Russian Accounting Research Articles

Issues of Transition from FSBU to IFRS: Current Assets

In order to interact with foreign partner organizations, Russian companies are supposed to submit reports in accordance with international financial reporting standards. The relevance of the study lies in the fact that the Russian accounting standards and international financial reporting standards are significantly different in their application in accounting. The article identifies main features and problems of business transition from the FSBU to IFRS. A comparative analysis of current assets such as stocks, receivables, financial investments, cash, was conducted. Problems and ways of their elimination were pointed out. The advantages of transition to IFRS were defined. Reporting information compiled in accordance with international financial reporting standards is more transparent, complete and detailed compared to the Russian accounting standards. When processing reports, a lot of complex calculations take place, and a large amount of information is analyzed in a fairly short time, thus, the probability of making an error is very high. Therefore, it is rational to carry out a set of verification procedures in order to provide reliable data in the statements made in accordance with international financial reporting standards. In the process of the control procedure, it is necessary to assess whether adjustments in the company's reporting have been correctly applied and check estimated accuracy of the calculations performed.

New program for the FAS development and the main changes in the rules of Russian accounting for non-state sector organizations

The Ministry of Finance of the Russian Federation approved a new program for the development of Federal Accounting Standards (FAS) for organizations in the non-state sector (including healthcare organizations in this sector) for 2022–2026. This program involves making adjustments to certain already existing standards, as well as the creation and approval of a number of FAS that make significant changes to the Russian accounting of the above organizations. The drafts of some of these FAS have already been prepared, and one of the federal standards planned by this program has already been practically adopted. The main changes in the rules of Russian accounting that are awaiting organizations in the non-state sector (including healthcare organizations in this sector) in connection with the release of the above program and the FAS stipulated by it, are analyzed in this article. The following methods were used in the course of the research: analysis and synthesis, comparison, grouping method, analogy method, systematic approach, logical approach. As a result of the research, the main stages of updating the FAS system and the relevant domestic accounting rules of the above organizations were identified, as well as the most important changes in these rules were identified and systematized. The results of the analysis of future changes in Russian accounting rules presented in this article will help modern organizations in the non-state sector (including healthcare organizations in this sector) prepare in advance for such changes and make it much easier to go through the process of transition to new federal standards.

Directions for further development of accounting for intangible assets

Intangible assets occupy an increasingly significant place in the activities of organizations of various forms of ownership and various industries (including healthcare). This sets the task of developing accounting regulations that would ensure the formation of complete and reliable information about intangible assets. Currently, the accounting of intangible assets of commercial organizations and non-profit organizations that do not belong to the public sector is regulated by PBU 14/2007 “Accounting for intangible assets”. At the same time, the adopted Program for the further reform of Russian accounting provides for the adoption of a new FSB “Intangible Assets” for commercial organizations and non-profit organizations that do not belong to the public sector. In order to implement this Program, the Accounting Development Fund “National Non-State Accounting Regulator “Accounting Methodological Center” (Foundation “NRBU “BMC”) developed and published for discussion the FSBU Draft “Intangible Assets”. The innovations of this Project are analyzed in this article. The Russian Accounting Standards Reform Program aims at further convergence of Russian Federal Accounting Standards (FSBU) with IFRS regulations. In this regard, it is of interest to study the degree of convergence of the regulations of the FSBU Project “Intangible Assets” with the regulations of IAS 38 “Intangible Assets”. The research methods were comparison, analysis, synthesis, grouping method, systemic and logical approaches. As a result of the study, the article identified and substantiated aspects of greater proximity of the regulations of the FSBU Project “Intangible Assets” to the regulations of IFRS (IAS) 38 in comparison with the regulations of PBU 14/2007, as well as such issues of accounting for intangible assets, for which the FSBU Project “Intangible Assets” differs from IAS 38.

The issues of formation of reporting information on financial assets and financial liabilities of organizations

Subject. This article discusses the issues related to the formation of reporting information on financial assets and financial liabilities. Objectives. The article aims to develop recommendations for solving problems related to the formation of reporting information on financial assets and financial liabilities. Methods. For the study, we used a critical analysis, synthesis, comparison, observation, and the analogy approach. Results. Based on the results of the study of the practices of forming reporting information on financial assets and financial liabilities by Russian and foreign organizations, the article offers and justifies recommendations for further improvement of the rules for the formation of reporting information on financial assets and financial liabilities in the system of Russian Accounting Standards. Conclusions and Relevance. Regulations of Russian and international standards have both aspects of unity and differences in approaches to the disclosure of information on financial assets and financial liabilities in the financial statements. The program of reforming Russian Accounting Standards can help solve the problems of reflecting information on financial assets and financial liabilities in the statements of organizations. The results obtained have both applied and theoretical areas of application in the field of financial accounting.

Presentation and disclosure of information on receivables in the accounting (financial) statements of commercial organizations

Subject. This article examines the current state and prospects for the formation and disclosure of information about receivables in accounting (financial) statements in accordance with the Russian accounting standards. Objectives. The article aims to study the current practice of presenting information on receivables in the accounting (financial) statements of Russian organizations of various sectors of the economy and determine the main directions for improving the formation of information. Methods. For the study, we used a comparative analysis, observation, comparison, and systematization. Results. Based on a comparative analysis of the structure and content of the information provided in the reporting of thirty four Russian organizations engaged in various activities, the article identifies trends in improving the presentation and disclosure of data on accounts receivable. Conclusions and Relevance. The article concludes that the structure and content of information on accounts receivable of various organizations are heterogeneous and depend on industry-specific characteristics. The significance of the study lies in the substantiation of the provision that in order to assess doubtful debt, it is necessary to conduct a thorough analysis of the solvency of the debtor and the probability of debt repayment, taking into account the historical and intended fulfillment of obligations by counterparties.

Problems of risk disclosure in the financial statements of organizations and ways to solve them

The importance of disclosing information about risks in the financial statements of organizations (including healthcare organizations) cannot be overestimated. At the same time, at present there is no separate Federal Accounting Standard (FAS) or Accounting Regulation (AR) containing the rules for disclosing this information. The main regulations in this area are currently presented in a document with the status “Information of the Ministry of Finance of the Russian Federation” under the number PS-9/2012 (hereinafter IM No. PS-9/2012). An analysis of the requirements of this document, as well as the practice of disclosing information about risks in financial statements in accordance with this document, allows us to conclude that at present there are a number of theoretical, methodological and practical problems in the field of disclosure of the above information. These problems are analyzed in this article. The following methods were used in the research: analysis and synthesis, grouping method, comparison, analogy method, systematic approach, logical approach. As a result of the research, the article identifies the main groups of problems in the above area and offers suggestions for their solution. The results presented in the article may be useful to a wide range of readers interested in modern problems of Russian accounting, in particular, disclosure of information about risks in the financial statements of organizations (including healthcare organizations).

A methodology of accounting for derivative instruments: Challenges and solutions

Subject. This article discusses the problems associated with the methodology of accounting for derivative financial instruments of non-financial organizations. Objectives. The article aims to develop recommendations for solving these problems. Methods. For the study, we used a critical analysis, synthesis, comparison, observation, and the analog approach. Results. The article shows the insufficiency of regulation of accounting for derivative financial instruments of Russian non-financial organizations, and it reveals significant differences in the interpretation of the economic essence of derivative financial instruments and the recommended methodological approaches to their valuation and accounting in the scientific literature. The article offers author-developed recommendations for solving problematic issues of accounting for derivative financial instruments of Russian non-financial organizations. Conclusions and Relevance. The current Russian accounting standards for non-financial organizations do not contain regulations on the accounting for derivative financial instruments. It is necessary to develop appropriate regulatory documents. The interpretation of the economic essence of derivative financial instruments, methodological approaches to their evaluation and accounting, proposed in the scientific literature, differ significantly. The results obtained have both applied and theoretical applications in the field of financial accounting.

On the problems and ways of convergence of accounting and tax accounting in modern Russian accounting practice

On the problems and ways of convergence of accounting and tax accounting in modern Russian accounting practice

Accounting Standards Comparison between China and Russia

Both Chinese and Russian accounting standards follow the IFRS convergence route, despite there being a difference in the degree of international convergence between the two countries. The article examines the specific criteria for financial statement presentation in China and Russia and discovers discrepancies in the basic requirements for financial statement presentation, financial statement composition, and information in notes to financial statements in both countries. The comparison in this article is used to provide theoretical guidelines for reciprocal economic investment between the two countries.

The modern correlation of RAS and IFRS systems of the public and non-public sectors

Currently, the process of reforming the Russian Accounting Standards (RAS) systems for organizations in both the state and nonstate sectors (or organizations in the budget and not budget spheres) is ongoing. At the same time, this process continues to be carried out taking into account the systems of International Financial Reporting and Accounting Standards for organizations of the public and non-public sectors (IFRS, IAS, IPSAS). Therefore, today it is relevant to determine the modern ratio of the RAS and International Standards systems of the state (public) sector, as well as the RAS and International Standards systems of the non-state (non-public) sector. In addition, a comparative analysis of the systems of domestic accounting standards of organizations in the state and non-state sectors makes it possible to identify possible future changes in these systems. Indeed, in general, the accounting methodology for these organizations (including healthcare organizations in these sectors) should be unified. As a result, any innovation in the accounting of one of the above sectors may indicate the feasibility and possibility of making similar adjustments to the accounting of another of these sectors. For similar reasons, it is relevant to determine the current relationship between public and non-public sector International Standards systems. A comparative analysis of all these systems (including for healthcare organizations of the above sectors) is carried out in this article. Grouping method, comparison, analogy method, analysis and synthesis, systematic approach, logical approach were used as research methods. As a result of the research, the article presents proposals for the further development of the RAS and International Standards systems of the state/public and non-state/non-public sectors (including for healthcare organizations).

FSBU 26/2020 – Capital Investments, and FSBU 6/2020 – Property, Plant and Equipment: The issues of application

Subject. This article considers certain aspects of accounting for fixed assets, the implementation of which may cause certain difficulties in accounting. Objectives. The article aims to identify and analyze the ambiguous provisions of Federal Accounting Standards FSBU 6/2020 and FSBU 26/2020, which may cause practical difficulties at the stage of transition to the application of these standards, and find possible ways to solve the problems. Methods. For the study, we used a systems analysis and generalization of legislative and regulatory documents, and research literature on the study subject. Results. The article highlights the controversial issues in the field of fixed assets accounting caused by the conciseness or absence of separate regulations of FSBU 6/2020 and FSBU 26/2020, highlights the aspects of accounting that require the use of professional judgment, and formulates provisions that should be enshrined in internal accounting standards. Conclusions and Relevance. Effective development of new methodological approaches to the recognition and subsequent reflection of capital investments and fixed assets will require expanding the scope of use of professional judgment. To solve this problem, it is necessary to improve the competencies of domestic specialists in the field of IFRS and expand the experience of applying professional judgment. The results of the study can be used in scientific and practical activities, training specialists in the field of accounting, and for the development of proposals for improving the Russian accounting methodology, focused on convergence with modern international practice.

Formation of the Scientific School of V. S. R ozhnov in the Field of Digitalization and Automation Accounting

The article examines automation of Russian accounting, which continued to develop rapidly in 21st century and turned into a new hypostasis of digitalization. It is impossible to overstate contribution of scientists, who stood at the origin of development of the modern economic information environment. The leading role was held by representatives of the scientific school of Moscow Finance Institute (the Finance Academy). Not only did they develop the fundamental and applied Russian accounting science, but also formed the framework that became the foundation for digitalization of accounting. The aim of the article is the study of scientific heritage of the generation of pioneers in accounting automation personified by Professor Vladimir Sergeevich Rozhnov, who was a typical representative of the Soviet scientific school with his scientific personality, breadth of views and interests, and position. The article reveals milestones in the formation of Professor V. S. Rozhnov’s scientific views: the family, ever supportive of his professional endeavors, the environment of the Moscow Finance Institute, which brought up his character as a researcher who cannot be stopped by obstacles, the community of both Soviet and foreign scientists, working in the field of economics, statistics, cybernetics, mechanization and automation of accounting. The scientific cognition methods were used in the article: deduction, induction, analogy and abstraction, synthesis and analysis, including aspect and empirical methods, etc. The article describes the process of formation of scientific schools in Russian universities (with the example of the Finance University); the link of scientific generations, the memory of pioneers in science.

Анализ кредитоспособности корпоративного заемщика: комплексный подход

The cancellation of regulatory relief due to the Covid-19 pandemic, which allowed banks to save on reserves for restructured loans, did not significantly affect the stability of the system in 2021. At the same time, there remains the probability of certain types of systemic risks, including credit risks. During the pandemic the Russian business debts increased by 14% and reached 62.6% of the countryʼs GDP, which significantly increased credit risks for banks. There is a high concentration of corporate liabilities in Russia - a great part of the debt falls on a small number of large borrowers who are serviced by large banks. It is found that reducing the credit risks and increasing the credit activity of market participants can be achieved both by methods of macroeconomic regulation and by improving the mechanism for analyzing the creditworthiness of corporate borrowers at the level of credit institutions. Measures to minimize credit risks are listed. The formula for the final calculation of the level of credit risk is given. The indicators are analyzed on the basis of the Russian Accounting Standards (RAS) and on the basis of the International Financial Reporting Standards (IFRS), the values of debt burden indicators are considered. There is offered a model of such an analysis based on a mixed complex-individual model including an assessment of industry and structural indicators based on expert opinion, existing threats from competitors or the market, transparency of the borrower's activities, as well as the expertise of leading international rating agencies. The model allows predicting the future position of the borrower in the market, as well as taking into account the specifics of lending conditions.

Updating approaches to the definition, composition and accounting of capital investments

At the end of 2021, the Ministry of Finance of the Russian Federation posted on its website a draft amendment to the regulations of the Federal Accounting Standard (FAS) 26/2020 “Capital Investments”. This project radically changes the definition and composition of such assets. In addition, this document introduces significant adjustments to the approaches to accounting for capital investments. These changes need to be analyzed now in order to be ready for their application in the near future. The corresponding analysis was carried out in this article. The research used methods such as grouping method, analysis and synthesis, comparison, analogy method, systems approach, logical approach. As a result of the studies carried out, the new regulations of the draft amendments to FAS 26/2020 were subdivided into groups and a detailed analysis of the relevant rules relating to such groups was carried out. The author of this article also presents her own vision of the further development of the Russian accounting of unfinished property, plant and equipment and intangible assets. The results reflected in the article can be useful to a wide range of readers interested in various issues of domestic accounting, including accounting for completed and unfinished long-term assets.

New disclosure requirements for fair value in financial statements

Currently, fair value is already actively used in the Russian Federal Accounting Standards (FAS). To an even greater extent, the projects of the new FAS are expanding the scope of application of this value in domestic accounting. As a result, in the future there will most likely not be a single item of accounting for which fair value is not used. Thus, the rules related to the fair value are becoming more and more relevant. It should be noted that the FAS does not establish these rules, but refers organizations (including healthcare organizations) to the regulations of the International Financial Reporting Standard (IFRS) 13. This standard, in turn, is currently at the stage of amendments. Thus, the developers plan to make significant adjustments to the requirements for disclosure of information about fair value in financial statements established by this standard. Since these changes may also affect Russian accounting (due to the active use of such value in it), it is necessary to analyze in detail the above new requirements already now to be ready for their application in the future. In addition, this analysis will also be relevant for numerous domestic organizations that prepare their financial statements in accordance with IFRS. This article is devoted to the study of the above issues. Analysis and synthesis, grouping method, comparison, analogy method, systemic approach, logical approach were used as research methods. As a result of the research carried out, the new requirements of IFRS 13 for disclosure of information about fair value in financial statements are subdivided in the article into groups and subgroups, and a critical analysis of the relevant regulations relating to these groups has been carried out. At the same time, the article identified the main problems in this area and identified ways to solve them.

Specifics of a joint venture agreement in the field of health care in terms of international and Russian financial reporting standards

In the context of the development of integration processes not only in the commercial, but also in the public sector of the economy, and, in particular, in the healthcare sector, the issues of applying IFRS for the public sector in the development of Russian accounting standards applied in the public sector are becoming increasingly important. The article examines the issues of the main differences arising in the preparation of an agreement on joint activities in the aspect of international and Russian financial reporting standards on the example of an agreement on joint activities in medicine, which is most relevant in the context of a global pandemic.

The phenomenon of NFT (non-fungible tokens) as an accounting entity

The emergence of the digital economy and increased activity in cyberspace have led to the creation of new technologies and digital products such, as non-fungible tokens (NFT). The article presents the arguments that justify the need to study NFT as an object of legal relations and an object of accounting. A brief description of these items has been given; their types and market of circulation have been studied, and, also the current legal provisions, Russian accounting standards and international financial reporting standards have been analysed. To define NFT as an accounting object, the types of accounting objects enshrined in Federal Law No. 402-FZ “On Accounting” have been considered and the criteria for their attribution in relation to NFT have been analysed. The legal and accounting problems associated with the emergence of a new object have been highlighted and the ways for further research in the field of creating an accounting methodology for NFT as a specific and highly promising digital product have been defined.

Доминирование в аутсорсинге учетных функций в России: анализ наличия и структуры доминирующих групп на основном и нишевых рынках

This article analyzes the Russian accounting functions outsourcing market based on the RAEX ranking data from 2010 to 2020. As a result of the application of the SV matrix, the dominant groups of the companies in this market were structured, its dynamics were identified, as well as the strategies of some companies in this industry in various sub-sectors were analyzed. According to the results of the analysis, there is a low level of concentration and a weak group of dominant companies in the accounting functions «outsourcing industry, in the «Accounting and tax accounting» sub-industry a large group of dominant companies is gradually being formed, in the «RAS reporting (Russian Accounting Standards)» sub-industry a «natural oligopoly» was identified with the group of companies controlling almost 90% of the market, and in the «IFRS reporting (International Financial Reporting Standards)» sub-sector, the dominant group controls more than 80% of the market, but at the same time, it is highly differentiated internally. The results of this analysis, as well as the proposed methodology for assessing the level of competition and dominance in various markets, can be used by companies to make various decisions regarding the strategic behavior both in the industry as a whole and in each of the sub-sectors.

СОВРЕМЕННЫЕ АСПЕКТЫ УЧЕТА ЗАПАСОВ В УСЛОВИЯХ ЦИФРОВОЙ ЭКОНОМИКИ

The proposed article discusses the controversial issues that have arisen in the accounting community since the beginning of its, while some experts suggest completely abandoning inventory accounting under FSB 5/2019, which is an analogue of IFRS, others, on the contrary, consider it necessary to continue reforming the Russian accounting and reporting system based on IFRS.

Problems and prospects of using the standard-cost method in Russian accounting practice

Problems and prospects of using the standard-cost method in Russian accounting practice