Accounting in Russia: Challenges for Hospitality Stakeholders
ABSTRACT This paper explores the differences between the Russian and Western accounting systems. As Western hospitality companies enter the markets of the former Soviet Union, this understanding will be imperative. Under the Soviet government, the hospitality industry in Russia was very poorly developed. After the collapse of the U.S.S.R in 1991, many businesses in Russia, including hotels and restaurants, flourished but the accounting systems to support them remained antiquated or nonexistent. Unfortunately, the current Russian accounting system still closely reflects the Soviet accounting system. Russian accounting standards are very confusing for foreign investors, creditors, and managers who want to do business in Russia.