The use of different national statutory accounting standards and legal acts makes the comparison of opportunities and financial decisions more difficult and costly for the potential investor or user of the financial statements. Differences in accounting standards between IFRS and the Belarusian statutory accounting principles also impose additional costs on companies that must prepare financial information based on multiple reporting models in order to raise capital in different markets. The differences also create potential confusion as to which are the real numbers. The gradual transition to IFRS under the guidance of the Council of Ministers and future adoption of new laws on the preparation of consolidated financial statements in accordance with IFRS are extremely important steps for the development of accounting in Belarus and for global convergence of accounting principles.
Pursuant to the draft accounting law, socially important companies will be required to prepare statutory and IFRS finance reports in Belarusian rubles effective from 2013. The Belarusian ruble will be the reporting currency and IFRS reports would then be subject to obligatory audit. In addition to banks, the list of such companies will also include public joint-stock companies, insurance companies, professional participants in the securities’ market and stock exchanges.
Doing Business in Belarus • Companies 49