The impact of differences between IFRS and RSBU on the analysis of the financial statements of the organization. Analysis of the financial condition using ifrs Analysis of the financial condition of an enterprise according to ifrs

Arsenal OJSC (EXAMPLE)

as of 01.01.2015

Purpose of the analysis financial statements, compiled in accordance with IFRS, is to obtain the key characteristics of the financial condition and financial results companies to form an adequate assessment of the achieved level of business efficiency, identify and quantify the impact of external and internal factors, as well as substantiate current and strategic business plans.

1. REPORTING. The general assessment of the financial position of the enterprise is carried out using the system special coefficients... Majority financial ratios calculated according to the data of two main forms of reporting - balance sheet and profit statement

Company balance

Article title	01.01.2015			01.01.2014
ASSETS - ASSETS
Current assets (current assets) - Current assets
Cash and cash equivalents - Cash assets		368828			104238
Short-term investments - Marketable Securities		8231			152612
Accounts receivable - Accounts Receivable	426937			340691
Amendment to doubtful debts – Provision / allowance for bad / doubtful debts	0			0
		426937			340691
Stocks - Inventories / Stocks Raw materials and materials - Raw Materials	152197			138649
Unfinished production - Work-in-process	355126			323513
Goods fit for sale - Goods available for sale	0			0
Finished products - Finished goods	507323			462162
Selling expenses - Selling expenses	0			0
		1014646			924324
Prepaid expenses - Prepaid Expenses		14580			7219
			1833222			1529084
Non-current (non-current) assets - Non-current assets
Long-term investment - Long-term investments		355593			148001
Fixed assets - Property, plant & equipment	893354			880194
Accrued depreciation - Depreciation	607168			565603
		286186			314591
Intangible assets - Intangible Assets	63939			5877
Accrued depreciation - Depreciation	58863			0
		5076			5877
Deferred tax assets - Deferred tax assets		11323			29078
Other debtors - Other debtors		0			0
			658178			497547
			2491400			2026631
LIABILITIES - LIABILITIES
Current responsibility - Current Liabilities
Accrued liabilities - Accrued Liabilities
Accounts and bills payable - Accounts & notes payable		907014			349607
Wage arrears - Wages and salaries payable	0			321706
Tax debt - Taxes payable	0			138300
Debt on dividends - Dividend payable	6254			5371
Estimated reserves - Provisions		56550			28682
		62804			494059
Revenue of the future periods - Defended (unearned) revenues		2289			1692
Current portion of long-term debt - Current portion of Long-term debt		0			289370
			972107			1134728
Long term duties - Long-term liabilities
Long-term loans - Long-term debt		0			0
Deferred tax liabilities – Deferred tax liabilities		20933			20170
			20933			20170
			993040			1154898
OWN CAPITAL - OWNERS 'EQUITY
Invested capital - Contributed capital		48156			46754
Accumulated retained net income - Retained earnings		839853			242903
Other accumulated comprehensive income - Other accumulated comprehensive income		610351			582076
			1498360			871733
			2491400			2026631

Profit statement based on cost classification by function

Index	for 2014		for 2013
Revenues from sales - Net sales		8207745		6263775
Cost of sold products (works, services) - Cost of sales	3392146		2667088
Gross profit - Gross margin		4815599		3596687
Other operating income - Other operating income	157072		131161
Selling expenses - Selling expenses	3877503		3513105
Administrative expenses - Administrative expenses	150570		137796
Other operating expenses	181210		195239
Profit from operations -		763388		-118292
Financial expenses - Financial costs	28206		19022
Dividends & interest income	24510		16064
Profit before tax -		759692		-121250
Tax expenses - Tax expense	126578		29791
		633114		-151041
Extraordinary articles - Extraordinary items
Net profit for the period - Net income		633114		-151041

Profit statement based on the classification of expenses by entity

Index	for 2014		for 2013
Revenues from sales - Net sales		8207745		6263775
Other operating income - Other operating income	157072		131161
Stock changes finished products and work in progress - Change in stocks of finished goods & in work in progress	76774		0
The cost of raw materials and materials - Costs of raw materisls & supplies	6789891		5722089
Personnel costs - Wages & salaries	589933		497158
Depreciation expense - Depreciation	117169		98742
Expenses for the purchase of finished goods - Purchases of goods for resale	0		0
Other operating expenses - Other operating expenses	181210		195239
Operating profit - Profit or loss from ordinary activities		763388		-118292
Financial expenses - Financial costs	28206		19022
Income from dividends and interest - Dividends & interest income	24510		16064
Profit before tax - Income before income taxes & extraordinary loss		759692		-121250
Tax and similar payments - Taxes & similar payments	126578		29791
Profit after tax - Income before extraordinary loss		633114		-151041
Extraordinary articles - Extraordinary items
Net profit for the period - Net income		633114		-151041

2. STRUCTURAL ANALYSIS. One of the important indicators of the degree of efficiency of the enterprise for a certain period is the economic structure of revenue that comes from buyers. Vertical analysis is also carried out according to the balance sheet data to assess the structural dynamics of the assets of the enterprise and the sources of their formation.

Vertical analysis of revenue

Indicators	Revenue structure as a percentage for the reporting year	Revenue structure as a percentage of the past
Revenues from sales	100	100
Cost of sold products (works, services)	41.33	42.58
Gross profit	58.67	57.42
Other operating income	1.91	2.09
Selling expenses	47.24	56.09
Administrative expenses	1.83	2.2
Other operating expenses	2.21	3.12
Profit from operations	9.3	-1.89
Financial expenses	0.34	0.3
Income from dividends and interest	0.3	0.26
Profit before tax	9.26	-1.94
Tax expenses	1.54	0.48
Profit after tax	7.71	-2.41
Extraordinary articles
Net profit for the period	7.71	-2.41

Share growth net profit in the company's revenue was associated with:

cost reduction

lower selling costs

lower administrative costs

decrease in other operating expenses

growth in dividend and interest income

Diagram structural changes as part of the Profit Statement

Structured balance sheet

Balance indicators	01.01.2015	01.01.2014
ASSETS
Current assets
1. Cash and cash equivalents	14.8	5.14
2. Short-term investments	0.33	7.53
3. Accounts receivable	17.14	16.81
4. Stocks	40.73	45.61
4.1. Raw materials and supplies	6.11	6.84
4.2. Unfinished production	14.25	15.96
4.3. Goods fit for sale	0	0
4.4. Finished products	20.36	22.8
4.5. Selling expenses	0	0
5. Prepaid expenses	0.59	0.36
6. And about current assets	73.58	75.45
Non-current assets
7. Long-term investment	14.27	7.3
8. Fixed assets	11.49	15.52
9. Intangible assets	0.2	0.29
10. Deferred tax assets	0.45	1.43
11. Other debtors	0	0
12. And about the assets of long-term use	26.42	24.55
13. Total assets	100	100
FINANCIAL OBLIGATIONS AND CAPITALS OF OWNERS
Current short-term financial liabilities
14. Invoices and bills payable	36.41	17.25
15. Accrued liabilities	2.52	24.38
15.1. Wage arrears	0	15.87
15.2. Tax arrears	0	6.82
15.3. Debt on dividends	0.25	0.27
15.4. Estimated reserves	2.27	1.42
16. Deferred income	0.09	0.08
17. Current portion of long-term debt	0	14.28
18.Total short-term financial liabilities	39.02	55.99
Long-term financial liabilities
19. Long-term loans	0	0
20. Deferred tax liabilities	0.84	1
21. And so about long-term financial liabilities	0.84	1
22. And so about financial liabilities	39.86	56.99
Owners' capital
23. Invested capital	1.93	2.31
24. Accumulated retained net income	33.71	11.99
25. Other accumulated comprehensive income	24.5	28.72
26. And about the capital of the owners	60.14	43.01
27. In general, financial liabilities and capital of owners	100	100

Vertical analysis of the balance sheet allows us to make a conclusion about the change in the sources of financing the assets of the enterprise and the preservation of the structure of investments in various types of property.

During the analyzed period, the company increased the total book value of its assets by 464,769 thousand rubles. , or 22.93%.

This increase was due to increased investment in long-term types of property, which should have a positive effect on the production potential of the enterprise.

We can talk about an improvement in the financial condition of the enterprise for the reporting year, since the change in property by 134.83% was provided by its own sources.

Factors in the growth of enterprise assets

Indicators	Growth in assets	Share of participation
1. General change in the carrying amount of assets	464769	100
including from sources
2. Short-term financial liabilities	-162621	-34.99
3. Long-term financial liabilities	763	0.16
4. Equity capital	626627	134.83

Priority financing of property from its own capital provides the company with greater independence from creditors. It should be borne in mind that in cases of cheap credit resources, with low interest rate loan capital and a high rate of turnover of funds for enterprises is profitable to attract significant borrowed funds into their turnover and effectively use a large financial leverage.

Balance Structural Change Chart

3. ASSESSMENT OF LIQUIDITY. Liquidity refers to the availability of sufficient means of payment to pay creditors' bills on time and to pay contingencies when presented.

Liquidity ratio

Indicator name	01.01.2015	01.01.2014
Initial data for analysis
Current assets (CA)	1833222	1529084
Current liabilities (CL)	972107	1134728
Cash - CASH	368828	104238
Short-term investments in securities – Short-term marketable securities (STMS)	8231	152612
Receivables - Receivables (R)	426937	340691
Implementation - Sales (S)	8207745	0
Cost of sales (CS)	3392146	0
Accounts receivable (AR)	383814
Materials inventory (MI)	145423
Liquidity ratios
Working capital quota - Current ratio (CR = CA: CL)	1.89	1.35
Quick ratio - Quick ratio / acid-test ratio (QR = (CASH + STMS + R): CL	0.83	0.53
Cash liquidity ratio - Cash ratio (CASHR = CASH: CL)	0.38	0.09
Working capital - Working capital (WC = CA-CL)	861115	394356
Turnover ratio according to calculations - Receivable turnover (RT = S: AR)	21.38
Inventory turnover ratio - Inventory turnover (IT = CS: MI)	23.33

One of the most important economic characteristics the operational financial condition of the enterprise is the value of "working capital". This indicator reflects the amount of funding current assets equity capital of the owners of the enterprise. The relative provision of the enterprise with "working capital" is measured using the indicator "working capital quota"

As of the end of the reporting year, "working capital" is equal to 861,115 thousand rubles. At the same time, the working capital quota was 1.89

The quick liquidity ratio is a more conservative (compared to the working capital quota) measure of liquidity, when the least liquid items (reserves and prepaid expenses) are excluded from current assets. As of the date of the analyzed balance sheet, the enterprise had 83 kopecks of mobile means of payment for 1 ruble of debts to pay them.

The cash liquidity ratio shows how the company's current liabilities are covered by the most liquid asset - cash. This is the most stringent criterion for the liquidity of an organization. At the enterprise, 38% of short-term debt obligations can be immediately repaid at the expense of funds.

The turnover ratio according to the calculations characterizes the size of accounts receivable and efficiency credit policy firms. For an enterprise, this coefficient shows that, on average, the funds in the calculations turned around about 21.38 times. This means that the company had to wait about 16.84 days for the commercial loan to be repaid.

The Inventory Turnover metric indicates the relative size of the inventory. The smaller the inventory and the faster they turn around, the less money the company has in them. An increase in inventory may mean that some factor is preventing the sale of products. The turnover ratio of inventories for the enterprise was 23.33.

4. PROFITABILITY (profitability) - the ability to obtain an acceptable level of profit. Profitability ratios are used to assess the effectiveness economic activity enterprises.

Summary table of profitability ratios

Indicator name	for 2014	for 2013
Return on assets (return on assets)	0.28
Return on sales / rate of return (return on sale / net profit margin)	0.08	-0.02
Asset turnover ratio (Asset turnover)	3.63
Owner's return on capital (Return of equity)	0.53
Return on total enterprise investment (Return on investment)	0.55
Leverage	0

Return on assets is the most commonly used measure of a company's profitability. The indicator is calculated as the ratio of net profit to the average annual value of assets (ROA = NP: TAavrg).

For each ruble invested in assets, the company received 28 kopecks in the reporting period. profit, which indicates the ability to generate profits and the effectiveness of the use of funds.

Return on sale / net profit margin shows how much net profit is contained in each dollar (or other monetary unit) sales (ROS = NP: S). Even a 1-2% difference can mean the difference between a normal and a very profitable year.

Net profit per ruble of sales increased by 10 kopecks, which indicates an increase in the efficiency of core activities.

Asset turnover ratio determines how effectively assets are used to increase sales (AT = S: TAavrg). In the reporting period, in order to receive revenue in the amount of 8,207,745 rubles, the assets had to turn around 3.63 times.

Return of equity characterizes the level of income derived from capital invested by owners in this enterprise(ROE = NP: Eavrg).

For an enterprise, the return on capital of the owner is 53%. The company's savings amounted to 53 kopecks. for one ruble of own investment. This is a fairly high profitability figure.

Return on investment is intended to reflect the return on investments made in the assets of the enterprise (ROI = NOPAT: (EQ + LTD)). According to the Balance Sheet and Profit Statement, this ratio is determined at 55%.

The value of the return on investment in assets indicates that 55 kopecks were received in the analyzed year. income from each ruble of all investments (both own and borrowed) made in this enterprise.

Leverage is the difference between the return on equity and total investment in the company's assets. At the analyzed enterprise, the leverage is -2%. Thus, the increase in the return on capital of the owners of the enterprise due to the attraction of borrowed resources from creditors into circulation is -2%.

5. PAYMENTABILITY (financial responsibility) - the ability of an enterprise to repay its financial obligations.

Summary table of indicators of long-term solvency

Indicator name	for 2014	for 2013
Debt to equity ratio (Debt to equity ratio)	0.66	1.32
Loan interest security ratio (Times interest earned / Interest coverage ratio)	23.45	-6.94
Debt ratio	0.4	0.57

Debt to equity ratio shows the ratio of borrowed resources and equity capital (DTER = L: E).

This ratio decreased from 1.32 to 0.66.

Interest coverage ratio is one of the indicators of the degree of protection of lenders from dishonest payers (TIE = EBIT: INT).

The security of interest on loans increased, which is explained by the increase in the amount of net profit earned by the enterprise.

Debt ratio shows the share of assets that are financed by borrowed money, and reflects the degree of protection of creditors (DR = L: TA).

The share of borrowed capital in financing the firm's assets decreased from 57% at the beginning of the year to 40% at the end of the year.

International financial reporting standards came to us in 2012, but today the question of how to draw up financial statements in accordance with IFRS constantly arises in organizations. In this regard, we will help you understand the basics of standardization, draw up consolidated statements using the example of an industrial enterprise and present its differences from the usual accounting statements.

IFRS: SCOPE AND COMPOSITION

International standards have been developed since 1973 in order to create unified principles of accounting and reporting in different countries... International standards fully came to Russia only in 2012 with the adoption of the Order of the Ministry of Finance of Russia dated November 25, 2011 No. 160n “On the introduction of International Financial Reporting Standards and Interpretations of International Financial Reporting Standards in the territory Russian Federation».

The main difference Russian standards accounting (RAS) from international is that IFRS is not a set of requirements and laws, but recommendation prescriptions with a number of requirements for the structure of financial statements.

An important point: the application of IFRS does not override RAS.

According to paragraph 2 of Art. 3 of the Federal Law of 27.07.2010 No. 208-FZ (as revised on 03.07.2016) "On Consolidated Financial Statements" (hereinafter - Federal Law No. 208-FZ) the consolidated financial statements of the organization are prepared along with the accounting(financial)reporting of this organization, compiled in accordance with Federal law dated 06.12.2011 No. 402-FZ(as amended by from 23.05.2016) « About accounting».

Often, specialists of organizations have difficulties in distinguishing between IFRS / IAS and IFRS / IFRS (International Accounting Standards) and IFRS / IFRS (International Financial Reporting Standards). Until 2001, the standards were called IAS, and after 01.04.2001 the name IFRS appeared, so both standards are united under the concept of “IFRS”.

Sometimes accountants, for simplicity of perception, are called IAS standards for accounting, and IFRS - standards for the preparation of financial statements.

Who should apply IFRS in the Russian Federation

Federal Law No. 208-FZ disclosed scope of international standards,which applies to:

credit organizations;
insurance organizations (excluding insurance medical organizations carrying out activities exclusively in the field of compulsory health insurance);
non-state pension funds;
management companies of investment funds, mutual funds and non-state pension funds;
clearing organizations;
federal state unitary enterprises the list of which is approved by the Government of the Russian Federation;
joint stock companies, the shares of which are in federal ownership and the list of which is approved by the Government of the Russian Federation;
other organizations whose securities are admitted to organized trading by including them in the quotation list.

IFRS documents consist of:

International Financial Reporting Standards (IFRS);
International Financial Reporting Standards (IAS);
clarifications prepared by the International Financial Reporting Interpretations Committee (IFRIC);
clarifications prepared by the former Standing Committee on Clarifications (RPC).

Composition of International Financial Reporting Standards (IFRS)

IFRS (IFRS) 1 « First-time adoption of International Financial Reporting Standards»

The objective of the standard is to ensure that an entity's first IFRS financial statements and interim financial statements for the portion of the period covered by those financial statements contain high quality information that:

is transparent for users and comparable for all periods presented;
represents a necessary starting point for accounting in accordance with International Financial Reporting Standards;
can be prepared at a cost that does not exceed its benefits.

First IFRS financial statements for an organization, it is the first annual financial statements, for the preparation of which the organization adopts International Financial Reporting Standards and confirms this by including in these financial statements an explicit and unambiguous statement of its compliance with IFRS.

The organization should prepare and submit opening report on the financial position under IFRS as of the date of transition to IFRS, thus creating a starting point for accounting in accordance with International Financial Reporting Standards.

IFRS (IFRS) 2 « Share-based payouts»

The purpose of the standard is to establish the procedure for preparing financial statements for an entity that carries out share-based payment transactions. The standard requires an entity to recognize in profit or loss and in the statement of financial position the impact of share-based payment transactions, including costs associated with transactions in which share options are granted to employees.

IFRS (IFRS) 3 « Business combinations»

Business combination- a transaction or other event in which the acquirer obtains control over one or more businesses. Transactions that are sometimes referred to as "true mergers" or "peer mergers" are also business combinations.

The objective of this standard is to improve the relevance, reliability and comparability of information about a business combination and its consequences that the reporting entity presents in its financial statements. To achieve this goal, IFRS 3 sets out principles and requirements for how an acquirer:

recognizes and measures the identifiable assets acquired in its financial statements, undertaken commitments and any non-controlling interest in the acquiree;
recognizes and measures goodwill (an asset representing future economic benefits arising from other assets acquired in a business combination that are not identified or separately recognized) acquired in a business combination or a bargain purchase gain;
determines which disclosures to enable users of financial statements to evaluate the nature and financial consequences of the business combination.

IFRS (IFRS) 4 « Insurance contracts»

The purpose of the standard is to establish the procedure for reflecting insurance contracts in the financial statements of an organization that enters into such contracts as an insurer (a party obliged under an insurance contract to pay compensation in the event of a insured event), which will remain in effect until the council finishes the second phase of its insurance contract project. In particular, the standard requires:

limited improvements to insurers' accounting for insurance contracts;
disclosures that identify and explain the amounts reported in the financial statements of an insurer in relation to insurance contracts and helps users of those financial statements understand the amount, timing and uncertainty of future cash flows under insurance contracts.

IFRS) 5 « Non-current assets held for sale and discontinued operations»

The objective of this Standard is to prescribe the accounting for assets held for sale and the presentation and disclosure of discontinued operations. In particular, the standard requires:

measure assets held for sale at the lower of two values: carrying amount and fair value less costs to sell, and stop depreciation of such assets;
present assets held for sale separately in the statement of financial position and the results of discontinued operations separately in the statement of comprehensive income.

Discontinued activity Is a component of an entity that is either retired or classified as held for sale and represents a separate major line of business or geographic area in which the business takes place.

IFRS (IFRS) 6 « Exploration and evaluation of mineral reserves»

The objective of IFRS 6 is to define the accounting for exploration and evaluation activities in the financial statements. In particular, the standard requires:

limited improvements to existing practical approaches to accounting for exploration and appraisal costs;
from entities that recognize exploration and evaluation assets, testing such assets for impairment in accordance with this IFRS and assessing any impairment in accordance with IAS 36 Impairment of Assets;
disclosures that identify and explain the amounts in the entity's financial statements that relate to exploration and evaluation activities and help users of those financial statements understand the amount, timing and certainty of future cash flows from any exploration and evaluation assets recognized ...

IFRS (IFRS) 7 « Financial Instruments: Disclosures»

The objective of the standard is to establish requirements for organizations to disclose information in their financial statements that allows users to evaluate:

influence financial instruments on the financial position and financial results of the organization;
The nature and extent of the risks to which the entity is exposed during the period and at the end of the reporting period in connection with financial instruments, and how the entity manages these risks.

IFRS (IFRS) 8 « Operating segments»

An entity shall disclose information that enables users of its financial statements to evaluate the nature and financial consequences of the entity's activities, and economic environment in which she acts.

IFRS (IFRS) 10 « Consolidated financial statements»

The objective of this Standard is to define the principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

IFRS (IFRS) 11 « A jointentrepreneurship»

The purpose of this standard is to establish principles for the preparation and presentation of financial statements of organizations involved in business activities that are controlled jointly (that is, in joint ventures).

IFRS (IFRS) 12 « Disclosure of information about participation in other organizations»

The objective of this ISA is to establish a disclosure requirement for an entity that enables users of its financial statements to evaluate:

the nature of its participation in other organizations and the associated risks;
the effect of such participation on its financial position, financial performance and cash flows.

IFRS (IFRS) 13 « Fair value measurement»

fair value- a valuation based on market data, not an organization-specific valuation. For some assets and liabilities, observable market transactions or market information may exist. There are no market transactions or market information for other assets and liabilities. However, the objective of measuring fair value in both cases is the same - to determine the price at which an orderly transaction would take place between market participants to sell an asset or transfer a liability at the measurement date under current market conditions.

Composition of International Financial Reporting Standards (IAS)

IFRS (IAS) 1 « Presentation of financial statements»

This HKSA establishes a general purpose financial reporting framework to ensure that the financial statements of an entity are comparable to those of an entity. previous periods, as well as with the financial statements of other organizations. This Standard specifies the general requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content.

A complete set of financial statements includes:

a statement of financial position as at the end of the period;
statement of profit or loss and other comprehensive income for the period;
statement of changes in equity for the period;
cash flow statement for the period;
notes consisting of brief overview significant accounting policies and other explanatory information;
comparative information for the previous period;
statement of financial position at the beginning of the previous period, if the entity applies any accounting policy statement retrospectively, retrospectively restates items in its financial statements, reclassifies items in its financial statements.

An organization may use names other than those in this International Standard for these reports. For example, the title "Statement of Comprehensive Income" may be used instead of the title "Statement of Profit or Loss and Other Comprehensive Income".

IFRS (IAS) 2 « Stocks»

The purpose of the standard is to define the accounting treatment for inventories. The main issue in accounting for inventories is to determine the amount of costs that is recognized as an asset and carried forward until the corresponding revenue is recognized.

The standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realizable value. It also provides guidance on the costing formulas that are used to allocate costs to inventory.

In accordance with IAS 2, inventories are measured at the lower of cost or net realizable value, excluding costs to sell.

FOR YOUR INFORMATION

In the Regulation on accounting "Accounting for inventories" (PBU 5/01), approved by Order of the Ministry of Finance of Russia dated 09.06.2001 No. 44n (as amended on 16.05.2016), there is no such method.

IFRS (IAS) 7 « Cash flow statement»

The objective of this Standard is to require the provision of information about historical changes in an entity's cash and cash equivalents in the form of a cash flow statement, in which cash flows for a period are classified as operating, investing and financial activities.

IFRS (IAS) 8 « Accounting Policies, Changes in Accounting Estimates and Errors»

The purpose of this standard is to establish criteria for selection and changes in accounting policies, together with accounting procedures and disclosures about changes in accounting policies, changes in accounting estimates and corrections of errors.

The standard is intended to improve the relevance and reliability of the information contained in the financial statements of an organization, as well as the comparability of these financial statements over time and with the financial statements of other organizations.

IFRS (IAS) 10 « Events after the reporting period»

The purpose of the standard is to identify when an entity should adjust its financial statements for events after the reporting period.

The standard contains requirements for the information that an entity must disclose in relation to the date the financial statements were authorized for issue and events after the reporting date.

Events after the reporting date are those events that occur between the reporting date when the financial statements are approved.

IFRS (IAS) 11 « Construction contracts»

The objective of this Standard is to prescribe the accounting for revenue and costs associated with construction contracts. Due to the nature of the activities carried out under construction contracts, the date of commencement of such activities and the date of their completion generally fall within different reporting periods. Thus, the main task of accounting for construction contracts is to distribute the proceeds and costs associated with the contract for the reporting periods in which construction work is carried out.

IFRS (IAS) 12 « Income taxes»

The objective of this standard is to prescribe the accounting for income taxes. The main issue in accounting for income taxes is how to account for current and future tax consequences:

future reimbursement (repayment) of the carrying amount of assets (liabilities) that are recognized in the statement of financial position of the organization;
transactions and other events of the current period recognized in the financial statements of the entity.

IFRS (IAS) 16 « Fixed assets»

The objective of the standard is to define the accounting treatment for property, plant and equipment so that users of the financial statements can obtain information about an entity's investments in property, plant and equipment and changes in those investments.

The main questions in accounting for fixed assets:

asset recognition;
determination of the book value of assets;
depreciation;
impairment losses.

Fixed assets Are tangible assets that:

meet the asset recognition requirements;
intended for use in production, performance of work, provision of services, for rent, for administrative purposes;
intended to be used for more than one period.

IFRS (IAS) 17 « Rentals»

The objective of this Standard is to determine appropriate accounting policies and disclosures for leases for lessees and lessors.

IFRS (IAS) 18 « Revenue»

The objective of the standard is to determine the accounting treatment for revenue arising from certain types of transactions and events.

The main question when recording revenue- determine the moment when it needs to be recognized. Revenue is recognized when it is probable that future economic benefits will flow to the entity and the benefits can be measured reliably. This Standard specifies the conditions under which these criteria will be met and, therefore, revenue will be recognized. This International Standard also provides practical guidance on the application of these criteria.

According to RAS, income can be shown only in the event of a transfer of ownership of goods, for IFRS this is not a determining factor. As for costs, for IFRS, unlike RAS, it is not necessary to document costs.

IFRS (IAS) 19 « Employee benefits»

This Standard specifies how an entity should account for and disclose employee benefits. The purpose of the standard is to establish such rules. IAS 19 requires an entity to recognize:

a liability when an employee rendered a service in exchange for a future consideration;
an expense when an entity utilizes an economic benefit arising from the provision of a service by an employee in exchange for a fee.

IAS 20 Accounting for Government Grants and Disclosures about state aid»

This standard should be applied in the accounting and disclosure of information about government grants and other forms of government assistance. Under IAS 20, government grants include government assistance in the form of transfers of resources to certain companies in exchange for past or future compliance with the conditions associated with the grant.

FOR YOUR INFORMATION

The analogue of the IAS 20 standard Russian legislation is the Regulation on accounting "Accounting for state aid" (PBU 13/2000), approved by Order of the Ministry of Finance of Russia dated 16.10.2000 No. 91n.

IFRS (IAS) 21 « Impact of changes in exchange rates»

The organization can carry out currency operations in two ways: to conclude transactions denominated in foreign currencies, or to own foreign divisions. In addition, an entity may present its financial statements in foreign currency.

The objective of this Standard is to determine how to account for foreign currency transactions and the performance of a foreign operation in an entity's financial statements and how to translate the financial statements into the presentation currency.

IFRS (IAS) 23 « Borrowing costsm»

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are included in initial cost of this asset. Other borrowing costs are recognized as an expense.

IFRS (IAS) 24 « Related Party Disclosures»

The objective of the standard is to provide the disclosure in the financial statements of the information necessary to draw attention to the possibility that the existence of related parties, as well as transactions and balances of transactions, including contractual commitments for future transactions with such parties, can affect the financial position, profit or loss of the organization. ...

IFRS (IAS) 27 « Separate financial statements»

The objective of this Standard is to prescribe the accounting and disclosure rules for investments in subsidiaries, joint ventures and associates when an entity prepares its separate financial statements.

IFRS (IAS) 28 « Investments in associates and joint ventures»

The objective of this Standard is to define the accounting treatment for investments in associates and the requirements for applying the method. equity participation when accounting for investments in associates and joint ventures.

An associate is an entity over which the investor has significant influence and which is neither a subsidiary nor an interest in joint ventures.

IFRS (IAS) 29 « Financial reporting in a hyperinflationary economy»

In a hyperinflationary economy, presenting the results of operations and financial position of an organization in local currency without translation is not useful. Money loses purchasing power at such a rate that it is misleading to compare amounts from transactions and other events that occurred at different times, even within the same reporting period.

IFRS (IAS) 32 « Financial Instruments: Presentation»

The objective of the standard is to establish the principles according to which financial instruments are presented as liabilities or equity capital and also offsetting financial assets and financial liabilities.

The standard is aimed at a deeper understanding by users of financial statements of the importance of financial instruments for the financial position, results of operations and cash flows of an organization.

A financial instrument is any contract that simultaneously gives rise to a financial asset in one entity and a financial liability or equity instrument to another.

IFRS (IAS) 33 « Earnings per share»

The objective of this Standard is to establish principles for the determination and presentation of earnings per share information in order to facilitate the comparison of the performance of different entities at one time. reporting period or one organization for different reporting periods.

IFRS (IAS) 34 « Interim financial reporting»

The purpose of the standard is to determine the minimum content of an intermediate financial report and establish principles for recognition and measurement in full or condensed interim financial statements.

IFRS (IAS) 36 « Impairment of assets»

The objective of this Standard is to determine the procedures that an entity should apply when accounting for assets so that their carrying amount does not exceed their recoverable amount.

IFRS (IAS) 37 « Estimated liabilities, contingent liabilities and contingent assets»

The objective of this Standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets, and sufficient information is disclosed in the notes to the financial statements to enable users to understand their nature, timing and amount.

IFRS (IAS) 38 « Intangible assets»

This Standard requires an entity to recognize an intangible asset only when certain criteria are met. The standard also prescribes how the carrying amount of intangible assets is measured and requires certain disclosures about intangible assets.

IAS 39 Financial Instruments: Recognition and Measurement

The objective of this standard is to establish principles for the recognition and measurement of financial assets, financial liabilities and certain contracts to buy or sell non-financial items.

The standard defines such a concept as hedged item that is either an asset or a liability or firm commitment that gives the entity an exposure to changes in fair value or future cash flows. Hedging financial instruments consists in partial or full compensation of changes in fair value or cash flows of hedged (protected) items of financial instruments.

IFRS (IAS) 40 « Investment property»

The objective of the standard is to establish the accounting treatment for investment property and the related disclosure requirements.

This Standard shall be applied by entities to all types of financial instruments in the recognition, measurement and disclosure of investment property.

Investment real estate is property (land or building) that is at the disposal of the owner or lessee under a finance lease for the purpose of receiving rental payments, capital gains, but not for use in the production or supply of goods or services, or for administrative purposes, as well as for sale in the normal course of business.

IFRS (IAS) 41 « Agriculture»

The purpose of the standard is to establish the accounting procedure, financial reporting and disclosure requirements for agricultural activities.

PREPARATION OF CONSOLIDATED STATEMENTS

In accordance with Federal Law No. 208-FZ, consolidated financial statements are understood as systematized information reflecting the financial position, financial performance and changes in the financial position of an organization.

Let us consider an example of drawing up and analyzing consolidated financial statements in accordance with IFRS on the example of the company Alpha JSC, which controls the activities of two enterprises - Beta JSC and Gamma JSC, engaged in the production and maintenance of units and spare parts for cars.

The statement of profit or loss and other comprehensive income (statement of comprehensive income) (Table 1) is similar to the statement of financial results (Form No. 2) of RAS accounting statements.

Table 1. Consolidated statement of comprehensive income for 2015 and 2016, thousand rubles.
Index	2016 g.	2015	2016 to 2015
Index	2016 g.	2015	thousand roubles.

Cost of sales
Gross profit
Selling, general and administrative expenses
Provision for impairment of property, plant and equipment, goodwill and intangible assets
Other operating income / expenses, net
Operating profit
Finance income / expenses, net
Positive / negative exchange rate differences
Profit before tax
Income tax
Profit for the reporting period

In addition to this type of consolidated report, you can provide more detailed information on some items, for example, on sales proceeds (Table 2).

Table 2. Analysis of revenue for 2015 and 2016, thousand rubles.
Index	2016 g.	2015	2016 to 2015
Index	2016 g.	2015	thousand roubles.
Revenue
Unit repair
Beta JSC
JSC "Gamma"
Maintenance
Beta JSC
JSC "Gamma"

Beta JSC
JSC "Gamma"

From the presented analysis it can be seen that for all the considered types of activity, the enterprises are experiencing an increase in revenue, with the exception of JSC "Gamma" in terms of the repair of automotive units. This decline was due to the fact that the percentage of readiness of one agreement of JSC Gamma, the main revenue was recognized in the reporting of 2015.

The statement of financial position is very similar to the RAS balance sheet. According to regulatory data the statement of financial position under IFRS should include line items representing the following amounts:

fixed assets;
investment property;
intangible assets;
financial assets;
investments accounted for using the equity method;
biological assets;
stocks;
trade and other receivables;
cash and cash equivalents;
the total amount of assets classified as held for sale and assets included in disposal groups classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;
trade and other payables;
estimated liabilities;
financial obligations;
current tax liabilities and assets as defined in IAS 12 Income Taxes;
deferred tax liabilities and deferred tax assets as defined in IAS 12;
liabilities included in disposal groups classified as held for sale in accordance with IFRS 5;
non-controlling interests presented in equity;
issued capital and reserves attributable to owners of the parent.

The organization should represent additional line items, headings and subtotals in the statement of financial position when such a presentation is relevant to understanding its financial condition.

Let's consider an example of drawing up a report on the financial position of JSC "Alpha" (Table 3).

Table 3. Statement of financial position, thous. Rub.
Index	2016 g.	2015	The change
Index	2016 g.	2015	thousand roubles.
Assets, total
Fixed assets
Intangible assets
Receivables
Advances issued
Other assets and investments in other organizations

Accounts receivable for taxes and fees
Cash and short-term deposits
Deferred tax assets
Equity, total
Authorized capital
Extra capital
Undestributed profits
Obligations, total
Loans
Obligations for financial lease, pension plans
Deferred tax liabilities and other provisions
Accounts payable
Advances received
Debt on taxes and duties

NOTE

The balance sheet form in accordance with RAS is clearly spelled out in the Order of the Ministry of Finance of Russia dated 02.07.2010 No. 66n (as amended on 06.04.2015) "On the forms of financial statements of organizations", while the form of the statement of financial position according to IFRS is absent (there is only a number of rules and articles to be displayed in the report).

The amount of assets (293,491 thousand rubles) should be equal to the sum of liabilities (equity + liabilities = 293,491 thousand rubles) similar to the drawing up of the balance sheet.

At the stage of drawing up consolidated financial statements, it is customary to calculate EBITDA(profit before deduction of expenses on payment of interest, taxes and accrued depreciation) (tab. 4).

Table 4. Calculation of EBITDA, thousand rubles.
Index	2016 g.	2015	2016 to 2015,%
Unit repair
Beta JSC
JSC "Gamma"
Maintenance
Beta JSC
JSC "Gamma"

Beta JSC
JSC "Gamma"
Total EBITDA

This indicator in recent times especially loved by investors and lenders. Such an indicator can be calculated only if the company keeps records in accordance with IFRS standards. Our standards do not provide for the calculation of this indicator, but nevertheless, the calculation formula for the Russian practice has been slightly adapted, and EBITDA in this case will be equal to the sum of profit from sales and depreciation deductions.

Calculation is also important. debt to EBITDA ratio (Code), which reflects the company's ability to meet its obligations, characterizing its solvency:

K od = Liabilities / EBITDA.

K od 2015 = 220 794 thousand rubles. / 69 145 thousand rubles. = 3.19;

K od 2016 = 157 435 thousand rubles. / 54 352 thousand rubles. = 2.90.

The higher this indicator, the more problems the company has with debt obligations and the less opportunity it has to repay these obligations at the expense of its own profit.

INSTEAD OF CONCLUSION

Having considered the features of drawing up consolidated financial statements, it is worth noting the similarities with Russian accounting statements. In the example considered, the company "Alpha" controls the activities of several enterprises, which form their individual reporting. Further, she prepares consolidated statements, combining the data of the enterprises under her jurisdiction. At the same time, the accounting policies of all enterprises should be similar in basic matters.

Most often, in practice, the so-called management companies release their own version of the accounting policy to their subordinate enterprises, on the basis of which the subsidiaries must correct their own version.

A. N. Dubonosova, Deputy Managing Director for Economics and Finance

The entry into force on the territory of the Russian Federation from the date of their official publication of the International Financial Reporting Standards (IFRS) and their Clarifications actualizes the need for an appropriate transformation of the content and sequence of analysis of accounting (financial) statements (hereinafter - financial statements).

At the same time, however, taking as a basis the foreign approaches to the analysis of financial statements formed in accordance with IFRS (IFRS reporting), the organization (enterprise, firm, company, business entity) should not completely abandon domestic experience in areas of financial reporting analysis.

Basic approaches to the analysis of IFRS reporting

Let us systematize the points of view of the most authoritative foreign researchers in the field of analysis of the organization's IFRS reporting and briefly dwell on the content and procedure of the latter, highlighting two consecutive and interrelated stages in it:

interpretation of financial statements;
computational analysis financial reporting.

Interpretation of financial statements

The interpretation of financial statements helps to understand the real economic situation organizations by making the information in their financial statements truly valuable and useful for making decisions. Its purpose is to disclose and analyze the main components of the accounting policy, which leads to the reflection in the published statements of results that differ from the realities of the economic situation in the company, and as a result, to cleanse the published financial statements from the effect caused by the application of the methods of such accounting policies.

In the course of the interpretation of the financial statements of the organization, the influence on it of such significant factors as the sectoral features of the organization's economic activities, business strategy and accounting policies, methods and methods of managing financial statements, the quality of disclosure of information in it, as well as the nature of the relationship between enterprises that make up the corporate group.

Analysis of the impact of industry characteristics of an organization's business (industry analysis) is concerned with comparing the performance of a company with a certain benchmark to determine whether the business is actually liquid, whether it is generating sufficient income and whether it is worth investing in. In addition to the fact that industry analysis allows you to study the influence of the firm's strategy and factors business environment on the content of financial statements, it also provides financial analysts and other users of financial statements, an extensive comparative base allows you to develop a kind of benchmark indicators of the organization's performance with which you can compare current results activities, financial condition and investment potential real companies.

Business strategy analysis organization involves the study of its individual components, as well as the structure of the value chain (research and development, product design, organization of services or processes, production, marketing, sales and organization of customer service), since the ability of the organization to develop further or to support production depends on this structure at the achieved level on the basis of a price leadership strategy or differentiation.

Target analysis of accounting policies, often referred to in foreign literature as an accounting strategy, is to get an idea of it, which will make it easier for the external user of financial statements to understand the actual results of the organization's economic activities and will allow him to form a more reliable opinion about them.

In the specialized literature on the development of accounting policies, there are two types of technologies for managing the financial reporting of an organization: managing the income statement (also called profit management) and managing the structure of the balance sheet. In addition, there are two models of profit management. Firstly, it is possible to influence the financial results for any year in a certain direction (decrease or increase), and secondly, profit management can take the form of income equalization. The goal of income equalization is to reduce the degree of variability of accounting profit indicators. It should also be noted that the effect of using profit management methods allows you to indirectly influence certain items of the balance sheet. However, while the need to manage the financial statements may be due to various factors, the same accounting policies may be applied in the context of different factors.

the choice of accounting methods (for example, the choice of the depreciation method, the choice of the valuation method for inventories, and the choice with respect to whether or not certain costs are allocated to equity);
the choice of accounting estimates (for example, changing the amount of bad debt adjustments, including part of the costs arising from underutilization of production facilities in production costs instead of being charged to profit and loss, the use of reserves for the purpose of equalization, and a one-time increase or decrease in the financial result);
making real operational, investment and financial decisions (for example, deferring the accounting of business transactions, choosing a specific type of transaction from several alternative options).

Quality of information disclosure- one of the most important characteristics by which different organizations are compared, which includes a number of aspects: a description of accounting methods and accounting estimates, an explanation of significant changes in accounting and the level of disclosure. In the course of analyzing the quality of disclosure of information in the financial statements of an organization about its economic activities, it is examined to what extent the disclosure of this information complies with the Generally Accepted Accounting Principles (GAAP) of IFRS.

In the course of analyzing the effect on the financial statements of the nature of the relationship between the companies that make up a corporate group, the reality of these relationships and the manner in which they are reflected in the consolidated financial statements of the corporate group are examined, since sometimes accounting is conducted in a manner that does not correspond to the nature of the relationship between the group companies. When performing the analysis, it is also necessary to determine whether all related companies were included in the consolidated statements of the corporate group and whether the appropriate accounting methods (consolidation, equity or cost accounting) were used, depending on the nature of the relationship.

Calculated analysis of the organization's financial statements

Completion of the interpretation of the organization's financial statements allows you to move on to the second stage of its analysis.

As part of the calculated analysis of the financial statements of an organization, two components can be distinguished:

identification of potential factors that impede the process of comparing financial statements;
calculations and evaluation of the results obtained.

Changes in the time frames of the financial year, different reporting dates, changes in the structure of the company, changes in the accounting method and changes in accounting estimates, changes in the applied GAAP system and differences in presentation of information are considered as potential factors that complicate the comparison of financial statements.

Companies may decide to change the timeline for a particular year for several reasons. In particular, this practice is observed when the company incurs large losses. In this case, the company's management can increase the financial year from 12 to 15 months, while changing the reporting date. As a result, a large loss is offset by 15 months profit rather than 12 months. Companies may also set a very short fiscal year when particularly large losses and restructuring costs are accounted for.

Companies prepare financial statements for different reporting dates. Differences are observed even within the same industry. For example, various companies in the air transport industry close their accounts on one of the following dates: March 31 - British Airways, KLM, Ryanair; September 31 - EasyJet; December 31 - Australian Airlines, Lufthansa, SAS.

In the course of their development, companies merge with other companies, acquire other companies or their shares, carry out restructuring, as a result of which divisions are separated into new, legally separate enterprises. The growth of a company seen when it participates in a merger or expands through acquisitions is usually not the result of its natural development, but rather is associated with new acquisitions. Such changes in the structure of the company greatly complicate the analysis of the trend. Sometimes you may get the impression that after the restructuring the position of the company has improved, but in reality this may not be the case, just separate activities were separated into separate firms.

All GAAP standards are developed on a consistency basis, which obliges organizations to apply the same accounting policy... The principle of consistency improves the comparability of financial statements for different periods. However, in practice, there are often changes in accounting method and accounting estimates, and the user of the financial statements must take these into account.

Over time, a company may change not only accounting methods or accounting estimates but can also switch from one accounting system or standards to another accounting system. Such a one-time change can have a significant impact on financial results and balance sheet figures and not only makes it difficult to compare company data over a longer time period, but also makes the results of comparison of indicators across companies less obvious.

With regard to the differences in the presentation of information, two points can be highlighted. The first concerns the content of the articles used in annual reporting... For example, many airlines report items such as operating profit (British Airways, Ryanair), operating income (KLM, SAS) or operating results (Australian Airlines, Lufthansa). They seem to sound the same, but in their own way economic content quite significantly differ. The second point relates to different ways presentation and location of information. The fact is that in practice, different companies often use different formats, rather than standardized forms of financial reporting forms (in particular, balance sheet and profit and loss statement), which complicates the comparison process. However, some GAAP systems establish minimum financial reporting format requirements that companies must comply with.

Making calculations based on financial statements and evaluating the results obtained include the following procedures:

analysis of the development trend (trend);
percentage analysis;
segment analysis;
analysis based on financial ratios;
cash flow analysis.

When analyzing a trend, or development trend, we study how the indicators of financial statements change over time. It is recommended that such an analysis be carried out on the basis of data for five years, although theoretically longer periods, for example ten years, can be considered. However, with an increase in the considered time interval, the number of elements that complicate comparison also increases.

If, in the course of trend analysis, the current results of the organization's activities are compared with its own indicators for previous periods, then in the percentage analysis, the comparative base is formed by the indicators of other organizations, as a rule, from the same industry. In order to make comparisons with other companies, the size mismatch needs to be addressed. For this, the values of the indicators of the income statement are expressed as a percentage of sales, and the indicators of the balance sheet are expressed as a percentage of the total of all assets. Balances converted for the purposes of percentage analysis allow us, on the one hand, to compare the financing structure of various companies, and on the other, the directions of investment of these resources. Percentage analysis based on the income statement is only meaningful if the individual items in that statement are comparable.

Analysis of information on the segments included in the financial statements helps to increase the information content of the results of the estimation of operating costs in the course of percentage analysis. An analysis of the segment information disclosed by the company sheds light on the corporate strategy of the group and allows one to assess the significance of its individual segments.

Analysis based on financial ratios allows you to study in sufficient detail the financial condition, performance and investment potential of the organization and includes the following main elements:

assessment of the organization's ability to independently fulfill its obligations and repay its debts using the solvency, liquidity and financial stability ratios;
determining how successful the business is, whether it is generating sufficient income through the application of the return on assets, equity and working capital ratios;
assessment of the effectiveness of the economic activity of the organization (in our understanding - the intensity of the use of resources) using the turnover ratios of its assets as a whole and their different types in particular;
assessment of the attractiveness of this organization for potential investors using coefficients characterizing its position on the securities market.

It should be borne in mind that before proceeding with the analysis based on financial ratios, you should cleanse the financial reporting data from elements that reduce their comparability.

Along with univariate analysis of financial ratios, which involves the calculation and comparative assessment of each ratio separately with subsequent generalization, which allows you to formulate a qualified opinion on the financial position of the company, multivariate analysis is also used, which is based on a certain combination of some ratios, the value of which is weighted using special multipliers ... As a result, a quantitative index is calculated, analyzed in dynamics, in comparison with the indicators of other companies or industry average data.

Multivariate analysis is widely used to predict the likelihood of bankruptcy of companies (for example, the Altman and Tuffler models). However, the possibilities of using such models in practice are often limited by the territory of the region for which information on the economic activities of commercial organizations was collected, which was the basis for these assessment methods.

Analysis of cash flow (cash flows) allows you to judge the company's ability to provide excess cash receipts over payments. The information base of the analysis is the statement of cash flows, which consists of three sections, which include information on cash flows from operating, investing and financing activities.

The cash flow analysis assesses the company's ability to generate cash from operating activities, as well as the sufficiency of internal receipts to finance its investment activities, which is connected with the consideration of the need to attract external borrowed funds or increase equity capital. The ratio of cash flows from various types of activities is determined by the financial condition of the company.

Thus, having considered the problem of improving the analysis of IFRS reporting in the Russian Federation, the authors believe it is necessary to draw the following conclusions:

the transition to IFRS leads to the need to make appropriate changes to the content and procedure for analyzing the financial statements of Russian organizations;
when making these changes, it is necessary to take as a basis Foreign experience analysis of IFRS reporting, which can be supplemented by corresponding domestic developments that do not contradict it, which make it possible to increase the effectiveness of the analysis of financial results and the financial condition of domestic organizations that have switched to IFRS.

Literature:

Order of the Ministry of Finance of Russia dated November 25, 2011 No. 160n "On the implementation of International Financial Reporting Standards and Interpretations of International Financial Reporting Standards in the Russian Federation."
International Financial Reporting Standards - 2012 / Full official text in Russian. M .: Askeri-ASSA, 2012.998 p.
Alexander D., Britton A., Jorissen E. International financial reporting standards: from theory to practice / Per. from English M .: Vershina, 2005.888 p.
V. V. Kovalev, Vit. V. Kovalev Balance analysis, or How to understand balance. 3rd ed., Rev. and add. Moscow: Prospect, 2014.784 p.
Analysis of financial statements: Textbook. allowance / Ed. O.V. Efimova, M.V. Melnik et al. M .: Omega-L, 2013.388 p.
Ilysheva N.N., Krylov S.I. Analysis of financial statements: Textbook. Moscow: Finance and Statistics, INFRA-M, 2011.480 p.

Authors: N.I. Ilysheva, Doctor economic sciences, Professor, Head of the Department of Accounting, Analysis and Auditing, Ural Federal University named after the first President of Russia B.N. Yeltsin
S.I. Krylov, Doctor of Economics, Professor of the Department of Accounting, Analysis and Audit of the Ural Federal University named after V.I. the first President of Russia B.N. Yeltsin

2020-03-18 1751

The benefits of preparing financial statements in accordance with IFRS for most of its users are obvious. International financial reporting standards are designed to reflect the real state of affairs of the company - both foreign and national investors are interested in this. In order for the data to be verified and bear fruit, upon completion of the collection of information, an audit of financial statements in accordance with IFRS and its analysis begins. How are these processes different? Who conducts them? Why are they so important to a company's financial success? More on that later.

IFRS financial analysis and audit: key issues

To understand the difference between audit and analysis, it is enough to ask four questions: what (implies a process), why (it is carried out), who (does it) and how (it happens). So:

Audit of financial statements IFRS
*What:*	checking the reporting for its compliance with the requirements of international standards
*Why:*	to confirm the accuracy and adequacy of the reflected data
*Who:*	auditor - an independent expert; does not work in the company
*How:*	conducted in accordance with International Standards on Auditing

Audit of the first financial statements in accordance with IFRS

Due to the fact that many companies are just beginning the transition to IFRS, quite often auditors have to audit financial statements that are compiled in accordance with International standards first.

In addition to the fact that the process of drawing up financial statements in accordance with IFRS is quite complicated in itself, its start has a number of additional features. In this case, the auditors first of all pay attention to the company's compliance with the requirements of IFRS 1 “First Use of International Financial Reporting Standards”. There, in addition to the usual criteria for auditing financial statements in accordance with IFRS, there are also additional ones.

The audit of the FIRST financial statements in accordance with IFRS includes:

checking the correctness of determining the date of transition to IFRS and the first reporting period;
the presence of a statement by the company about compliance with all international financial reporting standards
checking the correctness of the assessment of the reporting elements at the date of transition

Audit of methods of transition to IFRS

In the initial periods before the full transition to IFRS, companies use one of two main methods to prepare financial statements in accordance with International Financial Reporting Standards: the method of transformation of financial statements prepared in accordance with national standards, or the method of parallel reporting in accordance with International Financial Reporting Standards.

Transformation method
It is used by many companies due to its economy and simplicity. Transformation is a procedure for preparing financial statements in accordance with IFRS with adjustments to statements prepared in accordance with national standards.
An audit of financial statements compiled by the transformation method is carried out by assessing the content and quality of building a transformation model and includes, among other things, checking the compliance of transformation procedures with the procedure established in IFRS, as well as selective arithmetic verification of the calculations.

Parallel accounting
This is a consistent reflection of each business transaction in the report separately according to national accounting rules and IFRS. Therefore, in companies that use the parallel accounting method, when auditing financial statements in accordance with IFRS, it is no longer necessary to check statements drawn up according to national rules, since all business transactions are consistently reflected based on international standards. The composition, content of financial statements in accordance with IFRS is studied, the compliance of reports with regulatory documents is considered, indicators are monitored, one and a half of filling out financial statements.

The principle of auditor independence

During the period of the company's transition to IFRS, among the services that auditors can provide to such organizations, there is both an audit of financial statements prepared in accordance with IFRS, and advice on the preparation of financial statements in accordance with IFRS. However, in this case, it is worth remembering that one company cannot help in the preparation of financial statements and audit them, since this is contrary to the requirements of the International Standards on Auditing. The principle of auditor independence is important to ensure confidence in audit quality.

The procedure for auditing financial statements prepared in accordance with IFRS includes:

checking the reporting for its compliance with the International Financial Reporting Standards;
collection of evidence that confirms the compliance of the financial statements with all the criteria for its preparation, the reliability and completeness of the disclosure of information contained in it;
assessment of the principles of accounting at the enterprise;
assessment of the provided financial statements as a whole, drawing up a conclusion regarding the subject of the audit, including the reflection of the factor for the identification of which it was carried out

Financial analysis of statements prepared in accordance with IFRS

There are a number of main areas of analysis of financial statements under IFRS:

Trend analysis - compares changes in financial statements for a certain period. The optimal period of time for research is considered to be a period of 5 years, although more is possible (however, in this case, the amount of data that needs to be compared also increases).
Percentage analysis - the indicators of another organization from the "native" industry are used as a comparative base. In this case, it is important to address the size mismatch. To ensure this, the values of the indicators of the profit and loss statement are prescribed as a percentage of sales, while the indicators of the balance sheet are a percentage of the total of all assets.
Analysis of information by segments - gives an idea of the corporate strategy, allows you to assess the importance of certain segments of the company.
Analysis based on financial ratios - examines in detail the financial condition, the results of previous financial activities, as well as the potential for cooperation with investors.
Cash flow analysis - carried out to determine the company's ability to provide itself with an excess of cash receipts over payments. A cash flow statement is used as an information base.

It is necessary to conduct an analysis in accordance with IFRS, focusing on the final addressee of such information. So, the investor will probably want to know the level of profitability of your company, and the lender will want to know the indicator of its liquidity.

Modern market relations are characterized by increased competition, technological changes in production, as well as the continuous flow of new information. In such conditions, the preparation of financial statements in accordance with IFRS, together with the timely audit and analysis of such reports, is the best option to create a universal “facade” for your company that can provide it with new investments and business expansion.

Let's calculate the absolute liquidity ratio according to the balance sheet data: in RAP

The absolute liquidity indicator, according to the balance sheet in RAP and IFRS, is very low and does not reach the recommended value, in addition, due to the fact that according to the balance sheet in IFRS, current liabilities have not changed in any way, the indicator remained at the same level.

Let's calculate the current liquidity ratio according to the balance sheet data: in RAP

The general trend continues both according to the balance sheet in RAP and according to the balance sheet in IFRS, the calculated current liquidity ratio indicates that according to the balance sheet in RAP, current assets exceed current liabilities by 2,814 times, and in IFRS by 2,789 times.

Let's calculate the net working capital according to the balance sheet data:

The net working capital calculated according to the balance sheet data in the Russian Accounting Standards (RAS) exceeds by 12,080 thousand rubles. this indicator is calculated according to the balance sheet in IFRS.

Capital structure indicators

Let's calculate the financial independence ratio according to the balance sheet data:

The difference in the ratios is insignificant, however, the financial independence ratio in IFRS is slightly lower than that calculated from the balance sheet data in RAP. Both factors are outside the recommended range. This means that the firm is heavily dependent on loans.

Let's calculate the ratio of total liabilities to assets according to the balance sheet data:

With the transformation of the balance sheet, the ratio of total liabilities to assets increased - 56.9% of assets are financed from borrowed funds. The ratio is calculated on the basis of the initial balance of 0.565, that is, 56.5% of assets were financed from borrowed funds. Both factors are outside the recommended range.

Let's calculate the ratio of total liabilities to equity capital according to the balance sheet data:

Due to the increase in the total share capital, namely retained earnings, the total liabilities to equity have increased. However, this indicator is still higher than the standard, which indicates a high share of borrowed funds.

Profitability indicators

Let's calculate the return on sales

according to Russian Accounting Standards:

according to IFRS:

Thus, the value of the profitability of sales, calculated according to IFRS, is lower than the value of the profitability of sales, calculated according to RAP data, this is due to the difference in the amount of net profit (according to IFRS - loss) determined according to different accounting systems.

Let's calculate the return on equity

according to Russian Accounting Standards:

according to IFRS:

Return on equity calculated according to IFRS is negative.

Let's calculate the return on current assets

according to Russian Accounting Standards:

according to IFRS:

The return on current assets calculated according to IFRS is negative.

Let's calculate the profitability non-current assets

according to Russian Accounting Standards:

Return on non-current assets, calculated according to IFRS:

The return on non-current assets calculated according to IFRS is negative.

Let's calculate the return on assets

according to Russian Accounting Standards:

according to IFRS:

Return on assets calculated according to IFRS is negative.

Business activity indicators

Let's calculate the turnover of working capital

according to Russian Accounting Standards:

according to IFRS:

Let's calculate the turnover of non-current assets

according to Russian Accounting Standards:

according to IFRS:

Thus, the turnover of non-current assets, calculated according to IFRS, is almost the same as the turnover of non-current assets, calculated according to RAP. This is due to minor differences in the assessment of the value of non-current assets.

Let's calculate the asset turnover

according to Russian Accounting Standards:

Asset turnover calculated according to IFRS:

The asset turnover values calculated for each of the accounting systems are almost the same.

Calculate inventory turnover

according to Russian Accounting Standards:

Inventory turnover calculated according to IFRS:

The value of the inventory turnover calculated according to IFRS almost coincides with the indicator calculated according to RAS.

We calculate the period for repayment of receivables

according to Russian Accounting Standards:

according to IFRS:

Thus, the period for repayment of accounts receivable, calculated according to IFRS, is 318 days, and according to RAS - 322 days.

As the results of calculations showed, almost all financial indicators have undergone changes, albeit small ones. The adjustments made were conditional and not too large. Therefore, in practice, in a real enterprise, they can be much larger.