Forum of innovative
financial technologies

News

14 October 2016

New Accounting Procedures

Market participants and IT industry are all ready for transition to a new format of accounting, XBRL accounting system.

In the framework of the session that was devoted to unified account plans and modern format of XBRL, the readiness of financial market participants to transit to new accounting system.
Representatives of insurance companies, non-governmental pension funds, professional participants of the securities market from one side and IT industry representatives from the other were invited to participate in the discussion. The moderator of the section, Director of the Bank of Russia Department for Collection and Processing of Financial Statements of Non-Credit Financial Institutions Olga Goncharova explained that the aim of a "confrontation" provoked between the participants of the session was to clarify both sides viewpoints: "For the past two years we have been trying to implement a unified XBRL account plan, while business representatives pointed to the unavailability of IT solutions, and IT vendors, in their turn, stressed the methodological unreadiness of business. Today's discussion brought the participants to the conclusion that platforms for market participants are technically and methodologically ready, IT companies consented to support business and do not anticipate any substantial improper fulfillment of the Central Bank unified account plan requirements."
According to Olga Goncharova, the Bank of Russia has completed testing of 47 insurance companies and 7 non-governmental pension funds (NGPF), which were included in the focus group and had submitted reports in accordance with the new rules. Till the end of the year they should submit reports for 9-month period, and starting from January 1 all NGRF and insurance companies will transit to the unified account plan reports. The regulator does not have any plans to postpone the deadline, emphasized Olga Goncharova.
A new system expects non-credit financial organization to use a 20-digit account plan. When commenting on the session, the head of 1C Company Financial Institutions Department Petr Slukin compared the work of the Bank of Russia on introducing an XBRL accounting system to a symphony orchestra performance: "Working out a system of tags and indicators, a mechanism of visualization and cooperation in the course of XBRL format implementing equals to composing a symphony, which is simultaneously performed by a huge number of instruments, playing a single tune as a unity to create a wonderful melody that we are delighted to listen to. And the Bank of Russia managed with it."
As the Bank of Russia representative said, professional participants of the securities market, managing companies of open-end and non-governmental pension funds will switch to a new accounting system in 2018. The last to join new standards in January 2019 will be agricultural cooperatives and pawnshops.