THE IMPLEMENTATION OF IFRS IN THE RUSSIAN ACCOUNTING PRACTICE

Abstract: nowadays the implementation of IFRS in Russian companies’ practice is becoming particularly important. The development of market relations, setting up foreign investment enterprises, the establishment of long term oriented trade relations and companies’ entry into the global stock market require that a wide range of stakeholders are provided with standardised and transparent information on the company’s financial status and performance.

The article evaluates the necessity and advantages of IFRS implementation by Russian companies as well as presents prerequisites for this process. It examines the transformation of the Russian accounting system in accordance with IFRS, analyses the problems complicating the adjustment of Russian Accounting Standards to IFRS.

At the end of the article the author notes that the implementation of IFRS in the Russian practice will make it possible to gradually eliminate discrepancies and inadequacies of Russian Accounting Standards as required by the modern market mechanism as well as improve management efficiency in a company. It is concluded that in future national enterprises will show increasing interest in IFRS. The author identifies the factors contributing to this process.

Keywords: IFRS, RAS (Russian Accounting Standards), accounting, financial statements, reformation of the Russian accounting

ignatova