|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies||IFRS Standards required for listed companies, financial institutions and some government-owned companies.|
|IFRS Accounting Standards are permitted but not required for domestic public companies|
|IFRS Accounting Standards are required or permitted for listings by foreign companies||Required for some, permitted for others.|
|The IFRS for SMEs Accounting Standard is required or permitted||No.|
|The IFRS for SMEs Accounting Standard is under consideration||Yes.|
Profile last updated: 04 September 2019
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. Financial statements of certain companies that do not constitute a group, as defined by IFRS Standards but which are specified in the Federal Law 208-FZ On Consolidated Financial Statements (for instance listed companies, banks, except for banks with a basic licence, insurance companies, etc.), are required to be prepared in accordance with the IFRS Standards.
In addition to listed companies, the following companies are required to use IFRS Standards for consolidated financial statements in accordance with the Federal Law 208-FZ On Consolidated Financial Statements:
banks (except for banks with a basic license, which have no subsidiaries);
insurance companies (except for medical insurance companies, whose single activity is mandatory medical insurance);
non-state pension funds;
management companies of investment funds, investment unit trusts and non-state pension funds;
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.
IFRS Standards are part of the Russian accounting and reporting regulation: the Federal Laws 208-FZ On Consolidated Financial Statements and 402-FZ On Accounting. These Laws are available for download (in English) on the 'Accounting and Auditing' page of the MoF website.
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 CBR shall be applied in Russia.
IFRS Standards are given effect by the Orders of the MoF. These Orders are available (in Russian) on the 'Legislation on the IFRS' page of the MoF website.
Individual IFRS Standards are subject to the endorsement process described below.
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 CBR as well as with the Russian Ministry of Justice.
The endorsement process for IFRS Standards is laid out in Resolution No. 107 of 25 February 2011 «Regulation On Endorsement of the International Financial Reporting Standards and Interpretations of the International Financial Reporting Standards for their Application in the Territory of the Russian Federation».
The individually endorsed IFRS Standards are available (in Russian) on the ‘Consolidated version of IFRS’ page of the MoF website.
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 companies and users.