Internaional Accounting Essay Example | Topics and Well Written Essays - 1500 words

Internaional Accounting - Essay ExampleRussia borders on the Arctic Ocean, the North Pacific Ocean, and atomic number 63. The neighbouring countries argon China, North Korea, Finland, Georgia, etc. (Russia Introduction n.pag.). It is an independent economy having a bud impart expenditure of around $372 one thousand thousand and the unemployment rate being 6.6% (Russia Statistics n.pag.). In the year of 1990, the economy changed itself from being a centrally planned to that of a free market economy (Russia Economy n.pag.). FINANCIAL ENVIRONMENT IN RUSSIA According to Vladimir Putin, the Prime see of the Russian Federation, Russia has been ranked among the top five economies for alluring foreign direct investment (FDI) (Doing Business in Russia n.pag.). The country has shown a good contour in terms of gross domestic product (Gross Domestic Product) in 2011 where the governing body debt was around 10% of gross domestic product and the inflation rate being 6%. The Government is also cookery to invest around $1.5 trillion for developing the countrys economy for the upcoming three years. However, the figure of FDI has not grown substantially as it is just accounting to an amount nearly $40 trillion coming to the third year. And that means there ar not many multinationals or foreign companies place in the country (Doing Business in Russia n.pag.). BUSINESS ENVIRONMENT For doing business in Russia, there atomic number 18 certain accounting principles that one needs to follow. Each and every registered company or firm is undeniable to prepare individual RAS financial statements for each financial year ending on the thirty-first of December. The framing of the financial statements are prescribed by the Ministry of Finance, and it includes a two-year comparative balance sheet, acquire and loss accounts, a statement for equity changes, and a one-years comparative cash-flow statement. Supplementary notes are also required (Financial Reporting Framework in Russia n .pag.). Various international organizations like the World avow and IMF are giving their supporting hand to the Russian Federation in order to improve the GDP rate. According to a study by the World avow, the following data has been figured out (World Bank n.pag.). Figure one. Graph showing the growth of GDP over the years in comparison with Europe & Central Asia Source World Bank Here we can see that in Russia, the growth of GDP was very low in 2003 and gradually became somewhat consistent over the years of 2006 and 2007. There were no production in 2009, but it came to a considerable position in 2010 and 2011. According to IMF, this has also been make up that Russia has been the largest borrower. Hence IMF is examining what Russia, in return, has produced or improved before sanctioning any more funds (Russia The IMFs biggest failure n.pag.). LEGAL ENVIRONMENT Taking the legal environment into consideration, if a person gets engaged into a tax or commercials dispute in Russia, a ccording to the Court of Law, he/she will have to onset the arbitrazh courts. The procedure starts with filling in a form, and the whole procedure, in original, takes around 9 to 12 months to get completed. There are also some business regulations that are practiced in Russia which are the disceptation policy and the policy of price controlling (Business Environment in Russia n.pag.). Russia adopted the Civil Law for its legal power in order to compete with the Western-European nation states by strengthening political and economic power (The commonplace Law and Civil Law Traditions n.pag.). Investor protection and