Abstract:

One of the most important steps for Russia in implementing transition to a market economy was the official recognition of the International Financial Reporting Standards as well as drafting national accounting standards based on the international standards. While the world economy was globalizing (which called for uniform financial reporting regulations), this decision was designed to help Russian companies attract foreign investment and engage with international entities. However, when compiling a financial statement according to the Russian standards, one cannot but notice that its structure and content do not correspond to those of a statement compiled according to the international standards. This is due to the fact that the operations of Russian entities have their own intricacies and nuances, which do not let Russia fully and instantly switch to the International Financial Reporting Standards. It is also worth noting that the reports drawn up in compliance with the Russian standards are aimed at the outside users while the data presented in such a report is rather limited and is not conducive to further analysis. Therefore, the government of Russia seeks to bring the requirements of the Russian accounting standards in line with the International Financial Reporting Standards, implementing a number of long-term measures for that matter. Thus, in the next few years, the draft Federal Accounting Standards will be enacted to help eliminate some discrepancies between the financial statements. The article deals with similarities and differences in the structure of financial reports compiled in accordance to the international and Russian standards.