The work of the accountant
The work of the comptroller.
The work of the comptroller is said to be diverse in nature. Basically, it deals with recording, sum uping, analysing and verifying concern minutess in books of comptrollers. The undertaking of analyzing and analysing histories is one of great significance. It makes it possible to supply information necessary for economic direction. There is normally an limitless supply of informations available in an endeavor. The key job facing comptrollers is the choice for showing to the direction merely meaningful information. And the comptroller is effectual if he supplies information quickly and in a clear linguistic communication. Great alterations are known to hold taken topographic point over recent old ages. The function of the comptroller has changed and his maps have deepened and widened. The old book & # 8211 ; keeper is a fable now. He was described as a dried & # 8211 ; up narrow & # 8211 ; minded individual ignorant of everything but boring operations with figure. The modern accountant Acts of the Apostless as an advisor to the direction and helps the latter in determination & # 8211 ; doing. Under modern conditions merely comptrollers can minimise the grade of uncertainly inherent in every concern determination. Accountants enable the direction to measure their ain public presentation. They besides help them device ways to better their efficiently.
The birth of accounting in Russia.
Accounting emerged in the 11th century in Kiev an Russia. In emerged through the development of province and cloistered under taking. It besides emerged thought the enlargement of trading and related recognition activities. The province and cloistered economic entity presumed the usage of the stock list agenda. Then it was the footing of all accounting. The main undertaking consisted in Keeping a record of objects so as to do possible an accurate checking of the physical stock. At that clip at that place appeared the current history, ab initio in trade where a important figure of individuals were involved. From the 17th century in Russia there evolved a instead complicated system of agricultural accounting. The accounting extended non merely to set down, herds, harvests, seeds and implements, but besides people & # 8211 ; helot. In connexion with the reforms introduced by Peter I at that place occurred a important alteration in the organisation of accounting. During his reign there was published the first official papers incorporating mentions to accounting & # 8211 ; military legislative act. By the terminal of the reign of Peter I there had been created big industrial endeavors. Such big projects required an suitably different organisation of accounting. The first official papers covering earnestly with the organisation of accounting was the Admiralty Regulation. The reforms of Peter I had a great influence on the development of accounting.
Accounting in Tsarist Russia.
The development of industrial accounting in Russia is inseparably linked with the names of N. Emelyanov and S. Ivanov. The first book to cover with industrial accounting was Emelyanov & # 8217 ; s & # 8220 ; Production Exercises in Accounting for Home Trade and Manufacturing & # 8221 ; . In the book there was proposed a particular cost history for treating trade goods. S.F.Ivanov work was General Principles of Double & # 8211 ; Entry book & # 8211 ; maintaining for Executives Concerned with Accounting Mercantile and Industrial Affairs. It was the first major work on the subject. It besides contained some singular pages on the universe history of a figure of systems of cost finding. His chief thought was that merely direct outgo should consist cost. It subsequently provided the footing for a figure of systems of cost finding. Feldgausen & # 8217 ; s & # 8220 ; Norms Factory Reforming & # 8221 ; was no less important. In this book it was foremost proposed that work undertaken and work completed would be recorded at predetermined stable monetary values. The cost divergences had to be collected and written off to the net income and loss history. The thought was subsequently placed at the footing of standard costing. At the same clip really crude methods dominated the pattern of accounting. The traditional mill accounting was based upon the accounting developed in Germany. Scientific accounting began and developed in Russia in the 19th
century. Nevertheless accounting and control were wholly retarded.
The nature and intent of accounting.
The intent of accounting is to supply economic information. It permits users of that information to do informed judgements and determinations. Users of economic information require this cognition to assist them make up one’s mind how best to apportion available resource. Resources are scarce in relation to necessitate and users rely on accounting studies to guarantee the efficient and effectual allotment of supplies. Some of the major users of accounting information are proprietors of concern, loaners of money, such as Bankss, providers of goods and services, directors of a concern, clients of a concern, employees, authoritiess, the populace, rivals. The major determination facing proprietors and possible proprietors is whether or non to put or retain an investing in a concern, shooting & # 8211 ; term loaners will usually be concerned with the & # 8220 ; liquidness & # 8221 ; of the concern. Long & # 8211 ; term loaners are concerned with the chances of the concern is able to pay for the goods and services provided. Directors must do different sorts of economic determinations and necessitate different accounting information. The current fiscal status of the concern and likely hereafter public presentation will be of involvement for clients. Employees will necessitate information refering alterations in employment degrees and the ability of the concern to run into pay demands. Governments se information on net incomes made in order to measure liability for revenue enhancement, members of the populace may wish to measure whether or non the concern is a & # 8220 ; good citizen & # 8221 ; . Rivals may see taking over the concern.
Desirable qualities of fiscal information.
In order for accounting information to be considered utile it should possess certain qualities. There are relevancy, objectiveness, seasonableness, comparison, comprehensibility. These qualities may at clip be in struggle with one another and some via media between them may hold to be made. The position as to what constitutes a satisfactory via media may change between users. Accounting information is said to hold relevancy if it has the possible to act upon the determinations and judgements of users. Irrelevant accounting information provides no benefit to users and does non warrant the costs of bring forthing the information. Objectivity or nonpartisanship can be divided into two elements^ verifiability, and freedom from prejudice. Verifiability means that qualified accountant managing the same basic informations but working independent would bring forth the same consequences. Freedom from bias suggests that the information produced will non prefer the involvements of a peculiar group of users at the disbursal of another. Accounting information should by seasonably in the sense that it should be produced moderately shortly after the terminal of the accounting period. Other wise it will lose the relevancy. Timeliness besides means that the coverage intervals should be frequent plenty. Comparability suggests that it is utile if points and events common to different concerns are measured and presented in the same mode. To possess the quality of understandability accounting information should be set out in a clear and logical chief.
The types and rubrics of histories.
Sometimes big sums of informations are gathered in the measuring of concern dealing. So a method of storage and retrieval of information is required. In other words, there should be a filing system to sit out or sort all the dealing of concern. This filing system consists of histories. An history is the basic storage unit for informations in accounting. In its simplest signifier an history has three parts a rubric that describe the plus, liability, or proprietor & # 8217 ; s equity history, a left side, which is called the recognition side. This signifier of history called a T history is used to analyze the history is a debit, or debit entry. And any entry made on the right side of the history is a recognition, or recognition entry. The most normally used types of histories are Asset Accounts, Liabilities Accounts and proprietor & # 8217 ; s Equity Accounts. In a manual accounting system each history is kept on a separate page or card. These pages or cards are placed together in a book or a file. This book or file, which contains all groups of the company & # 8217 ; s histories, is called a leger. In a computing machine system, which most companies have today, the histories are maintained on magnetic tapes or phonograph record. Histories are numbered and a list of these histories is called a chart of histories. Different companies have different charts of history.
The dual & # 8211 ; entry system.
The dual & # 8211 ; entry system, the anchor of accounting, avouched during the Renaissance. The first systematic presentation of dual & # 8211 ; entry book & # 8211 ; maintaining appeared in 1994, two old ages after Columbus discovered America. It was described in a mathematics book written by Luca Paciolli, a Franciscan monastic who was a friend of Leonardo district attorney Vinci. Before the innovation of dual & # 8211 ; entry book & # 8211 ; maintaining accounting records had been disorganized. The usage of this technique had a positive consequence on both concern and trade. In the Middle Ages the cognition of this techniques was a pre & # 8211 ; status of rapid economic growing of most European states. In Russia dual & # 8211 ; entry accounting was introduced to the province under Peter I. It was foremost applied for the Admiralty and the ground forces. The first big endeavor to utilize dual & # 8211 ; entry was the Demidovs. By the terminal of the 18th
century the Demidovs endeavor had acquired sophisticated accounting techniques. The dual & # 8211 ; entry system is based on the rule of dichotomy. It means that all economic events have two facets & # 8211 ; attempt and wages beginnings and uses & # 8211 ; that, away set, or equilibrate each other. In the dual & # 8211 ; entry system each dealing most be recorded with at least one debit and one recognition. And the entire sum of debit and the entire sum of credits equal each other. Because of the manner it is designed, the system as a whole is ever in balance.
The conventions of accounting.
Accounting is a linguistic communication through which fiscal and economic information is collected, stored, analyzed and classified. Finally it is communicated to users. Accounting has bit by bit developed and it has besides adapted to run into the demands of users. Certain regulations have emergent in accounting to run into practical demands. The most of import of these regulations or conventions are referred to as constructs. The basic accounting constructs of International Accounting Standards are just presentations, accumulations, traveling concern, consistence, materiality and collection. The construct of just presentation means that all fiscal statements should incorporate equal information. This information concerns the fiscal place of an endeavor. All the fiscal statements should be prepared on the footing of statute law and in the context of accounting patterns. The construct of accumulations provinces that net income or loss for a period is the difference between the entire grosss and entire disbursals for that period. The construct of traveling concern asserts that it is assumed that the busi
cape will last indefinitely. The construct of consistence assumes that accounting intervention of similar points is the same and it requires similar methods to be used from twelvemonth to twelvemonth. The construct of materiality and collection assumes comparative importance of an point and offers sensible estimates.
Fiscal statements are a cardinal characteristic of accounting.
They are the primary agencies of pass oning of import accounting information to users. Four major fiscal statements are used to pass on the information about the concern. Each of them trades with a peculiar facet of fiscal conditions. The first fiscal statement is the income statement or net income and loss history. It summaries as the sum of grosss earned and disbursals incurred over a period of clip. Many people consider it the most of import fiscal study. But the income statement has one major lack. It merely shows the alterations in fiscal place and many events don & # 8217 ; t look on the income statement. The 2nd fiscal statement is the balance sheet. Its intent is to demo the fiscal place of a concern at a peculiar clip. The 3rd fiscal statement is the hard currency flow statement. It shows a company & # 8217 ; s beginnings and utilizations of hard currency during a accounting period. Users of fiscal and external users. Management is the chief internal user. Creditors and investors are external users.
The balance sheet.
The balance sheet shows what a company owns and the beginnings of funding there acquiescences. It besides shows runing activities by portion & # 8211 ; holders and by borrowing. It is a & # 8220 ; snapshot & # 8221 ; of the company & # 8217 ; s fiscal place at a specified clip. The balance sheet consists of three major subdivisions acquiescences, liabilities and equity. These subdivisions are arranged otherwise from state to state. The assets of a company are frequently divided into two classs current assets and non & # 8211 ; current assets. Current assets include hard currency or the assets that are expected to be realized in hard currency or sold during a normal operating rhythm of a concern. Temporary investments/ histories and notes receivable, stock list prepaid disbursals are besides current assets. Non & # 8211 ; current assets include belongings, works and equipment, fixed assets usually stated at net book value. The assets which are expected to stay in the balance sheet more than one twelvemonth autumn into non & # 8211 ; current assets class. Liabilitiess are made upon flat pots, collectible long & # 8211 ; term notes, bonds collectible, employee pensions, long & # 8211 ; term and current duties. They are besides split into current and non & # 8211 ; current liabilities. Owner & # 8217 ; s equity can be defined as the resources invested by the concern. Owner & # 8217 ; s equity is assets minus liabilities.
Accounting can be defined an information system. It measures procedures and communicates information that is utile for determination & # 8211 ; doing. Fiscal accounting refers to accounting information that is used by direction. This information is besides communicated to those outside the organisation. So fiscal accounting studies provide a general of all time position of the fiscal wellness of a concern. Financial accounting studies seldom include forecast information. They are black ward & # 8211 ; looking and concentrate on existent consequences achieved. Fiscal studies normally contain certain basic information of sensible quality. The information is produced in a unvarying manner. A set of patterns has developed to supply guideless for fiscal accounting. The term used to impute them is by and large. These rules encompass the conventions, regulations and processs. The criterions applied for readying of fiscal statements are called the International Accounting Standards or IAS. The IAS Committee develops them.
An accountant employed by a concern for internal coverage to the direction is s direction accounting. Management accountings have a wide and intimate position of a company & # 8217 ; s operations. Management accounting is concerned with the proviso of economic information. This information is an assistance to managerial determination & # 8211 ; doing and command. Thus directors can choose appropriate schemes for incorporation into their programs. Sometimes there is a important devicition between, existent and planned public presentation. As directors dictate the volume and format of the information, fluctuations in direction accounting patterns arise. Despite there fluctuations directors need three sort of accounting information. There are merchandise bing for pricing and stock list rating, cost analyses for operational planning and control and analyses for direction determination & # 8211 ; doing. To measure analyses and describing techniques. To make their work decently direction comptrollers should be extremely qualified.
Accounting for minutess in foreign currencies.
It is natural for concerns to look for new beginnings of supply and new markets in other states. Today transnational or trans national corporations operate throughout the universe. In add-on sophisticated investors don & # 8217 ; t curtail their investing activities to the domestic securities market. Most gross revenues or purchases of goods and services in other states involve different currencies. Therefore, one currency needs to be translated into another, utilizing exchange functions. An exchange function is the value of one currency in footings of another. In consequence, the currencies are goods that can be bought and sold. Their monetary values change daily harmonizing to supply and demand for a certain currency. The job with currency interlingual rendition arises because of the rating systems used in conventional fiscal statements. In the UK most companies have used the twelvemonth & # 8211 ; stop rate method. Later foreign subordinates became separate entities. In the US a & # 8220 ; temporal & # 8221 ; method was used. Under this method balances were translated at rates which related to their rating footing. So historical cost assets were translated at historical costs and hard currency was translated at the current rate. However this method led to losingss when the US dollar was depreciated. Still & # 8220 ; temporal & # 8221 ; and current rate methods have controversial points.
Legal base and formal directives for accounting and coverage in Russia.
Accounting patterns are regulated thought the edicts of the Ministry of Finance. All accounting commissariats are established by the Ministry of Finance. These commissariats are based on the legal criterions for all organisations on Russia & # 8217 ; s district. There commissariats may be accompanied by specific directives published by governmental, sections. This applies to all concerns including joint & # 8211 ; stock companies province and private owned endeavors. The present accounting system in the Russian Federation is based on the general chart of histories. Its usage is mandatory for all concerns in the district of Russia apart from specific sectors of economic system such as fiscal establishments. The presently used confab of histories was introduced in 2000. It contains about 100 histories called man-made histories. In bend these histories are broken down in 60 bomber & # 8211 ; histories grouped in subdivisions. The directing 4, published by the Ministry of Finance, established new signifiers of the coverage system. Every concern in Russia is obligated to fix quarterly and one-year fiscal statements. Annual fiscal statements have to incorporate balance sheet and net income and loss statement. The one-year fiscal statements must be prepared by 15 Mach of the undermentioned twelvemonth and are capable to scrutiny by hearers.
Specific characteristics of accounting in Russia.
Accounting patterns in Russia are based on statute rules. But unlike other states, Russia & # 8217 ; s accounting system reflects merely payments received and transferred. It besides discloses one-year consequences based on this. A characteristic characteristic of the Russian accounting system is a big figure of balance sheet histories. It besides has an abundant usage of different histories on both sides of the balance sheet. The chief histories represent the corresponding balance sheet points. As a regulation, touchable assets are stated at the original acquisition cost, including cost incidental to acquisition. An one-year stock count, performed in November or December, is required to determine the stock list on manus. Sometimes a balance sheet point is disclosed on some histories. In peculiar, liabilities towards Bankss are disclosed in two histories shout & # 8211 ; term liabilities and long & # 8211 ; term liabilities. A specific characteristic of Russian accounting is a construct of fund accounting virtually unknown in the West. It is based on the premise that lone money accumulated in a fund may be used. And birthplace of financess must be exactly documented upon their usage. In conformity with the edict of the ministry of finance of the Russian federation concerns may set up some financess. They are a ingestion fund, a accretion fund and a public assistance fund.
The usage of computing machines in accounting in Russia.
Most accounting work in Russian concern today is done by computing machines. Computers allow concerns to centralise accounting operations and extinguish much of the work that used to be done by manus. Thankss to the development of minicomputers and minicomputers even little organisations can maintain their accounting records in electronic signifier. The term informations processing can intend the manual composing up of histories or the maintaining of histories by a computing machine. If a clerk writes up the entries in the histories, this is manual information & # 8211 ; processing. If histories are kept utilizing an accounting machine, this is automatic informations & # 8211 ; treating. But the rules regulating such entries remain the same whether manual or computing machine methods are in usage. Automatic information & # 8211 ; processing is much quicker and there are fewer mistakes. Therefore big concerns in Russia have systems analysts, coders and computing machine, operators to plan computing machine accounting system. Small concerns normally purchase commercial accounting systems that are programmed to execute accounting maps. Most of these systems rely on a fluctuation on of batch processing in which a portion of the package performs each major undertaking of the accounting system.
Accounting in the hereafter.
It is good recognized that accounting has played a important function in the development of human society. Due to the growing of industry the demands for comptrollers has increased. This tendency will go on in the 20 & # 8211 ; first century. Such new Fieldss of accounting as societal accounting, revenue enhancement accounting will develop. In the 20 first century the universe will go on to travel towards a individual economic system. As a consequence the uniformity of international accounting criterions may look. Establishing international accounting criterions will salvage corporations clip and money. It will better the comparison of accounting in formations fabricating methods and information processing is developing quickly. Accounting methods will hold to accommodate to the alterations. Another of import tendency is connected with computerising accounting work. So, comptroller of the 20 first century will utilize merely electronic equipment. The comptroller of the hereafter will be involved in system design activities. Accountants will see and analyses the construction and the flow of information.