IFRS - International Financial Reporting Standards is a set of documents that regulates the rules for compiling financial reporting enterprises. Businesses wishing to sell their shares publicly on the stock market must publish their financial statements. This was done so that potential investors could objectively assess the economic situation of the company. The form of financial statements due to IFRS is unified and easy to understand, and the information that is reflected in it is sufficient for an objective assessment. Thanks to financial reports, investors can assess the economic prospects of the company and make an appropriate decision whether to invest their money in shares or not.

As I already wrote in the article, portfolio strategy involves the selection of shares of those companies that meet the investor's selection criteria. Everyone has their own specific approach to stock valuation. It is the effectiveness of these criteria that is the key to the success of the investor.

What do you pay attention to when choosing stocks:

1. Profitability and risk from price fluctuations based on historical data.
2. Correlation (unidirectionality) of quotes dynamics with other securities and indices.
3. The financial position of the company.
4. The financial condition of the industry and the country's economy.
5. Data of technical and price analysis of the value of a security.

Of course, this is not a complete list of what is important to consider when choosing an investment object. Some investors conduct a thorough analysis of all the above points and are not limited to this. Others place great emphasis on only a few of them. For example, Warren Buffett does not attach any importance to fluctuations in stock prices, does not apply technical analysis graphs and does not look for any correlations. As he puts it: “I never solve equations with Greek letters” (correlations are defined through the so-called coefficients α and β). But he closely delves into the financial and annual reports of companies, and not for the last year, but at least for the last 10 years.

IN financial statements contains all the most valuable information about the company's activities. An enterprise can have beautiful signs on the facade and at the same time be deeply in debt. And vice versa, behind an unremarkable name, a very strong company from an economic point of view can be hidden. In financial statements, all this pops up.

In our country, two forms of financial reporting under IFRS and RAS have been adopted ( Russian Standards accounting). In general, there are slight differences between them, but investors more often use IFRS reporting. I suggest you take a look at it.

Financial reports are published quarterly and at the end of the year. As a rule, for comparison, they provide data not only for the reporting period, but also for the same past period. For example, a report for 2016 will also contain data for 2015.

An IFRS financial statement consists of three main parts:

1. Gains and losses report. It reflects all the company's income and expenses, tax payments, income that can be taken into account in future reports, etc. during the reporting period. More in the article.
   
2. Report on financial position . It consists of three sections: assets, liabilities and equity. Assets are everything that a company has - equipment, stocks of finished products and raw materials, cash, buildings, licenses, patents. Liabilities are the company's debts. Capital is own funds, that is, what remains of the difference between assets and liabilities. For example, if the company's assets (factories, equipment, finished products in warehouses) are estimated at 100 million rubles, and its liabilities (in the form of loans) amount to 30 million rubles, then the capital of the company will be 70 million rubles. The statement of financial position is always prepared on a specific date, such as 31 December. More in the article.
   
3. Cash flow statement. This is a kind of cash desk of the company. It shows how much money the company received during the reporting period, how much of it was spent and for what purposes. This report makes it harder for accountants to falsify data. More in the article.
   

The financial report also includes Statement of changes in equity. It discloses information about changes in capital during the reporting period, transactions with own shares, dividends, etc. Many positions of the report are accompanied by comments, which can contain very useful information. Some companies may use various tricks to disguise figures that are undesirable for public viewing, such as depreciation of fixed assets. These data are disclosed not in the main report, but in the comments. The report is accompanied by an opinion of an independent auditor, confirming the accuracy of the given figures.

OAO "Arsenal" (example)

as of 01.01.2013

The purpose of the analysis of financial statements prepared in accordance with IFRS is to obtain key characteristics of the financial condition and financial results of the company in order to form an adequate assessment of the achieved level of business performance, identify and quantify the impact of external and internal factors, as well as substantiate current and strategic business plans .

1. REPORTING. The overall assessment of the financial position of the enterprise is carried out using a system of special coefficients. Most financial ratios are calculated from the data of two main reporting forms - the balance sheet and the income statement.

Company balance

Article name	01.01.2013			01.01.2012
ASSETS
Current assets (working capital) - Current assets
Cash and cash equivalents – cash assets		368828			104238
Short term investments - Marketable Securities		8231			152612
Accounts receivable - Accounts Receivable	426937			340691
Amendment for doubtful debts – Provision/allowance for bad/doubtful debts	0			0
		426937			340691
Stocks - Inventories/Stocks Raw materials and materials - Raw Materials	152197			138649
Unfinished production - work-in-process	355126			323513
Goods fit for sale - Goods available for sale	0			0
Finished products - Finished goods	507323			462162
Selling costs - Selling expenses	0			0
		1014646			924324
Prepaid expenses - Prepaid Expenses		14580			7219
			1833222			1529084
Non-current (non-current) assets - non-current assets
Long-term investments - Long term investments		355593			148001
Fixed assets - Property, plant & equipment	893354			880194
Accrued depreciation - Depreciation	607168			565603
		286186			314591
Intangible assets - Intangible Assets	63939			5877
Accrued depreciation - Depreciation	58863			0
		5076			5877
Deferred tax assets - Deferred tax assets		11323			29078
Other debtors - other debtors		0			0
			658178			497547
			2491400			2026631
LIABILITIES
Current responsibility - Current Liabilities
Accrued liabilities – Accrued Liabilities
Bills and bills payable - Accounts & notes payable		907014			349607
Debt under wages – Wages and salaries payable	0			321706
Tax arrears - Taxes payable	0			138300
Dividend payable - dividend payable	6254			5371
Estimated reserves – Provisions		56550			28682
		62804			494059
Revenue of the future periods - Defended (unearned) revenues		2289			1692
Current portion of long-term debt – current portion of long-term debt		0			289370
			972107			1134728
Long term duties - Long term liabilities
Long-term loans - long-term debt		0			0
Deferred tax liabilities – Deferred tax liabilities		20933			20170
			20933			20170
			993040			1154898
OWNERS' EQUITY
Invested capital - Contributed capital		48156			46754
Accumulated undistributed net income – retained earnings		839853			242903
Other accumulated comprehensive income – Other accumulated comprehensive income		610351			582076
			1498360			871733
			2491400			2026631

Profit statement based on the classification of expenses by function

Index	for 2012		for 2011
Revenues from sales - Net sales		8207745		6263775
Cost of sold products (works, services) – Cost of sales	3392146		2667088
Gross profit - Gross margin		4815599		3596687
Other operating income - Other operating income	157072		131161
Selling costs - Selling expenses	3877503		3513105
Administrative expenses - administrative expenses	150570		137796
Other operating expenses	181210		195239
Profit from operations -		763388		-118292
Financial expenses - financial costs	28206		19022
Dividends & interest income	24510		16064
Profit before tax -		759692		-121250
Tax expenses - tax expense	126578		29791
		633114		-151041
Extraordinary articles - Extraordinary items
Net income for the period - Net Income		633114		-151041

Profit statement based on classification of expenses by entity

Index	for 2012		for 2011
Revenues from sales - Net sales		8207745		6263775
Other operating income - Other operating income	157072		131161
Changes in inventories of finished goods and work in progress – Change in stocks of finished goods & in work in progress	76774		0
The cost of raw materials and materials - Costs of raw materisls & supplies	6789891		6317989
Staff costs - Wages & salaries	589933
Depreciation expenses - Depreciation	117169
Expenses for the purchase of finished products - Purchases of goods for sale	0
Other operating expenses - Other operating expenses	181210		195239
Profit from operating activities – Profit or loss from ordinary activities		763388		-118292
Financial expenses - financial costs	28206		19022
Income from dividends and interest - Dividends & interest income	24510		16064
Profit before tax - Income before income taxes & extraordinary loss		759692		-121250
Tax and similar payments - Taxes & similar payments	126578		29791
Profit after tax - Income before extraordinary loss		633114		-151041
Extraordinary articles - Extraordinary items
Net income for the period - Net Income		633114		-151041

2. STRUCTURAL ANALYSIS. One of the important signs of the degree of efficiency of the enterprise for a certain period is the economic structure of the revenue that comes from customers. Vertical analysis is also carried out according to the balance sheet to assess the structural dynamics of the company's assets and sources of their formation.

Vertical revenue analysis

Indicators	Revenue structure in percent for the reporting year	Revenue structure in percent for the last
Revenues from sales	100	100
Cost of goods sold (works, services)	41.33	42.58
Gross profit	58.67	57.42
Other operating income	1.91	2.09
Selling expenses	47.24	56.09
Administrative expenses	1.83	2.2
Other operating expenses	2.21	3.12
Profit from operations	9.3	-1.89
Financial expenses	0.34	0.3
Income from dividends and interest	0.3	0.26
Profit before tax	9.26	-1.94
Tax expenses	1.54	0.48
Profit after tax	7.71	-2.41
Extraordinary Articles
Net income for the period	7.71	-2.41

Share growth net profit in the company's revenue was associated with:

cost reduction

lower sales costs

lower administrative costs

reduction in other operating expenses

growth in income from dividends and interest

Diagram of structural changes in the income statement

01/01/2012	01/01/2013

Structured balance sheet

Balance indicators	01.01.2013	01.01.2012
ASSETS
Current assets
1. Cash and cash equivalents	14.8	5.14
2. Short term investments	0.33	7.53
3. Accounts receivable	17.14	16.81
	40.73	45.61
4.1. Raw materials	6.11	6.84
4.2. Unfinished production	14.25	15.96
4.3. Goods fit for sale	0	0
4.4. Finished products	20.36	22.8
4.5. Selling expenses	0	0
5. Prepaid expenses	0.59	0.36
6. Total current assets	73.58	75.45
Non-current assets
7. Long term investment	14.27	7.3
8. Fixed assets	11.49	15.52
9. Intangible assets	0.2	0.29
10. Deferred tax assets	0.45	1.43
11. Other debtors	0	0
12. Total non-current assets	26.42	24.55
13. Total assets	100	100
FINANCIAL LIABILITIES AND EQUITY OF OWNERS
Current short-term financial liabilities
14. Bills and bills payable	36.41	17.25
15. Accrued liabilities	2.52	24.38
15.1. Wage arrears	0	15.87
15.2. Tax debt	0	6.82
15.3. Debt on dividends	0.25	0.27
15.4. Estimated reserves	2.27	1.42
16. Deferred income	0.09	0.08
17. Current portion of long-term debt	0	14.28
18. Total short-term financial liabilities	39.02	55.99
Long-term financial liabilities
19. Long term loans	0	0
20. Deferred tax liabilities	0.84	1
21. Total Long-Term Financial Liabilities	0.84	1
22. Total financial liabilities	39.86	56.99
Owner's capital
23. Invested capital	1.93	2.31
24. Accumulated retained earnings	33.71	11.99
25. Other accumulated comprehensive income	24.5	28.72
26. Total capital of owners	60.14	43.01
27. Total financial liabilities and equity of owners	100	100

The vertical analysis of the balance sheet makes it possible to conclude that the sources of financing of the enterprise's assets have changed and that the structure of investments in various types of property has been preserved.

During the analyzed period, the company increased the total book value of its assets by 464,769 thousand rubles. , or by 22.93%.

This increase was due to the increase in investments in long-term types of property, which should have a positive impact on the production potential of the enterprise.

We can talk about the improvement of the financial condition of the enterprise for the reporting year, since the change in property by 134.83% was provided by own sources.

Factors of increase in the assets of the enterprise

Indicators	The value of the increase in assets	Specific gravity participation
1. Total change in the carrying value of assets	464769	100
including through sources
2. Short-term financial liabilities	-162621	-34.99
3. Long-term financial obligations	763	0.16
4. Equity	626627	134.83

Priority financing of property at the expense of own capital provides the enterprise with greater independence from creditors. At the same time, it should be borne in mind that in cases of cheap credit resources, with a low interest rate of loan capital and a high turnover rate of funds, it is beneficial for enterprises to attract significant borrowed funds into their turnover and effectively use a large financial leverage.

Diagram of structural changes in the Balance

01/01/2013	01/01/2012
asset structure
liability structure

3. LIQUIDITY ASSESSMENT. Liquidity means having sufficient funds to pay creditors' bills on time and to pay for unexpected expenses when they are presented.

liquidity ratio

Name of indicator	01.01.2013	01.01.2012
Initial data for analysis
Current assets - Current assets (CA)	1833222	1529084
Current liabilities - Current liabilities (CL)	972107	1134728
Cash - CASH	368828	104238
Short-term investments in securities - Short-term marketable securities (STMS)	8231	152612
Accounts Receivable - Receivables (R)	426937	340691
Implementation - Sales (S)	8207745	0
Cost of goods sold - Cost of sales (CS)	3392146	0
Accounts receivable (AR)	383814
Materials inventory (MI)	145423
Liquidity ratios
Quota working capital – Current ratio (CR=CA:CL)	1.89	1.35
Quick liquidity ratio - Quick ratio/acid-test ratio (QR=(CASH+STMS+R):CL	0.83	0.53
Cash liquidity ratio - Cash ratio (CASHR=CASH:CL)	0.38	0.09
Working capital - Working capital (WC=CA-CL)	861115	394356
Turnover ratio according to calculations - Receivable turnover (RT=S:AR)	21.38	x
Turnover ratio inventories – Inventory turnover (IT=CS:MI)	23.33	x

One of the most important economic characteristics operational financial condition of the enterprise is the value of "working capital". This indicator reflects the amount of financing of current assets with the own capital of the owners of the enterprise. The relative security of the enterprise with "working capital" is measured using the indicator "quota of working capital"

As of the end of the reporting year, "working capital" is equal to 861,115 thousand rubles. At the same time, the working capital quota amounted to 1.89

The quick liquidity ratio is a more conservative (compared to the working capital quota) measure of liquidity when current assets the least liquid items (stocks and prepaid expenses) are excluded. On the date of the analyzed balance sheet, the enterprise had 83 kopecks of mobile payment means for 1 ruble of debts to pay them.

The cash liquidity ratio shows how the company's current liabilities are covered by the most liquid asset - cash. This is the most stringent criterion for the liquidity of an organization. At the enterprise, 38% of short-term debt obligations can be immediately repaid at the expense of cash.

The turnover ratio according to calculations characterizes the size accounts receivable and the effectiveness of the firm's credit policy. For an enterprise, this coefficient shows that, on average, the funds in the calculations turned around 21.38 times. This means that the company had to wait about 16.84 days to repay the commercial loan.

The Inventory Turnover indicates the relative size of inventories. The smaller the size of the inventory and the faster they turn around, the less money the company has dead in them. An increase in inventories may mean that some factor prevents the sale of products. The inventory turnover ratio for the enterprise amounted to 23.33.

4. PROFITABILITY (profitability) - the ability to obtain an acceptable level of profit. Profitability ratios are used to assess the effectiveness of the economic activity of the enterprise.

Summary table of profitability ratios

Name of indicator	for 2012	for 2011
Return on assets (return on assets)	0.28	x
Return on sales / profit margin (return on sale/net profit margin)	0.08	-0.02
Asset turnover ratio (Asset turnover)	3.63	x
Return on equity of the owner (Return of equity)	0.53	x
Return on total investment in the enterprise (Return on investment)	0.55	x
Leverage	-0	x

Return on assets is the most commonly used measure of a company's profitability. The indicator is calculated as the ratio of net profit to the average annual value of assets (ROA=NP:TAavrg).

For every ruble invested in assets, an enterprise in reporting period received 28 kopecks. profits, which indicates the ability to generate profits and the efficiency of the use of funds.

Return on sale/net profit margin shows how much net profit is contained in each dollar (or other monetary unit) of sales (ROS=NP:S). Even a difference of 1-2% can mean the difference between a normal and a very profitable year.

Net profit per ruble of sales increased by 10 kopecks, which indicates an increase in the efficiency of core activities.

Asset turnover ratio determines how effectively assets are used to increase sales (AT=S:TAavrg). In the reporting period, in order to receive revenue in the amount of 8207745 rubles, the assets had to turn around 3.63 times.

Return of equity characterizes the level of income derived from the capital invested by the owners in this enterprise (ROE=NP:Eavrg).

For the enterprise, the return on equity of the owner is 53%. The company's savings amounted to 53 kopecks. for one ruble of own investments. This is a fairly high return value.

The return on investment is designed to reflect the return on investment made in the company's assets (ROI=NOPAT:(EQ+LTD)). According to the Balance and Profit Statement, this ratio is set at 55%.

The value of the return on investment in assets indicates that in the analyzed year 55 kopecks were received. income from each ruble of all investments (both own and borrowed) made in this enterprise.

Leverage is the difference between the return on equity and total investment in the company's assets. At the analyzed enterprise, the leverage is -2%. Thus, the increase in the profitability of the capital of the owners of the enterprise due to the attraction of borrowed resources of creditors into circulation is -2%.

5. Solvency (financial responsibility) - the ability of the enterprise to repay its financial obligations.

Summary table of indicators of long-term solvency

Name of indicator	for 2012	for 2011
The ratio of debt to equity (Debt to equity ratio)	0.66	1.32
Interest coverage ratio on loans (Time interest earned/Interest coverage ratio)	23.45	-6.94
Debt ratio	0.4	0.57

Debt to equity ratio shows the ratio of attracted resources and equity capital (DTER=L:E).

This ratio decreased from 1.32 to 0.66.

Interest coverage ratio is one of the indicators of the degree of protection of creditors from unscrupulous payers (TIE=EBIT:INT).

The security of interest on loans has increased, which is explained by the increase in the amount of net profit earned by the enterprise.

The debt ratio (Debt ratio) shows the share of assets that are financed by borrowed funds, and reflects the degree of protection of creditors (DR=L:TA).

The share of debt capital in financing the company's assets decreased from 57% at the beginning of the year to 40% at the end of the year.

At the beginning, we see a revenue of only 370 million rubles, and at the end, a profit of almost 30 billion rubles. This profit did not come from a void. Interest receivable was added - 13 billion rubles. They have nothing to do with the main activity, but they affect profit. Therefore, it often happens that profit is greater than revenue, although it looks strange. Knowing the specifics of Magnit's business, we are well aware that its revenue should be much higher than profit.

The thing is that Magnit is not just one public company, but a group of companies. And each company in this holding can have its own type of activity. In the RAS report, we will see the revenue directly from the activities of the company that we are considering. In our case, this is "Rent and management of real estate." This is also evidenced by the indicator in the column "Income from participation in other organizations" - 24 billion rubles. Who brought this profit? Just other holding companies.

Now let's see how this problem is solved in IFRS reporting.

We download the IFRS report from the site of the same Magnit and open the first page:

We turn to page 9 and see this:

This is a complete list of companies belonging to the Magnit group. Among them there is, for example, Tander, whose main activity is retail trade. All of them brought the hidden profit and revenue that we see in the RAS report.

The IFRS report provides us with already consolidated data. Here, for example, the revenue of the Magnit group of companies is already more than 1 trillion rubles.

This is a very good example to understand the difference between RAS and IFRS.

The entry into force in the territory of the Russian Federation from the date of their official publication of the International Financial Reporting Standards (IFRS) and their Interpretations actualizes the need for an appropriate transformation of the content and sequence of the analysis of accounting (financial) statements (hereinafter referred to as financial statements).

At the same time, however, taking as a basis foreign approaches to the analysis of financial statements prepared in accordance with IFRS (IFRS statements), which have been repeatedly tested in practice, an organization (enterprise, firm, company, economic entity) should not completely abandon domestic experience in areas of analysis of financial statements.

Main approaches to the analysis of IFRS statements

We systematize the points of view of the most authoritative foreign researchers in the field of analyzing the IFRS reporting of an organization and briefly dwell on the content and procedure for the latter, highlighting two consecutive and interrelated stages in it:

• interpretation of financial statements;
• settlement analysis of financial statements.

Interpretation of financial statements

The interpretation of financial statements contributes to the understanding of the real economic situation of the organization, making the information contained in its financial statements really valuable and useful for decision making. Its purpose is to reveal and analyze the main components accounting policy, leading to the reflection in the published statements of results that differ from the realities of the economic situation in the company, and as a result - the purification of the published financial statements from the effect caused by the application of the methods of such accounting policies.

In the course of interpreting the financial statements of an organization, the influence on it of such significant factors as industry-specific features of the organization's economic activities, business strategy and accounting policies, methods and methods of managing financial statements, the quality of information disclosure in them, as well as the nature of the relationship between enterprises that make up the corporate group.

Analysis of the impact of industry specifics An organization's business performance (industry analysis) is concerned with comparing a company's performance against a certain benchmark to determine whether the business is actually liquid, whether it generates sufficient income, and whether it is worth investing in. In addition to examining the impact of a firm's strategy and business environment on the content of financial statements, industry analysis also provides financial analysts and other users of financial statements, an extensive comparative base, allows you to develop a kind of benchmark indicators of the organization's performance against which you can compare the current performance, financial condition and investment potential of real companies.

Business strategy analysis organization involves the study of its individual components, as well as the structure of the value chain ( scientific research and development, product design, service or process organization, production, marketing, sales and customer service organization) because this structure determines the ability of the organization to develop further or maintain production at the achieved level based on a strategy of price leadership or differentiation.

Target accounting policy analysis, often referred to in foreign literary sources as an accounting strategy, is to get an idea about it, which will make it easier for an external user of financial statements to understand the actual results of the organization's economic activities and allow him to form a more reliable opinion about them.

In the specialized literature on the development of accounting policies, two types of technologies for managing the financial statements of an organization are distinguished: management of the profit and loss statement (also called profit management) and management of the balance sheet structure. In addition, there are two models of profit management. Firstly, it is possible to influence the financial results for any year in a certain direction (decrease or increase), and secondly, profit management can take the form of income equalization. The purpose of income equalization is to reduce the degree of volatility in accounting profit indicators. It should also be noted that the effect of using profit management methods allows you to indirectly influence certain balance sheet items. However, while the need to manage financial statement performance may arise from a variety of factors, the same accounting policies may be applied under different factors.

1. the choice of accounting methods (for example, the choice of depreciation method, the choice of method for valuing inventories, and the choice of whether or not to attribute certain costs to equity);
2. choice accounting estimates(for example, changing the amount of allowances for bad debts, including part of the costs arising from underutilization of production capacity in the cost of production, instead of taking them to the profit and loss account, using reserves for the purpose of equalization, as well as a one-time increase or decrease in financial result);
3. making real operational, investment and financial decisions (for example, postponing the accounting of business transactions, choosing a specific type of transaction from several alternative options).

Quality of disclosure is one of the most important characteristics by which to compare various organizations, which includes a number of aspects: a description of accounting methods and accounting estimates, an explanation of significant changes in accounting and the level of information disclosure. An analysis of the quality of disclosures in an entity's financial statements about its business activities examines the extent to which such disclosures comply with Generally Accepted Principles. accounting(GAAP) IFRS.

In the course of analyzing the impact on the financial statements of the nature of the relationship between the enterprises that make up the corporate group, we study the reality of these relationships and the way they are reflected in the consolidated financial statements of the corporate group, since sometimes accounting is carried out in a manner that does not correspond to the nature of the relationship between the companies of the group. When performing the analysis, it is also necessary to determine whether all related companies were included in the consolidated financial statements of the corporate group and whether the appropriate accounting methods (consolidation, equity or cost accounting) were used, depending on the nature of the relationship.

Estimated analysis of the organization's financial statements

Completion of the interpretation of the financial statements of the organization allows you to move on to the second stage of its analysis.

As part of the calculation analysis of the financial statements of the organization, two components can be distinguished:

• identification of potential factors that impede the process of comparing financial statements;
• carrying out calculations and evaluation of the results.

Changes in the timing of the financial year, different reporting dates, changes in the structure of the company, changes in the accounting method and changes in accounting estimates, changes in the applicable GAAP system and differences in presentation of information are considered as potential factors that make it difficult to compare financial statements.

Companies may decide to change the time frame of a particular year for several reasons. In particular, this practice is observed when the company incurs large losses. In this case, the company's management can increase the financial year from 12 to 15 months, while changing the reporting date. As a result, a large loss is offset by 15 months of profit rather than 12. Companies can also set a very short financial year, when especially large losses and restructuring costs are taken into account.

Companies prepare financial statements for different reporting dates. Differences are observed even within the same industry. For example, various companies in the air transport industry close their accounts on one of the following dates: March 31 - British Airways, KLM, Ryanair; September 31 - EasyJet; December 31 - Australian Airlines, Lufthansa, SAS.

In the course of their development, companies merge with other companies, acquire other companies or their shares, carry out restructuring, as a result of which divisions are separated into new, legally separate enterprises. The growth of a company when it participates in a merger or expands through acquisitions is usually not the result of its natural development, but rather is associated with new acquisitions. Such changes in the structure of the company greatly complicate the analysis of the trend. Sometimes one may get the impression that after the restructuring the position of the company has improved, but in reality this may not be the case, just certain activities have been separated into separate firms.

The standards of all GAAP systems are developed on the basis of the principle of consistency, which obliges entities to apply the same accounting policies from period to period. The consistency principle improves the comparability of financial statements for different periods. However, in practice, there are often changes in the accounting method and changes in accounting estimates, and the user of financial statements must take them into account.

Over time, a company may not only change accounting methods or accounting estimates, but may also change from one accounting system or standards to another accounting system. Such a one-time change can have a strong impact on financial results and balance sheet indicators and not only complicates the procedure for comparing company data over a longer time period, but also makes the results of comparing company indicators less obvious.

Two points can be made regarding the differences in the presentation of information. The first concerns the content of the articles used in the annual accounts. For example, in the reporting of many airlines there are such items as operating profit (British Airways, Ryanair), operating income (KLM, SAS) or operating result (Australian Airlines, Lufthansa). They seem to sound the same, but their economic content is quite different. The second point relates to different ways of presenting and arranging information. The fact is that in practice, different companies often use different formats, rather than standardized forms of financial statements (in particular, the balance sheet and income statement), which complicates the comparison process. However, some GAAP systems establish minimum financial reporting format requirements that entities must comply with.

Making calculations based on financial statements and evaluating the results obtained include the following procedures:

• analysis of the development trend (trend);
• percentage analysis;
• segment analysis;
• analysis based on financial ratios ;
• cash flow analysis.

In trend analysis, or trend analysis, we study how financial statements change over time. Such an analysis is recommended to be carried out on the basis of data for five years, although longer periods, such as ten years, can theoretically be considered. However, with an increase in the time period under consideration, the number of elements that make comparison difficult also increases.

If in the course of trend analysis the current results of an organization are compared with its own indicators for previous periods, then in the percentage analysis, the comparative base is formed by the indicators of other organizations, usually from the same industry. In order to make comparisons with other companies, the discrepancy in the size of the companies must be eliminated. For this, the values ​​of the income statement are expressed as a percentage of sales, and the balance sheet indicators are expressed as a percentage of the sum of all assets. The balance sheets, converted for the purposes of percentage analysis, allow us, on the one hand, to compare the financing structure of various companies, and, on the other hand, the directions for investing these resources. Percentage analysis based on the income statement makes sense only if the individual items of this report are comparable.

Analysis of information on the segments included in the financial statements helps to increase the information content of the results of the assessment of operating costs in the course of percentage analysis. An analysis of the segment information disclosed by a company sheds light on the group's corporate strategy and makes it possible to evaluate the significance of its individual segments.

Analysis based on financial ratios allows you to examine in sufficient detail the financial condition, performance and investment potential of the organization and includes the following main elements:

• assessment of the organization's ability to independently fulfill its obligations and repay its debts using solvency, liquidity and financial stability ratios;
• determining how successful a business is, whether it generates sufficient income through the application of return on assets, equity and working capital ratios;
• assessment of the effectiveness of the economic activity of the organization (in our understanding - the intensity of the use of resources) using the turnover ratios of its assets in general and their various types in particular;
• assessment of the attractiveness of a given organization for potential investors using coefficients that characterize its position in the securities market.

At the same time, it should be borne in mind that before proceeding with the analysis based on financial ratios, it is necessary to clear the financial statements from elements that reduce the degree of their comparability.

Along with a single-factor analysis of financial ratios, which involves the calculation and comparative assessment of each ratio separately, followed by generalization, which allows us to formulate a qualified opinion on the company's financial position, a multi-factor analysis is also used, which is based on a certain combination of certain ratios, the value of which is weighted using special multipliers. . As a result, a quantitative index is calculated, analyzed in dynamics, in comparison with the indicators of other companies or industry average data.

Multivariate analysis is widely used to predict the probability of bankruptcy of companies (for example, the Altman and Taffler models). However, the possibilities of using such models in practice are often limited by the territory of the region for which information on economic activity was collected. commercial organizations underlying these assessment methods.

Analysis of cash flows (cash flows) allows you to judge the company's ability to ensure the excess of cash receipts over payments. The information base of the analysis is the cash flow statement, which consists of three sections, which include information on cash flows by operating, investment and financial activities.

The cash flow analysis assesses the company's ability to generate cash from operating activities, as well as the sufficiency of internal revenues to finance its investment activity, which is connected with the consideration of the need to attract external borrowed funds or increase equity capital. The ratio of cash flows from various activities is determined by the financial condition of the company.

Thus, having considered the problem of improving the analysis of IFRS reporting in the Russian Federation, the authors believe it is necessary to draw the following conclusions:

• the transition to IFRS leads to the need to make appropriate changes to the content and procedure for analyzing the financial statements of Russian organizations;
• when implementing these changes, it is necessary to take as a basis foreign experience in the analysis of IFRS reporting, which can be supplemented by relevant domestic developments that do not contradict it, which make it possible to increase the effectiveness of the analysis of financial results and financial condition of domestic organizations that have switched to IFRS.

Literature:

1. Order of the Ministry of Finance of Russia dated November 25, 2011 No. 160n “On the Enactment of International Financial Reporting Standards and Interpretations of International Financial Reporting Standards in the Russian Federation”.
2. International Financial Reporting Standards - 2012 / Full official text in Russian. M.: Askeri-ASSA, 2012. 998 p.
3. Alexander D., Britton A., Jorissen E. International financial reporting standards: from theory to practice / Per. from English. M.: Vershina, 2005. 888 p.
4. Kovalev V.V., Kovalev Vit.V. Balance analysis, or How to understand balance. 3rd ed., revised. and additional M.: Prospekt, 2014. 784 p.
5. Analysis of financial statements: Proc. allowance / Ed. O.V. Efimova, M.V. Melnik et al. M.: Omega-L, 2013. 388 p.
6. Ilysheva N.N., Krylov S.I. Analysis of financial statements: Textbook. M.: Finance and statistics, INFRA-M, 2011. 480 p.

Authors: N.I. Ilysheva, Doctor economic sciences, Professor, Head of the Department of Accounting, Analysis and Audit, Ural Federal University. the first President of Russia B.N. Yeltsin
S.I. Krylov, Doctor of Economics, Professor, Department of Accounting, Analysis and Audit, Ural Federal University. the first President of Russia B.N. Yeltsin

A feature of the formation of civilized market relations is the aggravation of competition, technological changes in production, volumetric information flow, continuous innovations in tax and accounting legislation. In modern conditions, accompanied by the implementation of various approaches to the implementation contemporary politics operational and strategic management, the use of International Financial Reporting Standards (hereinafter - IFRS) in the practice of accounting has a significant impact on the formation of financial information about the activities of the enterprise. The use of IFRS is due to the need to further expand the scale of business, attract investment in various areas of the national economy of the country.

The possibility of applying IFRS in Russia is provided for by the "Concept for the Development of Accounting and Reporting in the Russian Federation for the Medium Term", adopted by the Ministry of Finance of the Russian Federation on July 1, 2004. sequence of analysis of accounting (financial) statements (hereinafter referred to as financial statements).

However, based on practice-tested foreign approaches to the analysis of financial statements prepared in accordance with IFRS, organizations (enterprise, firm, company, economic entity) should also take into account domestic experience gained in the field of financial statement analysis.

Thus, in accordance with the IFRS Principles, the main purpose of financial statements is to provide information about the financial position, results of operations and changes in the financial position of the company.

IFRS 1 “Presentation of Financial Statements” (IAS 1 Presentation of Financial Statements), adopted in the new edition of 2003, establishes the basis for the presentation of general purpose financial statements in order to ensure their comparability both with the financial statements of the enterprise for previous periods, and with financial statements of other entities.This Standard sets out General requirements on the presentation of financial statements, recommendations on their structure and minimum requirements for their content. At the same time, the standard gives a definition of financial statements, while paying attention to the fact that these are statements designed to meet the needs of those users who are not able to receive statements prepared specifically to meet their special information needs.

The procedure for recording the cash flows of an enterprise is reflected in a separate standard, IFRS 7 “Cash flow statements” (“Cash flow statements”, 1992).

According to IFRS, the financial statements of companies include the following list of forms:

Balance sheet;

Gains and losses report;

Statement of changes in equity;

Cash flow statement;

Notes to the financial statements;

Representation of accounting policy.

In addition to the above financial reporting documents, the forms of which are presented in IFRS 1, the standard approves the provision of additional information in the form of financial and economic reviews of management that describe the characteristics of the company's financial and economic condition for a certain period, an assessment of factors affecting the level of business efficiency as a whole and its financial sustainability.

Careful study of the financial statements of the enterprise is the key to successful financial management of the enterprise, based on the application of analysis. Under the new conditions, financial analysis carried out at enterprises, being an integral part of financial management and audit, is of paramount importance for a wide range of users-owners, managers, investors, analysts and creditors.

It should be recalled that the purpose analysis of financial statements in accordance with IFRS is to obtain key characteristics of the financial condition and financial results of the company in order to form an adequate assessment of the achieved level of business performance, identify and quantify the impact of external and internal factors, as well as substantiate current and strategic business plans

The main objectives of the analysis of financial statements include the following:

Study of the composition and dynamics of the financial sources of the organization's activities, including equity and liabilities;

Objective, comprehensive assessment of the optimal structure of the liability of the balance sheet;

Studying the composition, structure and dynamics of the organization's property with an assessment of the quality of the company's assets;

Analysis of the level of liquidity of assets and solvency of the company;

Evaluation of the effectiveness of cash flow management;

Determining the possible threat of bankruptcy;

Assessment of the level and dynamics of business activity indicators;

Analysis of the composition, structure, dynamics of income, expenses and profits of the company;

Analysis of the level and dynamics of profitability indicators;

Evaluation of the effectiveness of the dividend policy and the use of net profit;

Substantiation of the investment policy for attracting (placement) of capital;

Identification and quantitative assessment of the influence of factors on business performance indicators;

Development of alternative options for optimal management decisions aimed at improving business efficiency.

Analysis of publications of Russian scientists devoted to this problem (M.I. Bakanova, S.B. Barngolts., L.A. Bernstein, A.D. Sheremet, M.V. Melnik, O.V. Efimova, V.V. Kovaleva and others) showed that the fulfillment of the tasks set for Russian accounting should be based on the use of financial statements prepared both in accordance with Russian rules and in accordance with IFRS. However, it should also be noted that there are excellent approaches to the reflection of information, which are primarily due to different fundamental differences in the formation of Russian and international regulatory framework, designed to regulate the procedure for the formation of financial reporting indicators in the accounting system.

Of course, one of the significant differences between IFRS and RAP is the historical difference in the ultimate uses of financial information. Thus, financial statements prepared in accordance with IFRS pursue the goal of satisfying information requirements owners of the organization and external users (investors, creditors, financial institutions, etc.). The Russian financial statements are formed essentially for the purposes of the controlling authorities. It is this fact that can explain the principles of formation of the accounting policy of Russian enterprises, the orientation of which is to meet the requirements normative documents accounting, and not the professional judgment of an accountant.

In this regard, we will consider the main approaches to the analysis of financial statements prepared in accordance with IFRS. To this end, we turn to the most famous foreign researchers in the field of analyzing the financial statements of an organization and determine the procedure for conducting financial analysis, highlighting two main stages in it:

1. Interpretation of financial statements;

2. Estimated analysis of financial statements.

It should be noted that FASB international standards (SFAC 5) define the term "interpretation" as "... clarify, explain or develop in detail accounting and reporting standards, supporting their application in accounting policies" . In the explanatory dictionary, the word "interpretation" is interpreted as "... interpretation, explanation, clarification of the meaning, meaning of something".

Indeed, when analyzing financial statements, their interpretation in many ways helps to assess the real economic situation of the organization, and making the information contained in the reporting really valuable and necessary for making competent management decisions. The purpose of financial statements is to disclose and analyze the main elements of the accounting policy, which may lead to the reflection in the published statements of results that may differ from the actual economic situation at the enterprise.

In addition, in connection with the interpretation of the financial statements of an organization, the impact on its activities of a number of significant factors can be assessed, including industry specifics of the organization's economic activities, business strategy and accounting policies, tools, methods and methods for managing financial statements, the quality of information disclosure in financial statements. , as well as the nature of the relationship between enterprises. Let us consider in more detail the essence of each type of analysis.

When analyzing the impact of industry specifics of activity organization (industry analysis) compares the results of the company with the established norm, in order to determine the liquidity of the enterprise. Also, industry analysis allows you to study the impact of the company's strategy and business environment factors on the content of financial statements. At the same time, this type of analysis provides financial analysts and other users of financial statements with a fairly extensive comparative base, helps the enterprise develop a kind of benchmark indicators of the organization's activities, against which the current performance, financial condition and investment potential of enterprises are compared.

When analyzing business strategy evaluation of individual positions this section, as well as research and development, product design, organization of services or processes, production, marketing, sales and customer service). The ability of the organization to develop in the future or maintain production at the achieved level depends on the combination of these components, based on the developed strategy of price leadership or differentiation of various kinds.

When analyzing the accounting policy of the organization, which in foreign literature is often called an accounting strategy, first of all, they find out the composition of its structure, content, methods, which largely allows external users of financial statements to receive information about the financial results of the enterprise.

The problem of managing the financial statements of an enterprise is quite relevant. So, in the practice of accounting, two types of technologies for managing the financial statements of an organization are distinguished:

Profit and loss account management, the so-called profit management;

Management of the structure of the balance sheet of the enterprise.

This is due to the fact that the financial results of the enterprise can be influenced in several ways. Firstly, when it is possible to significantly influence the financial results of the enterprise for a certain period in the direction of decrease or increase. Second, earnings can be affected by income equalization, the purpose of which is to reduce the degree of volatility in accounting earnings itself. The use of these methods allows the company to indirectly influence certain items of the balance sheet.

In order to manage financial statements, there are three methods (methods) used to manage the financial statements of an enterprise, among which the following can be distinguished:

Firstly, the choice of one of the accounting methods, in particular, the choice of the method of calculating depreciation, the method of estimating inventories, as well as the choice of attributing or not attributing certain expenses to equity, etc.

Secondly, the choice of accounting estimates, for example, changing the amount of allowances for bad debts, including part of the costs arising from underutilization of production capacity in production costs instead of attributing them to the profit and loss account, using reserves to adjust the financial result.

Thirdly, making a real decision regarding the operational, investment or financial decision, the choice alternative transactions from a set of transactions.

Of great importance for analytical purposes is the formation of high-quality financial information, which should be characterized by the necessary level of disclosure of reliability, should be neutral, should be prudent, analytical in order to make optimal management decisions. An equally important characteristic of financial statements is the quality of their disclosure. It is this characteristic that makes it possible to compare various enterprises in such areas as the development of accounting methods and accounting estimates, explanations for major changes in accounting and the level of their full disclosure. In the process of carrying out analytical procedures, the degree of disclosure of information can be simultaneously assessed in accordance with the principles and requirements of accounting and IFRS.

When analyzing influence on the financial statements of the nature of the relationship between the enterprises that make up the corporate group, the actual reality of these relationships and the procedure for their reflection in the consolidated financial statements of the corporate group are subjected to study. This is due to the fact that in some cases accounting may be contrary to the nature of the relationship between the companies of the group. In addition, the analysis requires determining the presence of all related companies in the consolidated financial statements of the corporate group and the application of appropriate accounting methods at the enterprise (consolidation, equity or cost accounting), depending on the existing nature of the connection.

Upon completion of the interpretation of the financial statements, the organization proceeds to the second stage of its analysis - the calculation analysis of the financial statements of the organization. In this case, two main directions should be distinguished:

• identification of potential factors that complicate the process of comparing financial statements;
• carrying out calculations and evaluation of the results.

Potential factors that make it difficult to compare financial statements include changes in the time limits of the financial year, different reporting dates, changes in the composition and structure of the company, changes in accounting methods, changes in accounting estimates, differences in the presentation of information. Let's look at this with an example.

1. In particular, enterprises may decide to change the time limits of a particular year for a number of reasons. For example, when an enterprise incurs large losses, and in this case, management can increase the financial year from 12 to 15 months, while changing the reporting date. As a result of this change, a large loss is offset by 15 months of profit instead of 12. In addition, enterprises can also set a very short financial year, when especially large losses and expenses associated with its restructuring will be finally taken into account.

2. Companies prepare financial statements for different reporting dates. Differences are observed even within the same industry. For example, various companies in the air transport industry close their accounts on one of the following dates: March 31 - British Airways, KLM, Ryanair; September 31 - EasyJet; December 31 - Australian Airlines, Lufthansa, SAS.

3. In the course of their activities, companies may merge with other companies, acquire their shares, and carry out restructuring, as a result of which divisions may be separated into new, legally separate enterprises. At the same time, the growth of a company during its merger or expansion is usually not the result of its natural development, but is associated only with new acquisitions. These changes in the activities of the enterprise significantly complicate the trend analysis. After the restructuring, the first impression may arise that the position of the company has even improved, although in reality this is not at all the case, just separate types of activities were separated into separate firms.

4. Not only can accounting methods or accounting estimates change in a company over time, but a company can also move from one accounting system or standards to another accounting system. At the same time, such a change can seriously affect financial results and balance sheet indicators, making it difficult not only to compare company data over a longer period of time, but also making the results of comparing company indicators less obvious.

5. Differences in the presentation of information can be explained by two points. First, with regard to the items used in the annual accounts. So, for example, in the reporting of many airlines there are such items as operating profit (British Airways, Ryanair), operating income (KLM, SAS) or operating result (Australian Airlines, Lufthansa). They seem to sound the same, but their economic content is quite different. Secondly, regarding the different ways of presenting and arranging information. In practice, different companies often use different formats, rather than standardized forms of financial statements (in particular, the balance sheet and income statement), which greatly complicates the process of their comparison.

Here is a list of the main procedures necessary for making calculations based on financial statements and evaluating the results:

• analysis of the development trend (trend);
• percentage analysis;
• segment analysis;
• analysis based on financial ratios;
• cash flow analysis.

1.When carrying out trend analysis, changes in financial statements over time are studied. Most often, this type of analysis is carried out for five years, although it can be carried out for longer periods, while the number of elements under study will increase accordingly.

2.When percentage analysis the comparative base is the indicators of other organizations, as a rule, of the same industry. In order to make comparisons with other companies, the discrepancy in the size of the companies must be eliminated. For this, the values ​​of the income statement are expressed as a percentage of sales, and the balance sheet indicators are expressed as a percentage of the sum of all assets. The balance sheets, converted for the purposes of percentage analysis, allow us, on the one hand, to compare the financing structure of various companies, and, on the other hand, the directions for investing these resources. Percentage analysis on the basis of the profit and loss statement is advisable to carry out only if the individual items of this report are comparable.

3. Analysis of information by segments allows you to increase the information content of the results of estimating operating costs in the course of percentage analysis. The information obtained in the course of segment analysis reveals information about the corporate strategy of a certain group of companies and allows you to assess the significance of its segments.

4. When analyzing based on financial ratios a detailed study of the financial condition, financial performance and investment potential of the organization is carried out. The analysis under consideration includes the following main elements:

• assessment of the organization's ability to independently fulfill its obligations and repay its debts using solvency, liquidity and financial stability ratios;
• assessing the possibility of doing business, in particular, determining whether it generates sufficient income through the application of return on assets, equity and working capital;
• assessment of the effectiveness of the economic activity of the organization (in our understanding - the intensity of the use of resources) using the turnover ratios of its assets in general and their various types in particular;
• assessment of the attractiveness of a given organization for potential investors using coefficients that characterize its position in the securities market.

When conducting a ratio-based analysis, both single-factor analysis is used, which involves the calculation and comparative assessment of each coefficient separately, followed by generalization, and multivariate analysis, which is used to predict the probability of bankruptcy of companies (Altman and Tuffler models).

5. Analysis of cash flows (cash flows) is carried out in order to determine the company's ability to ensure the excess of cash receipts over payments. The information base of the analysis is the cash flow statement, which includes three sections: information on cash flows for operating (current), investment and financial activities.

Thus, the analysis of the main approaches to the analysis of financial statements prepared in accordance with IFRS, methods and technologies used to manage the financial statements of an enterprise allows us to formulate the following conclusions:

• the process of transition of Russian accounting to IFRS makes it necessary to make appropriate changes to the content and procedures for analyzing the financial statements of Russian organizations;

• when managing financial statements, it is advisable to use accounting methods, accounting estimates and the ability to choose an alternative option for operations from their totality, defined by IFRS;

• when making changes, it is necessary to take as a basis foreign experience in the analysis of IFRS reporting, which can be supplemented by Russian experience in the field of analysis, which makes it possible to increase the efficiency of using analytical procedures for purposes.

In conclusion, it should be noted that the differences in the disclosure of financial statements by Russian rules and in accordance with IFRS, significantly affect the results of the analysis of financial statements, their management and evaluation of the effectiveness of enterprises. At the same time, the ongoing processes of improving the domestic system of accounting and financial reporting and its convergence with the International Financial Reporting Standards are aimed primarily at generating better information about the financial position and financial performance of business entities in the current competitive environment.