All state cos should pay 50% of profit to IFRS or RAS on continuous basis - MinFin
MOSCOW. July 6 (Interfax) - The Finance Ministry has prepared amendments to the government order, which will change the standard for minimum dividend payments of state companies to a level no lower than 50% of profit to International Financial Reporting Standards (IFRS) or Russian Accounting Standards (RAS) (depending on which is larger), on a continuous basis.
The amendments also expand the list of state companies obliged to report according to IFRS, including Gazprom , Rosneftegaz, Alrosa and others. It also dictates the use of retained earnings from previous years for the payment of dividends if all profit to RAS turns out lower than 50% of profit to IFRS, a source in the financial and economic block of the government who is familiar with the progress of drafting the document told Interfax.
The source said that at the start of July the Finance Ministry sent a draft order with the relevant changes to the Economic Development Ministry for agreement.
The document was received, the issue is being worked out, an Economic Development Ministry representative told Interfax.