Russian businesses need IFRS, want to retain this option - Siluanov

MOSCOW. Oct 24 (Interfax) - The use of International Financial Reporting Standards (IFRS) for the preparation of consolidated financial statements does not infringe on Russia's sovereignty and is necessary for doing business both within the country and internationally, Finance Minister Anton Siluanov said.

"There are common principles, rules that are recognized by the global community. We don't just have unfriendly countries, after all, but also partner countries," Siluanov said in an interview with RBC.

"The business of companies is compared according to international reporting criteria. In offerings, purchases and sales of companies, an assessment is needed that is made, as a rule, according to international reporting standards. Companies themselves are asking not to close this option. IFRS is a system of accounting that is necessary for doing business both inside the country and abroad," Siluanov said.

The Finance Ministry told Interfax earlier that it was studying the market's views regarding a possible review of approaches to the use of IFRS after the ministry received such proposals. They concerned the use of IFRS as the standard for preparing consolidated financial statements and grounds for developing federal accounting standards, the ministry said, adding that the question of whether Russian organizations need to prepare consolidated financial statements was also raised.

In order to assess these proposals, the ministry conducted a poll to survey stakeholders' views on the matter, and it was supposed to work out its position on the issue based on the results.

Asked where the idea of abandoning IFRS came from initially, Siluanov said: "Probably, amid the confrontation with the West, everything that's not Russian is subject to cancellation. This makes sense if it does not hurt you. For example, today we use ratings only from Russian rating agencies, we stopped using western raters."

"IFRS in no way infringes on our sovereignty. We are still in the global system of standards and coordinates. Therefore, the principle of 'do no harm' is the most correct in this case," Siluanov said.