Background

The Ministry of Finance is a federal governmental agency responsible for the development of state policy, regulatory and legal framework, including standard-setting, in the areas of accounting, financial reporting and auditing; endorses the IFRS Standards and ISA for application in the Russian Federation.

Accounting Standards

The federal accounting standards (Russian GAAP) shall be applied by all business entities for preparation of their stand-alone financial statements. The Russian GAAP covers all fields of accounting, is based on the IFRS Accounting Standards and aligned with these standards in all material aspects. IFRS Accounting Standards were endorsed for use in the Russian Federation in 2011 and became mandatory from reporting for 2012. IFRS Accounting Standards are mandatory for consolidated financial statements as well as for financial reporting of certain companies that do not constitute a group, as defined by IFRS Accounting Standards, but which are specified in the Federal Law On Consolidated Financial Statements (for instance listed companies, banks, insurance companies, etc.).

Sustainability Disclosure Standards

The framework for preparation, assurance and disclosure of Sustainable Development Reporting is constituted by the methodological recommendations of the Ministry of Economic Development of the Russian Federation in November 2023. This document provides companies with the list of 44 key indicators in the environmental, social and corporate governance areas to be disclosed in such reports. This document was developed based on the United Nations Conference on Trade and Development methodology for sustainable development, adapted to the specific context of Russia.