Russian steelmaking and mining company Evraz Group (Evraz) has announced that it has resolved to revert to the cost model of accounting for all classes of property, plant and equipment as it provides more relevant and reliable information about its financial position and financial performance.
As of January 1, 2009, Evraz made a voluntary change to its accounting policies to account for selected classes of property, plant and equipment (land, buildings and constructions, machinery and equipment) under the revaluation model instead of the cost model. Evraz continued to apply the cost model for other classes of property, plant and equipment. However its consolidated financial statements have become non-comparable with its peers, as most companies in the industry apply the cost model of accounting.