2. Basis of Preparation
(a) Statement of compliance
These consolidated financial statements (hereinafter “Financial Statements”) have been prepared in accordance with International Financial Reporting Standards (“IFRSs”).
(b) Basis of measurement
The Financial Statements are prepared on the historical cost basis except for investments at fair value through profit or loss; and property, plant and equipment which was revalued to determine deemed cost as part of the adoption of IFRS as at 1 January 2007.
(c) Functional and presentation currency
The national currency of the Russian Federation is the Russian Rouble (“RUB”), which is the Company’s functional currency and the currency in which these Financial Statements are presented.
All financial information presented in RUB has been rounded to the nearest thousand.
(d) Use of estimates and judgements
The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the Financial Statements is included in the following notes:
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following note:
- Note 31 – contingencies.
(e) Changes in accounting policies and presentation
With effect from 1 January 2011, the Group changed its accounting policies in disclosure of information about related parties.
From 1 January 2011 the Group has applied revised IAS 24 Related Party Disclosures (2009). As the Group is a government-related entity it applies the exemption on disclosure of information about transactions with entities that are related parties because the Government of Russian Federation has control, joint control or significant influence both over them and the Group.
The Group discloses a share of sales to government-related entities and share of key purchases from such entities as quantitative indications of related-parties transactions.
The comparative disclosures were changed retrospectively as if new policies had been applied since the beginning of the earliest period presented. As this change affected disclosures only, there were no any changes in earnings per share.
Return to Notes to the Consolidated Financial Statements for the year ended 31 December 2011