25 July 2013

On July 25, 2013 the round table "Application of IFRSs by market makers", organized by the NOFA Foundation and International Financial Center Institute (MFTs) took place


Round Table caused a great interest among the invited representatives of government authorities, credit, insurance companies, securities market makers, non-state pension funds, professional associations and the self-regulating organizations in the financial market. More than 70 experts, including representatives of the NOFA Foundation, the Ministry of Finance of the Russian Federation, Bank of Russia and the Federal Service for Financial Markets took part in Round Table.

Leonid Shneidman, Director of the Department of regulation of accounting, financial statements and auditor activity of the Ministry of Finance of the Russian Federation addressed the participants of the Round Table with a welcoming speech. He noted interest of the state regulator in development of IFRSs in the territory of Russia.

Dmitry Weinstein, Board member of the NOFA Foundation, spoke about the role of IFRSs for the financial markets and also about first results and main difficulties of transition to IFRS in Russia.

T.V. Mayorova, Head of Department of economic analysis and control of reliability of reporting of insurance business constituent entities of FSFR of Russia, concentrated in the report on preliminary results of preparation of IFRS financial statements by insurance companies. The speaker noted that during initial review of statements numerous mistakes and inaccuracies are revealed. It is planned to make changes to the Law on consolidated financial statements for the purpose of extending powers of Bank of Russia with regard to audit.

A.Y. Ezhova, expert of the NOFA Foundation, dwelled in her report on the main difficulties in preparation of IFRS financial statements by insurance companies: mental, methodological and technical. Mental difficulties can be overcome only by practical application of IFRSs. From methodological standpoint IFRS are assumed to incorporate explanations while the professional community is not ready for this due to insufficient qualification. Consolidation of the financial statements is regarded as the main technical difficulty.

V. M. Volkov, Deputy Director of Department on accounting and reporting of Bank of Russia, reported about draft document prepared by Bank of Russia which is devoted to information disclosure to the annual report. It is planned to make a number of changes of rules according to IFRSs. A part of these changes is already published for discussion.

Problems of accounting of various financial instruments and application of certain standards by the largest securities market makers were considered in A.B. Bogopolsky's report, Deputy Head of Department of reporting of Uralsib Finance Corporation.

Summing up the results, the moderator of Round Table D.E. Weinstein noted that the NOFA Foundation actively collaborates with IASB, and also called upon for active participation of the largest organizations of Russia in development of IFRSs.