Characteristics of Russian accounting

A general characteristic of Russian law and its application is that formalities overrule the practical side of business practices. Accountancy is no exception to this. International accounting includes elements of financial reporting, whereas in Russia, accountancy is merely related to the concept of bookkeeping. Russian accounting rules cover bookkeeping procedures well, but we provide financial reporting as well. The accountancy system is regulated by the state, and it is worth mentioning that generally accepted accounting principles (US GAAP) and international reporting standards (IFRS) differ from Russian norms. However, a transition program exists regarding the IFRS.

As local rules state that for filing purposes, only statutory financial statements are valid, we at Awara Corporate ensure that our clients enjoy full compliancy with Russian Statutory accounting rules and tax filing requirements.

Russian accounting standards determine the structures, presentation, and procedures used in preparation of statutory financial statements. Our job is to assist you in preparing these, and delivering all needed documentations to the various offices involved.

Basic annual statutory financial statements include: a balance sheet, a profit and loss account, and detailed notes for both. For a particular category of small businesses, a simplified set of accounting rules is allowed. The reporting year of a Russian company is the calendar year, but quarterly financial reports must include a balance sheet and profit and loss statements. Additionally, many attachments are required: cash flow statements, statement of changes in shareholders' equity, summaries of accounting policies, details describing all departures from mandatory practices, accounting requirements when a fair presentation cannot be achieved through their application. Additional details on significant accounts (intangible assets, fixed assets, investments, debtors, creditors, shareholders' equity, revenues, cost and expenses, etc.) are also required.