On March 1, 2012 Rosneft published its full audited consolidated IFRS financial statements for the 12 months of 2011 with comparable data for the 12 months of 2010 and 2009. The Company is switching from US GAAP to IFRS reporting from the first quarter of 2012.
Rosneft is switching to IFRS to meet the requirements of the federal law On Consolidated Financial Reporting and as part of a government initiative to bring Russian accounting principles closer to IFRS. This switch is also in line with international best practice.

The IFRS accounts are compiled in Russian rubles as Rosneft’s core assets and activities are based primarily in Russia.

Key Financial Highlights for 2011 (bln rubles)

¹Figures from the US GAAP Profit & Loss Statements and the Cashflow Statements were converted into rubles based on the average exchange rate for each month. The balance sheet figures were converted into rubles at the exchange rate as of December 31, 2011

The RUB 49 bln net income gap is mostly due to increased depreciation, depletion and amortization stemming from the higher book value of assets under IFRS.

The RUB 25 bln operating cashflow gap reflects the difference in reporting interest paid. Under US GAAP interest paid is reported as part of the cashflow from operations, while under IFRS it falls under cashflow from financing activities.

Full IFRS consolidated financial statements for the 12 months of 2011 with comparable data for the 12 months of 2010 and 2009 as well as a presentation laying out the differences between IFRS and US GAAP reporting have been posted on Rosneft’s corporate website.

The application of IFRS has an impact on the presentation of Rosneft's financial reporting but has no impact on the Company's business model, strategy, risk and cashflow management.

Commenting on the IFRS switch, Rosneft President Eduard Khudainatov said: “The adoption of IFRS is yet another step for Rosneft in its continuous pursuit of higher standards of corporate governance, transparency and information disclosure.”