Accounting in Russia: Challenges for the Hospitality Stakeholders.

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 non existent. Unfortunately, the current Russian accounting system is still closely reflecting the Soviet accounting system. Russian accounting standards are very confusing for foreign investors, creditors, and managers who want to do business in Russia. The Soviet Way of Doing Business In a 70 year period before the collapse of the U.S.S.R. there were little or no private businesses in Russia. Russia is the largest republic of the former Soviet Union. Most Russian businesses were owned by the government. Companies were issued so