Small and medium-sized Russian businesses will complete the transition to international accounting standards (IASB standards) by 2011. As a Rosbalt correspondent reports, this was announced by Tseren Tserenov, the head of the Corporate Management Department of the Russian Ministry for Economic Development and Trade. He said that the Ministries of Economic Development and Trade and Finance had been instructed to prepare a plan for the transition to international accounting standards by April 1, 2003.
Mr Tserenov said that the Ministry for Economic Development and Trade was proposing a step-by-step transition to the new accounting system. The first phase will be completed between 2004 and 2006. During this time the transition will be made by large banks, companies and enterprises, whose shares are quoted on the stock exchange. This will include LUKoil, Gazprom and UES of Russia. During the second phase, which will cover the period from 2006 to 2010, the transition will be made by state unitary companies registered on the stock exchange. The third phase, said the ministry spokesman, anticipates the transition of all joint-stock companies to the international accounting system.
Mr Tserenov said that a national council would regulate compliance with the international standards. The council will include representatives of the government and large businesses. 'The transition to international accounting standards is essential in order to make the Russian economy transparent and therefore more attractive for foreign and domestic investment,' Mr Tserenov said.