FBK Completed the Project of Russian Grids’ Subsidiaries Assets Testing

The FBK Valuation Department, continuing its long-term cooperation with the Russian Grids in the field of preparation of financial statements under the IFRS, completed the project of testing the assets of Russian Grids’ subsidiaries for economic impairment against IAS 36. Its results will be reflected in the preparation of the company’s reporting.

In the process of implementing the project the loss of value tests were carried out for practically all Russian Grids subsidiaries: IDGC Volgi, IDGC of Center and Volga Region, IDGC of South, IDGC of Center, IDGC of Urals, IDGC SIBIRI, IDGC of North-West, IDGC of Northern Caucasus, MREMC, Yantarenergo, TRK, Tyumenenergo and Kuban Power and Electrification.

The specifics of work this year was the testing of assets of all subsidiaries in connection with the decision about restriction on tariff growth in the electric power industry adopted by the RF Government in October 2013. Besides, the legislation related to the preparation of financial statements changed and in this connection the terms of preparation of financial statements under the IFRS for Y2013 reduced by 2 months.

The experience of carrying out such procedures and harmonizing them with the “Big 4” companies allowed FBK to successfully cope with that task in a timely manner. According to Alexander Matyushkin, the FBK Valuation Department deputy director, that project allowed the Valuation Department staff to fully realize the skills accumulated during the implementation of large-scale projects.

Russian Grids is the largest in Russia electrical network company that combines in its structure the main electric network complex, the interregional and regional electricity distribution companies, research and design institutes, construction and sales organizations. That is the leading company in the Russian market to introduce the innovative technologies in the transmission and distribution grid complex.