The law applies to banks, insurance companies, and all companies that have securities accepted to trades at domestic exchanges. It requires these entities to produce, submit to regulators and publish financial statements in accordance with the International Financial Reporting Standards (IFRS). The Law states that IFRS statements are to be produced in addition to statements under the Russian Accounting Standards (RAS) and not in their stead.
Requirements formulated in the new Law will come into effect following a formal recognition from the Government and Central bank. The Law does not present a mechanism or a timeline for such recognition, but it is expected to take place some time between 2012 and 2015.
More information about the financial reporting framework in Russia is available on our IAS Plus country page for Russia.