Printer Friendly

REPORT SAYS RUSSIAN ECONOMIC REFORM UNFORESEEABLE

 REPORT SAYS RUSSIAN ECONOMIC REFORM UNFORESEEABLE
 WASHINGTON, Oct. 12 /PRNewswire/ -- Without a new accounting system,


none of the economic reforms in the former Soviet Union will occur in the foreseeable future, says a new comprehensive research report issued by the Committee on Research of the Institute of Management Accountants (IMA).
 IMA's research report was released here today at the XIV World Congress of Accountants meeting, a gathering of thousands of accountants from 106 accounting organizations spanning 78 nations.
 Calling the situation a "crisis in accounting," the 260-page research report, "Doing Business in Russia and the Other Former Soviet Republics: Accounting and Joint Venture Issues," cites the need for standards compatible with Western business practices but concludes that Russia needs to nurture a whole new generation of accountants.
 "To reach this goal," the report stated, "the accounting education system in the ex-USSR needs to be restructured. Despite the fact that more than 100 universities and colleges train accountants, and numerous accounting short-term courses are offered, there is a shortage of qualified accountants."
 "The research report may be the world's most thorough on the topic of Soviet and post-Soviet accounting," according to Dennis L. Neider, CMA, CPA, chair of IMA's Committee on Research and partner/national director, German Business Services, Price Waterhouse. "It may become a central source of accounting information for Western as well as Russian accounting and financial managers."
 The research report delves into Soviet and former Soviet accounting and auditing process as well as its underlying economic, political, and historical accounting aspects.
 "While we had hoped to focus on managerial accounting," said Neider, "it quickly became apparent that pre-perestroika Soviet accounting had no such concept.
 "Although a form of cost accounting was practiced by administrators, financial and economic freedom as well as accounting methodology were restricted and highly centralized by the federal government," noted Neider, "virtually eliminating the practice of management accounting. Unfortunately, this is a period where it is most needed."
 The report was prepared by three internationally renowned experts on Soviet accounting. Adolf J.H. Enthoven, Ph.D., is a professor of accounting and director of the Center for International Accounting Development at the University of Texas at Dallas. Professor Jaroslav V. Sokolov, Ph.D., is chair of the Accounting Department at the St. Petersburg Institute of International Commerce and Economics in Russia, and vice president of the Russian Association of Accountants. Professor Alexander M. Petrachkov, Ph.D., is director of the Department of International Economic Relations at Kiev State University and permanent expert to the Ukrainian parliament.
 The independent states currently share a common system, and their inevitable economic interactions and transactions will require similar (and better) accounting methods. Moreover, the internationalization of their economies will require them to evolve toward Western and international standards.
 The report first explains the methodology and structure of the Soviet accounting system, including the new Soviet and Russian national chart of accounts. The explanation includes full details on the principles underlying financial reporting, the form of the balance sheet, auditing (known as "revision"), and cost and operational accounting.
 "The section on joint ventures is especially useful," said Neider. "It details the history and general nature of joint ventures, the basic regulations and legal requirements, tax computation, and principle obstacles that can be expected."
 The report concludes with an appraisal of the future of accounting and auditing in the CIS. It refers to a crisis in accounting caused by the lack of a visible professional organization, the hampering indifference of bureaucracy, and an acute shortage of accountants qualified to solve new methodological problems.
 Among recommendations are a program of international assistance in developing professional technical education, and breaking down psychological barriers. Identifying political, economic and professional trends, the report predicts that after an initial period of financial confusion, "common sense and wisdom will prevail."
 To obtain the research report, contact IMA's Special Order Department, 10 Paragon Drive, Montvale, NJ 07645-1760, or call toll- free 800-638-4427, enter number 4, requesting title number 92267.
 With more than 90,000 members, IMA is the world's largest organization of management accountants and financial managers. Founded in 1919, IMA is based in Montvale, N.J.
 -0- 10/12/92
 /EDITOR'S NOTE: For additional information or interviews, feel free to contact Enthoven at 214-690-2320, and Neider at 212-527-8350. The chairman of this IMA research project, David W. Vogel, may also be contacted, E.I. Dupont De Nemours & Company at 302-774-3548./
 /CONTACT: Daniel M. Hrisak of the Institute of Management Accountants, 404-992-2187/ CO: Institute of Management Accountants ST: District of Columbia IN: SU:


BR-BN -- AT005 -- 8787 10/12/92 10:33 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 12, 1992
Words:764
Previous Article:SOUTHTRUST ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
Next Article:HEALTH IMAGES CONTINUES PLANNED REPURCHASE OF COMMON SHARES
Topics:


Related Articles
RUSSIA'S REFORMS MUST BE MORE COMPREHENSIVE TO SUCCEED, ACCORDING TO DEUTSCHE BANK RESEARCH
ONCE KEPT SECRET, CURRENT KEY ECONOMIC DATA ON THE FORMER SOVIET UNION NOW AVAILABLE
WANNISKI TESTIFIES ON RUSSIAN ECONOMIC REFORMS
Economic Transformation in Russia.
GORE TO PUSH DEMOCRACY ON VISIT TO MOSCOW.
CIMA supports ongoing Russian management accounting reform. (Institute News).

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters