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INTERNATIONAL REPORTING It is commonly recognized that Russian and Ukrainian accounting are permeated by bureaucratic and formalistic rules which unfortunately are designed to serve primarily the needs of the tax inspection and other state authorities and not the company in its own reporting needs. The statutory system does not produce the data actually needed for the company management and shareholders. This is where Awara comes to fill the gap, ensuring all reporting needs are served. Management and group reporting with international standards (US GAAP, IFRS) Producing international or other management reports out of Russian (Ukrainian) statutory accounting is not plausible without accommodating the underlying accounting processes. Due to the local accounting and tax laws and practices it is not possible to resolve the reporting problems by simply mapping the local accounts to the internationally applied accounts.With the service of Awara Accounting a functional universal add-on solution can be implemented to allow flexible report building with any desired requirements. Russian statutory requirements inadequate for proper reporting. The standard chart of accounts of Russia (Ukraine) provides a rigid pre-defined set of accounts, which does not capture data on a sufficiently detailed level. This problem has to be remedied by inserting necessary analytical subaccounts. The conversion of Russian (Ukrainian) accounting data is additionally complicated by the fact that transactions have to be documented in a rigid form prescribed by the law. This prevents proper recording before the necessary formal requirements have been fulfilled. Management reports require a detailed level of data input In international practice management reports are built on a chart of accounts that capture detailed input (possibly up to several thousands of accounts) and enables detailed reports. Also the requirements on group accounting policy may significantly differ from the local accounting standards. When putting in place a management reporting system of international standards we have to deal with these challenges. |
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