Clash of culture makes it hard to figure

Article Abstract:

The Soviet accounting system differs greatly from that used by most Western accounting practitioners. Some features of Soviet accounting that may be totally alien to Western accountants are the adoption of centrally generated objectives, the use of goverment prescribed general journal and ledger forms, the use of manual accounting methods, and the application of a unified accounts chart. These unfamiliar features, however, usually do not hinder Western accountants from understanding the Soviet way of accounting because the significant difference between Soviet and Western accounting stems not so much from technical issues as from mental attitude. For example, accounting information is not very much appreciated in the former Soviet Union since financial accounting under the communist government has always existed primarily to satisfy monitoring authorities to provide the statistics needed by the national economy.

International aspects, Cover Story, Corporations, Corporations, Soviet

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Capital ideas

Article Abstract:

The Accounting Standards Board has recently issued a financial reporting exposure draft (FRED3) containing its proposed accounting standard for capital instruments. The standard is intended to ensure that the different instruments currently in use are distinguished in the balance sheet and that the profits and loss account truly reflects the costs of the different instruments. Among the significant proposals contained in FRED3 are the consideration of capital instruments as liabilities under certain conditions, the separate disclosure of convertible debt, the current or non-current classification of liabilities based on their contractual maturity, and the analysis of minority interests in subsidiary corporations between equity and non-equity interests.

Financial instruments

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Gauging compliance on segmental reporting

Article Abstract:

The Accounting Standards Committee's Statement of Standard Accounting Practice (SSAP) 25 has implemented standards for segmental reporting, and requires the disclosure of profit and turnover for different activities and geographic areas. Among the requirements of SSAP 25 are the additional disclosure of: the amount of capital expended for each segment; the amount of common costs expended for each segment; and a recognition of subsidiary companies as separate entities requiring disclosure. A study of UK companies was conducted to ascertain the likely degree of compliance with segmental reporting. Research results reveal that normal disclosure practices will not change significantly due to the introduction of the standard.

Corporation reports, Company reports

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