The Russian Central Bank and Finance Ministry plan to recommend audit firms for International Accounting Standard (IAS) reports, Central Bank First Deputy Chairman Tatiana Paramonova said Tuesday (14 October).
All Russian banks will transfer to international accounting standards from 1 January 2004. Banks will not incur penalties in relation to IAS accounts until after 1 January 2006. The way in which accounts are put together and their results will be analysed in this first two-year period.
Of Russia's 1,332 banks, 180 already compile accounts to IAS. These banks hold 80% of the banking market. In some cases using IAS has led to better results, in others to worse than Russian standards.
During the two-year monitoring period, banks will have to decide their fate in terms of possible mergers, business diversion or closure.
Source: Interfax