- •Accounting principles and concepts
- •Vocabulary list
- •1. Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the following opening phrases:
- •Accountancy in a free-market economy
- •Vocabulary list
- •1. Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the opening phrases given above.
- •Public and private accountants
- •Vocabulary List
- •Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about Use the opening phrases given above.
- •Exercises
- •1. Work on vocabulary and grammar
- •Discussion
- •2. Read the dialogue, sum the its content using the phrases given below and act it out:
- •Accounting methods
- •3. Give extensive answers to these discussion questions:
- •4. Write a short paragraph, explaining:
- •5. Prepare a short talk on the following:
- •6. A company needs the chief accountant, who will:
- •7. Read the text that follows to find the answers to the following questions:
- •Financial statements and their elements
- •8. Read the text quickly and explain what "green accounting" is:
- •Auditing performing an audit
- •Vocabulary list
- •1. Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the opening phrases.
- •Auditing in russia
- •Vocabulary list
- •Read and translate the text.
- •2. Answer the questions on the text:
- •3. Find English equivalents for the following Russian phrases from the text:
- •4. Say in a few words what the text is about. Use the opening phrases.
- •Exercises
- •1. Work on vocabulary and grammar
- •Auditors’ Report
- •Misuse of Public Funds
- •5. Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences and present your summary in class.
- •Independent Auditors' Report to the Board of Directors and Stockholders of ___ Company
- •6. Read the dialogue, translate the Russian remarks into English and act the dialogue out:
- •Discussion
- •Independent Auditor's Report
- •2. Read the dialogue, sum up its content and act it out:
- •3. Give extensive answers to these discussion questions:
- •4. Write several paragraphs on the following:
- •5. Prepare a short talk on the following:
- •6. Talk to professional auditors to find out what they think about their professional
- •Reading practice
- •Continuing professional education
- •Abbreviations
- •Literature
- •Contents
- •060500 «Бухгалтерский учет, анализ и аудит »
- •683003, Г. Петропавловск-Камчатский, ул. Ключевская, 35
Discussion
Ex. 1.
a) Read the texts and single out the main facts.
b) Present them in a short review and compare the information and viewpoints in Text (1) and Text (2).
Text (1)
For many years the accounting system in Russia was criticized by Western academicians for its failure to adhere to Western accounting principles. Such criticism is no longer valid. Since the early 1990s, accounting in the Russian Federation has changed significantly. The year 1991 was crucial in accounting development in Russia due to the following three events:
– Publication of the new Chart of Accounts;
– Production of a new set of financial statements similar to those used in Western Accounting;
– Beginning of preparations for radical change in accounting and auditing regulation.
In 1992, Regulation on Accounting and Reporting in the Russian Federation was approved by decree of the Government of Russia. The document diminished the control function of accounting and declared the following equal objectives of accounting:
1. Maintenance of control over the availability, movement, and use of material, manpower and monetary resources according to approved norms and estimates;
2. Provision of full and reliable information about the performance and financial results of an enterprise, which is indispensable for operational management as well as for investors, suppliers, customers and creditors, tax, financial, and bank authorities, and others interested in the financial and business activity of the enterprise.
An essentially new Russian accounting system has come into being with the introduction of the new Chart of Accounts which includes greater cohesion to international accounting norms.
The essential elements of accounting methodology are as follows:
– Documents form the legal foundation for recording transactions according to the approved rules of bookkeeping. No entry should be made unless the bookkeeper has the primary document.
– Taking inventory is the sole means of controlling the physical safety of assets and their valuation. It is the main method of supervising persons who are financially responsible for assets. The safeguarding of assets is always entrusted to a financially responsible person.
– The uniform Chart of Accounts, which provides the nomenclature of accounts and correspondence among them, must be used by all types of enterprises.
– Double entry is a traditional accounting concept that is accepted in Russia as it is in all developed countries.
– Internal reporting includes the general ledger, summary (principal) account registers, primary documents, inventory data, etc. External reporting includes the Balance Sheet, Statement of Financial Results and Their Uses, and supplemental forms that are uniform and obligatory for all types of enterprises. Nonprofit organizations and banks have their own uniform charts of accounts and financial reporting forms. Reporting is carried out according to the statutory regulation and presented within strictly prescribed time limits.
– Information generated by the accounting system must be timely, reliable, full, accurate, and objective.
– Historical cost accounting is the only method of internal and external reporting permitted.
Words you may need:
primary document первичный документ
taking inventory инвентаризация
sole единственный
financially responsible person материально-ответственное лицо
nomenclature номенклатура (перечень наименований)
correspondence корреспонденция (счетов)
internal reporting внутренняя отчетность
general ledger главная бухгалтерская книга
summary account register cводный журнал
inventory data инвентарные данные
external reporting внешняя отчетность
Statement of Financial Results oтчет о финансовых результатах
and Their Uses и их использовании
financial reporting form бланк финансовой отчетности
historical cost accounting учет на основе стоимости приобретения
Text (2)
From the international perspective, it is important to remember that while based on similar principles, Russian accounting does not fully meet international accounting standards (IAS). The main differences are as follows:
– Sales are usually recorded on a cash basis. The cost of goods/services delivered but not yet paid for remains on the balance slieet until payment is received.
Most Russian taxes are sales-based. As a result, companies try to minimize sales in their accounts. When sales are recorded on a cash basis, allowances are not made for bad debt, in spite of the fact that bad debts may represent a considerable share of accounts receivable. Sales figures for Russian companies tend to be understated compared with the accrual sales of Western companies.
– Cost of goods sold. Russian companies report the full cost goods sold, which includes production costs, transportation, depreciation, marketing, and financial expenses. No cost items are disclosed separately. Social costs are not included in the cost of goods sold.
– Depreciation. Only a straight-line depreciation method is allowed. The depreciation rates are fixed by the government and are as a rule significantly lower than in the West. Accelerated straight-line depreciation has been permitted since January 1, 1995 but is still rarely used.
– Fixed assets. Fixed assets pose the most serious problem. Fixed assets are accounted for a historical cost and cover property, plant and equipment. Land is not treated as a fixed asset and does not appear on the balance sheet at all. Even if depreciation rates are lower than in the West, fixed assets are generally undervalued compared with Western practice.
– Accounts receivable. Since most Russian companies record sales when they receive payment, the sales margin is not accrued until that time. Therefore accounts receivable are understated given that the sales margin is not reflected. Overdue accounts receivable are not disclosed separately.
– Consolidation of accounts. Russian companies, including holding companies, are not required to submit consolidated reports. No consolidation standards have been established yet. Some of the holding companies prepare aggregated reports, summing up 100 % of all subsidiaries and associates without accounting for intragroup transactions and minorities. Consequently, the reported results of Russian holding companies are usually significantly overstated.
All other aspects of Russian accounting are basically in line with IAS. The Russian government is taking measures to eliminate the most serious divergences.
Words you may need:
bad debts безнадежные долги
accounts receivable дебиторская задолженность
straight-line depreciation method метод равномерного
начисления износа
accelerated straight-line метод ускоренного
depreciation method начисления износа
sales margin доход от продаж
overdue просроченный
consolidation of accounts консолидация счетов
IAS – international accounting standards международный бухгалтерский
стандарт
divergence отклонение