Russia's Accounting Revolution
Published: December 2012The new Law on Accounting that passed the parliament in December 2011 and comes into force January 2013 is nothing short of revolutionary. Combined with the dramatic changes in accounting already underway in Russia, including the introduction of obligatory provision calculations in 2011 and automatic document exchange in 2012, the new law can be considered a breakthrough for further improvement in accounting in Russia
This publication has now been updated. Please click here for the most recent editions.
In this issue of Russia Briefing, we look at Russia’s accounting “revolution.” The new Law on Accounting that passed the parliament in December 2011 and comes into force January 2013 is nothing short of revolutionary. Combined with the dramatic changes in accounting already underway in Russia, including the introduction of obligatory provision calculations in 2011 and automatic document exchange in 2012, the new law can be considered a breakthrough for further improvement in accounting in Russia.
First, we discuss the key points of the contents of the new Law on Accounting, including a flow diagram for automatic document exchange, examples of an acceptance protocol document, a VAT Faktura Invoice, and free format accounting document.
We also include comparison tables for:
• Russia Accounting Standards, Russia Tax Accounting, and International Financial Reporting Requirements (IFRS)
• Russia Accounting Standards and their Equivalent IFRS Standards
• Old Accounting Law and New Accounting Law
Next, we paint a profile of Russian accountants – why they are historically more tax experts than statutory accounting specialists and the characteristics that modern accountants should have; i.e. an understanding of business process, an awareness of automated document handover, and an understanding of international corporate structure.
Finally, we address the question of what’s left to do in 2012 to prepare for the new law on accounting.