Consolidated financial statements

To disclose the financial condition of the organization in dynamics, in order to attract investors and enter the international level, consolidated financial statements (CFS) are provided.

The CFS indicators include systematized information reflecting the results of joint activities and financial situation of a group of companies in accordance with International Financial Reporting Standards / IFRS (cl. 2, art. 1 of the Law dated July 27, 2010 No. 208-FZ).

CFS compilers

As opposed to individual financial statements, consolidated statements are intended to reflect information in relation to several interrelated organizations operating as a single economic unit. The list of legal entities required to provide consolidated reports, in accordance with par.1.2 of Art. 2 of Law No. 208-FZ, includes:

• clearing, credit institutions and insurance companies (except for those operating in the field of compulsory medical insurance);
• non-state pension and investment funds, including their holding companies;
• Joint-stock companies and unitary state-owned enterprises according to the approved government lists;
• companies with securities admitted to organized trading;
• other business entities if there are requirements in legislative acts or constituent documents.

The compilers are holdings and concerns that have subsidiaries, including those abroad. The report contains reliable information about the interrelated group and informs about the interaction between the holding and controlled entities.

Submission and disclosure of information

CFS is provided to shareholders or owners of property assets as prescribed by regulations or constituent documents, as well as to the Central Bank (except for joint-stock companies and unitary enterprises of the non-banking sector) after an audit (Article 4.5 of the Law No. 208-FZ). Reporting deadlines:

• annual - 120 days after the end of the year;
• interrim - 60 days after the end of the reporting period.

Mandatory condition: disclosure of CFS by posting in information systems or publication in the media accessible to all interested users, regardless of the purpose of obtaining information. The placement period is 30 days from the end of the submission period.

Penalties

Officials are brought to administrative responsibility in case of failure to submit reports or revealing misrepresentation of figures (Art. 15.15.6 of the Code of Administrative Offenses of the Russian Federation). Depending on the type and size, penalties from 1,000 RUB are applied for a primary minor violation, for example, for a deviation of any of the figures from 1% to 10% within 100,000 RUB, and up to 50,000 RUB for a repeated gross violation, such as fictitious data in accounting or refusal of audit.

Analysis of financial stability

For owners and investors, the economic stability of the group, which is able to maintain balance in the face of changes in the external and internal environment, is important. In order to check the solvency, the following should be assessed:

• the possibility of timely repayment of obligations;
• the level of provision of reserves and costs with sources of financing;
• availability of hard-to-sell and highly liquid assets;
• debt to equity ratio.

When analyzing the consolidated financial statements, it is necessary to exclude settlement transactions within the group that lead to the distortion of the resulting figures. Proper assessment of counterparties will help in choosing reliable business contacts.