|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||IFRS Standards required for listed companies, financial institutions and some government-owned companies.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Required.|
|The IFRS for SMEs Standard is required or permitted||No.|
|The IFRS for SMEs Standard is under consideration||Yes.|
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
IFRS Standards were endorsed for use in the Russian Federation at the end of 2011 and became mandatory from 2012, in accordance with the Federal Law 208-FZ On Consolidated Financial Statements.
IFRS Standards are mandatory for consolidated financial statements. Additionally, separate company financial statements must be prepared using Russian GAAP.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
If YES, are IFRS Standards REQUIRED or PERMITTED?
In addition to listed companies, the following companies are required to use IFRS Standards for consolidated financial statements:
- insurance companies;
- non-state pension funds;
- management companies of investment funds, investment unit trusts and non-state pension funds;
- clearing organizations;
- federal state-owned enterprises as well as joint-stock companies, whose shareholder is the Russian Federation (per the Russian Government decision);any other company that prepares consolidated financial statements due to requirements of other laws or its charter documents.
In addition, all non-listed companies that control subsidiaries are required to include the IFRS consolidated financial statements into a prospectus.
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Which IFRS Standards are required or permitted for domestic companies?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
IFRS Standards are part of the Russian accounting and reporting regulation: Federal Laws 208-FZ On Consolidated Financial Statements and 402-FZ On Accounting. These Laws are available for download (in English) on the MOF's 'Accounting and Auditing' page. Law No. 208-FZ states that IFRS Standards and Interpretations of IFRS Standards issued by the IFRS Foundation and endorsed by the MoF in consultation with the Central Bank of the Russian Federation shall be applied in Russia.
Links to the Orders of the MoF on the IFRS incorporation:
Individual IFRS Standards are subject to the endorsement process described below.
If no, how do IFRS Standards become a requirement in the jurisdiction?
If yes, what is the process?
The first stage of the endorsement process is a technical assessment of the IFRS Standard made by the National organization for financial accounting and reporting standards (NOFA) , which is the independent organisation designated by the Ministry of Finance. The decision on endorsement of an IFRS Standard into force in the territory of the Russian Federation shall be based on the report of NOFA.
The second stage of the endorsement process is administrative: the issuance of the regulation on endorsement of the IFRS Standard by the MoF in cooperation with the Central Bank of Russia as well as with the Russian Ministry of Justice.
To date endorsement has been completed through IFRS 13 and IFRIC 21.
The endorsement process for IFRS Standards is laid out in Resolution 107, dated February 2011.
The individually endorsed IFRS Standards in Russian are available on the 'Consolidated version of IFRS' page on the MoF website.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Other comments regarding use of the IFRS for SMEs Standard?
The MoF has said that recent public discussions on the use of the IFRS for SMEs Standard in the Russian Federation suggest that cost of transition to the IFRS for SMEs Standard are considered much greater than the benefits gained by the entities and users.
The IFRS for SMEs Standard has been translated into Russian.