Новости

Audit secrecy may be saved in Russia for awhile

The Ministry of Finance met an unexpected obstacle represented by the Ministry for Economic Development. We remind that the Minfin is proposing to provide free access to audit documentation to Russian taxmen.

Russian business trying to soften “deoffshorization” further

Today the Russian Union of Industrialists and Entrepreneurs is making yet another attempt to further soften the draft law on controlled foreign companies (or the law on “deoffshorization” as it is sometimes referred to). Head of the RUIE Alexander Shokhin confirmed that the meeting between their representatives and the Ministry of Finance would take place today.

CFA Institute provides recommendations on bank accounting in crisis conditions

Last week a global association of investment experts - CFA Institute – published a potentially interesting report «Financial Crisis Insights on Bank Performance Reporting (Part 1): Assessing the Key Factors Influencing Price-to-Book Ratios». The key indicator P/B is the ratio of market capitalization to book value of a company. Experts think that more precise reflection of risks in accountancy and timely writing-off bad debts, also allowing free access of investors to comparable information across different jurisdictions may improve transparency and decrease risk aversion – among other things, in the banking sector as well.

Ponzi schemes (as seen by the Bank of Russia)

The Central Bank presented its own vision of Ponzi schemes (or “financial pyramids”, as they are commonly referred to in Russia). Those indicators are, of course, simplified ones and are mostly aimed to assist common people with understanding the dangers of venture investments in companies offering very high yield virtually for nothing.

Russian state companies advised to switch to international standards

Last year the Ministry of Finance of Russia used to struggle for higher dividends in companies with the government participation, but this didn’t bring any sound results. Despite that today the ministry is proposing a new initiative. The idea is that state companies should pay shareholders at least 35% of their net income.

IFRS Foundation and ESMA sign Statement of Protocols

Last week the IFRS Foundation and the European Securities and Markets Authority (ESMA) informed on the agreement they’d reached which would be used as a basis for further cooperation in areas of mutual interest.

Warning: Russia

With the third wave of economic sanction being applied against Russia (at least by the USA at the moment, but potentially by the EU as well) global investment banks advise their clients to be very careful with Russian assets as the current economic conditions slam stock exchange indexes in Moscow. The plane’s crash in Ukraine will very unlikely change the situation for the better.

GAAP-IFRS.COM Digest: 30 June - 4 July

End of bank secrecy in Russia

Starting from 1 July taxmen in Russia have a right to request information on bank accounts of citizens upon approval of their superiors. This may be done either as part of a tax inspection of a citizen, or in the course of cross-audit (when information is required for tax inspection of a third party).

Law on financial ombudsman approved in Russia

The State Duma of Russia approved a law on out-of-court settlement of disputes between natural persons and financial institutions, including banks and insurance companies, in the first reading (which, we remind, means that the second and the third are still ahead). Those disputes will be settled by an intermediary – the financial ombudsman, so to speak.