Parallel Accounting Under Two Standards
At present many Russian companies face with a needs of the financial reporting presentation to their foreign partners: shareholders, investors, creditors, banks require the disclosure accordance with the International Financial Reporting Standards (IFRS).
Financial reporting under Russian Accounting Standards (RAS or Russian Accounting Principles – RAP) do not meet the requirements of foreign partners which use the financial reporting under International Accounting Standards (IAS) or under U.S. Generally Accepted Accounting Principles (GAAP).
There are two ways of the problem solving:
- financial statements transformation from RAS into the international ones (GAAP, IAS);
- organisation of the parallel accounting under two standards by mean of special software implementation agreeable to both the Russian and international accounting standards;
The first way – financial statements transformation – let to get the financial statements under IFRS or GAAP, recalculating the data of Russian reports: Accounting Balance (form No.1) and Profit And Loss Statement (form No.2). This method is not accurate. Furthermore it does not capable to form on-line the international financial statements. Nevertheless the method can be quite acceptable for various companies.
The second way – parallel accounting – basing on a keeping of parallel accounts under both RAS and GAAP/IAS.
Our company main activity is a setting-up and automation of parallel accounting on Russian accounting software base under both the standards: Russian (RAS) and international (GAAP, IAS). The services are rendered by the chartered accountants which have the ACCA certification and testimonials of world-famous corporations.