IFRS - what is it?

According to official data, in 2015, will be the introduction of mandatory rules such as International Financial Reporting Standards specific categories.Most often you can find an abbreviation of the concept - IFRS.

These categories will include:

• participants professionals of the stock market;
• commodity exchanges;
• private pension funds;
• clearing companies;
• equity investment funds;
• management companies above categories.

It makes sense to start with the question: "IFRS - what is it?".This concept stands for a set of specialized documents, more specifically the standards by which the regulation of the order of creation of the financial statements, which are freely available to external users.

IFRS against the Russian accounting system

First of all there is the difference in end-user information, which includes the figures of accounting, grouped according to the above standards.In particular, the Russian model was aimed at governments and statistics, and the international - investors, companies and financial institutions.As a consequence, its associated differences with respect to the interests and needs of financial information also appear different principles upon which the procedure for the formation of the financial statements.

So, be sure to rule in favor of IFRS priority with regards to the content of the presentation of the previously mentioned information.Speaking about the Russian accounting system, currently most often omitted.

practical example can be a situation in which the RAS considers part of the preferred shares of the company's capital, but on their economic nature there are very few distinguishing features of bonds.In accordance with IFRS, these features are significant in order not to reflect them in equity.

The purpose of the introduction of IFRS in the Russian enterprises

order to form adequately perceived and understandable to users in different countries the financial statements, the international standards were introduced.Their goal is to unify the drafting of this complex documents and providing data on the activities of any company.

is to provide a list of documents that define the financial statements.IFRS are aimed at their harmonization with respect to the order of creation, namely:

• balance sheet;
• statement of cash flows;
• profit and loss account;
• statement of changes in equity or other transactions of the orientation;
• accounting policies.

Along with the above mentioned report of the enterprise can be formed, and some reviews for the leadership of that display earnings of the company.

IFRS - what is it?

This accounting system looks like a certain set of documents comprising the following elements:

• preface to the provisions of the standards under consideration;
• explanation of the basic principles of training and forms of this type of reporting is essentially the concept of IFRS;
• standards and related interpretations to these documents.

Each of these documents has its own importance, but it is only used in combination with other elements.Thus, the list of previously specified means that IAS - standards, each of which is specifically stated structure.

semantic aspects of the system of accounting standards

They set the rules that determine the order of decoding the individual transactions in the implementation of the core business of the company and is reflected in the financial statements.

is important to note that the standards adopted by the relevant authority before 2001, referred to as International Accounting Standards or abbreviated IAS, and then, since 2001, - International Financial Reporting Standards, which is an abbreviation of such writing - IFRS.

Existing standards above

Main IFRS developed before 2001 include:

1. «Presentation of Financial Statements» (IAS № 1).
2. «Reserves» (IAS № 2).
3. «Reports of Cash Flows» (IAS № 7).
4. «Accounting Policies, Changes in Accounting Estimates and Errors» (IAS № 8).
5. «Subsequent Events» (IAS № 10).
6. «Construction contracts» (IAS № 11).
7. 7. «Income Taxes» (IAS №12).
8. 8. «Segment reporting» (IAS №14).
9. 9. «Fixed Assets» (IAS №16).
10. «Rent» (IAS № 17).
11. «Revenues» (AS № 18).
12. «Employee Benefits» (IAS № 19).
13. «Accounting for Government Grants and Disclosure of Government Assistance» (IAS № 20).
14. «The Effects of Changes in Foreign Exchange Rates» (IAS № 21).
15. «Borrowing costs» (IAS № 23).
16. «Disclosure» (IAS № 24).
17. «Accounting and Reporting by pension (pension plans)» (IAS № 26).
18. «Consolidated and Separate Financial Statements» (IAS № 27).
19. «Investments in associates» (IAS № 28).
20. «Financial reporting in hyperinflationary economies» (IAS № 29).
21. «Disclosures in the Financial Statements of Banks and Similar Financial Institutions» (IAS № 30).
22. «Interests in Joint Ventures» (IAS № 31).
23. «Financial Instruments - Disclosure and Presentation" (IAS № 32).
24. «Earnings per share» (IAS № 33).
25. «Interim Financial Statements» (IAS № 34).
26. «Impairment of Assets" (IAS № 36).
27. «Provisions, Contingent Liabilities and Contingent Assets» (IAS № 37).
28. «Intangible assets» (IAS № 37).
29. «Financial Instruments - Recognition and Measurement» (IAS № 39).
30. «Investment Property» (IAS № 40).
31. «Agriculture» (IAS № 41).

International Financial Reporting Standards

list of standards of the system of accounting adopted in 2001It is as follows:

1. «Adoption of International Financial Reporting Standards for the first time» (IFRS № 1).
2. «Payments based on equity instruments» (IFRS № 2).
3. «Business Combinations» (IFRS № 3).
4. «Insurance Contracts» (IFRS № 4).
5. «Non-current Assets Held for Sale and Discontinued Operations» (IFRS № 5).
6. «Exploration for and Evaluation of Mineral Resources» (IFRS № 6).

What marked this year with regards to the account of the system?

From official sources it became known about the willingness of the last volume of IFRS in 2014, has called the "Red Book."It contains rules on international accounting, including those that come into force after January 1 of the current year.Examples are included amendments to the ninth standard, called "Financial Instruments", adopted in 2001.Also, there are two sets of annual changes in regards to IFRS IFRS 2011-2013 and 2010-2012, one on the interpretation of the collections, the constitution of the IFRS Foundation, a detailed work plan.

What good in the accounting system?

In order to form a right by international standards financial statements, IFRS will be invaluable in helping.

is to provide a number of advantages of the accounting system, which might be associated with the activities of the following entities:

1. financial analysts, investors, as it is caused by clear, transparent, reliable and value less costs.
2. companies because reduced spending on measures to attract investment, there is a single accounting system, there is no need to harmonize the financial information, the procedure both in internal and external accounting.
3. audience: due to the fact that there is uniformity in the fundamental principles of accounting, it is possible to take part in the adoption of appropriate standards, carried out large-scale training.
4. of the developers of the standards - due to the fact that this is a great opportunity to exchange experiences, the basis for future convergence of national standards and current.

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

How to smooth the transition to IFRS?

The objectives of reform are the following:

1. special training accountants to the level of a professional command of the fundamentals of the system of accounting.
2. Strengthening in the minds of business managers real interest in the provision of truthful and objective information.
3. final distinction of accounting for the tax, financial and managerial.

importance of the transition is caused by the fact that the IAS - standards that are a compromise between the world's major accounting systems.

attractiveness accounting reform for businesses worldwide

reviews the financial statements IFRS may facilitate companies around the access to the capital markets of the world level, and will increase the comparability of the information, to make it more transparent to the outside world.

Specifically, Russian companies will be able to speak the same language with their foreign counterparts and strengthen its business position in the foreign markets in terms of the equality of its features, which will become available as a result of the many perspectives of international capital markets.

introduction of IFRS have a positive impact on the quality of management accounting, in particular its increase, and contribute to upgrade information systems and staff motivation.

Besides attracting foreign capital without financial statements prepared in accordance with IFRS, for the moment largely hindered.It does not matter, it will be done either with the help of Western banks, either by entering the stock market, located abroad or attracting private investment from abroad.Statements prepared in accordance with RAS, potential foreign investors will likely not understand.So you should take care of the preparation of financial statements, IAS regulated.

Companies are aware of the fact that in the near future will go to international standards of national rank.For many firms, the reports required under IFRS today in order to provide a significant competitive advantage by attracting resources in international markets such loans as bonds, loans, or IPO.

Thus, all of the above makes it more fully to understand the question: "IFRS - what is it?"