial statements for a period of 52 weeks (that is, 364 days). After all, the calendar year contains a non-integer number of weeks (approximately 52.14 weeks), and some companies find it inconvenient to prepare reports for this period.

Chart of accounts and reporting forms

There is no single approved or recommended chart of accounts in the international reporting structure. Each company reporting under IFRS develops its own chart of accounts based on the specifics of its activities and the required detail of financial information.

At the same time, a company can use the Chart of Accounts of Russian accounting for IFRS purposes if it prepares international reporting using the transformation method.

Of course, there are no approved financial reporting forms in IFRS either. Instead, IAS 1 Presentation of Financial Statements provides general guidance on the structure of financial statements and minimum requirements for their content.

The composition of financial statements in IFRS is the same as in RAS. Only the names of some forms differ. Thus, the Russian balance sheet in IFRS corresponds to the statement of financial position, and the statement of financial results corresponds to the statement of comprehensive income. The statement of changes in equity and the statement of cash flows (CDFS) in IFRS are called the same as in Russian accounting.

However, the names of reporting forms in IFRS are also optional - as long as they are understandable to users of the reporting. Further, for simplicity, we will call the reporting forms under IFRS as they are called in RAS.

The balance sheet in IFRS can be compiled in two ways (at the organization’s choice):

• (or) with a division into short-term and long-term assets and liabilities, that is, as in RAS;
• (or) without such division, but in order of decreasing or increasing liquidity.

The presentation form must provide reliable and relevant information. For example, banks typically choose to present them in descending order of liquidity, while manufacturing companies typically choose to present them in order of current and long-term assets and liabilities.

In the income statement, expenses related to core activities can also be presented in two ways (at the organization’s choice):

• (or) by function of expenses (cost price, commercial expenses, administrative expenses, etc.), that is, as in RAS;
• (or) by the nature of the expenses (depreciation expenses, employee benefits expenses, etc.).

Entities may present cash flows from day-to-day (IFRS uses the term "operating") activities in one of two ways:

• direct method, as in RAS;
• indirect method.

Impairment of assets

Organizations, according to IFRS, are required to test for impairment, for example, assets such as fixed assets, investment property, intangible assets, goodwill./p>

The essence of IAS 36 is that an asset should be carried at no more than its recoverable amount. Recoverable amount is the amount that an entity could receive from the use or sale of a given asset. Thus:

Some assets generate income for the company on its own, such as a property that the organization rents out. Therefore, there are no special problems in determining the value of its use.

Other assets, such as the administrative building of a plant, do not independently generate cash for the company. In such a case, the recoverable amount must be determined for the group of cash-generating assets to which the asset belongs.

If the carrying amount of an asset is higher than its recoverable amount, then the carrying amount must be reduced.

The amount of the impairment is usually included in expenses. An exception is the situation when an asset that was previously revalued has depreciated, reflecting the amount of revaluation in capital. In this case, first the amount of the revaluation is reduced by the amount of impairment, and if the amount of impairment is greater than the revaluation, then the remainder is reflected in expenses.

If the recoverable amount of an asset has increased, the amount of its impairment can be restored to its current carrying amount (except for goodwill).

Consolidated reporting

Consolidated reporting is the unified reporting of the group: the parent company (MC) and its subsidiaries (DC), which is compiled according to the rules of IFRS (clause 1, article 3 of the Law of July 27, 2010 No. 208-FZ).

Consolidation is done so that the user of the statements receives information not only about those assets and liabilities that legally belong to the MK itself, but also about those that it controls through its subsidiaries.

Today, according to Article 2 208-FZ, such reporting is mandatory only for a limited number of Russian organizations - banks, insurers, public companies. At the same time, more and more large and medium-sized companies are preparing consolidated statements on their own initiative for management accounting purposes.

Note that consolidation is one of the most difficult issues in IFRS. It is no coincidence that this is the topic that causes the most difficulties when teaching international standards.

Composition of financial statements according to IFRS and RAS

Formally, the reporting does not differ significantly from Russian financial statements. The main differences in the composition of the reporting forms are presented in the table below.

Composition of financial statements according to IFRS and Russian legislation

In addition, there are a number of fundamental differences based on the economic and legal features of the environment in which the two accounting systems were formed.

Thus, in IFRS there is a minimal connection between taxation and accounting, a weak legal influence on accounting and a strong economic one, the emphasis is not on government regulations, but on the professional judgment of specialists, strict (to the point of criminal) liability for distortion of financial statements, etc. This is due to the fact that the state perceives an enterprise not so much as a taxpayer, but as a creator of GDP and jobs, as a link in one large economic chain, the collapse of which, to a greater or lesser extent, can affect the well-being of the economy as a whole - from local to global.

IFRS puts a real assessment of balance sheet items with a future perspective at the forefront. This gives rise to concepts such as fair value (the amount at which an asset could be replaced), present value, adjustments for hyperinflation, value in use of an asset, constructive liabilities, etc.

Russian accountants are practically unfamiliar with these concepts.

Let's illustrate this with a simple example. Let’s say that at the end of the reporting period the balance of account 50 is 35,000 rubles, account 51 is 240,500 rubles. Accordingly, the Russian accountant will reflect the amount of 276,000 rubles in the balance sheet in the line “Cash and cash equivalents”. But there is an additional condition: the company’s current account is opened in a bank that is currently undergoing bankruptcy proceedings. Thus, the enterprise actually has funds at its disposal in the amount of 35,000 rubles. It is this amount that the accountant would have to show if he were preparing reports according to IFRS.

Or another example.

An organization that produces agricultural machinery sold a combine harvester worth 4.5 million rubles, giving its counterparty a deferred payment for 9 months. In Russian accounting, the proceeds from the operation will be reflected in the amount of 4.5 million rubles. An accountant keeping records in accordance with IFRS will reflect the proceeds from this operation in the amount of the discounted amount of future income, taking into account the average market lending rate, for example 20%. That is, in this case, the revenue will be assessed at fair value: 3,924,882 rubles.

Let us repeat this calculation in the most simplified version - in practice, interest on the deferred amount and deferred taxes would be added here.

The explanations in international financial statements are less regulated than their Russian counterparts and at the same time, according to many domestic experts, they provide a much more complete picture of the company.

To summarize, we can download that financial statements prepared in accordance with IFRS represent a much larger amount of information about the company, both qualitatively and quantitatively, compared to its Russian counterpart.

Unlike national rules (for example, RAS), IFRS are based on general principles and assume polyvariance. For example, assets and liabilities are measured at historical, current, realizable or present value.

Work on IFRS began in 1973 after the merger of accounting and auditing organizations from the USA, France, Canada, and Great Britain. During the same period, the non-governmental Committee on International Financial Reporting Standards began its work, which was engaged in drawing up uniform principles for the preparation of reports relevant to accountants and auditors around the world.

Basic principles and assumptions of IFRS

Russian legislation requires all publicly significant companies to prepare financial documents in accordance with IFRS. The category includes enterprises that own traded (freely floated) shares and firms that deal with the financial resources of organizations or individuals.

IFRS standards are adapted to the requirements of national legislation based on general assumptions.

• Accrual basis is the first assumption in the methodology for recording economic events. Facts are recorded upon completion, regardless of the date of execution of the payment order. When dealing with doubtful debts, the accountant accrues reserves to cover them. This amount reduces the financial result and shows reliable information about losses.
• Going concern is the second assumption in the methodology for accounting for the value of enterprise assets. It is assumed that the company will continue to do business, so the list of assets on accounting forms is recorded at the original price. Costs of liquidation of property are not taken into account.

• Understandability - understandability for external users who have the required level of professional training in the field of accounting.
• Relevance - the appropriateness of providing accounting information. IFRS forms are presented completely and without distortion, ready for use as a basis for economic decisions.
• Reliability - the reliability of the information provided, the absence of inaccuracies and erroneous information in the documents. Reliable information is distinguished by truthfulness, priority of facts over form, neutrality, and consideration of potential losses.
• Comparability - the ability to compare the provided data with forms for previous periods or documents of other companies. The requirement requires a clear and generally accepted presentation of information.

• Timeliness - timeliness. The facts specified in IFRS must reflect all important events in the economic life of the enterprise. If there are too many of them, you need to select the most important ones in order to provide reports on time.
• Balance between benefit and cost - balance between the value of information and the cost of its preparation.
• Balance between qualitative characteristics - the balance of qualitative characteristics of information is chosen by an accountant or auditor. For example, in the preparation of consolidated financial statements, reliability and understandability take precedence over relevance.

One of the most popular questions that arises among users of financial documents: how is IFRS reporting done? Particularly interested in the response to this question are professional participants in commodity and stock markets, non-state pension funds, clearing enterprises, joint-stock investment funds and management companies.

General information

Financial documentation is maintained according to different rules. IFRS standards are international norms. They regulate the preparation of documents that are in the public domain. IFRS and PBU differ primarily in the range of end users. Domestic rules are aimed at state statistics and management bodies. IFRS are standards established for the preparation of documentation used by investors, financial institutions and enterprises.

History of creation

In 1973, to improve the use of financial documentation, public auditing and accounting associations formed a non-governmental international organization, the IFRS Committee. Since 1981, it has been completely autonomous in the implementation of rules and in the discussion of norms. In 2005, the European Commission decided that all firms listed on European stock exchanges must prepare consolidated accounts. IFRS are aimed at reducing differences and choosing the method of providing documentation, improving the quality and comparability of information, and unifying rules.

Development procedure

It includes several stages:

1. The advisory group analyzes the problem, evaluates the application of the fundamental reporting principles, and presents the issue at the meeting.
2. A study of national requirements and experience is carried out, and views are exchanged with domestic structures responsible for developing rules.
3. Consultations are being held with the Board and trustees of the fund to include the issue on the agenda.
4. A working group is being created to provide information support to the Council.
5. A Discussion Paper and a draft standard are published for discussion.
6. The “Grounds for making a decision” and the opinions of Council members who have objections are made public.
7. Comments received within the specified deadline will be considered.
8. Public hearings and testing of the applicability of the standard are held.

The standard is approved by at least 9 votes. After this, the standard is published along with the reasons for the decision.

Specifics

A mandatory rule of IFRS is the priority of content over the form of information provided. If we talk about the domestic model, this principle is often omitted. In practice this manifests itself as follows. Under PBU, preferred shares are considered as part of the capital of the enterprise. However, if we talk about their economic nature, there are very few differences from bonds. This circumstance is taken into account in IFRS. This means that international standards consider the similarity of preferred shares to bonds as a sufficient reason not to include them in the capital of a company.

Implementation goals

The key objective of IFRS is to unify the process of generating financial documentation and providing information about the activities of an enterprise. You can select a list of securities that are subject to international standards. Such documents include:

1. Balance sheet.
2. Statements of losses and profits, cash flows, changes in capital and other similar transactions.
3. Financial policy.

In addition to these acts, enterprises can also create reviews for management. They reflect the key performance indicators of the enterprise, profit volumes, and so on.

Compound

International standards are presented in the form of a set of documents. These include:

1. Preface to the provisions.
2. Explanations regarding the fundamental principles of preparation and forms of presentation of information.
3. Standards and interpretations.

Each document has its own special meaning. However, in practice, all elements included in the IFRS system are used. The tools provided for by international standards make it possible to decipher individual transactions performed within the framework of the company’s core activities and reflected in financial documentation.

Key elements

It should be noted that international standards created before 2001 were called International Accounting Standards. Since 2001, some new rules have been approved - International Financial Reporting Standards. The following main IFRS IAS are in force today:

IFRS

Since 2001, the following international standards have been in force:

Advantages

Accounting according to IFRS has many advantages. First of all, international rules make it possible to create financial documentation that is understandable for different categories of external users. Compliance with IFRS benefits:

1. For financial analysts and investors. The documentation is clear, transparent, and the information in it is reliable and reliable.
2. Companies. The IFRS report allows you to reduce the costs of capital raising activities and eliminates the need to reconcile information. In addition, a uniform procedure is established in both external and internal documentation.
3. Auditors. Since uniformity is established in accounting principles, specialists can participate in deciding on the adoption of standards.
4. Developers. As part of the work to create standards, there is a large-scale exchange of experience. A basis for future national regulations is being developed, and existing rules are being adjusted.

Specifics of the transition to the international system

The implementation of IFRS standards at domestic enterprises is accompanied by a number of organizational and technical problems. Company managers need to provide special training to their financial specialists. Accountants must have a professional knowledge of the basics of the IFRS system. At the same time, managers themselves should be really interested in providing objective and truthful information. Within the framework of the financial activities of an enterprise, it is necessary to clearly distinguish between tax and accounting. The importance of moving to international rules is determined by the fact that they act as a compromise solution between key recordkeeping systems around the world.

Tasks of reforming the domestic model

The introduction of reporting according to international rules solves many pressing problems. Reform of the current system is aimed at:

1. To facilitate entry into global capital markets for enterprises from different countries.
2. Strengthening the comparability of information, increasing the transparency of information for external users.

Russian companies that use the IFRS report in their activities will be able to understand the goals and objectives of their foreign partners. Through closer interaction with foreign enterprises, domestic firms will strengthen their positions in markets and become more competitive. This, in turn, will allow companies to realize their potential on international platforms. As practice shows, the use of the IFRS system has a positive effect on the state of management accounting. The implementation of international rules ensures high-quality updating of information and increases staff motivation. It is worth noting that today attracting foreign investment without preparing financial documentation in accordance with IFRS standards is very difficult. It does not matter which source the enterprise turns to: a foreign bank, stock market clients, or individuals. Documentation compiled according to PBU rules is poorly understood by external users. It is more expedient to formalize it according to international standards accepted throughout the world and successfully used by many companies.

Application in different countries

International rules are binding in several European countries. In most countries, financial documentation in accordance with IFRS is prepared by enterprises whose shares are listed on stock exchanges. The US uses its own US GAAP rules. In 2008, in August, the Securities and Exchange Commission presented a preliminary draft for the transition to IFRS. In 2011, the process was suspended. The work was resumed again in 2014. In Russia, measures to reform accounting began in 1998. Since 2005, all banking and credit organizations are required to prepare financial documents in accordance with international rules.

Federal Law No. 208 was introduced in July 2010. According to its provisions, the IFRS system is mandatory for the consolidated reporting of socially significant enterprises. In addition to credit companies, these include insurance companies, as well as other organizations whose securities are admitted to trading on stock exchanges.

In 2011, the Regulations on the recognition of international rules and explanations to them on the territory of the Russian Federation were approved. At the same time, financial departments did not plan to completely abandon the domestic system of record keeping. IFRS was supposed to be introduced for consolidated reporting. Federal regulations were planned to be extended to documents drawn up by legal entities. Currently, more than 140 enterprises in Russia prepare and publish reports in accordance with international rules.