PwC Russia accounting consulting services
partner Galina Ryltsova has called on the Russian government to
provide “more clarity” to help the country successfully transition
to and implement IFRS.
Following the recent announcement Russia will
switch to IFRS next year, Ryltsova said that although the
transition to IFRS is “a positive step”, she would like a firm
transition date.
Furthermore Ryltsova believes a support
mechanism for adopters will be the key to future success.
“I believe there are a number of matters that
need more clarity. For example, in a number of countries which have
moved to IFRSs recently, local standard setting bodies provide such
a support mechanism.
“They identify significant implementation
issues and engage in dialogue with the staff of the IASB with
respect to their countries’ specific concerns and issues. We saw
this happening in connection with adoption of IFRSs in Canada and
Australia,” Ryltsova told The Accountant.
She said there is some way to go before Russia
has an effective infrastructure in place to implement IFRS in the
country. At present the government has reportedly invited
professional organisations to put themselves forward as an
endorsement body for Russia similar to the European Financial
Reporting Advisory Group.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataRyltsova believes quality control and an
oversight mechanism will be important when setting up such an
organisation.
“Moving to IFRS will mean for preparers a lot
of planning, preparation, training and changes in the financial
reporting processes”, she added.
Last week Russia’s finance minister Alexei
Kudrin said Russian companies with consolidated accounts will
switch to IFRS by 1 January 2012. Other public companies and SME’s
will adopt IFRS during a transition period.
It is estimated 160 of the country’s top
400 companies already use IFRS. This includes the banking
sector, which was required to adopt the standards two years
ago.
