Russian companies with consolidated
accountants will switch to IFRS by 1 January 2012, Russia’s Finance
Minister Alexei Kudrin confrimed. Other public companies and SMEs
will adopt IFRS during a transition period.

Prime Minister Vladimir Putin, who
chaired the Presidium meeting in which the
announcement was made, said adopting global
accounting standards was an important step
in developing Russia’s financial system and
inmproving transparency.

It is estimated that 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

In April, the Russian government signed
an agreement with the IFRS Foundation allowing it
to use the standards. As part of the agreement,
the government obtained copyright for the Russian
translation of IFRS.

IFRS adoption will create transition work
for accounting firms, which help companies adapt to
the new standards.