Importance The main disadvantage of IFRS is in subjectivity of estimates of assets and liabilities. Methods of financial analysis, and especially the permissible values of key indicators are determined in relation to financial statements generated under IFRS. However, in our country, these indicators for various purposes, including bankruptcy proceedings, are determined based on financial statements prepared under Russian Accounting Standards. The findings show that restatement of financial statements does not change conclusions about financial condition of the organization. Further investigation reveals the validity of these conclusions. Objectives We use the data of Russian companies preparing their IFRS-based financial statements on the basis of transformation of their RAS-based financial statements to find the extent of difference in figures characterizing the financial standing of these companies under the said reporting formats. Methods The study draws on general scientific methods, like systems approach, logical generalization, analysis, synthesis and hypothesis. Results In the presence of material differences in financial indicators, the results of ratio analysis of financial statements prepared under RAS and IFRS enable to make the same conclusions about the financial standing. Conclusions and Relevance The findings help focus on improving the criteria for evaluating the financial condition of domestic companies for various purposes, regardless of International Financial Reporting Standards.
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