RUSSIA BRINGING ITS ACCOUNTING STANDARDS CLOSER TO INTERNATIONAL ONES
MOSCOW, JANUARY 23 /from RIA Novosti's Alla Isayeva/. - The Russian Cabinet of Ministers has approved a plan of action to be taken in 2003 to adopt international financial accounting standards, said Sergei Shatalov, Russia's First Deputy Finance Minister.
Over the past 10 years, he said, Russia has advanced a great deal in the effort to bring the local accounting and financial reporting standards closer to the international ones. Up to 5 percent of Russia's accounting standards will be either updated or completely revised to be brought closer to the international analogues by 2005, believes Mr Shatalov.
As early as this year, Russia is going to take a few major steps in that area. The Cabinet, for one, is going to oblige holdings and its affiliates to file consolidated reports based on the international standards beginning 2004. It means that every company within a holding will have to provide financial records in compliance with the Russian standards, while their consolidated report must meet the international standards, elaborated the deputy minister.
Legal entities that are not liable for consolidated statements will go on reporting proceeding from the local standards.
The country's banking sector is expected to start applying the international financial reporting standards beginning 2004. Banks will have to submit financial reports according to the Russian standards and subsequently transform them into international-standard accounts.
The companies that draw up accounts and financial reports in line with, let's say, the US standards will not yet have to adopt the international standards. They may be asked to do that in 2007-2008, said Mr Shatalov.