The transformation of financial statements in accordance with international financial reporting standards

The paper is focused on the role of transformation of financial statements in accordance with International Financial Reporting Standards (IFRS), a need for adopting programs for the reform of accounting and statements. The transformation stages are analyzed. The first stage consists in getting additional information (apart from domestic statements), needed to conduct the transformation. The second stage includes reclassification and rearrangement (reclassification) items of Russian statements in accordance with IFRS. The third stage of transformation suggests introduction of adjustments (transformational records) which contribute to elimination of the revealed differences between IFRS and the Russian Accounting Standards (RAS).In the context of a current economic situation more reliable information will be contained in the transformational statements prepared taking into account the inflation. Besides, recalculation of indicators from the national currency into the foreign one will enable us to compare statements with the statements of competitive international companies. The requirements for financial statements according to IFRS are specified in IFRS 1 “Presentation of Financial Statements”. According to the standard, there is no a strictly regulated form of balance sheet, and an enterprise develops its own form which corresponds to specific features of the company’s activity. For Russian companies the main criterion is a financial issue of data presentation according to IFRS. The parallel accounting and the purchase of specialized programs corresponding to the conversion method imply heavy material expenses. That’s why the majority of Russian companies prefer the transformation method despite its disadvantages.