Europe and Eurasia

Russia Accounting Reform


Client: United States Agency for International Development

As part of the USAID Regional Initiative aimed at mobilizing finance for private sector trade and investment, CARANA managed a project designed to emphasize to key decision-makers in the Samara and Novgorod regions of Russia the importance of adopting International Accounting Standards (IAS). In the first phase of the project, CARANA conducted a series of seminars and workshops on IAS for a total of 500 enterprise managers, accountants, auditors, and government officials in Samara. The CARANA team also provided technical and financial assistance to the Russian Guild of Financiers, including services in institutional strengthening and professional association development. In the second phase of the project, we assisted 15 pilot enterprises in Samara and 10 enterprises in Novgorod in conversion to IAS. In addition, we developed a website featuring field-tested guidelines on how to perform accounting transformations at Russian enterprises.

In October 2000, CARANA was awarded a follow-on contract in Tomsk, Russia. In Tomsk, our focus was on the proliferation of IAS and open market financial practices among regional enterprises. Specifically, we worked to (1) sensitize top enterprise managers to the importance of IAS and new management techniques, (2) prepare a strong cadre of local accounting trainers and conversion specialists, (3) transfer to the local financial officers the expertise of converting traditional accounts to IAS, and (4) provide direct assistance to local enterprises in the transformation of their financial statements to IAS. Similar to Samara and Novgorod, we helped to strengthen the capacity of local accounting associations to provide continuing training programs in modern accounting.