RS Brief news Consolidated financial statements will be mandatory in the near future

Consolidated financial statements will be mandatory in the near future

August 2011

The Ministry of Finance of the Russian Federation has confirmed its readiness to begin the transition to mandatory application of the IFRS. ‘As soon as 2013 companies that have to submit consolidated financial statements for 2012 will have to use the IFRS for their consolidated statements,’ Finance Minister Aleksey Kudrin stated. The first among those required to submit IFRS financial statements will be banks, insurance companies and the majority of Russian public companies. It should be noted that many of the aforementioned Russian companies already prepare IFRS consolidated financial statements, however from the next year on they will be required to do so.

The new rules also set a specific deadline by which companies must submit their statements; within 120 days after the end of the reporting year. At the moment there are no legal requirements for when consolidated financial statements have to be submitted.

Preliminary reports indicate that the IFRS will be officially approved as the required standard for consolidated statements as soon as this October.