Stepped-Up Progress On IFRS In Russia: History In The Making

Abstract

Starting in May 2010 new Russian legislation and other events have raised expectations of an accelerated adoption of International Financial Reporting Standards (IFRS) starting January 2012. These events are examined in the context of the International Accounting Standards Board (IASB) and IFRS, the importance of adopting IFRS for Russia, relevant Russian cultural and geopolitical issues surrounding adoption, and the status of existing Russian Accounting Standards. The need for establishing support mechanisms, specifically, effective local standards setting bodies and a supportive institutional infrastructure is examined. Examples of strong standards setting bodies outside Russia in countries that have recently adopted IFRS are compared to standards setting bodies in Russia. The European Financial Reporting and Accounting Group (EFRAG), the European Commissions advisory group on IFRS, is considered as a potential support model and likely Russian counterparts are identified. Key success factors for Russia in successfully adopting IFRS are discussed.