International accounting standards for financial reporting. International accounting and reporting standards. The purpose of the SMSF is to

The UN Center for Transnational Corporations began working directly on IFRS. For the development of global economic relations, a universal language of communication was needed. Later, in 1973, the International Financial Reporting Standards Committee (IASC) was created in London. Since 1983, all professional organizations that are members of the International Federation of Accountants have become members of the IASB.

The purpose of the IASB is to unify the accounting principles used by companies around the world to prepare financial statements.

The IASB is by its nature an independent, private organization whose purpose is to develop uniform accounting principles used by businesses and other organizations around the world in preparing financial statements.

In preparing the set of international financial reporting standards, the IASB works closely with the International Organization of Securities Commissions (IOSCO), which is a kind of regulatory mechanism for the securities markets. In 1995, it was agreed between the IASB and IOSCO that IOSCO would consider adopting the standards once the entire work program had been completed.

To date, three of the world's leading countries have not supported international financial reporting standards. These are the USA, Canada and Japan.

Some countries, especially in Asia and Latin America, are undecided about using one accounting system or another, but many are leaning towards the US GAAP system, which they believe is more appropriate for the long term.

The first International Financial Reporting Standard (IFRS) was developed in 1974 and came into force the following year. To date, a total of 40 standards have been adopted. Each MFO standard includes the following sections:

. Accounting object – a definition of the accounting object and the basic concepts associated with it is given;

. Recognition of an accounting object – a description of the criteria for classifying accounting objects to various reporting elements is given;

. Assessment of an accounting object – provides recommendations on the use of assessment methods and requirements for the assessment of various reporting elements;

. Reflection in financial statements – disclosure of information about the object of accounting in various forms of financial reporting.

It should be noted that international financial reporting standards are not accounting standards like, for example, Russian accounting standards. IFRS does not have a chart of accounts, accounting entries, source documents or accounting registers. IFRS are reporting standards as the final stage of accounting work. They do not impose any special requirements directly on bookkeeping.

The fundamental feature of international standards is that when working with reporting, they recommend starting not from legislative norms, but from economic realities. Thus, one of the main principles of IFRS is the priority of economic content over form.

Russian standards, built on the basis of international ones, also proclaim the priority of content over form, but in reality this principle is not always followed. So, for example, in accordance with PBU, preferred shares are part of the company’s capital, however, by their economic nature, such securities are not much different from bonds. IFRS points out such features and recommends not including them in capital.

Glossary of terms on the topic International Accounting and Reporting Standards

• 1. Business unit is a separate enterprise in respect of which accounting records are maintained and financial statements are prepared.
• 2. Financial reporting - a system for preparing and presenting financial reports in accordance with certain standards.
• 3. Interpretation - interpretation, explanation, translation into a more understandable language.
• 4. Generally accepted accounting principles are provisions developed by the Financial Accounting Standards Board.
• 5. Accounting conventions - in a broad sense - the methods and procedures used in accounting. Accounting conventions, in a narrow sense, are methods and procedures used in accounting that are not officially approved or recommended.
• 6. Accounting Research Bulletin is a publication of the Accounting Principles Board.
• 7. International accounting standards - a set of accounting concepts, standards and procedures on the basis of which financial statements are prepared in Europe and other countries.
• 8. APB Opinions are documents issued by the Accounting Principles Board of the American Institute of Certified Public Accountants.
• 9. Standardization is the process of establishing and applying standards.
• 10. Convergence is the process of bringing together accounting models, which is actually expressed in the convergence of national standards systems with IFRS.
• 11. Harmonization - mutual agreement, integration into a system, unification, coordination, streamlining, ensuring mutual conformity of economic processes.

IFRS 1. Presentation of financial statements

financial statements capital monetary

This standard is fundamental in defining the principles for the preparation and presentation of financial statements. The objective of this Standard is to provide a framework for the presentation of general purpose financial statements to achieve comparability both with an entity's financial statements of prior periods and with the financial statements of other entities. To achieve this objective, this Standard sets out a number of considerations for the presentation of financial statements, guidelines for their structure and minimum content requirements. The purpose of general purpose financial statements is to provide information about a company's financial position, financial performance, and cash flows that is useful to a wide range of users in making economic decisions. Financial statements also show the results of managing the resources entrusted to the company's management. To achieve this goal, financial statements provide information about the following company indicators:

• - assets;
• - obligations;
• - capital;
• - income and expenses, including profits and losses;
• - cash flow.

A complete set of financial statements includes the following components:

• - balance sheet;
• - Profits and Losses Report;
• - a report showing all changes in capital;
• - cash flow statement;
• - accounting policies and explanatory notes.

Accounting policy. The company's management must select and apply the company's accounting policies so that all financial statements comply with all the requirements of each applicable International Financial Reporting Standard. In the absence of a specific requirement, management must establish policies to ensure that financial statements provide information that:

• - relevant to user decision-making needs;
• - is reliable in that it: reliably represents the results and financial position of the company; reflects the economic content of events and transactions, and not just their legal form; neutral, that is, free from bias; prudent; complete in all essential respects.

The presentation and classification of items in the financial statements should be consistent from one period to the next except in the following cases:

• - a significant change in the nature of the company's operations or when analysis of its presentation of financial statements demonstrates that the change will result in a more appropriate presentation of events or transactions;
• - the change in presentation is required by international financial reporting standards;

Comparative information must be disclosed in relation to the preceding period for all numerical statements, unless otherwise required by an international accounting standard. Comparative information is included in narrative and descriptive information when relevant to an understanding of the financial statements.

Reporting period. Financial statements are presented at least annually. When, in exceptional circumstances, a company's reporting date changes and the annual financial statements are presented for a period longer or shorter than one year, the company must disclose, in addition to the period covered by the financial statements:

• - the reason for using a period other than one year;
• - the fact that the comparative amounts for the income statements, cash flow statements and related notes are not comparable.

Balance sheet. Each company, based on the nature of its operations, must determine whether to present current and non-current assets and liabilities as separate classifications on the balance sheet itself. Regardless of which presentation method is adopted, an entity must disclose amounts expected to be settled or recovered after more than twelve months for each item of assets and liabilities that total items expected to be settled or recovered before or after twelve months from the reporting date. .

Short-term assets. An asset should be classified as current when:

• - it is intended to be sold or held for sale or use in the normal conditions of the company's operating cycle;
• - it is held primarily for commercial purposes or for a short period and is expected to be sold within twelve months from the reporting date;
• - it is an asset in the form of cash or cash equivalents that have no restrictions on their use.

All other assets should be classified as non-current.

Short-term liabilities. Liabilities should be classified as current when:

• - they are expected to be repaid under normal conditions of the company’s operating cycle;
• - they are repayable within twelve months from the reporting date.

All other liabilities should be classified as non-current. An entity shall continue to classify its non-current liabilities, including interest payments, as non-current even if they are due to be settled within twelve months from the reporting date if:

• - the original period was a period exceeding twelve months;
• - the company intends to refinance the obligation on a long-term basis;
• - this intention is supported by a refinancing agreement, a change in the payment schedule, which is concluded before the approval of financial statements.

The amount of any liability that has been excluded from current liabilities in accordance with this requirement must be disclosed in the notes to the balance sheet, together with information justifying such presentation.

At a minimum, the balance sheet should include line items that represent:

• - fixed assets and intangible assets;
• - financial assets and investments accounted for using the participation method;
• - trade and other receivables;
• - cash and cash equivalents;
• - debts of buyers and customers and other receivables;
• - tax liabilities and reserves;
• - long-term liabilities, including interest payments;
• - minority interest and issued capital.

Additional line items, headings and subtotals should be presented on the balance sheet when required by International Financial Reporting Standards or when presentation is necessary to provide a fair view of the company's financial position.

A company must disclose the following information on its balance sheet or notes:

• 1. for each class of share capital:
  • - number of shares authorized for issue;
  • - the number of issued and fully paid shares, as well as issued but not fully paid;
  • - the par value of the share, or an indication that it has no par value;
  • - reconciliation of the number of shares in circulation at the beginning and end of the year;
  • - rights, privileges and restrictions associated with the relevant class, including restrictions on the distribution of dividends;
  • - shares of the company owned by the company itself, as well as subsidiaries or associated companies;
  • - shares reserved for issue under option or sale agreements, including terms and amounts;
• 2. a description of the nature and purpose of each reserve within the owners' capital;
• 3. when dividends were proposed, but were not officially approved for payment, the amount included or not included in the liability is shown;
• 4. the amount of any unrecognized dividends on preference shares.

A non-share entity, such as a partnership, must disclose information equivalent to that required above, showing changes during the period in each category of equity interest and the rights, privileges and restrictions associated with each category of equity interest.

Gains and losses report. At a minimum, the income statement should include line items that represent:

• - revenue;
• - operating results;
• - financing costs;
• - the share of profits and losses of associated companies in joint activities accounted for using the participation method;
• - tax expenses;
• - profit or loss from ordinary activities;
• - results of emergency circumstances;
• - minority share;
• - net profit or loss for the period.

A company must disclose in the income statement or its notes an analysis of income and expenses, using a classification based on the nature of income and expenses or their function within the company.

Expense items are divided into subclasses in order to highlight a number of components of financial performance, which may differ in such characteristics as stability, profit or loss potential and predictability. This information is presented in one of two ways.

The second analysis is called the cost function or "cost of sales" method, and classifies expenses according to their function, as part of the cost of sales, distribution, or administrative activities.

Companies that classify expenses by function must disclose additional information about the nature of expenses, including depreciation and amortization expense.

A company must disclose in the income statement or notes the amount of dividends per share declared or proposed during the period covered by the financial statements.

Changes in capital. A company must present, as a separate form of its financial statements, a statement showing:

• - net profit or loss for the period;
• - each item of income and expenses, profit and loss, which, in accordance with the requirements of other standards, is recognized in capital, and the amount of such items;
• - the cumulative effect of changes in accounting policies and correction of fundamental errors.

In addition, the company must present either in this report or in the notes thereto:

• - capital transactions with owners and their distribution;
• - the balance of accumulated profit or loss at the beginning of the period and at the reporting date, and the change for the period;
• - a reconciliation between the carrying amounts of each class of share capital, share premium and each reserve at the beginning and end of the period, disclosing separately each change.

Cash flow statement. Provides useful information to users when clarifying questions about the profitability and solvency of the company; it relates the net profit figure to the company's cash receipts and disbursements.

Table Application of IFRS for management accounting purposes

Cost accounting Financial accounting Forensic accounting
Fund accounting Management accounting Tax accounting
Budget accounting Bank accounting

International Financial Reporting Standards(IFRS; IFRS English) International Financial Reporting Standards ) - a set of documents (standards and interpretations) regulating the rules for preparing financial statements necessary for external users to make economic decisions regarding the enterprise.

IFRS, unlike some national reporting rules, are standards based on principles rather than on rigidly written rules. The goal is that in any practical situation, drafters can follow the spirit of the principles, rather than trying to find loopholes in clearly written rules that would circumvent any basic provisions. Among the principles: accrual basis, going concern principle, prudence, relevance and a number of others.

Application in various countries

International financial reporting standards have been adopted as mandatory in several European countries. In most European countries, companies whose securities are traded on the stock exchange are required to prepare financial statements in accordance with IFRS.

In the United States, which now uses its own accounting standards US GAAP, in August 2008 the Securities and Exchange Commission presented a preliminary plan for the transition to IFRS and the abandonment of GAAP. In accordance with this plan, starting from 2010, transnational American companies (it is expected that by this time there will be at least 110 of them) will be required to provide reporting in accordance with IFRS. It is expected that starting from 2014, reporting under IFRS will become mandatory for all American companies.

In 2011, the first 63 standards and interpretations were recognized as applicable in the Russian Federation. Consolidated financial statements must be provided by organizations covered by Law No. 208-FZ, starting with reporting for 2012.

List of currently valid standards

IFRS

IAS

• IAS 1 Presentation of Financial Statement
• IAS 2 Stocks
• IAS 7 Cash Flow Statements
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 10 Events After the Balance Sheet Date
• IAS 11 Construction Contracts
• IAS 12 Income Taxes
• IAS 16 Property, Plant and Equipment
• IAS 17 Leases
• IAS 18 Revenue
• IAS 19 Employee Benefits
• IAS 20 Accounting for Goverments Grants and Disclosure of Goverment Assistance
• IAS 21 The Effects of Changing in Foreign Exchange Rates
• IAS 23 Borrowing Costs
• IAS 24 Related Party Disclosures
• IAS 26 Accounting and Reporting by Retirement Benefit Plans
• IAS 27 Consolidated and Separate Financial Statements
• IAS 28 Investments in Associates
• IAS 29 Financial Reporting in Hyperinflationary Economies
• IAS 31 Participation in joint ventures (Financial Reporting of Interests in Joint Ventures)
• IAS 32 Financial Instruments: Presentation
• IAS 33 Earnings per Share
• IAS 34 Interim Financial Reporting
• IAS 36 Impairment of Assets
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IAS 38 Intangible Assets
• IAS 39 Financial Instruments: Recognition and Measurement
• IAS 40 Investment Property
• IAS 41 Agriculture

In addition to standards, interpretations that reveal a particular issue of application of standards are mandatory for use:

• IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
• IFRIC 2 Shares in Co-operative Entities and Similar Instruments
• IFRIC 4 Determining whether an Arrangement contains a Lease
• IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
• IFRIC 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment
• IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
• IFRIC 8 Scope of IFRS 2
• IFRIC 9 Links to Reassessment of Embedded Derivatives
• IFRIC 10 Interim Financial Reporting and Impairment
• IFRIC 11 IFRS 2 - Transactions with group shares and treasury shares (IFRS 2 - Group and Treasury Share Transactions)
• IFRIC 12 Service Concession Arrangements
• IFRIC 13 Customer Loyalty Programs
• IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
• IFRIC 15 Agreements for the Construction of Real Estate
• IFRIC 16 Hedges of a Net Investment in a Foreign Operation
• IFRIC 17 Distributions of Non-Cash Assets to Owners
• IFRIC 18 Transfers of Assets from Customers
• SIC 7 Introduction of the Euro
• SIC 10 Government Assistance - No Specific Relation to Operating Activities
• SIC 12 Consolidation - Special Purpose Entities
• SIC 13 Jointly Controlled Entities - Non-Monetary Contributions by Venturers
• SIC 15 Operating lease. Incentives (Operating Leases - Incentives)
• SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets
• SIC 25 Income Taxes - Changes in the Tax Status of an Entity of its Shareholders
• SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease
• SIC 29 Service Concession Arrangements: Disclosures
• SIC 31 Revenue: barter transactions including advertising services (Revenue - Barter Transactions Involving Advertising Services)
• SIC 32 Intangible Assets - Web Site Costs

Notes

Literature

• First application of IFRS. - M.: Alpina Publisher, 2013. - 448 p. - ISBN 978-5-9614-2241-2

Links

• Ministry of Finance of the Russian Federation: Accounting. International standards and international cooperation
• National Accounting Standards Board
• Official Journal of the European Union, 13 October 2003. Official publication of the IAS
• The latest edition of IFRS in Russian, Ukrainian, English, tips for studying IFRS and preparing for the DipIFR exam
• International Financial Reporting Standards: the latest news

Wikimedia Foundation. 2010.

1. International financial reporting standards: essence and significance

2. International financial reporting standards: structure, hierarchy, content, application procedure

1. International financial reporting standards: essence and significance

International Financial Reporting Standards(IFRS) are a system of generally accepted requirements, principles, rules and procedures that define a general approach to the preparation of financial statements that are useful to a wide range of interested users, and establish uniform requirements for the recognition, measurement and disclosure of financial and business transactions.

Historically, each country created its own accounting and reporting standards that met, first of all, the reporting requirements of its main users.

Development of international trade, the emergence of multinational companies, capital market globalization, the globalization of economic processes and information technologies has created a need for harmonization of financial reporting of companies from different countries. This was due to the need to obtain and provide transparent, useful, informative, comparable, homogeneous financial information understandable to a wide range of interested users. It was for this purpose that it was decided to develop international standards for financial accounting and reporting, which were supposed to provide a unified methodological basis and establish basic accounting principles in accordance with which enterprises could conduct financial accounting.

To date Financial statements prepared under either IFRS or US GAAP are internationally recognized, since only statements prepared according to these standards are recognized by the majority of stock exchanges in the world: US GAAP for American ones, IFRS for non-American ones. In this regard, depending on which exchange the company wants to enter the quotation list, the appropriate accounting model is selected.

Development and use of IAS and IFRS in practice:

Allows for a unified approach to the generation of high-quality, transparent, comparable and reliable reporting in different countries;

They help investors and shareholders from different countries to better analyze the reporting of potential recipients of investments (again from different countries), prepared according to common principles, and therefore comparable;

They allow companies entering stock exchanges in different countries to prepare not several sets of financial statements (separately for each national exchange), but a single set of them for all exchanges, i.e. reduce the cost of attracting capital ;

They improve the overall management culture within transnational corporations, improve their internal control system and audit .

2. International financial reporting standards: structure, hierarchy, content, application procedure

IFRS are a set of interrelated documents that include:

Preface to IFRS provisions;

Conceptual Framework or Principles for the Preparation and Presentation of Financial Statements;

Actually standards;

Clarifications to standards or interpretations.

They all form a single system and cannot be used separately; however, each document as an element of the system has a specific purpose.

The Preface briefly sets out the objectives and activities of the IFRS Board (Committee) and explains how IFRS is developed and applied.

Conceptual framework defines procedure for preparing and presenting financial statements for external users. It discusses issues such as the objectives of financial reporting, the underlying assumptions and qualitative characteristics that determine the usefulness of the reporting information, and provides definitions, recognition and measurement of the elements of financial statements. They are not standards in themselves. The conceptual framework serves as the basis for developing the provisions of the standards, determines the approach to the preparation and presentation of financial statements and determines the possibility of using professional judgment in resolving various types of issues.

Actually International financial reporting standards are provisions adopted in the public interest on the procedure for preparing and presenting financial statements for certain sections of accounting.

Explanations to IFRS are given unambiguous interpretation of unclear provisions of the standards and ensure their uniform application.

The questions for clarification are usually those related to:

Either using existing standards that are practical and of greatest interest to users,

Or arising as economic relations develop.

The international reporting standard and its mandatory annexes have the highest priority.

IFRS may be accompanied by applications that are not part of the standard:

Basis for conclusions;

Illustrative examples;

Correspondence tables (between the new and old editions of the standard);

Guidelines for implementation of the standard.

Finally, IFRS is based on the Principles for the preparation and presentation of financial statements in accordance with IFRS, which are not a standard and are not formally included in hierarchy IFRS.

A key aspect when developing new standards, interpretations and applications is their compliance with the specified Principles.

Each standard is dedicated to a specific topic and has the following structure:

Purpose - reveals accounting issues, as well as the purpose of publishing this standard;

Scope of use - defines the boundaries of the standard, indicates the conditions under which it does not apply. It may also contain information about the termination of previously published standards due to the release of new ones;

Definition - reveals the content of the main terms found in the text of the standard;

The description of the essence is the largest part, most often consisting of several sections, which outline the basic principles of solving problems;

Disclosure of information is a mandatory part of the standard, containing information that must be disclosed in the financial statements, notes to them, and accounting policies;

Effective date - indicates the date of entry into force of this standard;

Additions are an optional part that provides detailed explanations of individual clauses of the standard.

Each standard contains the following information:

Accounting object - a definition of the accounting object and the basic concepts associated with this object is provided;

Recognition of an accounting object - provides criteria for classifying accounting objects to different reporting elements;

Display in financial statements - disclosure of information about accounting objects in different forms of financial statements.

In practice, the following cases of application of IFRS are distinguished in the conditions of the current level of development and harmonization of accounting and reporting:

Use of IFRS along with national standards;

Adaptation of national standards to IFRS;

Application of IFRS as national standards.

Topic 8. International Financial Reporting Standards Board: structure, work procedure

1. International Accounting Standards Board: general information, goals and objectives

2. Structure and procedure for appointing members of the International Financial Reporting Standards Board

3. The procedure for the development and adoption of international financial reporting standards

1. International Accounting Standards Board: general information, goals and objectives

In order to create and improving single unified financial reporting standards for all countries of the world On June 29, 1973, as a result of an international agreement, an independent non-governmental organization headquartered in London was formed - the Committee on International Financial Reporting Standards (IASC) ( International Accounting Standards Committee, IASC). The Committee included representatives of the 10 largest world powers: Australia, Canada, France, Germany, Japan, Mexico, Holland, Great Britain, Ireland and the USA.

In 2001, the Committee was transformed into the International Accounting Standards Board (IASB).

IFRS Committee or Board (IASB) is an independent, non-governmental professional organization, whose members are accounting (auditing) organizations from different countries.

The purpose of the IASB is to:

1. developing, in the public interest, a single set of high-quality, understandable (understandable) and practical global accounting standards that provide for the formation of high-quality, transparent and comparable information in financial statements in order to assist participants in global capital markets and others users of information in making economic decisions;

2. implementation, widespread dissemination of standards, monitoring their compliance and ensuring their uniform interpretation;

3. active work with bodies that set national standards to achieve convergence of these standards with IFRS in the interests of high-quality solutions to accounting problems.

Before 2000, the IASB set the goal harmonization of national accounting standards. This process involved the IASB developing high-quality solutions to accounting problems, which were then to be used as the basis for the harmonization of national standards.

The process provided for in the new Charter convergence involves the development by the IASB, together with national regulatory authorities, of solutions to accounting problems that ensure the most effective and high-quality preparation and presentation of information in financial statements.

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

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

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

IFRS versus the Russian accounting system

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

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

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

The purpose of introducing IFRS to Russian enterprises

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

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

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

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

IFRS - what is it?

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

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

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

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

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

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

Current above standards

The main IFRSs developed before 2001 include:

International Financial Reporting Standards

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

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

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

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

What's good about this accounting system?

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

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

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

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

How to smooth the process of transition to IFRS?

The reform objectives include the following:

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

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

The appeal of accounting reform to businesses around the world

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

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

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

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

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

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