Vol. 7 � 4, 2017 p 62-70| Science & Technologies: Oil and Oil Products Pipeline Transportation

Pages	Article name, authors, abstract and keyword
62-70	Methodological approaches and principles of preparation of financial model of the company according to IFRS Pavel Y. Serikov ^a, Konstantin A. Sivolotskiy ^a, Maria V. Shchiponikova ^a, Andrey A. Mestnikov ^a ^a Transneft, 57, Bolshaya Polyanka Str., Moscow, 119180, Russian Federation https://doi.org/10.28999/2541-9595-2017-7-4-62-70 Abstract: The article deals with the principles of development of a Company�s consolidated financial model under the International Financial Reporting Standards (IFRS). Financial statements developed in accordance with IFRS in many countries are recognized as a source of quality and transparent data on financial and economic activities. In this regard, more and more users of financial information make demands to form not only actual but also forecast financial and economic indicators of the Company in accordance with IFRS. Forecasting in accordance with IFRS allows you to set key performance indicators that are consistent with financial reporting, to conduct a qualitative comparative analysis of actual and planned results and increase the confidence of external and internal users in forecast indicators. Using the financial model of the Transneft Group the author describes a universal algorithm for the formation of the financial model in accordance with the principles of IFRS. The main stages of this algorithm are discussed in detail starting with the collection of initial data, formation of transformational adjustments that take into account the difference between IFRS and Russian accounting standards and ending with the calculation of forecast financial and economic indicators. Also the article pays special attention to the applied aspects of the use of the results of such modelling. Keywords: financial model, IFRS, accounting, financing, key performance indicators Reference for citing: Serikov P. Y., Sivolotskiy K. A., Shchiponikova M. V., Mestnikov A. A. Methodological approaches and principles of preparation of financial model of the company according to IFRS. Naukatekhnol. truboprov. transp. neftiinefteprod. = Science & Technologies: Oil and Oil Products Pipeline Transportation. 2017;7(4):62�70. References: [1] Serikov P. Y., Procenko A. I., Sivolotskiy K. A. Usage of financial and economic simulation as an instrument for improvement of the efficiency of making managerial decisions. Oil pipeline transport. 2014;(10):64�70. (In Russ.) [2] Conceptual framework of financial statements [accessed 2017 May 02]. URL: https://www.minfin.ru/common/upload/library/2014/06/main/kontseptualnye_osnovy_na_sayt.pdf. (In Russ.) [3] Mizikovskiy E. A., Druzhilovskaya T. Y. Methodology of financial statements formation in the system of Russian and international standards: monography. N. Novgorod: Publishing House of Nizhniy Novgorod State University named after N. I. Lobachevskiy; 2013. (In Russ.) [4] Concept of accounting and financial statements development in the Russian Federation in the medium run (approved by the order of the Minister of Finances of the Russian Federation dated July 01, 2004 No. 180). Rossiyskaya Gazeta. 2014 June 10. (In Russ.) [5] Prokopovich D. A. Progress of IFRS usage in the world. Reporter of professional accountants. 2013;(5):17�20. (In Russ.) [6] Report on research work �Evaluation criteria for possibility for a certain range of business entities to form individual financial statements directly according to IFRS (instead of Russian standards)� [accessed 2017 May 02]. URL: https://www.minfin.ru/ru/document/?id_4=5499. (In Russ.) [7] Methodological recommendations on development of longterm programs for development of strategic open joint stock companies and federal state unitary enterprises, as well as open joint stock companies, in which authorized capital the entire participatory share of the Russian Federation exceeds fifty percent [accessed 2017 May 02]. URL: http://economy.gov.ru/minec/activity/sections/use/gos. [8] IFRS: KPMG oppinion. Practice guideline on International Financial Reporting Standards, prepared by KPMG. 2011/2012: in 2 parts. Transl. from Engl. the 8th edition. Moscow (M): Alpina Publisher; 2012. (In Russ.) [9] Labyntsev N. T., Smertina E. N., Kalaida O. M. National standards of accounting and financial statements under economy globalization. Reporter of professional accountants. 2015;(March�April):19�24. (In Russ.) [10] Cheremushkin S. V. The life cycle and principles of effective financial simulation. Financial management. 2010;(2):61�66. (In Russ.) [11] Brealey R., Myers S. Principles of corporate finance. Transl. from Engl. Moscow (M): Olymp-Business; 2009. (In Russ.) [12] Sharpe W., Alexander G., Bailey J. Investments . Transl. from Engl. Moscow (M): Infra-M; 2009. [13] Damodaran A. Investment valuation. Tools and Techniques for determining the value of any asset. Moscow (M): Alpina Publisher; 2010. (In Russ.) [14] Methodological guideline on estimation of investment projects effectiveness. Moscow (M): Interexpert; 2009. (In Russ.) [15] Sivolotskiy K. A., Zaitsev S. F. Basic methods of estimation of economic effectiveness of investment projects. Science & Technologies: Oil and Oil Products Pipeline Transportation. 2012;(3):40�45. (In Russ.)

Pages

Article name, authors, abstract and keyword

62-70

Methodological approaches and principles of preparation of financial model of the company according to IFRS

Pavel Y. Serikov ^a, Konstantin A. Sivolotskiy ^a, Maria V. Shchiponikova ^a, Andrey A. Mestnikov ^a

^a Transneft, 57, Bolshaya Polyanka Str., Moscow, 119180, Russian Federation

https://doi.org/10.28999/2541-9595-2017-7-4-62-70

Abstract: The article deals with the principles of development of a Company�s consolidated financial model under the International Financial Reporting Standards (IFRS). Financial statements developed in accordance with IFRS in many countries are recognized as a source of quality and transparent data on financial and economic activities. In this regard, more and more users of financial information make demands to form not only actual but also forecast financial and economic indicators of the Company in accordance with IFRS. Forecasting in accordance with IFRS allows you to set key performance indicators that are consistent with financial reporting, to conduct a qualitative comparative analysis of actual and planned results and increase the confidence of external and internal users in forecast indicators. Using the financial model of the Transneft Group the author describes a universal algorithm for the formation of the financial model in accordance with the principles of IFRS. The main stages of this algorithm are discussed in detail starting with the collection of initial data, formation of transformational adjustments that take into account the difference between IFRS and Russian accounting standards and ending with the calculation of forecast financial and economic indicators. Also the article pays special attention to the applied aspects of the use of the results of such modelling.

Keywords: financial model, IFRS, accounting, financing, key performance indicators

Reference for citing:
Serikov P. Y., Sivolotskiy K. A., Shchiponikova M. V., Mestnikov A. A. Methodological approaches and principles of preparation of financial model of the company according to IFRS. Naukatekhnol. truboprov. transp. neftiinefteprod. = Science & Technologies: Oil and Oil Products Pipeline Transportation. 2017;7(4):62�70.

References:
[1] Serikov P. Y., Procenko A. I., Sivolotskiy K. A. Usage of financial and economic simulation as an instrument for improvement of the efficiency of making managerial decisions. Oil pipeline transport. 2014;(10):64�70. (In Russ.)
[2] Conceptual framework of financial statements [accessed 2017 May 02]. URL: https://www.minfin.ru/common/upload/library/2014/06/main/kontseptualnye_osnovy_na_sayt.pdf. (In Russ.)
[3] Mizikovskiy E. A., Druzhilovskaya T. Y. Methodology of financial statements formation in the system of Russian and international standards: monography. N. Novgorod: Publishing House of Nizhniy Novgorod State University named after N. I. Lobachevskiy; 2013. (In Russ.)
[4] Concept of accounting and financial statements development in the Russian Federation in the medium run (approved by the order of the Minister of Finances of the Russian Federation dated July 01, 2004 No. 180). Rossiyskaya Gazeta. 2014 June 10. (In Russ.)
[5] Prokopovich D. A. Progress of IFRS usage in the world. Reporter of professional accountants. 2013;(5):17�20. (In Russ.)
[6] Report on research work �Evaluation criteria for possibility for a certain range of business entities to form individual financial statements directly according to IFRS (instead of Russian standards)� [accessed 2017 May 02]. URL: https://www.minfin.ru/ru/document/?id_4=5499. (In Russ.)
[7] Methodological recommendations on development of longterm programs for development of strategic open joint stock companies and federal state unitary enterprises, as well as open joint stock companies, in which authorized capital the entire participatory share of the Russian Federation exceeds fifty percent [accessed 2017 May 02]. URL: http://economy.gov.ru/minec/activity/sections/use/gos.
[8] IFRS: KPMG oppinion. Practice guideline on International Financial Reporting Standards, prepared by KPMG. 2011/2012: in 2 parts. Transl. from Engl. the 8th edition. Moscow (M): Alpina Publisher; 2012. (In Russ.)
[9] Labyntsev N. T., Smertina E. N., Kalaida O. M. National standards of accounting and financial statements under economy globalization. Reporter of professional accountants. 2015;(March�April):19�24. (In Russ.)
[10] Cheremushkin S. V. The life cycle and principles of effective financial simulation. Financial management. 2010;(2):61�66. (In Russ.)
[11] Brealey R., Myers S. Principles of corporate finance. Transl. from Engl. Moscow (M): Olymp-Business; 2009. (In Russ.)
[12] Sharpe W., Alexander G., Bailey J. Investments . Transl. from Engl. Moscow (M): Infra-M; 2009.
[13] Damodaran A. Investment valuation. Tools and Techniques for determining the value of any asset. Moscow (M): Alpina Publisher; 2010. (In Russ.)
[14] Methodological guideline on estimation of investment projects effectiveness. Moscow (M): Interexpert; 2009. (In Russ.)
[15] Sivolotskiy K. A., Zaitsev S. F. Basic methods of estimation of economic effectiveness of investment projects. Science & Technologies: Oil and Oil Products Pipeline Transportation. 2012;(3):40�45. (In Russ.)