Today, each organization is obliged to maintain accounting records and prepare reports in accordance with special forms. These include IFRS and RAS, which have significant differences in many aspects. Let's try to figure out what are the differences between these seemingly similar concepts.
IFRS stands for as International Financial Reporting Standards, therefore, the reporting principles are based on the development of employees of global organizations. Indeed, they were drawn up by the IASC and are intended primarily to ensure that the reporting of all companies in the world is the same. This contributes to the fact that external users of reporting can compare different organizations located on the territory of different countries. Thus, documents according to international standards should be drawn up by those enterprises that want to enter the world arena and find importers of the products or services they offer. IFRS assumes relative freedom of action of accountants in the preparation of financial statements, since they can only rely on certain principles.
RAS - Russian accounting standards, adopted throughout the Russian Federation, consisting of various Federal laws and special Accounting Regulations developed and adopted by Russian government agencies. The standards are strictly regulated by law, and therefore accountants are not able to act freely. The main users of financial statements compiled in accordance with RAS are state regulatory authorities, and then potential investors. In addition, the parent organization and its subsidiaries prepare financial statements under RAS independently of each other, since Russian standards do not imply general reporting.
Comparing IFRS and RAS, we can say that these are two systems of preparation of reporting organizations, but they are based on different principles. It should be taken into account that IFRS should be used by enterprises that have one of the strategic development goals of entering the international market for goods and services, while all organizations for which this obligation is enshrined at the legislative level should comply with Russian standards. In addition, IFRS are designed to help potential investors assess the activities of companies, and RAS is necessary for submitting reports to regulatory authorities.
- IFRS are valid throughout the world, RAS - only in Russia;
- IFRS reporting is intended for investors, RAS reporting - for controlling state bodies;
- The use of IFRS presupposes a certain freedom of action of accountants, RAS strictly regulate it;
- IFRS presupposes the creation of consolidated statements of the parent organization and its subsidiaries, while RAS does not provide such an opportunity.