Improving the Russian Regulatory Basis for International Financial Reporting Standards - based Qualitative Characteristics of Financial Information
Improving the Russian Regulatory Basis for International Financial Reporting Standards - based Qualitative Characteristics of Financial Information

Summary/Abstract: The goal of the study is to substantiate the system of qualitative characteristics of useful financial information as a basis for the reengineering of IFRS-based accounting standards in Russia. The research study has been undertaken using the comparative legal research method and the content analysis of the regulatory instruments that govern the conceptual framework of financial reporting internationally and, in particular, within the jurisdiction of the Russian Federation. The results consist in the substantiation of the system of qualitative characteristics of financial information for the Russian jurisdiction in the context of current trends in IFRS development. The system includes, among others: a certain set of properties and attributes of useful financial information; a hierarchy of qualitative characteristics based on the requirements and the level of competency of its users; special cases for certain properties and requirements, such as “prudence” and “the priority of substance over form” resulting from the low investment appeal of Russian businesses, as well as from the tight relationship between the accounting, civil and taxation laws. Scope of application: the research results produced in the paper can be used by the national regulator for designing and advancing the system of Russian standards for financial accounting and reporting. The suggested system of qualitative characteristics of financial information can become a robust platform for improving the direct measurements of the quality of financial reporting.

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