Author: Nadezhda V. Gorbunova, postgraduate of Accounting & Audit Dprt; Vladimir N. Shemetov, Dr. Sc. (Ec.), Prof. of Accounting & Audit Dprt.

Abstract: According to the Russian business practice the information about elements of the equity should be comprehensible and relevant to facilitate decision-making process for the users of this information. The most essential characteristic of the information for investor is the influence of the transformation results on recognition and assessment of the final result.

Key words: equity; retained earnings; methodology of the transformation; future economic benefits; inventories; cost of inventories; administrative overheads; expenditure of the future periods.