Problems of the Russian Institutional Environment of the Accounting System
( Pp. 223-236)
More about authors
Andrey A. Aksentev
Postgraduate student of the Department of Accounting, Auditing and Automated Data Processing
Kuban State University
Krasnodar, Russian Federation
Kuban State University
Krasnodar, Russian Federation
Abstract:
The paper aims to show the limited functional relations in the institutional environment of the accounting system in Russia. The relevance of the designated problem is due to the fact that the accounting profession is currently in ideological decline. Some foreign researchers with authority in the field of accounting theory and history have been writing about this since the 1970s. However, the voice of «regulatory intermediaries» (large audit companies, professional accounting organisations) was louder than the words of eminent scholars. In this regard, this paper emphasises the problems already faced by the USA and Europe, but using Russia as an example. In particular, the following problematic aspects are emphasised: 1) the Russian system of accounting regulation is strongly tied to the International Financial Reporting Standards (IFRS); 2) domestic non-profit professional organisations are essentially not engaged in solving institutional problems; 3) the procedure of professional attestation is inadequate from the point of view of «dissection» of «public professional accountant» into different parts (accountant, auditor, tax consultant, etc.); 4) the procedure of auditor attestation is concentrated in the hands of SRO AAS (Self-regulated organisation of auditors Association) «Sodruzhestvo», in connection with which «the cost of the auditor's professional certification» is not considered to be high. In addition to the identified problems, the paper focuses on other institutional aspects related to 1) the accounting labour market; 2) state regulation of accounting; 3) the education system (from the point of view of accountants' training), etc. Due to the complexity and interdisciplinarity of the research topic, many aspects are considered superficially in order to draw the attention of the domestic academic and professional community to them. In future works it is planned to consider each raised problem separately, but with reference to the accounting system as a whole.
How to Cite:
Aksentev A. A. Problems of the Russian Institutional Environment of the Accounting System // ECONOMIC PROBLEMS AND LEGAL PRACTICE. 2024. Vol. 20. № 5. P. 223-236. (in Russ.) EDN: VVYEEH
Reference list:
Lee C.-W. J. Accounting Infrastructure and Development // Journal of Accounting and Public Policy. 1987. Vol. 6. No. 2. P. 75–85. doi: 10.1016/0278-4254(87)90007-X.
Böckem H., d'Arcy A. Evolution of (International) Accounting Systems Critical Assessment of the Environmental Determinism Theory with an Application to Tax Influences // Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung. 1999. Vol. 51. P. 60–76. URL: https://doi.org/10.1007/BF03371559.
d'Arcy A. Accounting Classification and the International Harmonisation Debate—An Empirical Investigation. Accounting // Organizations and Society. 2001. Vol. 26. No. 4–5 P. 327–349. URL: https://doi.org/10.1016/S0361-3682(00)00036-2.
Alexander D., Archer S. On the Myth of «Anglo-Saxon» Financial Accounting // The International Journal of Accounting. 2000. Vol. 35. No. 4. P. 539–557. URL: https://doi.org/10.1016/S0020-7063(00)00078-9.
Nobes Ch. On the Myth of «Anglo-Saxon» Financial Accounting: A Comment // The International Journal of Accounting. 2003. Vol. 38. No. 1. P. 95–104. URL: https://doi.org/10.1016/S0020-7063(02)00213-3.
Heidhues E., Patel C. A Critique of Gray's Framework on Accounting Values Using Germany as a Case Study // Critical Perspectives on Accounting. 2011. Vol. 22. No. 3. P. 273–287. URL: https://doi.org/10.1016/j.cpa.2010.08.002.
Aksent'ev A.A. Theory of environmental determinism in the field of international accounting: the need for its rethinking // International accounting. 2024. Vol. 27. No 3. Pp. 278–303. (in Russ.) https://doi.org/10.24891/ia.27.3.278 EDN: HBMPUF.
Abbott K.W., Levi-Faur D., Snidal D. Introducing Regulatory Intermediaries // The Annals of the American Academy of Political and Social Science. 2017. Vol. 670. P. 6–13. doi: 10.1177/0002716217695519.
Abbott K.W., Levi-Faur D., Snidal D. Theorizing Regulatory Intermediaries: The RIT Model // The Annals of the American Academy of Political and Social Science. 2017. Vol. 670. P. 14–35. doi: 10.1177/0002716216688272.
O'Rourke D. Monitoring the monitors: A critique of PricewaterhouseCooper's labor monitoring. Unpublished paper. Massachusetts Institute of Technology. 2000. URL: https://www.bollettinoadapt.it/old/files/document/18107ROURKE_2000.pdf (accessed: 06.05.2024).
Staubus G.J. The Role of Teachers in the Decline of the Accounting Profession [Working Paper]. 2004. URL: https://dx.doi.org/10.2139/ssrn.1733237.
Cairns D. The future shape of harmonization: a reply // European Accounting Review. 1997. Vol. 6. No. 2. P. 305-348, DOI: 10.1080/713764722.
Flower J. The future shape of harmonization: the EU versus the IASC versus the SEC // European Accounting Review. 1997. Vol. 6. No. 2. P. 281-303, DOI: 10.1080/713764723.
Nobes C. The future shape of harmonization: some responses // European Accounting Review. 1998. European Accounting Review. Vol. 7. No. 2. P. 323-330, DOI: 10.1080/096381898336510.
Herman L. Neither takers nor makers: The Big-4 auditing firms as regulatory intermediaries // Accounting History. 2020. Vol. 25. No. 3. P. 349–374. DOI: 10.1177/1032373219875219.
Zeff S. Some Historical Reflections on «Have Academics and the Standard Setters Traded Places?» // Accounting, Economics and Law. 2014. Vol. 4 No. 1. P. 41–48. doi: 10.1515/ael-2013-0028.
Zeff S. Independence and standard setting // Critical Perspectives on Accounting. 1998. Vol. 9. P. 535–543.
Zeff S. How the U.S. Accounting Profession Got Where It Is Today: Part I // Accounting Horizons. 2003. Vol. 17. No. 3. P. 189–205. doi:10.2308/acch.2003.17.3.189.
Zeff S. How the U.S. Accounting Profession Got Where It Is Today: Part II // Accounting Horizons. 2003. Vol. 17. No. 4. P. 267–286. doi:10.2308/ACCH.2003.17.4.267.
Dyckman T.R., Zeff S. Accounting Research: Past, Present, and Future // ABACUS. 2015. Vol. 51. No. 4. P. 511–524. doi: 10.1111/abac.12058.
Ball R. International Financial Reporting Standards (IFRS): pros and cons for investors // Accounting and Business Research. 2006. Vol. 36 (sup1). P. 5–27. DOI: 10.1080/00014788.2006.9730040.
Li S. Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital? // The accounting reviews. 2010. Vol. 85. No. 2. P. 607–636. https://doi.org/10.2308/accr.2010.85.2.607.
Kim J.-B., Shi H., Zhou J. International Financial Reporting Standards, institutional infrastructures, and implied cost of equity capital around the world // Review of Quantitative Finance and Accounting. 2014. Vol. 42. P. 469–507. https://doi.org/10.1007/s11156-013-0350-3.
Suharev I.R., Suhareva O.A. Russian accounting reforms in connection with the transition to IFRS // International accounting. 2008. Vol. 1 (109). Pp. 12–21. (in Russ.) EDN: IBXPWF.
Barker R., McGeachin A. Why is there inconsistency in accounting for liabilities in IFRS? An analysis of recognition, measurement, estimation and conservatism // Accounting and Business Research. 2013. Vol. 43. No. 6. P. 579–604. DOI: 10.1080/00014788.2013.834811.
Forker J., Green S. Corporate governance and accounting models of the reporting entity // British Accounting Review. 2000. Vol. 32. No. 4. P. 375–396. DOI:10.1006/bare.2000.0144.
Stadler C., Nobes C. Accounting for government grants: Standard-setting and accounting choice // Journal of Accounting and Public Policy. 2018. Vol. 37. No. 2. P. 113–129. DOI: 10.1016/j.jaccpubpol.2018.02.004.
Nobes, C. Rules-based Standards and the Lack of Principles in Accounting // Accounting Horizons. 2005. Vol. 19. No. 1. P. 25–34. DOI: 10.2308/acch.2005.19.1.25.
Skinner D.J. The Role of Deferred Tax Accounting in the Japanese Banking Crisis // Journal of Accounting and Economics. 2008. Vol. 46. No. 2-3. P. 218–239.
Gee M.A., Mano T. Accounting for Deferred Tax in Japanese Banks and the Consequences for Their International Operations // ABACUS. 2006. Vol. 42. No. 1. doi: 10.1111/j.1467-6281.2006.00190.x.
Hytis E., Koumanakos E., Goumas S. Deferred Tax Positions under the prism of financial crisis and the effects of a corporate tax reform // International Journal of Corporate Finance and Accounting. 2015. Vol. 2. No. 2. doi: 10.4018/IJCFA.2015070102.
Chaja V.T. Conceptual problems of IFRS adaptation in Russia // International accounting. 2008. No 1(109). Pp. 22–29. (in Russ.) EDN: IBXPWP.
Adamenko A.A., Tkachenko A.S., Chich N.Sh. Transition to IFRS: Problems and Prospects at the Current Stage of Russia's Economic Development // Bulletin of the Academy of Knowledge. 2014. No. 9 (2). Pp. 31–37. (in Russ.) EDN: SFIMMJ.
Sokolov Ja.V., Sokolov V.Ja. How do we transition to IFRS // Finance and business. 2011. No. 4. Pp. 207–213. (in Russ.) EDN: OUNLUV.
Barth M.E. Global Financial Reporting: Implications for U.S. Academics // The accounting review. 2008. Vol. 83. No. 5. P. 1159–1179. DOI: 10.2308/accr.2008.83.5.1159.
Barth M.E. Accounting in 2036: A Learned Profession. Part I: The Role of Research // The accounting review. 2018. Vol. 93. No. 6. P. 383–385. DOI: 10.2308/accr-10627.
Demski J.S. Is Accounting an Academic Discipline? // Accounting Horizons. 2007. Vol. 21. No. 2. P. 153–157.
Fellingham J.C. Is Accounting an Academic Discipline? // Accounting Horizons. 2007. Vol. 21. No. 2. P. 159–163.
Dein R.C. A Glance Backward at Research in Accounting // The Accounting Review. 1961. Vol. 36. No. 1. P. 1-8.
Bierman H. Measurement and Accounting // The Accounting Review. 1963. Vol. 38. No. 3. P. 501-507.
Chambers R.J. Measurement and Objectivity in Accounting // The Accounting Review. 1964. Vol. 39. No. 2. P. 264-274.
Baxter W.T. Accounting Values: Sale Price Versus Replacement Cost // Journal of Accounting Research. 1967. Vol. 5. No. 2. P. 208-214.
Chugunov A.V., M.S. Agafonova M.S., Anisimova N.A. Current state and problems of audit development in Russia // Digital and sectoral economy. 2022. No. 3-4 (28). Pp. 40–46. (in Russ.) EDN: LOATZB.
Webster N.E. The Meaning of «Public Accountant» // The Accounting Review. 1944. Vol. 19. No. 4. Pp. 366-376.
Aksent'ev A.A. Analysis of the Russian accounting labour market from the perspective of the theory of environmental determinism // Problems of economics and legal practice. 2024. Vol. 20. No. 4. Pp. 191–212. (in Russ.) DOI: 10.33693/2541-8025-2024-20-4-191-212.
Gray S.J. Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally // ABACUS. 1988. Vol. 24. No. 1. Pp. 1–15.
Böckem H., d'Arcy A. Evolution of (International) Accounting Systems Critical Assessment of the Environmental Determinism Theory with an Application to Tax Influences // Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung. 1999. Vol. 51. P. 60–76. URL: https://doi.org/10.1007/BF03371559.
d'Arcy A. Accounting Classification and the International Harmonisation Debate—An Empirical Investigation. Accounting // Organizations and Society. 2001. Vol. 26. No. 4–5 P. 327–349. URL: https://doi.org/10.1016/S0361-3682(00)00036-2.
Alexander D., Archer S. On the Myth of «Anglo-Saxon» Financial Accounting // The International Journal of Accounting. 2000. Vol. 35. No. 4. P. 539–557. URL: https://doi.org/10.1016/S0020-7063(00)00078-9.
Nobes Ch. On the Myth of «Anglo-Saxon» Financial Accounting: A Comment // The International Journal of Accounting. 2003. Vol. 38. No. 1. P. 95–104. URL: https://doi.org/10.1016/S0020-7063(02)00213-3.
Heidhues E., Patel C. A Critique of Gray's Framework on Accounting Values Using Germany as a Case Study // Critical Perspectives on Accounting. 2011. Vol. 22. No. 3. P. 273–287. URL: https://doi.org/10.1016/j.cpa.2010.08.002.
Aksent'ev A.A. Theory of environmental determinism in the field of international accounting: the need for its rethinking // International accounting. 2024. Vol. 27. No 3. Pp. 278–303. (in Russ.) https://doi.org/10.24891/ia.27.3.278 EDN: HBMPUF.
Abbott K.W., Levi-Faur D., Snidal D. Introducing Regulatory Intermediaries // The Annals of the American Academy of Political and Social Science. 2017. Vol. 670. P. 6–13. doi: 10.1177/0002716217695519.
Abbott K.W., Levi-Faur D., Snidal D. Theorizing Regulatory Intermediaries: The RIT Model // The Annals of the American Academy of Political and Social Science. 2017. Vol. 670. P. 14–35. doi: 10.1177/0002716216688272.
O'Rourke D. Monitoring the monitors: A critique of PricewaterhouseCooper's labor monitoring. Unpublished paper. Massachusetts Institute of Technology. 2000. URL: https://www.bollettinoadapt.it/old/files/document/18107ROURKE_2000.pdf (accessed: 06.05.2024).
Staubus G.J. The Role of Teachers in the Decline of the Accounting Profession [Working Paper]. 2004. URL: https://dx.doi.org/10.2139/ssrn.1733237.
Cairns D. The future shape of harmonization: a reply // European Accounting Review. 1997. Vol. 6. No. 2. P. 305-348, DOI: 10.1080/713764722.
Flower J. The future shape of harmonization: the EU versus the IASC versus the SEC // European Accounting Review. 1997. Vol. 6. No. 2. P. 281-303, DOI: 10.1080/713764723.
Nobes C. The future shape of harmonization: some responses // European Accounting Review. 1998. European Accounting Review. Vol. 7. No. 2. P. 323-330, DOI: 10.1080/096381898336510.
Herman L. Neither takers nor makers: The Big-4 auditing firms as regulatory intermediaries // Accounting History. 2020. Vol. 25. No. 3. P. 349–374. DOI: 10.1177/1032373219875219.
Zeff S. Some Historical Reflections on «Have Academics and the Standard Setters Traded Places?» // Accounting, Economics and Law. 2014. Vol. 4 No. 1. P. 41–48. doi: 10.1515/ael-2013-0028.
Zeff S. Independence and standard setting // Critical Perspectives on Accounting. 1998. Vol. 9. P. 535–543.
Zeff S. How the U.S. Accounting Profession Got Where It Is Today: Part I // Accounting Horizons. 2003. Vol. 17. No. 3. P. 189–205. doi:10.2308/acch.2003.17.3.189.
Zeff S. How the U.S. Accounting Profession Got Where It Is Today: Part II // Accounting Horizons. 2003. Vol. 17. No. 4. P. 267–286. doi:10.2308/ACCH.2003.17.4.267.
Dyckman T.R., Zeff S. Accounting Research: Past, Present, and Future // ABACUS. 2015. Vol. 51. No. 4. P. 511–524. doi: 10.1111/abac.12058.
Ball R. International Financial Reporting Standards (IFRS): pros and cons for investors // Accounting and Business Research. 2006. Vol. 36 (sup1). P. 5–27. DOI: 10.1080/00014788.2006.9730040.
Li S. Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital? // The accounting reviews. 2010. Vol. 85. No. 2. P. 607–636. https://doi.org/10.2308/accr.2010.85.2.607.
Kim J.-B., Shi H., Zhou J. International Financial Reporting Standards, institutional infrastructures, and implied cost of equity capital around the world // Review of Quantitative Finance and Accounting. 2014. Vol. 42. P. 469–507. https://doi.org/10.1007/s11156-013-0350-3.
Suharev I.R., Suhareva O.A. Russian accounting reforms in connection with the transition to IFRS // International accounting. 2008. Vol. 1 (109). Pp. 12–21. (in Russ.) EDN: IBXPWF.
Barker R., McGeachin A. Why is there inconsistency in accounting for liabilities in IFRS? An analysis of recognition, measurement, estimation and conservatism // Accounting and Business Research. 2013. Vol. 43. No. 6. P. 579–604. DOI: 10.1080/00014788.2013.834811.
Forker J., Green S. Corporate governance and accounting models of the reporting entity // British Accounting Review. 2000. Vol. 32. No. 4. P. 375–396. DOI:10.1006/bare.2000.0144.
Stadler C., Nobes C. Accounting for government grants: Standard-setting and accounting choice // Journal of Accounting and Public Policy. 2018. Vol. 37. No. 2. P. 113–129. DOI: 10.1016/j.jaccpubpol.2018.02.004.
Nobes, C. Rules-based Standards and the Lack of Principles in Accounting // Accounting Horizons. 2005. Vol. 19. No. 1. P. 25–34. DOI: 10.2308/acch.2005.19.1.25.
Skinner D.J. The Role of Deferred Tax Accounting in the Japanese Banking Crisis // Journal of Accounting and Economics. 2008. Vol. 46. No. 2-3. P. 218–239.
Gee M.A., Mano T. Accounting for Deferred Tax in Japanese Banks and the Consequences for Their International Operations // ABACUS. 2006. Vol. 42. No. 1. doi: 10.1111/j.1467-6281.2006.00190.x.
Hytis E., Koumanakos E., Goumas S. Deferred Tax Positions under the prism of financial crisis and the effects of a corporate tax reform // International Journal of Corporate Finance and Accounting. 2015. Vol. 2. No. 2. doi: 10.4018/IJCFA.2015070102.
Chaja V.T. Conceptual problems of IFRS adaptation in Russia // International accounting. 2008. No 1(109). Pp. 22–29. (in Russ.) EDN: IBXPWP.
Adamenko A.A., Tkachenko A.S., Chich N.Sh. Transition to IFRS: Problems and Prospects at the Current Stage of Russia's Economic Development // Bulletin of the Academy of Knowledge. 2014. No. 9 (2). Pp. 31–37. (in Russ.) EDN: SFIMMJ.
Sokolov Ja.V., Sokolov V.Ja. How do we transition to IFRS // Finance and business. 2011. No. 4. Pp. 207–213. (in Russ.) EDN: OUNLUV.
Barth M.E. Global Financial Reporting: Implications for U.S. Academics // The accounting review. 2008. Vol. 83. No. 5. P. 1159–1179. DOI: 10.2308/accr.2008.83.5.1159.
Barth M.E. Accounting in 2036: A Learned Profession. Part I: The Role of Research // The accounting review. 2018. Vol. 93. No. 6. P. 383–385. DOI: 10.2308/accr-10627.
Demski J.S. Is Accounting an Academic Discipline? // Accounting Horizons. 2007. Vol. 21. No. 2. P. 153–157.
Fellingham J.C. Is Accounting an Academic Discipline? // Accounting Horizons. 2007. Vol. 21. No. 2. P. 159–163.
Dein R.C. A Glance Backward at Research in Accounting // The Accounting Review. 1961. Vol. 36. No. 1. P. 1-8.
Bierman H. Measurement and Accounting // The Accounting Review. 1963. Vol. 38. No. 3. P. 501-507.
Chambers R.J. Measurement and Objectivity in Accounting // The Accounting Review. 1964. Vol. 39. No. 2. P. 264-274.
Baxter W.T. Accounting Values: Sale Price Versus Replacement Cost // Journal of Accounting Research. 1967. Vol. 5. No. 2. P. 208-214.
Chugunov A.V., M.S. Agafonova M.S., Anisimova N.A. Current state and problems of audit development in Russia // Digital and sectoral economy. 2022. No. 3-4 (28). Pp. 40–46. (in Russ.) EDN: LOATZB.
Webster N.E. The Meaning of «Public Accountant» // The Accounting Review. 1944. Vol. 19. No. 4. Pp. 366-376.
Aksent'ev A.A. Analysis of the Russian accounting labour market from the perspective of the theory of environmental determinism // Problems of economics and legal practice. 2024. Vol. 20. No. 4. Pp. 191–212. (in Russ.) DOI: 10.33693/2541-8025-2024-20-4-191-212.
Gray S.J. Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally // ABACUS. 1988. Vol. 24. No. 1. Pp. 1–15.
Keywords:
accounting system; accounting regulation; institutional problems; accounting; environmental determinism..
Related Articles
