• Russian Law - Amendments to Legislation on Accounting
  • September 18, 2012
  • Law Firm: Norton Rose Canada LLP - Montreal Office
  • The new law “On accounting” (No.402-FZ) was enacted on December 06, 2011. The law comes into force on 1 January 2013. The following important changes to the accounting procedures have been introduced:

    • Companies or individual entrepreneurs using the simplified system of taxation will be required to maintain full accounting records according to the provisions of the law. Up until introduction of the law the regime of simplified system of taxation allowed to use limited record-keeping of transactions, instead of formal accounting.

    • The Director General will no longer be able personally to perform the accounting. It will be required either to hire an external accountant or use internal professional staff to perform accounting functions. Credit institutions will be required to employ only internal accountants headed by Chief Accountant.

    • Mandatory used standard forms of primary accounting documentation will be cancelled. Now companies may produce their own primary accounting documents according to their own format. Accounting reports will not be required to be submitted to the tax authority - only to the state statistics bureau instead.

    According to Order of Ministry of Finance No. 160H of 25 November 2012 Russia recognized application of IFRS on its territory. IFRS are required to be used by Russian companies, which opted to prepare consolidated financial reporting. The consolidated financial reporting is required to be used by credit and insurance institutions (from 2012) and by publicly-traded companies (from 2015). Other companies are free to choose between IFRS and Russian accounting standards.