Russian Accounting Standards
The previous Russian accounting standards are still being used and creating much turmoil today. Financial statements are inaccurate turning profits into losses and changing losses into earnings (vice versa). One issue covered in the article was the strict enforcement of laws. The soviet central planners don't give accountants enough
freedom for them to think for themselves. Instead of allowing accountants to set depreciation rates according to real wear and tear the state publishes a book dictating the life span of everything from wooden chairs to tools. Another issue covered in the article was the banking problems in the Russian nation. Russian banks keep obsolete equipment on their books for a long period. The Central Bank is attempting to change this and is pressuring the banks to disclose the true state of their finances. The two issues discussed in the article give the idea of a big cultural characteristic of the Russian nation. The use and understanding of Hofstede's chart was a useful resource when reading the article. The use of statutory control was clearly evident. As well as the use of secrecy for their financial statements and banking system was easily understood.
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