The Ministry of Finance and federal executive bodies will amend the IFRS Accounting and Reporting Development Plan 2012-2015 accordingly and report to the government by 1 December 2012.

It has been reported earlier that a joint Minfin session with the Ministry for Economic Development, Federal Financial Markets Service, the Central Bank, MIFC Taskforce, and IFRS Fund has produced a number of proposals.

Proposals include initiating legislative amendments to the Consolidated Financial Reporting Act to widen the scope of IFRS application in consolidated reporting and drafting concrete norms for compiling, presentation and publication of consolidated IFRS reports by companies having no subsidiaries.

In accordance with current law, banks and insurance companies along with listed issuers must compile, present and publish consolidated IFRS reports.

The IFRS Accounting and Reporting Development Plan 2012-2015, approved by Minfin in late 2011, foresees a wider implementation of IFRS by licensed stock market participants, investment funds, private pension funds, asset management companies, clearing houses and key state unitary enterprises.

The Minfin session also produced a recommendation to review timelines for reporting, including consolidated reports.

According to session documents, production and maintenance of a state consolidated reporting database may be delegated to Rosstat. Necessary amendments are proposed to the federal Consolidated Financial Reporting Act.

Today, it is mandatory for companies to file financial reporting with Rosstat in accordance with Russian reporting standards only. In order to create the database, filing IFRS reports to the government statistics authority may become mandatory by law. IFRS reporting is a key source of information on the company’s financial standing, financial results and cash flow to investors and shareholders.

Project Group №1