Public Perception of the Role of Accounting in a Transition Economy: The Case of Russia

International Journal of Accounting, Auditing and Performance Evaluation Vol. 14, No. 4, 2018

25 Pages Posted: 5 Feb 2018 Last revised: 9 Oct 2018

See all articles by Galina Preobragenskaya

Galina Preobragenskaya

Abu Dhabi University - Department of Accounting

Robert W. McGee

Fayetteville State University - Department of Accounting

Iliya Komarev

EMLYON Business School - Casablanca Campus ; Abu Dhabi University - College of Business

Date Written: January 1, 2018

Abstract

This paper explores the perceived role of accounting in Russia, a country transitioning from a post-socialist to a market economy. A survey was conducted to examine the public views on (1) the main functions of accounting, (2) the primary role of users of financial statements, (3) the level of demand for financial information, (4) the perceived financial statements’ reliability, and (5) the importance of reliable financial information. Our results show that the Russian accounting system can be classified as macro-user oriented. Although accounting is perceived to serve chiefly management needs, the main purposes of financial reporting are perceived to be tax calculation and compliance with government reporting requirements, and the primary users of financial statements are supposed to be business owners and government. The public feels that financial statements lack reliability, and companies manage earnings downwards. The study identifies potential reasons for misreporting. The financial reporting reliability is perceived to have greater impact on the country’s economy than on the person.

Keywords: financial reporting, Russia, transition economy, opinion survey, performance evaluation, people perceptions, society, accounting

JEL Classification: M4, P3

Suggested Citation

Preobragenskaya, Galina G. and McGee, Robert W. and Komarev, Iliya, Public Perception of the Role of Accounting in a Transition Economy: The Case of Russia (January 1, 2018). International Journal of Accounting, Auditing and Performance Evaluation Vol. 14, No. 4, 2018. Available at SSRN: https://ssrn.com/abstract=3111630 or http://dx.doi.org/10.2139/ssrn.3111630

Galina G. Preobragenskaya

Abu Dhabi University - Department of Accounting ( email )

PO Box 59911
Abu Dhab
United Arab Emirates

Robert W. McGee

Fayetteville State University - Department of Accounting ( email )

Fayetteville, NC 28301
United States

HOME PAGE: http://robertwmcgee.com

Iliya Komarev (Contact Author)

EMLYON Business School - Casablanca Campus ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

Abu Dhabi University - College of Business ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

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