International Accounting and Finance Certification in the Russian Federation
19 Pages Posted: 4 May 2004
The Russian Finance Ministry has announced that Russia will adopt International Financial Reporting Standards (IFRS) as of January 1, 2004, one full year ahead of the European Union. This move is intended to give Russian financial statements more credibility in international capital markets. The problem is that there are very few Russian accountants who possess a certification that is internationally recognized and respected, with the result that certified statements of Russian firms is close to meaningless. One exception is statements that are certified by one of the Big-Four international accounting firms, but those firms audit only a small subset of all Russian firms. It is possible to purchase an accounting certificate in Russia and there are several kinds of legitimate certificates in Russia that are relatively easy to obtain, in the sense that the rigor of the examination process is much less than that required to pass an international certification exam. The private sector is attempting to provide a solution to this lack of credibility by international certification. This paper reviews those efforts.
Keywords: accounting certification, international accounting, Russia, transition economy, financial reporting
JEL Classification: J44, M41, M43, M47, M49
Suggested Citation: Suggested Citation