Transition to International Financial Reporting Standards in the Banking Sector

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Transition to International Financial Reporting
Standards in the Banking Sector
A European Union funded project
This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• EU Funding - 4 million EURO
• Time frame - November 1, 2006
• to
• January 31, 2009

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Project Partner
• Bank of Russia
• The Bank of Russia has been the leader in
  conversion to IFRS.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Consortium
• ZAO PricewaterhouseCoopers Audit
• OOO FBK
• European Savings Banks Group

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Objectives of the Project
• To assist the Russian banking sector and the
  Bank of Russia in the application of
  international standards to bookkeeping and
  accounting, and in the preparation of financial
  reports in compliance with IFRS.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Components of the Project
• 1.Improvement of the legislative framework.
• 2. Training.
• 3. IFRS best practices.
• 4. IFRS application in daily transactions.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 1
• Proposals for improvement of the current
  legislative framework for application of IFRS in
  the banking sector.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 1 (continued)
• Primary focus of review
• Legislative proposal to support BoR position to
  change regulations for accounting and reporting.
• Replace 205-P with 302-P to bring daily
  transactional accounting closer to compliance
  with IFRS.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 1 (continued)
• 3. Major revision of 66-P for Bank of Russia
  chart of accounts.
• 4. Revisions to implement amortised cost (54-P,
  39-P and 254-P).
• 5. Revision of regulations for REPO
• transactions for BoR and commercial banks.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 2
• Training banking sector specialists in the area
  of accounting and preparation of financial
  statements in accordance with IFRS.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 2 (continued)
• Target groups Training volumes
• Bank of Russia - 500
• Accounting specialists
• Supervision specialists
• Credit organisations accountants
• and internal auditors, external
• auditors, educators - 2,500
• TOTAL of 3,000 specialists

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 2 (continued)
• What have we done so far?
• Comprehensive training need analysis
• Allocation of training volume amongst target
• groups
• Development of detailed training programmes
• Delivery of 6 training courses for Bank of
  Russia
• accounting specialists (February May 2007)

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 2 (continued)
• Focus of training
• For Bank of Russia
• 1. Accounting Department staff.
• 2. Supervision Department staff - with financial
  analysis.
• 3. Management on IFRS - review.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 2 (continued)
• Focus of training (continued)
• For credit organisations, external audit firms,
  accounting academicians and trainers
• 4. Essentials for participants for participants
  with limited experience.
• 5. Practitioners for participants with basic
  IFRS knowledge and practical skills.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 3
• Awareness of best practices of IFRS application
  in European Union countries.
• Includes a website
• www.banks2ifrs.ru

This Project is funded by the European Union
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Transition to IFRS in the Banking sector

• Component 4
• Application of IFRS in practice.

This Project is funded by the European Union
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Transition to IFRS in the Banking sector
THANK YOU FOR YOUR ATTENTION!
A European Union funded project
This Project is funded by the European Union