IFRS International Financial Reporting Standards

A set of documents (standards and interpretations) regulating rules of a financial reporting preparation, necessary for external users for adoption of economic solutions by them concerning the enterprise.

2018: Entry into force of IFRS 9 - a call for banks in Russia

Since January 1, 2018 became effective the new International Financial Reporting Standard (IFRS 9) which assumes accounting not only suffered, but also expected losses.

Besides, for the Russian companies also important that since 2019 new requirements in accounting on RAS designed to provide rapprochement in estimates of accounting and prudential reserves will begin to work. As a result, banks were faced the need to make the corresponding corrections to the accounting policies.

In Europe the new standard from the very beginning quickly became a part of daily practice and actively was implemented into all processes whereas in Russia the valid transition dragged on for several years. Therefore those models which work in the western banks long ago and effectively in Russia it is necessary to implement in extremely short time — and it is one of the most difficult calls connected with transition to IFRS 9.

One more serious call for the Russian banks is a release of new requirements in accounting under RAS which will begin to work since January 1, 2019. Therefore now banks need to solve several problems at the same time. Despite the systematic rapprochement initiated by the Central Bank of Russia, the difference between these two standards is still noticeable. Respect for the new principles of financial statements will demand rapprochement of finance departments, risk and accounting and also IT service as preparation of the reporting under IFRS 9 considerably will increase an array of initial data and will demand enormous computing power. Considering deadlines on transition to the principles of IFRS 9, an optimal solution for the Russian banks is use of the uniform mechanism of calculations for the purposes of IFRS 9 and RAS, a unified environment of start of models of assessment of required components and also adaptation of the existing accounting systems.

Making changes in provisions of Bank of Russia for support of requirements of IFRS9

• No. 579-P about the chart of accounts of accounting in credit financial institutions and about an order of its application.
• No. 446-P about an order of determination of income, expenses and the other total revenues of credit institutions.
• From March to July, 2017 the Bank of Russia collected notes and recommendations to the offered changes.

Notes

• Materials of the presentation "IFRS 9 are used including. Formula of successful transition" Diasoft companies, 2018