It is commonly known that Russian accounting is permeated with 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 company management and shareholders. Awara fills this 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 statutory accounting is not plausible without accommodating the underlying accounting processes. Due to local accounting rules, 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 services 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 in Russia provides a rigid pre-defined set of accounts, which does not capture data on a sufficiently detailed level. This problem has to be solved by inserting the necessary analytical subaccounts.
The conversion of Russian 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 captures detailed input (possibly up to several thousand accounts) and enables detailed reports. The requirements of group accounting policy may significantly differ as well from local accounting standards. When putting in place a management reporting system of international standards, we have to deal with these challenges.
Sergey Minyailo
Head of Financial Outsourcing Department
sergey.minyailo@awara-russia.com
Eva Hua
Business Consultant
eva.hua@awara-russia.com
Moscow • Saint Petersburg • Tver • Helsinki