In the 70s there was an intensive need in establishment of unified standards of financial statements which could be used by different companies irrespective of geographic position and national identity. This function is successfully carried out by the International Financial Reporting Standards.

Drawing up of the statements in accordance with International Financial Reporting Standards simplifies access to the international capital markets which is absolutely a weighty argument for Russian companies which need involvement of foreign investors in cases of obtaining credit in foreign banks, selling of securities in international stock exchanges, participation in projects being financed by the international organizations.

In Russia the companies use two methods of drawing up the statements according to International Financial Reporting Standards: transformation and conversion. During transformation the information made in national system of accounting at the end of reporting period is corrected in accordance with the principles of International Financial Reporting Standards. The conversion requires making of data in two accounting systems – Russian Accounting Standards and International Financial Reporting Standards. The choice of the preferable variant is based upon expenses and profits.

To carry out parallel record of the company it is necessary to automate record systems and it demands much time and funds. The expenses concerning integration of a new system make from 5,300 to 135,000 US dollars including acquisition of necessary equipment, programme and payment for services of financial and technical consultants.

During practice many companies carry out periodic transformation of financial statements according to International Financial Reporting Standards.

The Company “RosCo” offers services on transformation of financial statements prepared in accordance with the Russian standards of record into the statements corresponding to International Financial Reporting Standards.

Services on transformation of statements according to International Financial Reporting Standards include:

• Analysis of accounting information of the Company, drawing up of trial balances.
• Performing of reclassification of accounts and operations and necessary updates.
• Preparation of financial statements and disclosures for them.
• Control over quality of performed works.
• Presentation of financial statements.

The statements prepared according to International Financial Reporting Standards will contain:

• Balance sheet.
• Statements on profits and expenses.
• Statements on flow of funds.
• Statements on changes in own capital.
• Comments to financial reporting.