Bank reporting under IFRS - new requirements. Bank reporting under IFRS - new requirements IFRS bank report

Consider the main features of the use of IFRS by banks, as well as those IFRS standards that are of priority for any financial director, accountant or financial specialist working in banks and financial institutions.

If you work in a bank or any other financial institution, then you know very well that IFRS are slightly different here. More precisely, the standards are still the same, they just apply a little differently.

What is it connected with?

Unlike companies whose activities are related to products and services, banks work mainly with money.

For other types of companies, money is basically just liaison for their operations, and most goods or services are not connected with money (with financial activities).

In other words, money-related transactions, such as maintaining a bank account, are "auxiliary" transactions to the core business.

But the main product or service of any bank or financial institution (we will call them by the general word “banks”) is money transactions in various forms:

• loan money,
• deposit money,
• Growing your money (as well as shrinking money),
• Services related to money
• Ability to use money (credit cards, bank accounts, etc.).

As a result, the financial statements of banks are significantly different from what you expect to see in the statements of a "regular" company.

Let's look at the 3 most relevant topics related to IFRS for banks and financial institutions.

1. Financial instruments (IFRS 9, IAS 32).

If you work in a bank, the standards for financial instruments are a MUST for you. After all, money is a financial instrument in itself!

In short: IFRS 9 introduced a new expected credit loss (ECL) model for recognizing impairment of financial assets. And the banks were hit hard.

Why?

Most other types of entities may use the simplified approach permitted by IFRS 9 to depreciate financial assets and calculate loss allowances solely at the lifetime expected credit losses.

However banks cannot use the simplified approach for the largest group of their financial assets - loans.

Banks need to apply a three - stage general model for recognizing losses .

This means that banks must:

• Decide whether individual financial assets will be controlled jointly (many similar loans with lower volumes) or individually (large loans).
• Carefully analyze financial assets and assess which of the 3 stages each financial asset is in.
• Based on the stage of the financial asset, the bank should evaluate how to calculate the amount of the reserve equal to:
  1. 12-month expected credit losses; or
  2. Expected credit losses over the life of a financial asset.
• To make the above calculation, the bank must collect a large amount of data to evaluate:
  1. Probability of default within 12 months;
  2. Default probabilities after 12 months;
  3. Credit losses in case of default.
• Banks may need to allocate their loans to different portfolios and monitor relevant information for each portfolio separately based on some common characteristics.

All of the above are important tasks for the IT department, client managers, bank statisticians and analysts, and many other professionals involved in updating internal systems, so that all information is provided in a timely manner and in an acceptable quality.

This is not an easy task!

1.2. Classification and valuation of financial instruments.

Financial assets make up the majority of bank assets.

IFRS 9 currently classifies financial assets based on two tests:

• Contractual cash flow test (SPPI test) and

Based on the evaluation of these tests, a financial asset can be classified for measurement at:

• By fair value through profit or loss (FVTPL); or
• By fair value through other comprehensive income (FVOCI). In this case, further accounting depends on the type of asset.

Banks and other financial institutions, mainly securities trading companies, investment funds and similar organizations, need to analyze their own business model for individual portfolios of financial assets (securities trading, debt collection, etc.) and then decide on their classification and evaluation.

Regarding the 2 tests above, it should be emphasized that each financial asset and liability must be initially recognized at fair value (sometimes transaction costs are included).

Here you also need to refer to the standard IFRS (IFRS) 13 Fair Value Measurement. This standard establishes the principles for determining fair value, and therefore it is very important for the preparation of the financial statements of any bank.

1.3. Separation of equity and debt financial instruments.

Banks perform various operations related to money and financial instruments - we have already talked about this.

Due to the variety and complexity of transactions, banks need to correctly classify whether a bank financial instrument is equity or debt, or even a mixture of both.

IAS 32 Financial Instruments: Presentation sets out more precise rules on how to correctly distinguish between these two types of instruments.

Why is this issue so relevant for banks?

Because incorrect identification of equity FAs/debt FAs/compound financial instruments may lead to misreporting of a bank's financial results, including various financial indicators evaluating a bank's capital and financial position.

2. Presentation of financial statements (IAS 1, IAS 7, IFRS 7)

Banks present their financial position and financial performance in a completely different way than other companies. Consider 3 main financial statements.

2.1. Statement of financial position of the bank (IAS 1).

2.2. Statement of profit and loss and other comprehensive income of the bank (IAS 1).

Similar to the statement of financial position, IAS 1 does not prescribe the exact format for the statement of total comprehensive income.

The company must choose the appropriate format for the business in which it will present its financial results.

Not surprisingly, a bank's statement of profit or loss and other comprehensive income usually starts with interest income and interest expense!

Generally, you would expect to see interest information listed somewhere near the end of the report, in financial transactions, and sometimes not at all.

However, interest income and expenses are the most important items for a bank, as this is what banks usually do - they deposit your money and give you interest for it. (= interest expense of the bank) and they lend you money and charge interest for it ( = bank interest income).

Since banks usually charge you some fees for maintaining your bank account, there is an item on the report for commission income.

To illustrate, let's compare the statement of profit and loss and other comprehensive income of an ordinary company and a bank.

Comparison of the statement of profit or loss and other comprehensive income of a bank and an ordinary company.

regular company
Profit and loss	Profit and loss
Cost of goods and services sold Gross profit Other income Selling expenses Management expenses other expenses Operating profit Financial expenses Share in income of associates	Interest income Interest expenses Net interest income Allowance for credit losses on debt financial assets Net interest income after allowance for credit losses Fee and commission income Commission expenses Net fee and commission income Net income from operations with financial instruments Net income from investments in associates Staff costs Management and other expenses
Profit before tax	Profit before tax
income tax	income tax
Total profit for the period	Total profit for the period
Other comprehensive income:	Other comprehensive income:
Income from property revaluation Hedge income	Items not to be reclassified to profit or loss in the future Actuarial gains and losses on defined benefit plans Income from property revaluation Income tax as part of comprehensive income Items to be reclassified to profit or loss in the future Hedge income Exchange differences in the translation of financial statements of foreign divisions Other comprehensive income for the period, net of taxes
	Other comprehensive income for the period

2.3. Statement of cash flows (cash flow).

The approach to money in banks and therefore cash flow statements also look different.

When you prepare a cash flow statement, you usually group individual cash flows into 3 sections:

• Operating activities,
• Investment activity and
• Financial activities.

2.4. Information disclosure.

In addition to the disclosures provided by other non-financial companies, banks are required to provide a number of other disclosures related to their own activities.

Most important disclosures:

1. Capital Disclosure in accordance with IAS 1:

Here the bank reveals how it manages capital, with a focus on:

• Descriptive information about money management strategies,
• Some numbers on money management,
• Are there any external capital requirements for the bank and
• Does the bank meet the requirements for credit institutions, and if not, what are the consequences.

2. Full range of disclosures in accordance with IFRS 7 Financial Instruments: Disclosures.

These disclosures relate primarily to financial instruments and should therefore be taken into account by banks in any case. The focus is on:

• The meaning of financial instruments, including their breakdown into categories, their fair value and how it is determined, accounting policies for financial instruments;
• The risks associated with financial instruments, as well as their nature and extent, including credit risks, market risks and liquidity risks;
• Transfer of financial assets;
• And other questions.

3. Consolidation and special purpose vehicles (IFRS 10, IFRS 12).

Banks love to use special purpose companies (SPE, from the English "special purpose entity" or SPV, from the English "special purpose vehicle").

It used to be a "great and creative" way to hide some unwanted or dangerous assets from the public eye, as special purpose vehicles were usually not included in the consolidated accounts (so no one noticed them).

Even today, many banks use literally hundreds of SPEs for a variety of purposes., mainly to securitize its receivables, carry out some tax transactions, to finance assets, etc.

A bank needs to evaluate very carefully whether it controls the SPE, using the same methodology as for any other voting rights controlled companies.

As a result, you can see many companies in the bank's consolidated financial statements.

Other issues of banking reporting.

Other critical areas for banks and financial institutions to pay attention to are basically the same as for any other company, but they can be more significant and significant:

• Leases - Some arrangements are not referred to as "leases", but their contents are often finance leases. As a result, some contracts may be moved from off-balance sheet to balance sheet.
  [cm. See also full text of IFRS 16]
• Employee benefits - Banks often provide a range of specific employee benefits, such as:
  • Free bank accounts or other bank services for employees.
  • contributions to pension funds.
  • Medical care schemes for both active employees and retirees.
  • And many others.

As a result, banks actively use all the tricks associated with IAS 19 Employee Benefits.

• Hedge Accounting - Banks often use hedging.

Of course, this list of standards is not exhaustive, however, the listed standards can be considered a starting point in the complex topic of IFRS accounting in banks.

Accuracy and efficiency of bank accounting make it possible to control the safety of funds, cash flow and the state of settlement and credit relations.

The main tasks of accounting in banks

Bank accounting in credit institutions is characterized by efficiency and unity of the form of construction. This is manifested in the fact that all settlement, credit and other transactions made in the bank during the operating time are reflected on the personal accounts of analytical accounting on the same day and are controlled by compiling the daily balance sheet of the bank institution. A single accounting system for all banks is a necessary condition for the analysis of banking activities.

Accounting in banks is closely related to accounting in other sectors of the economy. This connection is determined by the activities of banks in the settlement and cash and credit services of enterprises, organizations and institutions. Operations performed by banks for lending, settlements, etc. are reflected in the accounting of economic entities. Banking operations reflected in the assets of the bank's balance sheet correspond to liabilities in the balance sheets of enterprises and organizations and show the amount of bank loans received. At the same time, the funds of enterprises and organizations on settlement, current and other accounts are reflected in their balance sheets as an asset, and in a bank's balance sheet as a liability.

In order to prepare financial statements in accordance with IFRS on the basis of Russian financial statements, credit institutions are recommended the transformation method, the essence of which is the regrouping of balance sheet items and the profit and loss statement. At the same time, banks themselves make the necessary adjustments and apply professional judgments (professional opinions of the responsible persons of the credit institution, formed on the basis of an objective interpretation of the available information on specific operations and transactions of the credit institution in accordance with the requirements of IFRS). As a result, information for external and internal users is generated in the accounting system of a credit institution. Such users may include real and potential investors, employees, creditors, customers and authorities, as well as the general public. They may have different interests: investors and their representatives are interested in information about the riskiness and profitability of their actual and planned investments; lenders are interested in information that allows them to determine whether their loans will be repaid in a timely manner and the corresponding interest will be paid. Since the interests of users differ significantly, accounting cannot satisfy all the information needs of these users in full, so the collected accounting information is focused on meeting the most common needs.

With regard to information for internal users, international standards see the purpose of accounting in the formation of information useful to management for making management decisions. At the same time, it is assumed that information for external users is also formed on the basis of information intended for internal users, which relates to the financial position of the credit institution, performance results and changes in financial position.

In accordance with the Methodological Recommendations “On the Procedure for Compiling and Presenting Financial Statements by Credit Institutions” (Letter of the Central Bank of the Russian Federation dated December 23, 2003 No. 181-T), the management body of the credit institution approves the accounting policy for the preparation of financial statements in accordance with IFRS, as well as the structure and the content of the forms of said financial statements.

The preparation of financial statements in accordance with IFRS should be properly regulated. Such a regulation should contain the procedure for the preparation and approval of financial statements in accordance with IFRS, including statements of regrouping and adjustments of balance sheet items and income statement, documented professional judgments, as well as the procedure for storing this documentation for the periods established for Russian reporting by the legislation of the Russian Federation. Federation and regulations of the Central Bank of the Russian Federation.

In addition to such purely formal procedures as the signing of the financial statements of the bank by the head and chief accountant (these persons, under the legislation of the Russian Federation, are responsible for the accuracy of financial statements), the regulation establishes the procedure for processing, signing, approving, signing, storing documentation, including regrouping statements, professional judgments and adjustments to the Russian financial statements based on these professional judgments, as well as other adjustments included in the financial statements of the credit institution in accordance with IFRS.

International standards place great emphasis on professional judgment. Therefore, it is recommended to identify the circle of responsible persons in a credit institution, to whom the head of a credit institution grants the right to form professional judgments in each of the areas of the organization's activities and to make adjustments to Russian financial statements based on these professional judgments. This circle should include officials from among the heads of the credit institution who are obliged to verify the objectivity of the professional judgments formed and the adjustments to the Russian financial statements made on the basis of these judgments.

And most importantly, within the credit institution there must be (or be created) a unit responsible for summarizing all adjustments to the Russian financial statements received from the relevant divisions of the credit institution, as well as officials of the credit institution who verify the correctness of the generalization of all adjustments to the Russian financial statements. for the purposes of preparing financial statements in accordance with IFRS.

Accounting is kept by the bank continuously from the moment of its registration as a legal entity until its reorganization or liquidation. In accordance with IFRS, financial statements are considered prepared if all the standards in force at the beginning of the reporting period for which the financial statements are prepared are used.

General characteristics of the elements of financial statements

In order to understand the specifics of preparing financial statements in credit institutions in accordance with international standards, we will consider its elements. The elements of financial reporting are economic categories that are associated with the provision of information about the financial condition of the bank and the results of its activities. They are financial transactions grouped into classes according to their economic characteristics. These elements are necessary to assess the financial position and performance of the bank.

The elements of financial statements prepared in accordance with IFRS that are directly related to the measurement of the bank's financial position are assets, liabilities and equity, which are determined accordingly.

The definitions of assets and liabilities show their essential characteristics, but do not attempt to disclose the criteria they must satisfy before being recognized on the balance sheet. Thus, the definitions include items that are not recognized as assets or liabilities in the balance sheet until they meet the recognition criteria.

When deciding which definition (asset, liability or equity) the article in question corresponds to, particular attention should be paid to its fundamental nature and economic reality, and not just to the legal form. For example, in the case of a finance lease, the substance and economic reality is that the lessee benefits from the use of the leased asset for most of its useful life in exchange for incurring an obligation to pay for that right an amount approximately equal to the fair value of the asset. , and related financial fees.

Balance sheets prepared in accordance with international standards may include items that do not meet the definitions of an asset or liability and are not shown as part of equity.

In addition, the financial statements must reflect the income and expenses of the credit institution.

Recognition of elements of financial statements

Recognition is the process of including in the balance sheet or income statement an item that meets the definition of a financial statement item and satisfies the recognition criteria. The recognition criterion has the following components:

• it is probable that the bank may or may not receive future economic benefits relevant to this item;
• article can be reliably evaluated.

Another condition for recognition is the existence of a value or valuation that must be measured reliably. In many cases, cost and valuation must be determined by calculation. The use of reasonable estimates is an important part of the preparation of financial statements and does not adversely affect their reliability. However, when a reasonable estimate cannot be obtained, the transaction is not recognized in the balance sheet or income statement. For example, the expected proceeds from a lawsuit may meet the definitions of both an asset and income, as well as meet a probability condition for recognition purposes. If the amount of a claim cannot be reliably determined, it should not be recognized as an asset or income, but the existence of the claim should be disclosed in notes, explanatory material or supplementary tables.

Certain transactions that have the essential characteristics of a financial statement item but do not meet the conditions for recognition may still merit disclosure in the notes, explanatory material, or supplementary tables accompanying the financial statements. This is necessary when information about the transaction is considered relevant to assessing the financial position of the financial institution and the results of its activities.

Requirements for the structure and content of financial statements

In accordance with the requirements of IFRS, financial statements must provide information about the financial position, performance of a credit institution and its cash flows. This information should be useful to a wide range of users in making economic decisions.

Financial reporting should be clear and understandable. It is based on accounting policies, which may differ from the accounting policies of other credit institutions. Therefore, for a proper understanding of financial statements, it is necessary to consider the most important accounting policies on the basis of which these statements are prepared. In accordance with international standards, the analysis of accounting policies is an integral part of financial statements.

• balance sheet as of the reporting date;
• income statement for the reporting period;
• cash flow statement for the reporting period;
• statement of changes in equity (capital) for the reporting period (that is, a statement showing all changes in capital, or not related to the authorized capital);
• notes to the financial statements (including the accounting policies applied in the preparation of the financial statements).

IFRS requirements apply only to financial statements, and not to other information that may be reflected in the appendices. In addition to attachments, there are also a number of components that are not part of the financial statements that may be encouraged to be provided. These include:

• a financial review that includes current results, financial positions, and uncertainties that have arisen;
• environmental report;
• value added reports, etc.

The financial statements and their individual components must be clearly defined and separated from other reported information presented in the financial statements, with each component of the reporting being strictly defined.

The financial statements also need to reflect the methods of control and management of liquidity and solvency, as well as the methods of control and management of risks associated with banking operations.

Particular attention should be paid to the disclosure of credit risk management methods. These methods include:

• analysis of the loan application and feasibility study of the loan project;
• analysis of the borrower's credit history;
• analysis of the financial statements of the borrower in order to determine its creditworthiness;
• choice of loan collateral form;
• setting an interest rate;
• creation of loan reserves.

The reporting should also reflect the currency risk (possible losses associated with an unfavorable change in the exchange rate of the ruble against a foreign currency) and methods of currency risk insurance. These methods are:

• negotiated exchange rate is a condition included in the loan agreement, according to which the payment amount changes depending on the change in the exchange rate of the payment currency;
• hedging is a method of risk insurance by entering into an alternative transaction for the same amount and the same period.

The section on interest rate risk management discusses the risk associated with the use of different interest rates.

Financial statement identities are:

• the name of the credit institution;
• type of reporting: consolidated/non-consolidated;
• reporting date, reporting period;
• reporting currency;
• units of measurement (for example, thousand, million).

It should be noted that the use in reporting of such concepts as "compliance with IFRS in all material respects", "compliance with all the main requirements of IFRS" or "based on IFRS" is unacceptable.

The Central Bank of the Russian Federation proposed exemplary forms that are part of the financial statements in accordance with IFRS. These forms can be changed by the credit institution in order to ensure the best reflection in the financial statements prepared in accordance with international standards of the structure and specifics of the credit institution's operations, the volume of transactions, etc. This can be done, for example, by excluding or combining certain items in the bank's financial statements due to the absence or insignificance of the volume of individual transactions, as well as introducing additional items of financial statements for transactions, the size and nature of which, based on the principle of materiality, is such that their separate presentation in the financial reporting will enhance the transparency and quality of the information presented in these financial statements. This is done in order to ensure an adequate perception of the financial statements by users.

Main content of financial statements

Balance sheet. The financial position of a credit institution changes depending on the funds it has, the ratio of short-term and long-term assets and liabilities, as well as the ability to restructure its activities in relation to market conditions. Information on the financial position is reflected in the balance sheet intended to provide information on the financial position of the credit institution as of the reporting date.

There are two methods of presenting assets and liabilities in the balance sheet:

• by classification: current (current) and long-term;
• in descending order of liquidity.

However, whichever method is chosen, the amounts receivable (payment) and outstanding settlements, the final settlement of which is expected in more than 12 months for each item of assets (liabilities), must be disclosed. Assets (liabilities) are classified as current (current) if they are involved in the normal operating cycle or are expected to be disposed of (realized) within 12 months after the reporting date. All other assets (liabilities) are classified as non-current (long-term).

In accordance with IFRS, the balance sheet includes:

• fixed assets;
• intangible assets;
• financial investments;
• accounts receivable;
• capital and reserves;
• reserves;
• provisions for depreciation of assets;
• tax liabilities and assets;
• accounts payable.

The subclassification of balance sheet items is carried out both directly in the balance sheet and in the notes to the financial statements. Accounts receivable and payable relating to parent, subsidiary and associated companies and legal entities related to the credit institution are shown separately.

Other subclassification requirements are contained in separate standards.

In relation to the share capital, the following information should be disclosed in the balance sheet:

• number of authorized shares;
• the number of issued and fully placed shares;
• the number of shares issued but not fully placed;
• par value of a share;
• reconciliation of changes in the number of shares;
• rights, priorities and restrictions on shares;
• repurchased treasury shares;
• shares under options or for sale (terms and amounts).

In addition, the balance sheet must disclose the nature and purpose of the reserves and show declared dividends.

Report about incomes and material losses. An assessment of the current state of affairs in a credit institution may be based on an analysis of the current and previous financial position. Information on the results of operations is contained in the profit and loss statement. Profit and loss statement is designed to provide information on the results of the bank's activities for the reporting period. It also contains information on profit-generating activities and on funds earned or spent during a given period. It reflects not only the final financial results of activities obtained during the reporting period, but also the absolute and relative levels of profitability achieved since the date of the previous report.

IFRS impose a certain minimum requirement for the content of the income statement, according to which this report must contain the following information:

• revenue;
• operating results;
• share of profits and losses of associates and joint ventures accounted for using the equity method;
• tax expenses;
• income and expenses from ordinary activities;
• performance in emergency situations;
• net profit or loss for the period.

Other information presented in the income statement or in the notes should include an analysis of expenses. For the income statement, international standards provide for two alternative forms, one of which classifies expenses according to their origin, and the other according to their functions.

The classification of expenses by origin means that items such as wages, depreciation, etc., reflected in the income statement, are simple amounts of homogeneous costs. The classification of expenses by function implies their analysis in the context of three main items that should be indicated:

• depreciation charges for tangible assets;
• depreciation charges for intangible assets;
• staff costs.

In addition, the report indicates the amount of dividends per share declared or proposed for the period covered by the financial statements.

The main idea of ​​the income statement is to adjust the revenue received in the reporting period by adding the amount of income received and subtracting the amount of expenses incurred, which ultimately gives the amount of net profit for the reporting period.

Statement of changes in equity. An institution must present a statement of changes in equity showing an increase or decrease in net assets between two reporting dates.

This report is an integral part of the financial statements. The form of its submission contains separate information on each element of share capital. In accordance with IFRS, the statement of changes in equity must contain the necessary minimum information on the following results of the bank's activities:

• net profit (loss) for the period;
• income (expense) items included in capital, as well as the amount of these items;
• changes in accounting policies and their consequences;
• results of corrections of fundamental errors.

In addition, information relating to:

• transactions with owners in relation to capital and transactions for the distribution of capital with owners and shareholders;
• reconciliation of the balance of profit or loss at the beginning and end of the period;
• reconciliation of the carrying amount of share capital, share premium and each provision at the beginning and end of the period.

The main purpose of the statement of changes in equity is to adjust the balance of equity for the previous reporting period in a consistent manner (excluding the effects of changes in accounting policies).

Cash flow statement. The bank's cash flow statement is important for evaluating its activities for the reporting period. When preparing the cash flow statement, changes in cash balances can be determined in accordance with their impact on the bank's business. This report provides a basis for assessing a bank's ability to reproduce cash and cash equivalents and its need to use those cash.

To draw up a cash flow statement, IFRS 7 was developed, which bears the same name. The purpose of this standard is to reflect in the financial statements information about the changes in cash and cash equivalents that have taken place.

Notes to the financial statements

The notes to the financial statements include material, complete and most useful information for users of the financial statements of a financial institution. As a rule, the notes to the financial statements consist of the following main blocks.

1. General information about the credit institution and the nature of its activities, including:

• location and legal form of the credit organization;
• description of the nature of operations and core activities of the credit institution;
• the name of the parent company of the credit institution and the main parent company of the group (the parent company is an economic entity that has a significant stake in the authorized capital, or in accordance with a concluded agreement or otherwise has the ability to exercise a decisive influence on decisions made by the credit institution);
• average annual headcount for the reporting period or headcount as of the reporting date;
• other general information, at the discretion of the credit institution (for example, information about available licenses, the number and location of branches, etc.).

2. Statement of compliance with the requirements of IFRS, where a statement of compliance of the prepared financial statements with the requirements of IFRS is recorded, information on the basis for preparing financial statements (for example, the financial statements presented are unconsolidated or consolidated).

3. Auxiliary transcripts to information for articles presented in the main reports.

4. Auxiliary (additional) information that is not presented in the financial statements themselves, but is necessary for the perception of financial statements by users (for example, a description of the economic situation in the country (countries) or region (regions) in which the credit institution operates.

5. Information on the accounting policies adopted by the credit institution for the purposes of preparing financial statements. Information about accounting policies is essential for a proper understanding of financial statements. At the same time, the accounting policy pursued should be based on the relevant international standards or their interpretations. The accounting policy should reflect the following main points of the credit institution's activities:

• revenue recognition;
• principles of consolidation;
• acquisitions and mergers (combination of businesses);
• joint ventures;
• recognition and amortization of tangible and intangible assets;
• capitalization of interest or other expenses;
• building contracts;
• investment property;
• financial instruments and investments;
• leasing and rent;
• R&D;
• reserves;
• taxes, including deferred taxes;
• reserves;
• employee remuneration;
• operations with foreign currency and hedging operations;
• principles of segment reporting;
• determination of highly liquid assets;
• accounting for inflation;
• additional government funding.

6. Additional analytical information on all material items of the balance sheet, income statement, cash flow statement and statement of changes in equity (capital) in accordance with the requirements of IFRS.

7. Description of the credit institution's activities by segments in accordance with the requirements of IFRS 14 Segment Reporting.

8. Description of the activities of the credit institution to manage financial risks, including credit, market, country, currency, liquidity and interest rates.

9. Description of contingent liabilities of the credit institution and operations with derivative financial instruments. This block discloses information about current and potential litigation; obligations of a tax, credit nature, as well as those related to the financing of capital investments and operating leases; operations with derivative financial instruments; transactions with assets held in custody, pledged, etc.

10. Information about the fair value of financial instruments, determined in accordance with the requirements of IAS 39 Financial Instruments: Recognition and Measurement.

11. Information about transactions with related parties in accordance with the requirements of IAS 24 “Related Party Disclosures”.

12. Information about significant events that occurred after the reporting date, but before the date of signing of the financial statements by the management of the credit institution and the conclusion of the audit organization.

13. Other material information on the activities of the credit institution in the reporting period. Such information may be necessary for users of the financial report for a comprehensive and objective assessment of the results of the work of a credit institution in the past, as well as for a reliable forecast of the effectiveness of its activities in the future.

The notes to the financial statements should be presented in an orderly manner. For each line item in the balance sheet, income statement, cash flow statement and statement of changes in equity of a credit institution, reference should be made to any information related to it in the notes.

It should be noted that, under IFRS, the management of a financial institution is encouraged to, in addition to reporting, provide an analysis of the financial performance and position of the organization, as well as describe the main difficulties that management has to deal with. This analysis may include issues such as the main factors affecting the performance of the institution, changes in the environment in which it operates, dividend policy, and funding and risk management policies.

A.V. Suvorov, Moscow State University of Technology, Ph.D.

In accordance with the Federal Law of July 27, 2010 No. 208-FZ “On Consolidated Financial Statements”, from 2012, the following must keep records of their activities in accordance with IFRS:

• credit companies;
• insurance organizations;
• legal entities whose shares, bonds and other securities are traded on organized trades by entering them into the quotation list;
• legal entities, the constituent documentation of which establishes the mandatory presentation and publication of consolidated financial statements.

In 2014, this list was supplemented by organizations that issue only bonds admitted to participation in organized trading by entering them into the quotation list.

From January 2015, legal entities that will be required to prepare and submit IFRS financial statements will also be companies whose securities are traded on organized trades by being included in the quotation list, and which form consolidated financial statements in accordance with US GAAP standards (US GAAP ).

A complete list of legal entities that are required from January 2015 to submit financial statements in accordance with IFRS:

• Management companies of investment funds, mutual investment funds and non-state pension funds;
• Organizations carrying out clearing and insurance activities;
• Non-state pension funds;
• Federal state unitary enterprises (FSUEs), the list of which is approved by the highest collegial executive body of the Russian Federation;
• Open Joint Stock Companies (OJSC) whose securities are in federal ownership and the list of which is approved by the Russian Government.

It should be noted that medical insurance companies whose activities are exclusively related to compulsory medical care were excluded from the list of insurance organizations. insurance.

As for the inclusion in the list of non-state pension funds and parent companies, such an action by the legislation of the Russian Federation is intended to increase control over their activities and strengthen the degree of protection for incompetent investors.

IFRS reporting rules

Annual consolidated financial statements under IFRS in 2015 are submitted for consideration to the highest management bodies (shareholders, founders, general directors) or owners of the company's property. In addition, all organizations from the list approved by Law No. 208-FZ (with the exception of Federal State Unitary Enterprises and JSCs, whose shares are recognized as federal property) must submit annual reports to the Central Bank of Russia.

IFRS statements are submitted to the Central Bank of Russia in electronic format and must contain an enhanced qualified electronic signature.

Annual consolidated financial statements under IFRS must be submitted before the day of the general meeting of the organization's supreme management bodies (shareholders, investors, etc.), but no later than 120 days after the end of the calendar period for which these financial statements were generated.

Publication and disclosure of financial statements under IFRS 2015

IFRS statements for 2015 must be posted on public information resources and (or) published in the media accessible to those interested in using them. In addition, other actions can be taken with respect to reporting to ensure that its content is disclosed to all interested parties. The publication of the consolidated financial statements must be posted no later than 30 days from the date of submission of the statements to the supreme management bodies of the company.

Organization of preparation of financial statements under IFRS

Today, in December 2014, it seems that there is still a lot of time for preparing IFRS financial statements. After all, the first reporting of organizations obliged from January 2015 to switch to international standards, in accordance with paragraph 7 of Art. 4 of Federal Law No. 208-FZ should be submitted in April 2016. But already today these persons must determine who will be responsible for the preparation of financial statements, what level of professionalism this specialist has, whether there is enough information available to prepare financial statements in accordance with IFRS and disclose their content.

When switching to IFRS, specialists responsible for preparing financial statements need to decide in advance:

1. Involve in the preparation of the first reporting their own forces or the forces of a contracted contractor?
2. Would it be wise to set up a department to deal with IFRS on a regular basis, or would it be better to outsource as needed?
3. How can IFRS financial statements affect the company's performance? What key indicators should be paid special attention to?
4. What information is subject to mandatory publication?
5. Who will be responsible for checking IFRS statements?

It should be noted that the choice of a person responsible for preparing IFRS statements depends on the professionalism of the personnel working in the company and its workload. If there are specialists in the field of IFRS in the state, then, of course, it would be more expedient to involve them.

Employees of the organization have a much better understanding of the specifics and nuances of its activities, the essence of the content of commercial contracts, and also have more time for core work. External consultants (auditors), of course, have more practice and experience, but their involvement in the company's activities will be superficial, and the methods used will be stereotyped.

Formation of the IFRS department: training of operating personnel
or selection of ready-made specialists?

The need to report in accordance with international standards forces the management of organizations to form specialized units. Such departments, of course, should be headed by highly qualified specialists with many years of experience in working with IFRS. As for ordinary employees, they can be attracted from other departments, accounting or financial departments.