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Russian GAAP Update

17 May 2001

The Russian Federation's move to a market economy has necessitated a change in the standards of accounting for reporting the financial position and results of operations of Russian enterprises.

The Ministry of Finance of the Russian Federation has responsibility for instituting reform to Russian Accounting Standards (RAS) applicable for all organisations, except those that are required to report to the Central Bank of the Russian Federation.

Beginning in 1995, but mostly since 1998, the Ministry of Finance instituted revisions in an effort to account for transactions under more internationally accepted methods. For example, accounting for revenue under the accrual method has been introduced and accruing expenses incurred but not paid is now required in certain situations. Specifically, 14 provisions on accounting (termed PBU) have been issued. These PBUs include:

  • Accounting Policy (PBU 1/1998)
  • Accounting for Construction Contracts (PBU 2/1998)
  • Accounting for Assets and Liabilities Denominated in Foreign Currency (PBU 3/2000)
  • Financial Statements (PBU 4/1999)
  • Accounting for Inventory (PBU 5/1998)
  • Accounting for Property, Plant and Equipment (PBU 6/1997)
  • Post-Balance Sheet Events (PBU 7/1998)
  • Contingencies (PBU 8/1998)
  • Incomes of an Enterprise (PBU 9/1999)
  • Expenses of an Enterprise (PBU 10/1999)
  • Related Party Disclosures (PBU 11/2000)
  • Segment Information (PBU 12/2000)
  • Accounting for Government Assistance (PBU 13/2000)
  • Accounting for Intangible Assets (PBU 14/2000)

However, even with the issuance of these accounting policies, fundamental differences still remain with internationally accepted methods. While the PBUs may be similar to IAS, important differences still exist. In addition, differences still exist with respect to wholly owned subsidiaries as, under RAS, a subsidiary company does not have to be consolidated.

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European Parliament amends Directives to allow IAS 39

17 May 2001

On 15 May, the European Parliament amended the 4th and 7th Directives (European laws) to require listed companies to follow IAS 39 by reporting certain financial assets and liabilities at fair value in their annual consolidated financial statements.

Member States would have the option of permitting non-listed companies also to adopt IAS 39. The amended Directives still must be approved by the European Council of Ministers, who will consider the matter on 31 May, and then enacted the Member State level. Banks and other financial institutions are not exempted from the amended Directives – Parliament modified the Commission's recommended legislation in this regard.

The legislation includes a number of differences with IAS 39. For instance, where IAS 39 allows companies to adopt a policy of reporting changes in fair values of available-for-sale financial instruments in net profit or loss or in equity, the European legislation allows member states to require that the value change be reported only in equity.

Click for More Information about IFRS in Europe.

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Comments about IASB in FAF/FASB 2000 annual report

16 May 2001

We have posted an Excerpt from the FAF/FASB Annual Report for 2000 relating to the formation of the IASB. .

We have posted an Excerpt from the FAF/FASB Annual Report for 2000 relating to the formation of the IASB.

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Harvey Pitt nominated as next SEC chairman

11 May 2001

US President Bush has nominated Harvey Pitt, partner in the New York law firm Fried, Frank, Harris, Shriver & Jacobson and former SEC General Counsel, as the next chairman of the US Securities and Exchange Commission.

Senate confirmation is required. A key task facing the next SEC chairman is follow-up on the SEC's Concepts Release on the use of International Accounting Standards in the SEC filings.
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Subscribe to IAS and IASB email news alerts

10 May 2001

If you would like to be notified about important IAS and IASB news (short email perhaps once or twice a month) please Click Here to Subscribe. .

If you would like to be notified about important IAS and IASB news (short email perhaps once or twice a month) please Click Here to Subscribe.

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IASB plans its first "Convergence Meeting"

09 May 2001

IASB will meet with the chairs of eight national accounting standards boards on 24 May to discuss a common work programme for standard setting.

The goal: a single set of high quality accounting standards supported by national bodies around the world. IASB Press Release (25k PDF).
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Progress by IAS 39 Implementation Guidance Committee (IGC)

09 May 2001

At its meeting on 24-25 April, the IGC approved most of the Batch 5 Q&A in final form.

They also began work on Batch 6, soon to be exposed for public comment.
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Vienna Stock Exchange expands use of IAS

07 May 2001

Starting in April, the Vienna Stock Exchange has required all domestic and foreign companies listed on the A-Market and the Austrian Growth Market to submit consolidated financial statements under either IAS or US GAAP.

Other listed companies may use IAS or US GAAP, as well as Austrian GAAP.
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Former FASB chairman urges generalised IASB standards

04 May 2001

Former FASB Chairman Dennis R.

Beresford, writing in Accountancy Age, is concerned about the trend, particularly in the US, to have a "detailed accounting rule for everything, no matter how narrow or obscure the issue.... Accountants should encourage the new IASB to emphasise a principles-based approach. Further, as part of the commitment to convergence, it is time for the FASB and SEC to change their behaviour and become more like the rest of the world."
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April edition of IASPlus newsletter is posted

04 May 2001

The may be downloaded (206k pdf).

This version includes a quarterly summary of IASB news plus Asia-Pacific country updates.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.