International Standards financial statements (IFRS)

Main standards

Calls are increasingly sounding about the need to adopt global reporting standards, which would allow financial transparency of companies and avoid repetition crisis situations on the world market. The role of such standards is designed to play international financial statements (IFRS), which are becoming increasingly distributed in the world, in countries, both developed and with developing markets. Most countries of the world are now moving towards translation

our accounting systems for international standards. Many countries, like Russia, are only at the beginning of this path.

In Russia, there were great moves in the process of introducing IFRS

in practice. Ministry of Finance Russian Federation Approved and actively implemented the concept of the development of accounting and reporting in the Russian Federation for the medium term, which involves a gradual transition to international standards.

International Financial Reporting Standards (IFRS IFRS English. International Financial Reporting Standards) - a set of documents (standards and interpretations) regulating the rules for the preparation of financial statements necessary to external users to make them economic decisions With regard to the enterprise. These are rules that establish the requirements for recognition, evaluation and disclosure of financial and economic operations to compile financial reports of companies around the world. Financial Reporting Standards ensure comparability of accounting documentation between companies in a global scale, as well as the condition of the availability of reporting information for external users.

Development and improvement international standards Accounting is engaged in a special organization - the Committee on International Accounting Standards, established on June 29, 1973, in accordance with the Agreement of Australia's Accounting Bodies, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland, as well as the United States. The activities of the Committee are sent by the Council consisting of representatives of 13 countries and 4 organizations.

The Committee on International Accounting Standards defines its tasks as follows:

· Formulate and publish in the interests of the public

accounting standards that must be observed in the preparation of financial statements and contribute to worldwide implementation and compliance;

· Conduct overall work to improve and harmonize the rules,

accounting standards and methodologies for compiling and filing financial reports.

The process of developing and approving international standards includes many steps and analytical stages. Including the study of national and regional accounting requirements Both practices, as well as other relevant materials, a detailed analysis of all issues related to the theme of the standard developed, publication and discuss the draft International Accounting Standard for representatives of various countries, making the necessary adjustments and changes and subsequent approval of the Standard Committee.

International accounting standards are a set of provisions developed by the International Accounting Standards Committee (IASC), whose members are accountants from more than 80 countries. The purpose of developing and implementing international standards is to improve and harmonize legislation, accounting standards and the procedure for the preparation of financial statements all over the world.

Each standard includes, as a rule, the following sections:

· Introduction, reflecting the overall content of the standard, its goals and objectives;

· Definitions to avoid ambiguity in the interpretation;

· Explanations that consider the concepts and their interpretation from the point of view of the goals set;

· Description of methodological problems, ways and opportunities for their solution;

· Prescriptions related to the practical implementation of the standard;

· Date of entry into force.

Each standard provides several equal opportunities, but give various results of options. At the same time, their use is not rigidly regulated.

International standards have been developed to meet the needs of most users who take economic decisions (for example, the acquisition, preservation or sale of shares). For these purposes, seven major user groups were allocated - investors, employees, lenders, suppliers, buyers, government, public. Standards are internationally recognized, and also allow you to avoid binding to the accounting model for any individual country. Fully international standards are guided only by transnational corporations for which to apply national Methods Accounting for each country is not possible.

Currently, the following organizations are engaged in the standardization and unification of accounting standards and reporting standards:

· Council on International Financial Reporting Standards;

· Intergovernmental working group of experts on

international standards of accounting and reporting under the UN;

· European Commission;

· Commission for securities and US banners;

· Council for the development of financial accounting standards.

The basis for the development of international accounting standards is those procedures that have historically developed in Anglo - pagan countries, mainly in the United States and the United Kingdom.

The procedure for creating a new international accounting standard is distinguished by known conservatism, the circumstance occupies a relatively long period of time and consists of 6 cycles:

The 1st cycle is the formation of the Preparatory Committee (STEERING COMMITTEE).

The 2nd cycle is the development of the standard project.

The 3rd cycle is the preparation of the working draft provisions of the Standard.

4th cycle - approval by the Board of the Working Project of Standard Provisions.

5th cycle - drawing up a plan for developing an international standard.

The 6th cycle is the preparation of the project of the International Standard.

The International Accounting Standard is considered adopted if three-quarters of the Board approved it. The approved text of all international standards is the text published by the Committee in English. All official translations are prepared with the participation of SMSF professionals. Currently, IFRS is officially translated into 4 languages \u200b\u200b(German, Russian, French and Polish). Work is underway on the official translation into Chinese, Japanese, Portuguese and Spanish. Unofficially international standards are translated into more than 30 languages.

First of all, it should be noted that the application of international financial reporting standards is based on two principles: continuity of activity and accrual.

The principle of continuity of activity implies that the company is valid and will continue to act in the foreseeable future (at least for 1 year). From here it follows that the company has no intention, no need to eliminate or reduce its activities. Therefore, the assets of the company are reflected by initial cost excluding liquidation costs. If there is such an intention or necessity, the financial statements should state this fact in the following order:

· Reflect estimate of property for liquidation value;

· To make the write-off assets that cannot be obtained in full;

· Calculate obligations due to interruption

contracts and economic sanctions.

The principle of accrual proceeds from the fact that income and expenses of the enterprise are reflected as they occur, and not as the actual receipt or payment money or their equivalents. Thus, this principle assumes:

· Recognition of the results of the operation as it is committed;

· Reflection of operations in the reporting of the period in which they were implemented;

· Formation of information on liabilities for paying and liabilities to obtaining, and not just on actually produced and received payments.

IFRS are not a dogma, they are only a recommendation, i.e. are not mandatory for adoption. Most often, a specific country applies traditional national accounting, adapted to several or most international standards.

The list of international standards includes the following standards:

IFRS 1. Financial reporting.

IFRS 2. Fresh.

IFRS 3.Conorified financial statements (replaced IFO 27 and 28).

IFRS 4. Scientific depreciation (replaced IFRS 16 and 38).

IFRS 5.information to be reflected in the financial statements (replaced IFRS 1).

IFRS 6. The effects of changing prices (replaced IFRS 15).

IFRS 7. Cash movements.

IFRS 8. Practice or loss for a certain period of time, fundamental errors and changes in accounting policies.

IFRS 9. Recents on research and development (replaced IFRS 38).

IFRS 10. Coulder events and events that occurred after the reporting date (partially replaced IFRS 37).

IFRS 11. Contract.

IFRS 12. Nogged on profits.

IFRS 13. current assets and short-term obligations (Replaced IFRS 1).

IFRS 14. Settlement reporting.

IFRS 15.Information reflecting the impact of price changes.

IFRS 16. -Wound products.

IFRS 17.Arend.

IFRS 18.Sign.

IFRS 19. Validation to employees.

IFRS 20. Clauses government subsidies and reflection of information about government assistance.

IFRS 21.If currency changes.

IFRS 22. The accumulation of companies.

IFRS 23. loans.

IFRS 24. The acceleration of information about related parties.

IFRS 25. Net for investment (replaced IFRS 40).

IFRS 26. Network and Reporting on Programs pension provision (pension plans).

IFRS 27. Enterprise financial statements and accounting of investments in subsidiaries.

IFRS 28.All investment in associates.

IFRS 29.Finance reporting in hyperinflation.

IFRS 30. The acceleration of information in the financial statements of banks and similar financial institutions.

IFRS 31.Finance reporting on participation in joint activities.

IFRS 32. Financial instruments: Disclosure and provision of information.

IFRS 33.Figal per share.

IFRS 34.promething financial statements.

IFRS 35. processed activity.

IFRS 36.Artscent assets.

IFRS 37. Red subject obligations and conditional assets.

IFRS 38. Equipment.

IFRS 39.Financial Tools: Recognition and Evaluation.

IFRS 40. Investment property.

IFRS 41.culture in agriculture.

Currently there are another 5 new financial reporting standards until they have independent numbers in this list:

IFRS 1. First use of IFRS.

IFRS 2. Payment with shared instruments.

IFRS 3. Business Confusion.

IFRS 4. Insurance reports.

IFRS 5.Side non-current assetsheld for sale and discontinued activities.

The use of IFRS is necessary for the following reasons:

First, the formation of reporting in accordance with IFRS is one of the important steps opening russian organizations The possibility of admission to international capital markets. It is well known that capital, especially foreign, requires transparency financial information On the activities of companies and reporting management to investors. Until foreign investor It will not be possible to trace and understand through financial statements, as used by them is used by the capital, Russia will remain a zone of increased risk and, accordingly, will lose to other countries in attracting financial resources from international markets.

IN modern world IFRS gradually become a kind of key to the international capital market. If the company has appropriate reporting, it gets access to sources of funds necessary for development, but this does not mean the automatic provision of desired resources, the path to them sufficiently rolling and difficult. However, this company falls among those elected who, subject to other conditions, can expect foreign funding. If the company does not have the required reporting, then it, from the point of view of the Western Investor, does not deserve confidence and cannot be considered as competitive in competition with other capital applicants.

Secondly, international Practice It shows that the reporting formed according to IFRS is characterized by high informative and utility for users.

From the very beginning, the standards are developed based on the needs of specific users. When choosing one or another methodological approach, the main criterion is the usefulness of information for the adoption of economic decisions. Not by chance, an integral part International Financial Reporting Standards is a document "Fundamentals of preparation and submission of financial statements", determining, among other things, to whom the statements are calculated, what are the needs of users and the qualitative characteristics of financial information that make it useful to these users. The usefulness of the reporting on IFRS confirms the fact that today the main stock Exchange The world allows for such reports to foreign issuers for quotes securities.

Thirdly, the use of IFRS can significantly reduce the time and resources necessary to develop new national reporting rules. These standards enshrine enough long-term experience in accounting and reporting in conditions. market economy. They are formed as a result of labor and search for not one generation of researchers, representatives of different scientific schools. Standards take into account requests and experience with reporting entrepreneurs, banking and other financial structures, financial analysts, trade unions, government organizations whose representatives since 1981 form a consultation group under the IFRS Committee. IFRS not only reduce the costs of companies on the preparation of their reporting, but also reduce capital to attract capital. It is known that the market price of capital is determined by two main factors: promising returns and risks. Some of the risks are truly characteristic of the activities of the companies themselves, however, there are those that are caused by the lack of information, the lack of accurate information about the return of capital investments. One of the reasons for informational failure is the lack of standardized financial statements, which, while maintaining capital, actually multiplies it. This is explained by the fact that investors agree to get a little more low income, knowing that the big openness of the information reduces their risks.

These benefits are largely ensuring the desire of various countries to use IFRS in national accounting practice.

According to official data, in 2015 it will be mandatory administration Such regulations as special categories. Most often you can meet the abbreviation of this concept - IFRS.

• participants of the stock market professionals;
• commodity exchanges;
• non-state pension funds;
• clearing companies;
• shareholder investment funds;
• managing organizations of the above categories.

It makes sense to begin to determine the question: "IFRS - what is it?". This concept is deciphered as a complex of specialized documents, more precisely, the standards through which the procedure for creating the financial statements in free access for external users is regulated.

IFRS against the Russian accounting system

First of all, there is a difference in end users with information that includes the corresponding accounting indicators grouped according to the above standards. In particular, the Russian model was aimed at state administration and statistics, and international ones on investors, enterprises and financial institutions. As a result, various principles on which the procedure for the formation of this reporting are also based on the differences and needs of financial information are also manifested by the differences.

Thus, the mandatory rule in IFRS is the priority of the content relating to the form of submission of previously specified information. Speaking O. russian system accounting this moment Most often omit.

A practical example may be the situation in which PBU considers part of the enterprise capital, although there are very few distinctive features against bonds regarding their economic nature. In accordance with IFRS, these features are significant in order not to reflect them as part of capital.

The purpose of the introduction of IFRS into Russian enterprises

In order to form an adequately perceived and understandable users of various countries, international standards were introduced. Their goal is to unify the compilation of the document under consideration and the provision of data on the activities of any company.

It is worth highlighting a list of documents that define IFRS are directed to their unification relative to the creation order, namely:

• balance sheet;
• report on ;
• gains and losses report;
• report on changes in the capital or other operations of this focus;
• accounting policy.

Along with the above reports, enterprises can also be formed and certain reviews for the guideline, which displays the indicators of the profit of this company.

IFRS - what is it?

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

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

Each of the above documents has its own significance, but it is used exclusively in the complex with other elements. Thus, from the above mentioned list means that IFRS - standards, each of which has a definitely established structure.

The semantic aspect of the standards of the considered accounting system

They establish rules that determine the procedure for deciphering individual operations committed during the implementation of the enterprise's profile and reflected in the financial statements.

It is important to note that the standards adopted by the relevant authority until 2001 are referred to in International Accounting Standards or abbreviated IAS, and then since 2001, - International Financial Reporting Standards, whose abbreviation has such writing - IFRS.

The current standards

The main IFRS, developed until 2001 include:

International FINANCIAL Reporting Standards

The list of standards of the considered accounting system adopted since 2001 has the following form:

1. "Adoption of international financial reporting standards for the first time" (IFRS No. 1).
2. "Payments on the basis of equity instruments" (IFRS No. 2).
3. "Combining enterprises" (IFRS No. 3).
4. "Insurance contracts" (IFRS No. 4).
5. "Long-term assets intended for sale and discontinued activities" (IFRS No. 5).
6. "Intelligence and Evaluation mineral resources"(IFRS No. 6).

What is marked for the current year regarding the accounting system under consideration?

From official sources it became aware of the readiness of the latest volume of IFRS of 2014, having the name "Red Book". It contains rules for international accounting, including those that come into force after January 01 of this year. An example is the included amendments to the ninth standard called "Financial Instruments", adopted since 2001. There are also two sets of annual changes in concerning IFRS 2011-2013 and IFRS 2010-2012, one interpretation of fees, the Constitution of the IFRS Fund, a detailed work plan.

What is good in this accounting system?

In order to form the right financial report on international standards, IFRS will be indispensable to help.

It is worth identifying a number of advantages of this accounting system that can be conjugate with the activities of the following subjects:

1. Investors, as this is due to the clearness, transparency, reliability and lower costs.
2. Companies because the costs of investment involvement are reduced one system Accounting, there is no need to harmonize financial information, as in the internal and external accounting.
3. Auditors: Due to the fact that there is a uniformity in the fundamental providing the opportunity to participate in the adoption of relevant standards, large-scale trainings are conducted.
4. The developer developers themselves are due to the fact that this is an excellent opportunity for exchanging experiences, the basis for future national standards and convergence of valid.

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

How to smooth the transition process to IFRS?

These reform tasks include the following:

1. Special training of accountants to the level of professional ownership of the foundations of the accounting system under consideration.
2. Strengthening in the consciousness of managers of real interest in the provision of truthful and objective information.
3. Final deletion of accounting on tax, financial and managerial.

The importance of the transition is due to the fact that IFRS are a compromise between the main global accounting systems.

Attractiveness of accounting reform for enterprises around the world

The financial statements of IFRS may facilitate companies from different countries Exit to world-class capital markets, and will also increase the comparability of information, make it more transparent to external users.

Specifically russian enterprises They will be able to talk in one language with their foreign colleagues and strengthen their business positions in foreign markets from the point of view of equality of their capabilities, as a result of which numerous prospects for international capital markets will be available.

The introduction of IFRS will have a positive effect on quality in particular on its increase, and also contributes to the update information systems and personnel motivation.

In addition, the involvement of foreign capital without reporting, compiled according to IFRS, is largely difficult to grow largely. And it does not matter whether it will be done either with the help of Western banks, or by way stock market, located abroad, or by attracting private investments from abroad. Reporting, compiled in accordance with the PBU, a potential foreign investor, most likely will not understand. Therefore, it is worth taking care of the formation of reporting, regulated IFRS.

Companies are aware of the fact that in the near future, international standards will go into the rank of national. For many firms, reports according to IFRS are required today in order to ensure significant competitive advantage by attracting resources on such international markets Borrowings like bonds, loans or IPOs.

Thus, all of the above helps to figure out in more detail in the question: "IFRS - What is it?"

Financial statements - mandatory documentation for any entrepreneurial activity. When enterprises cooperate, they need to get acquainted with each other's reporting. It is on the basis of its study and decisions are made regarding the possibility and form of cooperation with the enterprise.

The interaction is increasing with progressive globalization not only between enterprises, but also between countries, including with different financial systems. In order for the finance information provided by counterparties, it should be more complete and transparent, it should be applied in a relatively unified form.

In other words, financiers of different countries must "speak in the same language." This was the reason for the creation of the IFRS Committee and International Financial Reporting Standards.

Let us consider what the purpose of this meeting of documents is exactly what is part of its composition, as well as the features of the application in the economy of our country, especially in the light of modern reforms.

What is IFRS: how to explain to the Russian entrepreneur

International Financial Reporting Standards are a set of documents containing the regulations for the financial statements necessary for external provision, according to the Unified Principles. This phrase is reduced to the IFRS abbreviation (avoid frequently occurring erroneous use of MFSO).

The collection of texts and interpretations to them is the official translation of original English-speaking documents issued by the Committee on International Financial Reporting Standards (CMFO) with headquarters in the UK. This Committee is an autonomous organization of a private nature, the purpose of which is to combine the rules financial accounting And their unification for international use.

To date, these standards voluntarily obey 105 countries of the world. Of the economically leading states of this system, only 3 are not held:

• United States of America;
• Canada;
• Japan.

A number of states, mainly in Latin America and in Asia, are in a state of choice, whether to host IFRS or the American GAAP system.

REFERENCE! Prior to the beginning of the 21st century, the set of rules and explanations on accounting was indicated by another abbreviation - IAS (International Accounting Standards, International Accounting Standards). Modern designation of IFRS in English-language literature is as ifrs (International Financial Reporting Standards).

Difference of IFRS from PBU

An approximate analogue for the Russian entrepreneur can serve as the term "accounting standards". But the main difference between PBU from IFRS is that there is no in the latter primary documents. If PBU dictates accounting rules, IFRS proclaims its principles. It can be said that IFRS is a final accounting indicator, which no longer need to include:

• account plan;
• accounting wiring;
• accounting registers;
• documentary support of certain financial operations;
• other "primary".

It follows that the principles of the case growing each country may apply in their understanding. But the end result of the accounting, which creates a financial "portrait" of the company, must be issued according to uniform standards.

The main principle of IFRS

The meaning of IFRS as the Unified Regulation of Monetary Account is that international differences are not affected by: cultural realities, traditions, financial models, legislative norms different states. Economic laws Objective regardless of how to use them. therefore the fundamental principle of IFRS is predominance economic content Above the form.

Such a principle allows entrepreneurs in controversial cases to follow his spirit, basic provisions, and not to look for ways to bypass rigidly prescribed rules.

Additional principles governing the preparation of financial statements under IFRS:

• principle of accrual;
• principle of continuity of activity;
• principle of relevance, etc.

What is included in IFRS

To date, IFRS is an association of 44 documents and 25 clarifications to them. These texts contain recommendations:

• according to the composition of financial statements;
• how to take into account specific objects of attention of accountants;
• what information, where and how to reflect.

Standards change periodically and updated, so there are regular amendments and changes. According to the hierarchy, the documents in the composition of IFRS can be divided into 4 degrees.

1. Existing IFRS and IAS along with standard applications to them.
2. Clarification of the IFRS Committee (IFRIC and SiC).
3. Annexes to international standards not included in the official version.
4. Recommendations for implementation in a specific country.

Who in Russia should adhere to IFRS

In the practice of domestic entrepreneurship, reports on the requirements of IFRS are governed by Federal Law of the Russian Federation No. 208-FZ "On Consolidated Financial Reporting" of July 27, 2010.

According to the text of this act, it is necessary to provide systematic data on the dynamics and financial results of organizations, or, as they are designated in international terminology, groups. To such groups, the Law of the Russian Federation refers:

• banking organizations;
• insurance companies (except enterprises on mandatory floraling);
• mortgage firms;
• commercial pension funds;
• investment companies;
• joint-stock companies with shares belonging to the state (on the list of the Government of the Russian Federation);
• companies whose securities are indicated in official quotes.

MOREOVER, knowledge of IFRS standards is necessarily for the following categories:

• accountants;
• auditors;
• economic consultants;
• teachers of economic disciplines of higher educational institutions.

For whom IFRS is not required

Under the effect of consolidated reporting, they do not fall on, since their activity does not enter the international market:

• state companies;
• summary reports of municipal institutions;
• consolidated statements of budget organizations.

Domestic problems in the introduction of IFRS

Since 1998, in Russia there is a program to reform accounting, bringing it in line with IFRS.

The law adopted in 2010 ordered processing accounting reporting Under the IFRS of the categories of organizations, starting in 2012, from 2012. The adoption or suspension of the action of a standard on the territory of the Russian Federation is adopted by the Ministry of Finance of the Russian Federation. It is on the website of the Ministry of Finance that IFRS texts are available in Russian for broad study.

Some difficulties associated with the introduction of IFRS in the Russian Federation have emerged with the beginning practical work According to their use, mainly audit practice. You can comply with them in several directions:

1. Difficulties of translation. The text in Russian, shown on the website of the Ministry of Finance, unfortunately, is not fully perfect as a translation. To translate a standard from official English into Russian, the work of representatives of the IFRS Committee, after which the translation must pass the procedure for discussion by experts. Therefore, changes in IFRS appear with a large delay.
2. The discrepancy between the basic principle of de facto. Despite the fact that russian standards Reporting is also proclaimed priority of content over the form, in practice it is not always observed. In the domestic documentation, the ways of documentary support for financial transactions themselves are extremely rigidly regulated. This makes it difficult to transform domestic metering results to IFRS required by the standards.
3. Miscellaneous approach to assets and obligations. In our country, property assets are classified a bit differently as adopted by international standards. In addition, in the formation of a financial indicator, a market assessment of the asset is needed, which will not always be fair in modern Russian realities.
4. Legal discrepancies. Accounting of any state always enters His legislative Base, he cannot be in contradiction with regulatory documents. It is also impossible to use other terminology, rather than provided, for example, in Tax Code and other laws. This creates some difficulties when interacting with other rules. To adjust such a legislative "PAT" at this stage is extremely difficult, if at all possible.
5. Expansion of the circle of information. IFRS standards provide a greater amount of votor information, including those who depend on financial indicators, rather than this is customary in the Russian Federation.

International Financial Reporting Standards (IFRS) is a set of international accounting standards, which indicates how specific types of operations and other events should be reflected in the financial statements. IFRS is published by the Council on International Financial Reporting Standards, and they define accurately, as accountants must lead and present accounts. IFRS were created in order to have a "common language" of accounting, because business standards and accounting may differ from both the company and the country to the country.

The purpose of IFRS is to maintain stability and transparency in financial world. This allows enterprises and individual investors to take qualified financial decisions, as they can see exactly what is happening with the company in which they want to invest.

IFRS are standard in many parts of the world, including the European Union and many countries of Asia and South America, but not in the United States. The Securities and Exchange Commission (SEC) is in the decision-making process on adopting standards in America. Countries that most win from standards are those that lead international business and invest in it. Experts suggest that the global introduction of IFRS will save money on alternative comparative costs, and will also allow you to more freely transmit information.

In countries that adopted IFRS, both companies and investors benefit from this system, since investors are more likely to invest in the company, if the company's business practice is transparent. In addition, the cost of investments is usually lower. Companies that are conducted by international business are most benefit from IFRS.

IFRS standards

Below is a list of applicable IFRS standards:

Representation of financial statements in accordance with IFRS

IFRS covers a wide range of accounting operations. There are certain aspects of business practices for which IFRS establishes compulsory rules. The basics of IFRS are elements of financial statements, the principles of IFRS and types of basic reports.

Elements of financial statements in accordance with IFRS: assets, obligations, capital, income and expenses.

Principles of IFRS

Fundamental principles of IFRS:

• the principle of accrual. In accordance with this principle of events, the events are reflected in the period when they occurred, regardless of the flow of money.
• the principle of continuity of activity that implies that the company will continue to work in the near future, and the leadership does not have plans or the need to turn the activities.

Reporting in accordance with IFRS should contain 4 reports:

Financial Statement: It is also called Balance. IFRS affects how the components of the balance are interconnected.

Cumulative income report: This may be one form, or it can be divided into a report on the profits and losses of IFRS and other income report, including property and equipment.

Capital Change Report: Also known as a report on retained profits. It reflects changes in profit for this financial period.

Cash Movement Report: In this report, the company's financial transactions are summed up for this period, while cash flows are divided into flows on operating activities, investments and financing. Recommendations for this report are contained in IFRS 7.

In addition to these basic reports, the company must also submit applications with a summary of its accounting Policy. A full report is often considered in comparison with the previous report to show changes in the profit and loss. The parent company should create separate reports for each of its subsidiaries, as well as the consolidated financial statements of IFRS.

Comparison of IFRS and American Standards Standards (GAAP)

There are differences between IFRS and generally accepted accounting standards of other countries that affect the calculation of the financial relationship. For example, IFRS is not as strict when determining revenues and allow companies to report income faster, therefore, therefore, the balance within this system can show a higher flow of income. IFRS also have other costs of expenses: for example, if the company spends money on developing or investing for the future, it does not have to show them as a consumption (that is, they can be capitalized).

Another difference between IFRS and the GAAP is to determine the order of accounting. There are two ways to track stocks: FIFO and LIFO. FIFO means that the latest unit of reserves remains non-sold before selling previous stocks. LIFO means that the latest unit of stock will be sold first. IFRS prohibits LIFO, while American and other standards allow participants to use them freely.

History of IFRS

IFRS arose B. European Union With the intention to spread them on the whole continent. The idea quickly spread throughout the world, since the "common language" of financial statements made it possible to expand links around the world. The United States has not yet adopted IFRS, as many consider the American OPAP as a "gold standard". However, since IFRS becomes a more global norm, the situation may change if SEC decides that IFRS is suitable for American investment practice.

Currently, about 120 countries are used by IFRS, and 90 of them require that the reporting companies are fully presented in accordance with the requirements of IFRS.

IFRS is supported by the IFRS Foundation. IFRS Foundation Mission - "Provide transparency, accountability and effectiveness on financial markets around the world". The IFRS Foundation (IFRS) not only provides and monitors financial statements, but also makes various offers and recommendations to those deviate from practical recommendations.

The purpose of the transition to IFRS is the maximum simplification of international comparisons. It is difficult, because each country has its own set of rules. For example, US GAAP differs from Canadian GAAP. Synchronization of accounting standards around the world is a continuous process in the international accounting community.

Transformation of financial statements in accordance with IFRS

One of the main methods for the preparation of financial statements in accordance with the requirements of IFRS is a transformation.

The main stages of the transformation of financial statements in accordance with IFRS:

• Development of accounting policies;
• Selection of functional currency and representation currency;
• Calculation of the initial balance sheets;
• Development of a transformation model;
• Assessment of the company's corporate structure in order to identify subsidiaries, associated, affiliate and joint ventures included in accounting;
• Identifying the company's business features and collecting information necessary to calculate the transformation adjustments;
• Rearrangement and reclassification of financial reports on national standards to IFRS.

Automation of IFRS

The transformation of the financial statements of IFRS in practice is difficult to submit without automation it. There are various programs on 1C platform, which allow you to automate this process. One of these solutions is "WA: Financier". In our solution, there is an opportunity to broadcast accounting data, mapping on the accounts of the IFRS accounts plan, to make various adjustments and reclassification, to eliminate intragroup revolutions in consolidating reporting. In addition, 4 main reports of IFRS are configured:

Fragment of the financial status report of IFRS in "WA: Financier": Bookmark IFRS "Fixed assets".

On the system of international financial reporting standards (IFRS) and clarifications to them, which are enacted in the territory of the Russian Federation, we told in our. And what is understood under the conceptual foundations of financial statements?

IFRS: Conceptual Fundamentals of Financial Reporting

The conceptual foundations of financial statements are a document that adopted by the IFRS Council, but is neither international standard (IFRS, IAS) or clarifications (IFRIC, SiC).

The conceptual foundations do not establish specific norms and rules for assessing or disclosing information in the financial statements. Moreover, none of the provisions of the conceptual foundations do not have a predominant force over the provisions of specific IFRS. This means that in case of contradictions between the requirements of a specific standard and conceptual foundations, it is necessary to follow the rules of specific IFRS.

Nevertheless, the conceptual foundations are one of the fundamental documents in the IFRS system, they establish the principles that underlie the preparation and submission of accounting financial statements on international standards.

The purpose of the conceptual framework is as follows:

• promote the IFRS Council when developing future standards and revising existing IFRS;
• promote the IFRS Council to further harmonize regulations, accounting standards and procedures concerning the submission of financial statements;
• promote national authorities developing financial reporting standards in the development of national standards;
• promote financial statements in the application of IFRS and consideration of issues that are not yet settled by specific IFRS;
• promote auditors in the formation of an opinion on the compliance of financial reporting requirements of IFRS;
• promote users of financial statements in the interpretation of the information contained in the reporting;
• provide information on the approach of the IFRS Council to writing international standards.

The conceptual foundations consider the following issues:

• the purpose of the financial statements;
• qualitative characteristics of useful financial information;
• definitions, principles of recognition and approaches to the evaluation of elements, of which are drawn up financial statements;
• capital concept and maintenance of capital.

By its structure, the conceptual foundations are divided into 3 chapters: