Specific features of accounting in Russia.
Accounting practices in Russia are based on codified principles. But unlike other countries, Russia’s accounting system reflects only payments received and transferred. It also discloses annual results based on this. A characteristic feature of the Russian accounting system is a large number of balance sheet accounts. It also has an abundant use of different accounts on both sides of the balance sheet. The principal accounts represent the corresponding balance sheet items. As a rule, tangible assets are stated at the original acquisition cost, including cost incidental to acquisition. An annual stock count, performed in November or December, is required to ascertain the inventory on hand. Sometimes a balance sheet item is disclosed on some accounts. In particular, liabilities towards banks are disclosed in two accounts shout – term liabilities and long – term liabilities. A specific feature of Russian accounting is a concept of fund accounting virtually unknown in the west. It is based on the assumption that only money accumulated in a fund may be used. And provenance of funds must be precisely documented upon their use. In accordance with the decree of the ministry of finance of the Russian federation businesses may establish some funds. They are a consumption fund, a accumulation fund and a welfare fund.
The use of computers in accounting in Russia.
Most accounting work in Russian business today is done by computers. Computers allow businesses to centralize accounting operations and eliminate much of the work that used to be done by hand. Thanks to the development of minicomputers and minicomputers even small organizations can keep their accounting records in electronic form. The term data processing can mean the manual writing up of accounts or the keeping of accounts by a computer. If a clerk writes up the entries in the accounts, this is manual data – processing. If accounts are kept using an accounting machine, this is automatic data – processing. But the principles governing such entries remain the same whether manual or computer methods are in use. Automatic data – processing is much quicker and there are fewer errors. Therefore large businesses in Russia have systems analysts, programmers and computer, operators to design computer accounting system. Small businesses usually purchase commercial accounting systems that are programmed to perform accounting functions. Most of these systems rely on a variation on of batch processing in which a part of the software performs each major task of the accounting system.
Accounting in the future.
It is well recognized that accounting has played a crucial role in the development of human society. Due to the growth of industry the needs for accountants has increased. This trend will continue in the twenty – first century. Such new fields of accounting as social accounting, tax accounting will develop. In the twenty first century the world will continue to move towards a single economy. As a result the uniformity of international accounting standards may appear. Establishing international accounting standards will save corporations time and money. It will improve the comparability of accounting in formations manufacturing methods and information processing is developing rapidly. Accounting methods will have to adapt to the changes. Another important trend is connected with computerizing accounting work. So, accountant of the twenty first century will use only electronic equipment. The accountant of the future will be involved in system design activities. Accountants will consider and analyses the structure and the flow of information.