New Russian Legislation Triples Financial Statements Availability
More insights now available on small businesses.
A new Russian Federal Law effective January 1, 2013 now makes the preparation and disclosure of financial statements by certain sized small businesses mandatory. The inclusion of this class increases financial transparency on over 500,000 businesses. Customers will now be better able to assess financial stability of SMEs and understand short term liquidity and longer term solvency for the SME sector.
Now there are three types of financial statements:
1. Full (standard) – applies to Open Joint stock companies, which are 14% of the business universe.
2. Simplified – statements of companies with less than 100 employees and sales less than 6M RUB (approx. 2M USD).
3. Socially Oriented Non-commercial enterprises (SONP) – approximately 1.7% of Russian business universe.
Russian financial statements are available through the D&B Business Information and Comprehensive Reports and can also be purchased in bulk.
The differences in the amount of information available in the statements can be seen on the next page.
Russian Financial Statements Filing & Publishing Rules
Every legal entity registered in Russia must prepare standalone Russian Accounting Standard (RAS) financial statements for each financial reporting (calendar) year ending 31 December.
- Statements must be filed with the tax authorities within three months after the end of the calendar year.
- The format and content of the financial statements are set by the Ministry of Finance, including the chart of accounts and recommended accounting entries for typical transactions
- Full financial statements must include a balance sheet (with two years’ comparatives), statements of profit and loss, changes in equity, and cash flows (with one year’s comparatives) and supplementary notes.
- Branches and representative offices of foreign legal entities may elect not to maintain accounting records and prepare financial statements according to RAS; provided they maintain tax records compliant with Russian tax legislation.