Assessment for IFRS, international financial reporting standards. Passing an audit of financial statements according to IFRS. Experience of the Uralvagonzavod Corporation Which organizations can provide audit services and transformation of IFRS reporting

International Financial Reporting Standards (IFRS) is a unified set of quality standards financial statements. Standardization of approaches to the presentation of financial reporting is intended to increase its transparency and make reports accessible and understandable to interested users. IFRS is not a set of rigid rules and regulations, but rather a collection of some basic principles for preparing financial statements.

The use of IFRS significantly increases the information content of an enterprise's financial statements and, accordingly, contributes to an in-depth analysis of its activities. Reporting prepared in accordance with IFRS standards facilitates access to international capital markets and contributes to the successful establishment of contacts with foreign suppliers and contractors.

Fair value measurement

• An important difference between IFRS standards and Russian accounting is that discounted future cash flows are taken into account when determining fair value. Those. in case of receipt or payment of funds related to the object of assessment in a deferred mode, they are included in the current assessment, adjusted for the time factor. At the same time, for an adequate assessment of the assets and liabilities of an enterprise, the correct choice of discount rate, compliance with internationally accepted discounting techniques, the use of parameters based on market data and assessment of associated risks are extremely important.
• IFRS standards provide for this type of asset as investment property. There is no direct analogue of this concept in Russian legislation. In accordance with IAS 17 “Leases”, an enterprise has the right to choose the method of accounting for investment property: at cost or at fair value. But it is necessary to understand that if you choose accounting at cost, i.e. Based on the purchase price plus all related costs, fair value will still have to be determined at each reporting date. After all, the provisions of IAS 40 “Real Estate Investments” contain a requirement to disclose fair value in the notes to the financial statements. That is why most organizations choose the fair value accounting method and engage independent appraisers to determine it. According to paragraph 46 of IAS 40, the fair value of the leased asset is also calculated taking into account the forecast of discounted cash flows. Therefore, it is so important to provide the appraiser with complete information about the terms of the lease, the payment schedule, the grace period of the lease when a reduced rate can be applied, the presence of an encumbrance on the leased property, the conditions and possibilities for deferred payments and any other information that may affect the inflow and outflow of funds in the future.
• There is no analogue in Russian legislation to such a concept as “impairment of assets” - a visible (expected) decrease in future cash flows from the use of a given asset. IAS 36 Impairment of Assets contains an open list of internal and external indicators that an asset may be impaired. If at least one of these signs is present, the enterprise, when preparing financial statements, is obliged to conduct a test for impairment of the asset, i.e. calculate its recoverable amount. In order to increase the reliability of financial reporting, it is advisable to entrust this procedure to independent professional appraisers. According to IFRS standards, there are three types of assets for which the recoverable amount must be calculated regardless of the result of the impairment test. These include:
  • intangible assets with unlimited useful life;
  • assets not ready for use;
  • business reputation (goodwill) acquired during a business combination.

Transition to International Financial Reporting Standards

• Transformation (adjustment) of Russian financial statements prepared in accordance with RAS. With this approach to reporting under IFRS, accounting information is regrouped and items of already prepared reporting under RAS are adjusted. Assets, liabilities and capital, with the help of adjustments and additional entries, are brought to the amount required for reflection under IFRS.
• The parallel accounting method (conversion process) involves maintaining 2 accounting departments simultaneously. This method of reporting requires significant costs, but at the same time it is more reliable.

An important factor when choosing an appraisal company is the presence of extensive experience in preparing appraisal reports in accordance with IFRS standards, which leading regional and international auditors are ready to accept for accounting. The Swiss appraisal company Swiss Appraisal has extensive experience in cooperation with international auditing companies and can guarantee the quality of prepared reports in accordance with IFRS standards even in a short time.

We touched upon the issue of determining the fair value of assets for the purposes of reporting in accordance with IFRS, which we will discuss in more detail today.

What is fair value?

IFRS 13 Fair Value Measurement defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. In fact, fair value is a market valuation, which is usually carried out with the assistance of independent appraisers. However, it is worth noting that, in contrast to the usual market valuation of fixed assets for the purposes of sale, pledge or annual revaluation, the process of determining fair value is not so simple and has significant features compared to the procedure for assessing market value established by national valuation standards.

It is not for nothing that national legislation in the field of valuation does not even contain the concept of “fair value”. In this case, the conceptual and methodological basis for determining value is provided directly by IFRS, as well as International Valuation Standards (MSO, IVS), which guarantees the comparability of fixed asset valuations of different companies around the world.

So where to start?

Beginning the assessment process requires the company to answer two simple questions: “what?” and “who?” The starting point is to determine the valuation perimeter, that is, compiling a list of assets that are subject to valuation at fair value. The choice of these assets is determined by the provisions of IFRS, the company’s accounting policies, the company’s availability of information on the initial (depreciable) cost of fixed assets in accordance with the requirements of IFRS, etc. At this stage, companies often resort to the help of professional consultants in the field of reporting transformation.

Speaking about who can perform a fair value assessment, we note that the MCO does not contain strict requirements for the participation in the assessment of fair value of appraisers who have special certificates or licenses. In this case, the concept of “appraiser” is not considered within the framework of national legislation on valuation activities. Companies can make calculations using specialists on staff.

However, since valuations require certain skill and judgment, a fundamental premise of the IVS Principles is that valuations should be prepared by a person or firm with appropriate technical skill, knowledge of the subject of the valuation, the market in which it is traded and the purpose of the valuation. If a specialist with sufficient qualifications in the field of asset valuation in accordance with international standards is not on staff of the company, it is advisable to engage an external professional appraiser.

The assessment perimeter has been determined and the appraiser has been selected. What's next?

The next stage is a procedure for selecting and systematizing information, which can be divided into 2 stages:

1) collection of information about assets included in the assessment perimeter;

2) search and analysis of initial data from active markets for property similar to the one being valued.

First stage involves the active participation of the company itself in the preparation of information about the assets being assessed (for example, about space-planning indicators, structural, technical, economic and operational characteristics of assets, their condition and involvement in production process, as well as about the production and financial activities of the enterprise (business) as a whole). Here, FBK-Bel appraisers perform only a guiding function. At subsequent stages of the assessment until the results are obtained, if its implementation is entrusted to an external appraiser FBK-Bel, the company’s participation is reduced to a minimum.

Based on the results of studying the information about assets collected at the first stage and establishing the level of their specialization, the FBK-Bel appraiser will be able to determine active markets and market input data available for use in the valuation.

In contrast to national valuation standards, IFRS 13 places particular emphasis on the inputs used in the valuation. To achieve greater consistency and comparability of fair value measurements, IFRS 13 establishes a hierarchy of measurement inputs. The hierarchy divides inputs into three levels, giving the highest priority to quoted prices in active markets and the least priority to unobservable inputs.

What methods are used to determine the fair value of assets?

The three most widely used valuation methods in international practice (in IFRS and IAS terminology - approaches) are market approach,cost approach And income approach which correspond to market valuation methods (comparative, cost and income) in national legislation.

At the same time, the selection of specific valuation approaches for the purposes of IFRS is carried out by the FBK-Bel appraiser not arbitrarily, but taking into account the initial data obtained at the previous stage in relation to a particular type of asset. Thus, in accordance with the requirements of IFRS 13, valuation methods used to determine fair value should make maximum use of relevant observable inputs and minimally unobservable ones.

In this regard, for the right choice methodologies for determining value, FBK-Bel appraisers operating within the framework of international standards, in contrast to “national” appraisers, usually classify the assets being valued depending on the possibility of obtaining initial data for them at the appropriate level of hierarchy and according to their role in the activities of the enterprise. Thus, in accordance with established practice, all fixed assets included in the assessment perimeter are divided into operating (specialized and non-specialized) and non-operating (investment and surplus). For each of the identified groups of assets, the appropriate methodology for determining their fair value is selected.

Are there any other fundamental differences in the approaches applied to measuring fair value for the purposes of IFRS and market value in accordance with national standards?

When determining the fair value of non-specialized assets and assets intended for sale (for which it is possible to obtain and use market information on sales of analogues), FBK-Bel appraisers select market approach which, in accordance with IFRS 13, uses prices and other relevant information generated by market transactions for identical or comparable assets. Non-operating investment assets (held for rental) can also be valued using the income approach, in which future amounts (for example, cash flows or income and expenses) from the use of the asset are converted into a single current amount. The fundamentals of the market and income approaches according to IFRS and IAS are generally comparable to the principles of the comparative and income methods of valuation under national legislation.

The assessment of the fair value of specialized fixed assets (for example, workshop buildings, and sometimes taking into account their location and administrative buildings, engineering and transport communications, landscaping, technological lines and other highly specialized equipment), which, as a rule, form the basis of long-term assets of production enterprises, is carried out with application of a cost approach due to the lack of information on transactions with analogues on secondary markets of similar property.

According to IFRS 13, the fair value of a specialized asset in terms of cost approach is based on the amount that the buyer, as a market participant, would pay to acquire or construct a replacement asset of comparable benefit, subject to obsolescence. At the same time, obsolescence includes physical deterioration, functional (technological) obsolescence and economic (external) obsolescence. The definition of economic impairment is precisely the key difference between the implementation of the cost approach according to IFRS and the national valuation legislation. This issue is addressed by the independent standard IAS 36 “Impairment of Assets”.

We propose to dwell in more detail on the concept of asset impairment

Since there is no possibility of alienation of a specialized asset (due to the limited or absence of markets for similar property), its usefulness (and therefore its value) is determined solely by the possibility and necessity of its use for the purposes of the enterprise’s activities. Determining the amount of economic depreciation of a specialized asset involves finding the difference between the estimated cost required to replace it with a similar asset at the valuation date and the present value of future cash flows expected to be received from this asset (value in use).

In fact, the calculation of economic impairment of specialized assets is test for adequate profitability(impairment test). Since none of the specialized assets generate cash flow on their own (unrelated to other assets), performing an impairment test involves constructing a forecast of the future cash flows that are expected to be received from the activities of the enterprise as a whole (the cash-generating unit). In this case, the following must be predicted:

1) income (revenue) of the generating unit for the forecast period;

2) production costs (cost), taking into account the dynamics of prices for material resources, personnel costs, etc.;

3) investments to maintain the size and condition of long-term assets sufficient to ensure production;

4) other components cash flow. This means that in order to perform an impairment test, it is necessary to construct the financial model used to calculate the value of the business.

In what form should the result of the work to determine fair value be presented?

The last stage in the assessment process is the communication of the assessment results in the form of a report (paper or transmitted electronically), the contents of which must comply with IVS 103 Report Writing.

It is worth noting that, unlike national legislation, neither IFRS nor MCO contain detailed description assessment and impairment testing procedures, limited only to a declaration of the basic principles, the conceptual framework used, and a description of the general issues to be considered and reflected in the assessment report. This circumstance significantly increases the scope of professional judgment in the process of determining fair value. However, greater freedom of choice in the methodological methods and techniques used compared to the national assessment also determines increased requirements for the validity of professional judgments - not on the basis of formal compliance with regulatory requirements, but through an in-depth analysis of the initial data used, identifying statistical and cause-and-effect dependencies between market phenomena and the processes described in the assessment, revealing their economic content.

Unlike the national valuation, in which the valuation documents (conclusion and report), after they are signed by the appraiser, become “proof” of the value of the asset, the results of the assessment of the fair value of assets are the object of subsequent careful consideration when conducting an audit of financial statements prepared in accordance with IFRS.

It is at this stage that the appraiser must be able to provide the necessary evidence of the truth and validity of the professional judgments made as part of the assessment. Only after the results have been agreed upon with the auditor can the fair value assessment be considered completed.

Let's summarize. What should you pay attention to when assessing the fair value of assets?

Thus, the specifics of the procedure for assessing fair value compared to national market valuation procedures makes the choice of an asset value appraiser for IFRS purposes very important. He must be well acquainted with the recommendations and requirements of IFRS and IAS in terms of the applied valuation terminology, methodology, preparation and presentation of valuation results, and have knowledge and experience in constructing financial models of enterprises. In addition, it will not be superfluous for the appraiser to have knowledge of the practical approaches of audit companies to reviewing assessment procedures and their results, as well as for the appraiser to have experience interacting with auditors to agree on assessment results.

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Most companies that aim to enter the international market understand the need to switch to IFRS. This procedure requires full transparency in reporting so that foreign partners can understand all the documentation. For these purposes, accounting in Russia is modified and simplified as much as possible, which makes it possible to unify the entire system and significantly increase its efficiency.

Why is valuation needed for IFRS purposes?

Assessment for IFRS purposes provides an opportunity to improve financial reporting and qualitatively deepen the study of its indicators. Its concept is based on the principle of reflecting all assets and liabilities of an enterprise in accordance with market value. For correct and reliable calculations of various indicators, it is recommended to involve only professional appraisers; this will help avoid annoying mistakes when switching to IFRS. Such an assessment establishes the exact value of assets and fixed assets, supporting all results with specific figures. For the duration of his work, the expert turns into an active assistant to the accountant, this is how the assessment takes place for the purposes of IFRS. A competent specialist and his professional assessment for IFRS will allow you to carefully monitor the accuracy of all reflected information and prevent all possible errors.

What we measure for IFRS purposes

Valuation of fixed assets according to IFRS requires a detailed study

What documents are needed

The assessment during the transition to IFRS requires the availability of certain documentation, the list of which for performing work is purely individual for each specific case. Everything depends directly on the structure of the enterprise with which you need to cooperate, and the obligations assumed in the course of carrying out its activities.

When is fair value measurement necessary?

IFRS and Interpretations of International Financial Reporting Standards in the territory Russian Federation were put into effect thanks to . IFRS is the most commonly used standard for preparing IFRS financial statements. Fair value is an estimate that is based on market data rather than numbers that are more convenient for the entity.

Stages

Valuation of fixed assets under IFRS should be carried out in accordance with sequential and important stages. First of all, planning must be carried out, then the implementation of the transformation process and the actual preparation of financial statements and notes. The transformation process itself must go through several conventional steps. This is an analysis of accounting information contained in primary documentation. Then trial balances are compiled. Valuation for IFRS purposes requires the preparation of adjusting entries and classification of accounts, and the preparation of financial statements of the enterprise. Preparation of adjusting entries is required in order to eliminate and detect various inconsistencies between IFRS and current system accounting

Valuation for IFRS is one of the main tasks that will need to be solved Russian companies during the transition to international financial reporting standards. The real value of a company's assets is one of the main conditions for increasing the transparency of an enterprise.

In accordance with the Official Report of the Central Bank of the Russian Federation dated June 2, 2003, it was envisaged that all credit institutions would switch to preparing financial statements in accordance with International Financial Reporting Standards from January 1, 2004.

The transition of banks and companies - international issuers to the Russian version of IFRS, which does not yet officially exist, has already begun quite intensively.

One of the most important stages in the transition to IFRS is the reflection of items in the financial statements at their market value. The discrepancy between the book and market values ​​of fixed assets and other assets leads to an underestimation of the value of the enterprise.

Valuations for IFRS can only be performed by valuation companies whose reporting standards comply with international valuation standards.

Accounting statements created in accordance with International Financial Reporting Standards contain only reliable data that allows us to judge with a high degree of probability financial condition company, as well as further development prospects. One of the main issues that Russian companies will have to resolve when transitioning to new accounting standards is this, since the basis for drawing up such reporting is the assessment of assets and liabilities and their proper disclosure.

Accounting statements compiled with the involvement of valuation specialists inspire greater confidence on the part of users, as the degree of reliability and quality of the enterprise’s financial statements increases. This, in turn, increases its “transparency” to shareholders and investors.

Preparation of IFRS reporting according to international standards is carried out in two stages:

1. Valuation professionals implement proper procedures for valuing assets and liabilities;
2. At the second stage, procedures for recognizing and classifying assets and liabilities are carried out, and financial statements are prepared.

Valuation for IFRS includes the following types of valuation:

• Estimation of the current value of assets and liabilities.
• Estimation of cost when acquiring assets and liabilities.
• Estimation of value upon sale of assets and liabilities.

Summarizing the advantages of IFRS, we can say that accounting and reporting based on them makes it possible to attract and retain Russian and foreign investors and creditors, resulting in lower costs of raising capital; increase the competitiveness of the organization; are the basis for the adoption of well-founded management decisions; provide reliable information for assessing performance and proper planning, and also reduce the costs of reporting analysis.

IFRS are built on the principle of transparency, their main goal is to provide sufficient financial information, useful to different users. Russian standards do not yet ensure full transparency of companies. This is the main advantage over Russian standards.

Valuation procedure for IFRS:

1. Compilation and analysis of lists of enterprise assets subject to assessment.
2. Grouping of homogeneous valuation objects:
   • buildings;
   • structures;
   • main equipment;
   • vehicles;
   • auxiliary equipment
3. Classification of objects in homogeneous groups to select the appropriate cost standard and valuation methods in accordance with the requirements of MPO-1.
4. Inspection of the objects of assessment and collection of the necessary information to identify and describe the objects of assessment and their technical condition as of the date of assessment.
5. Analysis of the market, which includes the objects of assessment and collection of the necessary market information.
6. Carrying out valuation calculations
7. Drawing up an IFRS assessment report and submitting it to the customer.

Clients preparing reports under IFRS engage appraisers in the following cases:

• to estimate the fair value of assets or other indicators when accounting for rental (leasing) agreements (IAS 17);
• to estimate the fair value of investment (commercial) property (IAS 40);
• to estimate the fair value of fixed assets when choosing a model for accounting for fixed assets at a revalued cost (IAS 16);
• to estimate net realizable value and value in use when determining the amount of impairment of assets or cash-generating units cash(IAS 36);
• to estimate the fair value of assets and liabilities of companies included in the consolidation perimeter when accounting for mergers and acquisitions (IFRS 3);
• to measure the fair value of financial assets and liabilities (IAS 32, IAS 39);

In other cases, when financial service does not have sufficient knowledge or resources, or when the results of the assessment may have a significant impact on the reliability of the reporting, which may require the involvement of an independent specialist, in particular:

• to assess the fair value of assets in commodity exchange transactions (IAS 16, IAS 18);
• for the measurement of non-current assets held for sale (IFRS 5);
• to estimate the liquidation value of fixed assets (IAS 16);
• to estimate the possible net realizable value of inventories (IAS 2);
• to assist in determining the discount rate to account for long-term assets and liabilities.

In some cases, the involvement of an appraiser is mandatory (as, for example, when choosing a model for reporting real estate at fair value). In some cases, engaging an appraiser may be useful to reduce accounting labor and audit costs (for example, to assess the amount of asset impairment or to determine discount rates, etc.). In many cases, it is advisable to engage an appraiser (as, for example, in the first application of IFRS 1), when the use of an appraiser’s services to evaluate non-current assets significantly reduces the costs of accounting and auditors, and also, as a rule, significantly increases the value of the enterprise’s assets and improves its investment attractiveness).

Valuation for IFRSis a procedure for establishing the value of the assets of an enterprise or an entire business in accordance with International Financial Reporting Standards and International Valuation Standards. The need for such an assessment arises when presenting financial and accounting statements in the format of Russian accounting rules and international financial reporting standards. They are significantly different, and transformation from one to the other requires serious effort. Thus, all assets are valued in accordance with IFRS, which satisfies the principles of the requirements of all authorities.

IFRS is a ministry created to unify the financial reporting of enterprises from all over the world. In essence, it is an international unified “language” of business. Reporting prepared in accordance with IFRS standards facilitates dialogue with foreign companies and investors, which provides easy access to international markets.

Valuation for IFRSincludes the following types of assessment:

Adoption of international financial reporting. Valuation for IFRS purposes carried out to reflect the actual value of fixed assets and primary reporting to adequately characterize the property position of the company's enterprise. Objects of assessment are fixed assets and objects of unfinished construction, sometimes intangible assets;

Merger of enterprises. Valuation for IFRS carried out in order to correctly reflect the value of acquired assets on the balance sheet. The objects under consideration are the company’s tangible assets and liabilities, as well as intangible assets, the work on which is the most important stage in the work of our specialists;

Impairment of assets. carried out for the purpose of asset impairment. As a rule, it is carried out in case of deterioration of economic conditions;

Fixed assets. In some cases, IFRS requires an annual revaluation of an enterprise's fixed assets involvingindependent expert;

Intangible assets. Valuation for IFRS purposes in this regard - a reasonable reflection intangible assets;

Financial instruments. Valuation for IFRS for the purpose of reflecting financial investments;

• Investment property. Carrying out an annual revaluation of objects used for investment purposes.

Obvious advantages estimates for IFRS are revealed in the fact that accounting and reporting based on them attract and retain foreign and Russian investors and creditors. As a result, the company's costs for attracting capital and increasing competitiveness are reduced. Moreover, financial statements prepared in accordance with IFRS standards provide objective information for making management decisions, reliable data for assessing the effectiveness of activities and planning, and reducing the costs of reporting analysis.

Valuation cases for IFRS

IFRS inventory valuation at fair value;

Valuation of fixed assets according to IFRS when choosing a model for accounting for fixed assets at a revalued cost;

ABOUT fair value estimate commercial real estate used to attract investment;

Assessing net realizable value and value in use when determining whether assets or cash-producing units are impaired;

Estimation of the fair value of the company's assets and liabilities;

Estimation of fair value of financial assets and liabilities;

Assessment of the liquidation value of fixed assets;

IFRS inventory valuation and their net realizable value;

Valuation of non-current assets held for sale;

Revaluation of enterprise assets;

• Estimating the discount rate to account for long-term assets and liabilities.

Nuances and subtleties of assessing fixed assets for IFRS

In some cases assessment for IFRS is mandatory - for example, when choosing a reporting model at fair value. In other situations, the involvement of our specialists may be useful for business - to reduce audit costs and labor costs of accounting.

Valuation of fixed assets according to IFRS is a very important stage in the transformation of existing reporting for the following reasons:

IFRS requires assets to be recorded at fair value. Real price assets is the main condition for increasing the transparency of the enterprise to investors and shareholders;

• The fair value determination must be made by an independent appraiser. Valuation for IFRS purposes can be performed by our company - the standards of reports prepared by specialists fully comply International standards assessments.

Two striking features should be noted. Firstly, valuation for IFRS purposes requires mandatory testing for asset impairment. Secondly, the assessment report is carefully checked and confirmed by auditors for accuracy. And therefore, our specialists prepare all documents with special care - no inaccuracies or minor errors can be made.

When conducting estimates for IFRS purposes it is necessary to determine the value of all assets: real estate, machinery and equipment, investments and inventories, intangible assets. The performance efficiency, income in the past, present and future are separately studied, development prospects and the competitive environment in the market are determined, and comparisons are made with similar companies. Based on a comprehensive analysis, a realistic assessment of the business is given.

Valuation methodology for IFRS

IFRS inventory valuation and fixed assets is carried out using three traditional approaches:

Cost approach - relative to IFRS, the most important is the value of property (the totality of tangible and intangible assets);

Income approach - the basis is the income that the enterprise can bring in the future;

• Comparative approach - the basis for determining value is the opinion of the open market, which is expressed in previously completed purchase and sale transactions of similar enterprises or shares in them.

Valuation for IFRScarried out in the following order:

Our company’s specialists carry out procedures for compiling and analyzing lists of enterprise assets that are subject to assessment;

Grouping of homogeneous objects of assessment;

Classification to select suitable cost standards and methods according to the requirements of MPO-1;

Inspection of objects and collection of necessary information to identify and describe objects;

Collection of necessary information about the market and analysis of the market to which the objects of assessment belong;

Carrying out assessment calculations;

Preparation of a report on assessment for IFRS.

Our company offers you to quickly and efficiently carry out all work to evaluate the company’s assets, in accordance with the high requirements of IFRS standards. You can trust specialists - you get the best in a short time.