1 / 10

Practicalities of International Financial Reporting Standards Implementation:

Practicalities of International Financial Reporting Standards Implementation: New International Standards on Auditing Edge. Sergey Moderov Head of International Financial Reporting Department. Group of Companies Issues. Control -

allistair-mckay
Télécharger la présentation

Practicalities of International Financial Reporting Standards Implementation:

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Practicalities of International Financial Reporting Standards Implementation: New International Standards on Auditing Edge Sergey Moderov Head of International Financial Reporting Department

  2. Group of Companies Issues • Control - is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities • Consolidated financial statements - financial statements of a group presented as those of a single economic entity

  3. How to find all the entities under control? • Ask Management; • See internet and professional magazines; • Look at “strange” transactions: - Loans; - Non-market price transactions • See data of the Client: - List of companies “on the walls”; • Ask Client employees All controlled entities must be consolidated

  4. Entities under common control • Are widely used for tax and formal independence purposes; • Using of Special Purpose Entities; • Plan to build traditional holding might be in the place; • Entities under common control might be consolidated in a aimed Group by: - applying IFRS 3 “Business Combinations”; - “carve out” method and “predecessor accounting” method Example: TGK-14 (RAO UES)

  5. Fair Value The amount for which • an asset could be exchanged, or a liability settled, • between knowledgeable, willing parties • in an arm’s length transaction. • Fair value exists always, market value - not • Auditor’s check in: • Leasing • Business combinations • PPE, investment property revaluations

  6. Audit of fair value • Look at professional appraisal report; • Perform recalculations; • Look at the market of similar transactions, average rates; • Look at usual business process and independence of parties; • Using the work of an expert (within the firm or not)

  7. New International standards on auditing • Clarity project – • The same in more simple words; • Apply or not Sarbannes Oxley or another set of strict rules; • Follow ethics codes

  8. New International financial reporting standards • Financial instruments – reducing complexity (10 June 2008); • Business combinations – next phase: - Full goodwill approach; - Minority interest becomes non-controlling interest; • IAS 1 “Presentation of financial statements” change: - Balance sheet becomes Statement of financial position; Profit and loss statement becomes Comprehensive income

  9. Drivers of clients adopting IFRS • Usually such clients are leaders on the market; • Really aggressive firms; • Who plan to issue bonds or stocks (IPO); • Who’s Parent reports in accordance with IFRS; • Who uses IFRS principles in management accounting

  10. Questions or comments? Sergey Moderov Head of International Financial Reporting Department

More Related