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IFRS standards. IFRS Standards Current IFRS

IFRS standards is a normative reference point for the preparation of financial statements in accordance with international standards. From our article you will learn about the basic concepts, principles of classification, composition and structure of IFRS.

International Accounting and Financial Reporting Standards - 2016: concept, composition and basic principles of classification

Compilation of financial statements in accordance with international standards expands the capabilities of the company, allowing:

explore new areas of activity with the help of international partnerships;
obtain credit funds on favorable terms in foreign banks;
enter foreign stock markets;
receive other bonuses and benefits.

Compiling reports in accordance with international standards means presenting the results of your work based on the requirements international standards financial statements (IFRS).

Important! IFRS is a set of standards and interpretations, designed in the form separate documents, allowing you to prepare financial statements that are understandable to users in all countries of the world.

AT general view IFRS-2016 represented by the following set of documents:

KOS FR according to IFRS (conceptual basis for the preparation of financial statements according to international standards);
IFRS (IAS);
IFRS;
IFRIC clarifications (IFRIC);
RPC clarifications (SIC).

The whole set of international standards can be classified according to their purpose into 5 groups:

organizational;
reporting;
industry;
detailing;
auxiliary.

These groups of IFRS will be considered in the following sections.

Organizational and reporting IFRS

Organizational group of standards contains General requirements to the accounting system used by the company, and also regulates such an important issue as entering the reporting system according to international standards. These standards include:

IFRS 1 (on the firm's first adoption of IFRS);
IAS 8 (on its accounting policy).

The reporting group includes standards that reveal the features of compiling and presenting financial statements(FO). For example, standards for:

nuances of financial reporting in hyperinflationary conditions (IFRS (IAS) 29);
algorithms for the presentation of financial statements (IFRS (IAS) 1);
specifics of compiling consolidated and individual financial statements (IFRS 10, IAS 27).

Get acquainted with the reporting group of international standards in the materials posted on our website:

Industry Standards Group

The standards of this group take into account the specifics of individual industries and activities. This attention has been given to:

insurance activities (IFRS 4 Insurance Contracts);
agricultural industry (IFRS (IAS) 41 " Agriculture»);
accounting nuances of the extractive industry (IFRS 6 Exploration and Evaluation of Mineral Resources).

List of detailed IFRS: fixed assets, financial instruments, etc.

These standards decipher the features of the formation of reporting indicators, so this large set of standards can be classified by types of financial reporting:

forming balance sheet items;
specifying the lines of the statement of comprehensive income.

The 1st group includes standards that describe the nuances of recognition and valuation of various assets and liabilities, information about which is reflected in the statement of financial position (balance sheet). List of IFRS of this group (partially) is presented below:

IAS 2 Inventories;
IAS 16 Property, Plant and Equipment;
IAS 38 Intangible Assets;
IAS 39 Financial Instruments: Recognition and Measurement, etc.

The 2nd group of standards allows you to generate a profit and loss statement (total income):

IAS 18 Revenue;
IAS 23 Borrowing Costs;
IAS 33 Earnings per Share, etc.

Learn detailed IFRS using the materials on our website:

Ancillary IFRSs

This group of standards specifies individual concepts and definitions used in the texts of other standards, the essence of which requires detailed consideration. For example, fair value, impairment, etc.

The article will help you understand the goals and objectives of auxiliary IFRS .

Results

IFRS standards allow you to create clear and useful reporting for users.

To ensure that financial statements fairly reflect financial position and financial results of the company, it is necessary to take into account the requirements of an extensive list of international standards and interpretations.

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IFRS 2016 in Russia: what has changed and who should apply?

The introduction of IFRS in Russia in 2016 has a long history. The slightest amendment to the standard can lead to global changes in the accounting system. Only at first glance it seems that in accounting everything is unshakable. But it is he who reflects the functioning of the business and requires increased attention. Order No. 217n of December 28, 2015 of the Russian Ministry of Finance re-introduced international financial reporting standards (here is the list of IFRS 2016 standards). The order was registered with the Ministry of Justice on February 2, 2016 and with its help 40 IFRS and 26 IFRS clarifications were introduced. A number of orders of the Ministry of Finance of Russia became invalid, including No. 160n dated November 25, 2011, No. 106n dated July 18, 2012, No. 143n dated October 31, 2012, and No. 135n dated December 24, 2013. These changes in IFRS 2016 must be taken into account in order to competently and efficiently prepare financial statements without significant time delays and additional costs.

Who must apply IFRS from 2016?

List legal entities, which are required to provide annual financial statements in accordance with IFRS under the Federal Law of July 27, 2010 No. 208-FZ “On Consolidated Financial Statements”, since 2015 expanded with new categories.

The full list of these legal entities now looks like this:

credit companies;
insurance organizations;
legal entities whose shares, bonds and other securities are traded on organized trades by entering them into the quotation list;
legal entities, the constituent documentation of which establishes mandatory submission and publication of consolidated financial statements.
since 2014, the list includes organizations that issue only bonds and are allowed to participate in organized trading by entering them into the quotation list.
since 2015, the list has been supplemented by management companies of investment funds, mutual investment funds and non-state pension funds;
organizations engaged in clearing and insurance activities;
non-state pension funds;
federal state unitary enterprises(FGUPs), the list of which is approved by the highest collegial executive body Russian authorities;
open joint-stock companies(OJSC), the securities of which are in federal ownership and the list of which is approved by the Russian Government.

So, the list of organizations that must make the transition to IFRS in Russia in 2016 has been slightly supplemented. Recall that medical insurance companies that work only with compulsory medical insurance have been excluded from the list of insurance organizations. Non-state pension funds and parent companies were included in the list in order to increase state control of their activities and protect the interests of incompetent investors.

New in IFRS 2016. Changes to be taken into account in the reporting

IFRS 2016 was amended by the Ministry of Finance Russian Federation in 2015, when it issued Order No. 9 of January 21 “On the Enactment and Termination of International Financial Reporting Standards in the Russian Federation”. This order also gives effect to IFRS 15 Revenue from Contracts with Customers and the termination of IAS 18 Revenue, IAS 11 Construction Contracts, and the RPC Interpretations ( SIC) 31 “Revenue - Barter Transactions Including Advertising Services”, IFRIC 13 “Customer Loyalty Programs”, IFRIC 15 “Real Estate Construction Agreements”, IFRIC 18 “Transfer of Assets from clients." The standard comes into force on January 1, 2017, but on a voluntary basis it can be used earlier.

Order No. 133n dated August 26, 2015 “On the Enactment and Termination of International Financial Reporting Standards in the Russian Federation” puts into effect new edition IFRS 9 Financial Instruments. The standard is mandatory from January 01, 2018, but can also be applied ahead of schedule.

In accordance with Order No. 79n dated May 19, 2015 “On the Enactment of an International Financial Reporting Standards Document in the Russian Federation”, amendments to IAS 27 “Separate Financial Statements” come into force. The amendments make it possible to recognize in the separate financial statements investments in subsidiaries, associates or joint ventures through equity. The amendments are obligatory for application from January 1, 2016.

According to Order No. 109n dated July 13, 2015 “On the Enactment of International Financial Reporting Standards Documents on the Territory of the Russian Federation”, amendments on innovations in the principles for applying exceptions to the consolidation requirements come into force. They refer to IAS 28 Investments in Associates, IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosures of Interests in Other Entities.

The amendments to IFRS 10 clarify that “intermediate parent entities” are granted an exemption from the requirement to prepare consolidated financial statements. Exceptions apply if the investment (parent) company evaluates subsidiaries at fair value. Companies qualify for the exemption if they comply with the other requirements of IFRS 10. Amendments to IAS 1 Presentation of Financial Statements come into effect regarding clarifications on materiality and aggregation, presentation of subtotals, financial statement structure and disclosures accounting policy.

The Ministry of Finance of the Russian Federation in 2015 issued Order No. 91n dated June 11, 2015 “On the Enactment of International Financial Reporting Standards in the Russian Federation”. In accordance with it, annual improvements to International Financial Reporting Standards come into effect for the period 2012-2014. These relate to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and IFRS 7 Financial Instruments: Disclosures. The revision to IFRS 5 clarifies that the transfer of an asset or disposal group from held for sale to held for distribution and vice versa is not a change in the plan for sale or distribution and should not be accounted for. That is, they do not need to be reinstated in the financial statements just because the way they were disposed of has changed. The enhancement to IFRS 7 Financial Instruments: Disclosures requires an entity to disclose the nature of the arrangement when it transfers a financial asset to a third party under conditions that prevent the asset from being derecognised. The information should include the extent of continuing involvement in the asset and the risks to which the reporting entity is exposed.

The listed changes to IFRS from 2016 will come into force or can be applied on a voluntary basis. One way or another, in order to prepare statements in accordance with IFRS, it is necessary to carry out preparatory work if the company is subject to the Federal Law of July 27, 2010 No. 208-FZ “On Consolidated Financial Statements”.

Organization of reporting

If your organization is required to present financial statements in accordance with IFRS, then it is necessary that this area of work be performed by qualified specialists. They must receive appropriate training and have not only knowledge, but also practical skills in applying IFRS.

When an organization transitions to IFRS, it is necessary to decide:

Who will perform the reporting - a contractor or a staff specialist?
Do you need a whole regular IFRS department or is it better to turn to third parties?
how will the IFRS reporting data affect the company's work, what should you pay close attention to?
What information is required to be published?
Who will be responsible for checking IFRS statements?

The choice of a specialist responsible for IFRS reporting depends on the professionalism of the staff and the level of its workload. It is worth noting that the staff can be replenished with a third-party specialist, or trained from existing candidates, which will be more expedient in terms of rational use company resources. Studying international financial reporting standards under the guidance of an ACCA marker will allow a specialist to gain strong practical knowledge and skills and confirm them with an ACCA DipIFR (rus) diploma. If you improve the skills of specialists at the expense of the company, you should choose courses whose program is aimed at current trends in the application of IFRS in Russia in 2016 and their practical use and not just theoretical training.

Employees are much better versed in the specifics of the company's activities and can devote maximum time to their core work. The invited experts are more experienced, but their work in the organization will be superficial and using template methods. Before the presentation and publication of financial statements in accordance with IFRS, it is necessary to obtain an audit report. The auditors carefully check it and provide an opinion and a professional assessment. If there are no comments and adjustments, then the established deadlines for filing financial statements under IFRS will be observed.

Preparation of the first IFRS financial statements

The first financial statements under IFRS are considered to be the first annual financial statements of the organization in which International Financial Reporting Standards were used and a statement of its compliance with IFRS was included.

Organizations that have switched to international standards submitted their first reports in April 2016, in accordance with paragraph 7 of Art. 4 Federal Law No. 208-FZ. In this regard, they had to prepare in advance specialists of appropriate qualifications for the preparation of financial statements in accordance with IFRS and the disclosure of their content.

For the preparation of the first financial statements under IFRS in the Russian Federation, IFRS 1 "First-time Adoption of IFRS" must be applied

This IFRS should provide complete and high-quality information for both initial and interim financial statements that:

transparent to users and comparable across all periods provided;
is prepared at a cost that does not exceed the benefits of its compilation;
is the starting point for accounting in accordance with IFRS.

Before preparing IFRS financial statements, you must:

draw up reporting forms in accordance with international standards;
accept the content of the clarifications and disclosures;
create transformational and consolidated tables;
collect information for the incoming balance;
check all reporting indicators for compliance with national standards and IFRS.

The first application of IFRS should be related to the most recent standards that are effective at the balance sheet date.

As part of the preparation of the initial statement of financial position of the company, it is necessary to carry out the following work:

Recognize assets and liabilities under IFRS rules.
Lead to write-off and not be recognized as assets and liabilities, if international standards do not allow it.
Perform a new classification of items in accordance with IFRS.
Make an assessment of assets and liabilities under IFRS.

IFRS reporting rules

Annual consolidated financial statements under IFRS in Russia in 2016, as in the past, are submitted for consideration to shareholders, founders, CEOs or owners of company property. Also, all organizations approved by Law No. 208-FZ of the list are required to submit annual reports to the Central Bank of Russia. It is provided in electronic format, supported by an enhanced qualified electronic signature.

Annual consolidated financial statements under IFRS must be submitted prior to the general meeting the highest management bodies of the organization, no later than 120 days after the end of the calendar period for which this reporting was prepared.

The need to report in accordance with IFRS 2016 is forcing companies to reconsider the way they prepare accounting and tax accounting and further business planning. At the same time, companies are increasing the requirements for the professional level of staff. Frequent changes in national legislation and amendments to international financial reporting standards force them to look for professionals on the labor market who are fluent in IFRS. The high qualification of such specialists is confirmed by the ACCA international diploma DipIFR (rus).

Excel for an accountant: 5 useful examples of using Excel spreadsheets

IFRS statements for 2016 compiled by firms without fail or on a voluntary basis. From our material you will learn about the nuances of registration and the main requirements for such reporting in 2016.

Voluntary and mandatory reporting under IFRS for 2016

Firms reporting in IFRS format for 2016 can be divided into 2 groups:

legally binding;
volunteers.

The first group of companies is listed in the law "On Consolidated Financial Statements" dated July 27, 2010 No. 208-FZ and since 2015 is as follows:

credit, clearing and insurance organizations (except insurance medical organizations spheres of CHI);
UK IF, PIF and NPF (management companies of investment funds, mutual investment funds and non-state pension funds);
included in the legislatively approved special list of federal state unitary enterprises (federal state unitary enterprises);
joint-stock companies whose securities are owned by the state (according to the list approved by the Government of the Russian Federation);
firms whose owners in the charter reflected the obligation to submit and publish financial statements in accordance with IFRS;
companies forming consolidated financial statements according to GAAP (USA) standards;
other firms whose securities are traded on organized auctions (included in the quotation list).

This list is presented in a generalized form, since it does not detail the Federal State Unitary Enterprise and JSC, for which the formation of IFRS reporting is mandatory. Let's dwell on this in more detail.

IMPORTANT! The list of Federal State Unitary Enterprises and JSCs, for which reporting in IFRS format is mandatory, was approved by the Decree of the Government of the Russian Federation dated October 27, 2015 No. 2176-r.

The above order named 6 Federal State Unitary Enterprises (Post of Russia, ITAR-TASS, Goznak, etc.) and 18 JSCs (Transneft, Rosneft, Russian Railways, Almaz-Antey, Rosagroleasing) , Rosgeologiya, RUSNANO, etc.).

The second group - those firms that voluntarily took on the work of reporting under IFRS for their own internal reasons, among which are:

desire to attract foreign partners and investors;
the desire to increase the degree of information content of their reporting;
other incentives.

The number of companies in this group largely depends on their financial capabilities, since reporting under IFRS requires considerable costs (on staffing or attracting third-party IFRS specialists, setting up and maintaining a special software and etc.).

IFRS reporting requirements in 2016

The first and main requirement that IFRS financial statements must comply with is the reliability of the information displayed in it.

IMPORTANT! Reliable information is information that truthfully reflects the consequences committed by the firm transactions, events and conditions in accordance with the definitions and criteria required by IFRS.

In order to provide users with reliable reporting, it is necessary (clause 17 of IFRS 1 “Presentation of financial statements”, put into effect by order of the Ministry of Finance of Russia dated December 28, 2015 No. 217n):

ensure compliance with the requirements of all applicable IFRS;
draw up an accounting policy in accordance with IFRS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” (implemented by Order No. 217n of the Ministry of Finance of Russia dated December 28, 2015) and apply it consistently;
provide information that has the following properties: understandability, relevance, reliability and comparability;
disclosure where necessary additional information(if compliance with the requirements of individual IFRS does not allow to adequately assess the impact of events and transactions on the financial position and performance of the company).

Reliable reporting enables its users to predict the future cash flows of the company (including the probability and periods of their occurrence), as well as make effective management decisions based on it.

An important assumption that needs to be taken into account in reporting is the assumption of continuity, i.e. the firm's ability to continue as a going concern. If uncertainty arises in this matter or the company plans to liquidate (having no other alternative solutions), it is obliged to disclose these circumstances in the financial statements.

When evaluating a firm's ability to continue as a going concern, management needs to take into account all available information about the future for at least 12 months (but not limited to it). It may be necessary to analyze a wide range of factors relating to:

to current and future profitability;
debt repayment calendars;
potential sources of funding, etc.

When preparing information for reports, it is necessary to remember 2 groups of IFRS requirements:

materiality (separate breakdown of material indicators);
the nuances of offsetting (a ban on reporting assets and liabilities, income and expenses on a net basis, except for situations permitted by IFRS).

Firms are required to submit IFRS financial statements at least once a year. The company is obliged to reflect the fact of changing the end date of its reporting period and reporting for a period less than or greater than a year, as well as to disclose the nuances of using such a reporting period in the reporting (at least: the basis and lack of full comparability of the amounts presented in the report).

Composition of IFRS statements in 2016

IFRS financial statements includes (clause 10 of IFRS 1):

4 reports (OFP, OPU, OIC and ODDS);
notes;
other explanatory information;
comparative data for the previous period.

OFP, OPU, OIC and ODDS are abbreviations for the names of the reports, respectively:

about the financial situation;
profit or loss and other comprehensive income;
change in capital;
cash flow.

At the same time, IFRS allows the company to use its own report names, in contrast to the strictly regulated domestic reporting in terms of name and structure. For example, “statement of profit or loss and other comprehensive income” may be abbreviated as “statement of comprehensive income”.

In addition to these reports, firms can provide users with:

financial reviews (on sources of financing, resources of the firm not recognized in the OFP, etc.);
explanatory reports (for example, on added value);
official bulletins (on issues of protection environment and etc.).

Example of IFRS reporting can be seen on the websites of reporting firms or in the public domain on the Internet.

Read about the nuances of reporting according to international standards in the materials:

How to generate IFRS statements?

IFRS financial statements can be obtained in two ways:

transformation of indicators formed on the basis of national accounting requirements (transformation);
carrying out simultaneous accounting of business transactions, income and expenses, assets and liabilities according to national requirements and IFRS (parallel accounting).

Reporting transformation can be:

external;
internal.

These types of information transformation are based on reporting data generated according to the requirements of national accounting, and additionally collected by the company. the necessary information. This set of indicators is adjusted using special programs (usually Excel spreadsheets) in accordance with the requirements of IFRS (external transformation), or the required data is generated using special correction algorithms built into the accounting process (internal transformation).

Reporting should be reliable, useful, relevant and comparable.

On January 1, 2016, the new IFRS 14 Regulatory Deferral Accounts (hereinafter referred to as IFRS 14) came into force (adopted in the Russian Federation in accordance with the order of the Ministry of Finance of Russia dated 12.17. existing standards. Consider the most significant changes developed by the IASB (International Accounting Standards Board (IASB), hereinafter - IASB), which may be relevant for companies that apply IFRS.

Changes in accounting for assets and liabilities related to tariff regulation

In many countries, certain industries (such as utilities or transport services) are subject to tariff regulation by the government or regulators. They set limits for companies in such industries on the volume of deliveries and prices assigned to buyers.

Previously, IFRS did not have a standard for accounting for assets and liabilities related to tariff regulation. However, some national standards accounting contain requirements on the need to recognize the latter on the balance sheet.

Preparers of IFRS financial statements often face the question: Do these assets and liabilities meet the appropriate definition in the IFRS Conceptual Framework? The answer was very important, since the impossibility of recognizing such assets and liabilities served as an obstacle to the application of IFRS.

To eliminate this problem, IFRS 14 was introduced, which allowed a limited number of companies to use accounting policies based on national accounting standards regarding the recognition, measurement and impairment of assets and liabilities related to tariff regulation.

The scope of IFRS 14 is very narrow and covers only companies:

adopting IFRS for the first time;

carrying out activities subject to tariff regulation;
recognizing amounts that, in financial statements prepared in accordance with previously applied generally accepted accounting principles, qualify as regulatory deferral account balances.

When applying IFRS 14, an entity should account for assets and liabilities separately in Regulatory Deferral Accounts. At the same time, “Regulatory deferral accounts”, as well as the corresponding effect on profit or loss, are recognized separately from other lines of financial statements.

Note that the above rules are only available to companies applying IFRS for the first time. Their financial statements will be comparable to those of other entities in that all other lines and subtotals will exclude the effect of regulatory deferrals.

Information about the possible relationship of IFRS 14 with certain other standards due to its application is presented in paragraphs 16-17 of IFRS 14 (Appendix "B") and relates to adaptation in accounting policies to national standards. So, when adapting, the following standards should be taken into account:

IAS 10 Events After the End of the Reporting Period;
IAS 12 Income Taxes;
IAS 33 Earnings per Share;
IAS 36 Impairment of Assets;
IFRS 3 Business Combinations;
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;
IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures;
IFRS 12 Disclosures of Interests in Other Entities.
IFRS 14 contains certain disclosure requirements in financial statements, in particular:

On the nature of tariff regulation, which sets limits on prices for buyers, and on the risks associated with it;

On the impact of tariff regulation on the statement of financial position, statement of financial results and statement of cash flows.

In addition, disclosures in the financial statements will require a detailed explanation of the amounts recognized. For example, for each Regulatory Deferred Account, disclosure of the basis for initial and subsequent recognition and measurement, including information about impairment. For each type of activity related to tariff regulation, for each class of balances on the Regulatory Deferred Accounts, it is necessary to disclose:

reconciliation of the book value at the beginning and end of the period (preferably in tabular form);
rate of return or discount rate;
the remaining periods over which the entity expects to recover (or amortize) the carrying amount of each class of regulatory deferral account debit balances or to reverse each class of regulatory deferral account credit balances.

Note that IFRS 14 does not contain specific transition requirements. For companies applying IFRS for the first time, an exemption from the requirements of IFRS 1 "First-time Adoption of International Financial Reporting Standards" (hereinafter - IFRS 1) will be available, including, in particular, the use of a current balance formed under previously applied national rules accounting, as a conditional value of fixed assets and intangible assets.

Clarified the accounting treatment for asset reclassification under IFRS 5

As part of the "Annual Improvements to International Financial Reporting Standards, period 2012-2014" (hereinafter referred to as the Annual Improvements (2012-2014)) issued by the IASB on 25 September 2014, IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (hereinafter referred to as IFRS 5) was amended to clarifying that the reclassification of an asset (or disposal group) from held for sale to held for distribution to owners, or vice versa, does not change the substance of the original disposal plans. Accordingly, entities may apply all of the requirements (classification, presentation and valuation) of the standard that are relevant to the "held for sale" category. For example, if an asset is no longer classified as "held for distribution to owners", then the requirements of IFRS 5 for assets that are no longer classified as "held for sale" should be applied to it.

The amendment is applied prospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”), meaning an entity may:

apply the new accounting policy to transactions, other events and conditions that took place after the date on which the policy changed (from 01/01/2016);
recognize the impact of the change in accounting estimates in the current and future periods affected by the change (that is, without affecting prior periods).

Clarifications in Accounting for Eligibility for Continuing Participation

As part of the Annual Improvements (2012-2014), IFRS 7 Financial Instruments: Disclosures has been amended to clarify the circumstances in which an entity retains the right to service a transferred financial asset (continuing involvement). The clarifications adopted are required to take into account the derecognition requirements of IAS 39 Financial Instruments: Recognition and Measurement (hereinafter IAS 39) and IFRS 9 Financial Instruments (hereinafter IFRS 9).

Continuing involvement occurs when an entity continues to service a transferred financial asset and maintains an interest in the long-term financial results that can be derived from it.

Continuing involvement in financial assets occurs when the consideration of the transferor of the financial asset:

is variable and depends on the amount of cash flows from the transferred financial asset;
or is fixed but not paid in full if the transferred asset performs poorly.

The amendment is applied retrospectively in accordance with IAS 8, except for periods beginning before the annual period in which the entity first applied it. A corresponding amendment was made to IFRS 1 for first-time adopters of IFRS. Thus, companies do not need to determine the fair value of servicing in previous periods.

Amendments to IAS 19 Employee Benefits

Amendments to IAS 19 Employee Benefits address actuarial discount rate assumptions and clarify that high-quality corporate bonds used to determine the discount rate (which value is required to account for employee benefits) must be denominated in the same currency that and the associated future employee benefits. If a jurisdiction does not have a well-developed market for high-quality corporate bonds in a particular currency, the market yield (at the end of the reporting period) for government bonds denominated in that currency should be used.

The amendments are applied retrospectively (in accordance with IAS 8) from the beginning of the earliest comparative period presented in the first financial statements in which the entity applied the amendment.

Changes to the equity method in separate financial statements

Amendments to IAS 27 Separate Financial Statements (hereinafter - IAS 27) were caused by requests from stakeholders from those countries where the only difference between mandatory separate financial statements under national standards and separate financial statements under IFRS is the application of the equity method participation.

The changes make it possible to account for investments in subsidiaries, joint ventures and associates using the equity method (as described in IAS 28 Investments in Associates and Joint Ventures) in the separate financial statements, which in turn reduces the cost of preparation of financial statements in accordance with IFRS for companies from such countries.

Note that the standards still do not require mandatory preparation of separate financial statements. However, if the amendments are applied, the approach specified in them should be used for all types of investments. Previously, an entity could only account for such investments at cost or in accordance with IFRS 9 (IAS 39).

The amendment is applied retrospectively in accordance with IAS 8. It can also be applied early.

Disclosures outside the notes to the interim financial statements

As amended by IAS 34 Interim Financial Reporting, additional disclosures of significant events and transactions may be made in the notes to the interim financial statements or elsewhere in the interim financial report.

If disclosures are made in a different report, it must be available to users of the financial statements on the same terms and at the same time as the interim financial statements. Otherwise, her kit is incomplete.

The amendment is applied retrospectively in accordance with IAS 8.

Accounting for the acquisition of an interest in a joint operation that is a business

IFRS 11 Joint Arrangements (IFRS 11) does not currently provide guidance on how a party to a joint operation should account for the acquisition of an interest in a joint operation when the activity in that operation constitutes a business as that term is defined, specified in IFRS 3 Business Combinations (hereinafter - IFRS 3).

Important!

A business is an integrated set of activities and assets, the conduct and management of which is capable of generating income in the form of dividends, cost savings or any other economic benefit, directly to investors or other owners, participants or members.

As a result, there are various accounting treatments for the purchase of an interest in jointly controlled operations that meet the definition of a business, including:

excess of payment over the fair price of identifiable net assets recognized either as a separate line item as goodwill or allocated pro rata to other identifiable assets;
deferred taxes are recognized or not recognized;
acquisition costs are capitalized or recognized as an expense.

When acquiring an interest in a joint operation that is a business, as defined in IFRS 3, an entity shall apply the principles of this Standard to the accounting for the acquisition and disclose related information.

At the same time, new paragraphs B33A-B33D have been added to the guidance on the application of IFRS 11, which clarify the following points.

1. Some accounting principles for business combinations that may be applicable to accounting for the purchase of an interest in a joint operation that constitutes a business are:

fair value measurement of identifiable assets and liabilities, other than items exempted in IFRS 3 and other IFRSs

recognition of costs associated with the acquisition of a share,

as an expense in the income statement in the periods in which those costs are incurred and related services are received (except that the cost of issuing debt or equity securities is recognized in accordance with IAS 32 Financial Instruments: presentation of information" and IFRS 9);
recognition of deferred tax assets and deferred tax liabilities that arise on initial recognition of assets or liabilities (other than deferred tax liabilities that arise on initial recognition of goodwill);

recognition of goodwill;

performing an impairment test on the cash-generating unit to which the goodwill was allocated (at least annually, as required by IAS 36 Impairment of Assets).

2. The principles of IFRS 3 shall be applied in forming a joint operation if, in accordance with this Standard existing business- this is a contribution of at least one party (participant in a joint operation).

3. The principles of IFRS 3 do not apply if a participant in a joint operation (which is a business as defined in IFRS 3) increases its interest in it and if the participant retains joint control of it.

4. The requirements of IFRS 3 do not apply if the parties to the joint operation are under common control of the same party(ies) that has ultimate control before and after the acquisition of the interest, and such control is ongoing.

In addition, a concomitant amendment has been made to IFRS 1 to the effect that the exemption from applying IFRS 3 for past business combinations also applies to past acquisitions of an interest in a joint operation where the activity is a business. .

The amendments to IFRS 11 are applied prospectively. Therefore, they can be used to purchase interests in joint operations that constitute a business, as defined by IFRS 3, if the acquisition date is the start date of the first annual reporting period or later (and reporting period starts on 01/01/2016 or later). Early application is also permitted, but should be disclosed in the financial statements.

Clarifications regarding acceptable depreciation and amortization methods

In 2011, the International Financial Reporting Interpretation Committee (IFRIC) (hereinafter referred to as the IFRC) received a request for clarification of the meaning of the term "consumption of future economic benefits embodied in an asset" from IAS 38 "Intangible Assets" (hereinafter - IAS (IAS) 38) in the case of determining the appropriate method of depreciation. In turn, the IASB has amended IAS 16 Property, Plant and Equipment (hereinafter IAS 16) and IAS 38.

The amendments to IAS 16 clarify that the use of a revenue-based depreciation method is not permitted because the revenue generated from the activity in which an asset is used typically reflects factors other than consumption of the economic benefits embodied in the asset. For example, revenue is affected by:

other resources and processes used;
sales activities;
changes in sales volumes and prices;
inflation.

The amendments to IAS 38 introduce a rebuttable presumption that the application of the revenue-based depreciation method for an intangible asset (IAS) is not permissible and can only be rebutted in limited circumstances, namely:

if intangible assets are expressed as an estimate of revenue;
or when it can be demonstrated that the receipt and consumption of economic benefits from intangible assets in the highest degree are interconnected.

For example, a company may be licensed to collect a toll for the use of a bridge. At the same time, the license allows the collection of fees until reaching determined by the treaty total amount.

As a result of the amendments, IAS 38 also includes guidance that the appropriate depreciation method can be determined based on the “prevailing limiting factor” in the use of the asset. These factors are the following.

1. A contractual term that limits the term of the right to use an asset (for example, in a contract that establishes a company's rights to use intangible assets, the latter can be expressed as a certain number of years (i.e. time), the number of units produced, or a fixed total amount of revenue that will be generated by the asset). Determining such a dominant limiting factor can serve as a starting point for determining an acceptable basis for depreciation. However, a different basis may be used if it more clearly reflects the expected pattern of consumption of the economic benefits.

2. Number of units allowed to be produced.

3. A fixed total amount of revenue that is allowed to be generated. For example, the source of revenue is a mining license or the right to operate. In both cases, the revenue is limited to a fixed total amount.

The amendments to both standards are applied prospectively. At the same time, their early use is allowed.

The change in the current depreciation or amortization method as a result of the amendments will be applied to the current amounts of assets, and the result of the change will be treated as a change in accounting estimates in accordance with IAS 8 from the date of initial application (beginning of an annual period that begins on or after 01/01/2016 this date). This would require disclosure of the nature and amount of the change in accounting estimates in accordance with paragraph 39 of IAS 8, or the nature and amount of those changes that are expected to have an effect in future periods (if possible).

Changes in the accounting of fruit crops (agricultural industry)

Prior to the amendments to IAS 16, fruit crops had to be accounted for in accordance with IAS 41 Agriculture. All biological assets were measured at fair value less costs to sell (except in rare cases where the assumption that fair value can be measured reliably has been rebutted). The valuation principle was based on the assumption that the transformation of biological assets can best be expressed in terms of fair value.

However, during the public comment period, the IASB received inquiries from stakeholders on the appropriateness of fair value measurement for mature biological assets. Many discussion participants insisted that the use of biological assets in the production process is similar to the use of property, plant and equipment and, therefore, for mature biological assets, it would be appropriate to apply the depreciable cost model from IAS 16. In addition, for some companies, the valuation of biological assets at fair value was expensive and difficult to apply because there is no active market for some types of biological assets.

As a result of the amendments, fruit crops should be accounted for under IAS 16 as property, plant and equipment, as follows:

on actual costs;
at a revalued value.

Thus, the scope of IAS 16 has been expanded. Fruit crops were included (as a result, they are excluded from the scope of IAS 41) and their definition was added.

According to IAS 16, a fruit crop is a living plant that:

used for the production or receipt of agricultural products;
expected to bear fruit for more than one (annual) period;
is remotely likely to be sold as agricultural produce (except by-product sales as waste).

Note that IAS 41 lists some plants that do not meet the definition of fruit crops and are consumable biological assets:

plants that will be obtained (collected) as agricultural products (for example, trees grown for the purpose of timber harvesting);
plants grown for the purpose of obtaining (collecting) agricultural products, when the likelihood that the company in the distant future will also be able to obtain (collect) and sell plants (in addition to selling waste) is very low;
annual crops (eg corn and wheat).

Before fruit crops can produce agricultural products (that is, until they reach maturity), they will be accounted for as self-created items of property, plant and equipment. However, IAS 16 will not apply to biological assets related to agricultural activities and to horticultural products. Agricultural products remain within the scope of IAS 41 and are carried at fair value.

The amendments to IAS 16 should be applied retrospectively. At the same time, their early use is allowed.

The transition period exemption for the purposes of the first application of IFRS (IFRS 1) also applies to the amendments to IAS 16, namely: the notional value exception applies. Entities may use the fair value of fruit crops at the beginning of the earliest period presented in their financial statements as their deemed cost at that date. This exemption applies to horticultural crops as they are items of property, plant and equipment as defined in IAS 16.

Changes related to disclosure of information in financial statements

As a result of stakeholder requests and as part of the IASB's global project to improve presentation and disclosure requirements in financial reporting, the Disclosure Initiative (Amendments to IAS 1) was published in addition to the revision of the IFRS Framework. Presentation of financial statements).

The main purpose of the amendments is to encourage companies (and other parties involved in the preparation and review of financial statements) to ensure that the requirements for the presentation and disclosure of information in financial statements are carefully weighed through the exercise of professional judgment (including taking into account compliance with the principles of materiality, understandability and comparability).

The changes are as follows.

1. When aggregating information, the clarity of financial statements should not be allowed to be reduced by obscuring material information with immaterial data or by aggregating material items that differ in nature or function. The principle of materiality applies to all four forms of financial statements (statement of financial position at the end of the period, statement of profit, loss and other components of comprehensive financial result for the period, statement of changes in equity for the period, statement of cash flows for the period) and notes to them.

2. Compliance with the specific disclosure requirement of any IFRS is not required if the information disclosed is not material. These rules should be considered in conjunction with the definition of materiality in paragraph 7 of IAS 1, which requires items to be accounted for individually and in the aggregate, as a group of immaterial items could become material if combined.

3. Consideration should be given to the need to disclose additional information if performance specific requirements IFRS is insufficient for understanding financial statements.

4. If subtotals are presented (in the statement of financial position, statement of profit, loss and other comprehensive income), such amounts must:

contain items that consist of amounts recognized and measured in accordance with IFRS;
be presented and labeled in such a way that the items making up the subtotal are clear and understandable;
be used consistently from period to period;
and be presented in a less conspicuous format than the subtotals and totals required to be presented in the statement of financial position under IFRS.

5. Components of other comprehensive income (excluding those associated with associates and joint ventures accounted for using the equity method) must be classified by nature and grouped as those that, in accordance with other IFRSs:

and will subsequently be reclassified to profit or loss when certain conditions are met.

6. The share of other comprehensive income of associates and joint ventures accounted for using the equity method separately presenting the share in items that, in accordance with other IFRSs:

will not be reclassified subsequently to profit or loss;
subsequently reclassified to profit or loss when certain conditions are met.

7. Examples of ordering or grouping of notes to meet the goal of clarity and comparability of financial statements are included.

As a result of the amendments, the examples of disclosure of accounting policies for income taxes and foreign exchange differences from paragraph 120 of IAS 1 were removed because it was not clear why a user of financial statements would always expect these specific accounting policies to be disclosed.

Due to the amendments, companies may wish to revise:

application of the materiality principle;
the degree of aggregation of financial reporting lines;
use of subtotals;
type of information presentation;
the order of the notes to the financial statements;
content and presentation of accounting policies;
the scope of disclosure of information on significant transactions, taking into account a satisfactory explanation of the economic substance of the transactions;
what accounting policies are significant to users of financial statements for the purpose of understanding specific transactions.

In addition, firms may consider joint work with auditors and shareholders in the process of determining material and relevant information for disclosure in the financial statements for a particular reporting period.

Amendments can be applied early. However, entities are not required to disclose information under IAS 8 (paragraphs 28-30) in relation to these amendments. However, if an entity chooses to change the order of the notes or information presented or disclosed from a prior period in accordance with paragraph 38 of IAS 1, it should also make adjustments to comparable information to align with the current presentation period and disclosures in financial statements.

Amendments to accounting for investment organizations

Paragraph 4(a) of IFRS 10 Consolidated Financial Statements (“IFRS 10”) contains an exception that allows consolidated financial statements not to be prepared if certain specific criteria in that standard are met. In particular, an investment entity, subject to certain criteria, is not required to present consolidated financial statements if it would be required to measure all of its subsidiaries at fair value through profit or loss. The application of this exemption raised a number of specific questions from interested parties.

The amendments made by the IASB clarified certain aspects of the application of IFRS 10, IFRS 12 Disclosures about Interests in Other Entities (IFRS 12) and IAS 28 Investments in Associates and Joint entities" (hereinafter referred to as IAS 28) related to the general exception for investment entities. Let's consider these aspects.

1. When preparing consolidated financial statements, how should parent entities apply the general exemption in IFRS 10 for investment entities of not having to present consolidated financial statements if the investment entity is the parent entity?

Clarification has been added to IFRS 10 that a parent entity that is an investment entity does not need to present consolidated financial statements. It should measure all of its subsidiaries at fair value through profit or loss in accordance with IFRS 9 (unless the entity is not an investment entity but its primary purpose is to provide services related to the activities of an investment entity for investment). Previously, IFRS 10 required an investment entity to consolidate its subsidiaries that provide services related to the investment entity's investment activities, as those activities only component activities of the investment organization itself. This statement was the reason for the claims of interested parties, since it was in conflict with other requirements of the standard. The amendment to paragraph 32 of IFRS 10 clarifies that an investment entity only consolidates subsidiaries that meet both of the following criteria:

the subsidiary is not an investment organization;
the main purpose of the subsidiary is to provide services related to the investment activities of the investment organization.

2. How should a non-investment company account for its interests in associates or joint activities organizations that are investment?

In practice, there may be cases where a company that is not an investment entity has an investment in a subsidiary that is an investment entity and, accordingly, that subsidiary measures interests in its subsidiaries at fair value in its financial statements. IFRS 10 makes it clear that an entity that is not an investment entity shall not consolidate the financial results of its investment entity subsidiary while retaining the fair value measurement of the consolidated investment entity's subsidiaries. In such circumstances, when preparing consolidated financial statements, a non-investment entity should consolidate the subsidiaries of its investment subsidiary in the appropriate sequence and then consolidate its investment subsidiary in its financial statements.

IAS 28 for this moment does not contain similar requirements and, accordingly, the guidance of the standard has been clarified in relation to the application of the equity method by the non-investment parent company to investments in an associate or joint venture that is an investment company.

The amendments to IAS 28 clarify that if an entity that is not an investment entity has an interest in an associate or joint venture that is an investment entity, then when applying the equity method to account for its interests in that associate or joint venture, it may retain the measurement of the subsidiaries of that associate or joint venture at fair value (ie directly from its financial statements).

Therefore, for an investment by a parent that is not an investment entity, adjustments to the financial statements of subsidiaries that are investment entities, if they have fair value subsidiaries of their own, would be required, but not to the financial statements of an associate or joint venture. will be required.

3. Application of IFRS 12 Disclosure of Interests in Other Entities (hereinafter - IFRS 12) by investment entities.

The amendments to IFRS 10 clarify that an investment entity that prepares financial statements in which all of its subsidiaries are measured at fair value through profit or loss (in accordance with IFRS 10) must disclose information in relation to investment entities in in accordance with the requirements of IFRS 12. Note that the same requirements are still contained in IAS 27.

Early application of amendments is permitted. The amendments are applied retrospectively in accordance with IAS 8. However, on first-time application of IFRSs, entities are required to present only the amount of the adjustment in accordance with paragraph 28(f) of IAS 8 for the most recent comparative period, and not for the current and all comparative periods.

IFRS: training, methodology and implementation practice for companies and professionals

A joint project of the IPA of Russia and the journal “Corporate Financial Reporting. International Standards".

First application of IFRS by companies transitioning to international standards in 2016

Deputy Head of the Audit Department for International Reporting at AFK-Audit LLC.

When preparing financial statements in accordance with IFRS, the transformation of financial statements is most often used - the process of preparing financial statements in accordance with international standards by adjusting reporting items and regrouping accounting information prepared in accordance with the rules of RAS.

There is no single algorithm for transforming financial statements, and in each case, specialists apply their own methodology, which is optimal for the company.

More and more organizations in RAS apply IFRS standards, which is allowed by the requirements of paragraph 7 of PBU 1/2008 "Accounting Policy of the Organization". The transition to IFRS for such companies seems to be easier, since the number of transformational adjustments will be less.

For reference

The Ministry of Finance of the Russian Federation on the official website on 08/01/2016 published a draft order that amends PBU 1/2008 "Accounting policy of the organization":

“An organization that discloses consolidated financial statements prepared in accordance with international financial reporting standards or financial statements of an organization that does not create a group may be guided by federal accounting standards, taking into account the requirements of international financial reporting standards, when forming an accounting policy. If the application of the accounting method established by the federal accounting standard leads to a discrepancy between the accounting policy said organization requirements of international financial reporting standards, the organization has the right not to apply this method.

If, on a specific issue, federal standards accounting methods are not established, the organization develops an appropriate method based on international financial reporting standards.

For first-time adopters of international standards, IFRS 1 First-time Adoption of IFRS is intended to guide the first IFRS financial statements, as well as interim reporting presented for part of the period covered by the first IFRS financial statements. In such reporting, the company adopts all IFRS standards and makes a clear and unconditional statement of compliance with IFRS.

If an entity decides that it will not apply any IFRS standard in its first financial statements, those financial statements will not be considered to comply with IFRS. This may be reporting based on the principles of IFRS, for example, for management purposes. It should be noted that even if the company has applied all international standards, but has not made a statement of compliance with IFRS, such reporting is also not IFRS reporting.

In practice, questions often arise about the need to apply IFRS 1 if the company has previously provided information for the preparation of the parent company's consolidated financial statements, but did not issue individual reporting according to IFRS. It is also possible that the company prepared IFRS financial statements for internal purposes, but did not submit them to owners or third-party users. In both of the above cases, the preparation of the first set of financial statements should be guided by the requirements of IFRS 1.

It also often happens that a company used to prepare financial statements in accordance with IFRS, but then stopped for a while. In this case, you should proceed from the analysis of the costs of reporting: either issue financial statements as if the company did not allow a break, or re-apply IFRS 1. When re-applying the standard, the statements are prepared, ignoring the impact of accounting policies applied in previous periods .

When applying IFRS for the first time, it is important to understand what is the transition date and what period IFRS 1 recognizes as the first reporting period.

Rice. 1. Date of transition to IFRS

Algorithm for preparing the first IFRS statements for 2016

Throughout the transition period, a single accounting policy should be applied (in the example, the transition period is three years: 2014, 2015, 2016).

When preparing the first set of financial statements, certain steps must be followed step by step.

Step 1. All standards in effect at the first reporting date should be used. This means that if the transition date is 12/31/2014, and the reporting is made on 12/31/2016, then it is necessary to apply the standards that are in force on 12/31/2016. In this case, it is possible to use standards that have been issued but have not yet entered into force, the early application of which is allowed as of the first reporting date.

For example, IFRS 15 “Revenue” comes into force on 01/01/2018, its early application is allowed. It is advisable to prepare the first set of reporting, based on its requirements, so that later, when the new standard comes into effect, to avoid adjustments.

In practice, most companies adopt new standards ahead of schedule (but keep in mind that not all new standards can be adopted early).

Step 2 Determine the standards that need to be applied before the reporting date. For example, if the company had leasing in 2015, but not in 2016.

Step 3 Define the exceptions to be applied.

The general requirement of IFRS is to apply retrospectively the requirements of all applicable IFRSs at the reporting date. IFRS 1 allows two types of exemptions from retrospective application:

mandatory exceptions;
voluntary exemptions.

For reference

Mandatory exceptions are required for all entities applying IFRS for the first time. The essence of voluntary exceptions is the right to choose whether or not to apply these exceptions. They relate to the retrospective application of IFRS standards (that is, from the date of the transaction, as if the company had always applied IFRS).

Example of a voluntary exception: IFRS 1 allows a first-time adopter to measure an asset on its opening IFRS balance sheet using notional cost for property, plant and equipment, investment property (when using the cost model) and intangible assets (provided an active market).

IFRS 1 requires an entity to use accounting estimates for IFRS purposes that are consistent with the accounting estimates adopted when applying national accounting standards at the same date. If there is objective evidence that these estimates were erroneous, for the purposes of IFRS, estimates are used that differ from those used in RAS. An example is the change in the useful life of property, plant and equipment (in particular, when income is generated from the operation of fully depreciated equipment).

For reference

Errors are omissions and misstatements in financial statements that arise from the omission or misuse of reliable information, including the consequences of inaccuracies in calculations, misstatements in the application of accounting policies, underestimation or misinterpretation of facts, and fraud.

Case Study

IFRS 1 allows you to change the estimated estimates during the transition period (in the example - from 01/01/2015 to 12/31/2016). So, it is possible to change the useful life of fixed assets and the depreciation method. The fixed asset accounting model established in the IFRS accounting policy remains unchanged: at historical cost or at revalued cost [p. 29 IAS 16]. In practice, it is better to change the timing and method of depreciation on the transition date.

Step 4 Build (organize) the preparation process and make it optimal. To do this, it is necessary to regulate a set of measures:

determine the perimeter of consolidation (when drawing up consolidated reporting the composition and structure of ownership are analyzed, direct, effective ownership shares and shares of non-controlling shareholders are determined);
develop an accounting policy in accordance with IFRS (each organization included in the established consolidation perimeter when preparing consolidated financial statements must use a single accounting policy in accordance with IFRS);
analyze assets and liabilities as of the date of transition to IFRS in order to recognize them for the purposes of IFRS;
develop a methodology for transformation (or conducting parallel or combined accounting) and consolidation (when preparing consolidated financial statements), data collection packages, transformational models; it is first necessary to analyze the scope of the company's activities, determine the main differences between RAS and IFRS by reporting items, and form a list of major adjustments.

Case Study

Upon transition to IFRS manufacturing enterprises often a situation is revealed when, in RAS, assets are fully depreciated, but continue to be used, and their number is significant. Since the company benefits from the performance of the asset, it is desirable for IFRS purposes to change the useful lives of the assets.

Adjustment for objects whose value is less than the limit established in the RBSU for accounting for fixed assets [in the general case - up to 40 thousand rubles. inclusive (clause 5 PBU 6/01)], in practice it is carried out if it is significant. These objects in RAS are written off upon acceptance into operation for the expenses of the current period, in IFRS they are included in fixed assets. In IFRS, there is no cost criterion for classifying assets as fixed assets, but such a criterion exists in the accounting policies of a number of Western companies. When preparing reports, it is necessary to strike a balance between the costs of this preparation and the usefulness of the information.

For reference

An adjustment is a change in the value of the lines of the statement of financial position and the statement of comprehensive income with a change in the financial result of the current period.

Types of adjustments

Reclassification (reclass) does not affect the profit or loss of the reporting period - accordingly, it simultaneously affects only IFRS balance accounts or only IFRS profit / loss accounts.

Reclassifications arise as a result of differences in the recognition of elements of the financial statements under RAS and IFRS, transfer the same amount from the RAS reporting item to the IFRS reporting item. Examples of reclassifications are:

reclassification of advances issued against fixed assets from receivables and other non-current assets under RAS to construction in progress under IFRS (into fixed assets);
reclassification of investment property items from property, plant and equipment to investment property;
reclassification of deposits and highly liquid investments with maturities of less than three months to cash and cash equivalents;
reclassification of general business expenses from prime cost to administrative expenses.

Correction (amendment) affects the net profit of the period and capital items - respectively, it simultaneously affects balance sheets, profit / loss accounts, and capital accounts.

Examples of adjustments (amendments) are:

registration of objects received under a leasing agreement;
write-off of intangible assets that do not meet the recognition criteria of IAS 38;
accrual of loss from depreciation of fixed assets and construction in progress under IFRS;
exclusion of general business expenses from the balance of work in progress and their allocation to the accounts of administrative expenses.

Step 5 Make transformational and consolidation adjustments.

When preparing the incoming (opening) statement of financial position in accordance with IFRS as of the date of transition, the following adjustments must be made:

recognize all assets and liabilities required to be recognized in accordance with IFRS (for example, finance leases, liabilities for the dismantling of property, plant and equipment);
eliminate assets and liabilities that are not subject to recognition in accordance with IFRS;
reclassify the items of assets, liabilities and equity in the balance sheet in accordance with the requirements of IFRS;
evaluate all assets and liabilities in accordance with IFRS - analyze how assets and liabilities meet the IFRS asset and liability recognition criteria, whether their value is correctly formed (for example, it is necessary to depreciate materials that have been idle for a long time, non-working equipment).

For each date, estimates must be applied based on the information available at that date. If in 2015 there were doubts about the probability of repayment of receivables, and in 2016 financial condition debtor has improved, then when preparing reports for 2015, it is necessary to depreciate receivables, in 2016 - to restore.

Step 6 Prepare IFRS financial statements.

The composition of the first set of IFRS financial statements is determined by the requirements of IFRS 1:

three balances (as of the transition date, the beginning of the reporting period, the end of the reporting period);
two statements of comprehensive income (for example, for 2016, for 2015 as comparative information);
two statements of cash flows;
two statements of changes in equity;
notes, including comparative information, in compliance with all disclosure standards.

IFRS 1 does not provide for exceptions to the presentation and disclosure requirements in other IFRSs.

In its first financial statements, the company explains how the transition from RAS to IFRS has affected its financial position, financial performance and cash flows. It should reflect the explanation of the provisions of the transition to IFRS, as well as provide a reconciliation of the items "Capital" and "Total Comprehensive Income". The reconciliation should include information that details the amounts of the adjustments under Equity and Profit. In the following periods, this reconciliation is not required.

To facilitate the process of preparing the first set of financial statements and minimize the number of errors, companies often invite consultants who can help in the preparation of the first IFRS financial statements, who are quite competent and experienced.

IFRS standards. IFRS Standards Current IFRS

International Accounting and Financial Reporting Standards - 2016: concept, composition and basic principles of classification

Organizational and reporting IFRS

Industry Standards Group

List of detailed IFRS: fixed assets, financial instruments, etc.

Ancillary IFRSs

Results

IFRS 2016 in Russia: what has changed and who should apply?

Who must apply IFRS from 2016?

The full list of these legal entities now looks like this:

New in IFRS 2016. Changes to be taken into account in the reporting

Organization of reporting

When an organization transitions to IFRS, it is necessary to decide:

Preparation of the first IFRS financial statements

Before preparing IFRS financial statements, you must:

As part of the preparation of the initial statement of financial position of the company, it is necessary to carry out the following work:

IFRS reporting rules

Voluntary and mandatory reporting under IFRS for 2016

IFRS reporting requirements in 2016

Composition of IFRS statements in 2016

How to generate IFRS statements?

Changes in accounting for assets and liabilities related to tariff regulation

Clarified the accounting treatment for asset reclassification under IFRS 5

Clarifications in Accounting for Eligibility for Continuing Participation

Amendments to IAS 19 Employee Benefits

Changes to the equity method in separate financial statements

Disclosures outside the notes to the interim financial statements

Accounting for the acquisition of an interest in a joint operation that is a business

Clarifications regarding acceptable depreciation and amortization methods

Changes in the accounting of fruit crops (agricultural industry)

Changes related to disclosure of information in financial statements

Amendments to accounting for investment organizations

First application of IFRS by companies transitioning to international standards in 2016

For reference

Algorithm for preparing the first IFRS statements for 2016

For reference

For reference

Case Study

Case Study

For reference

Types of adjustments

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