ORGANIZATION OF MANAGERIAL ACCOUNTING IN RETAIL TRADE ENTERPRISES OF THE SYSTEM OF CONSUMERS' COOPERATIVE SOCIETY

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                AUDIT AND FINANCIAL ANALYSIS







                   The fourth quarter 2002





                    Moscow

Audit and Financial Analysis The fourth quarter 2002.

Leading Russian and foreign scientists analyze the financial situation in Russia and the policies able to end the economic crisis. The experience in general and bank audit mesh appropriately with the relevant subject matter. The problems of investment in Russia are highlighted. Directive and methodical materials on external and internal audit, financial and economic analysis are used in numerous in-text examples of relating topics. The international and domestic standards on accounting and audit illustrate the concepts being explained. Innovating prospects are given for enhancing business plans.
Editor - in - chief
J.V. Chistyakov Editor         N.G. Baryshnikova
Text designer S.A. Akopyan Proof-reading O.M. Shakleina

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Chistyakov J.V. (Chairman), Danilevsky J.A., Buyanov V.P., Gorodetsky A.E., Kotlyar E.A., Livshits V.N., Lozhkin O.B., Trenev N.N., Halevinskaya E.D., Horin A.N.
The founder: Joint-Stock Company “1c: Computer Audit”

           What could be of interest in this issue?

  The section “Taxation and Financial Control”, by U.K Burtsev, auditor of JointStock Company “In-Audit”, candidate of science (economics), reflects the growing concern over reforming of the state financial control in the Russian Federation under actual conditions highlighting its conceptual bases. The second article, by V.A. Zaytsev, Chief of the Academy of Fax Police of FSTP of Russia, LieutenantGeneral of tax police, candidate of science (law), deals with the law-enforcement mechanisms of maintenance of economic safety of Russia in tax sphere.

  In section “General Audit” the group of experts of the Moscow University of Consumers' Cooperative Society headed by senior lecturer of the Department of Accounting, candidate of science (engineering) E.E.Kerimov, brings an abundance of new ideas relating to the organization of managerial accounting in retail trade enterprises of the system of consumers' cooperative society.

  The consultant on economic problems of Public Company “Dubnensky machinebuilding factory” K.V. Shchiborshch, candidate of science, discusses the planning of commercial bank activities.

  The section “Investment Problems” incorporates two articles. Senior lecturer of the Department of economics and finance of the State Dobrolyubov Linguistic University of Nizhny Novgorod, candidate of science (engineering) V.A. Chernov imparts the methodology of strategic analysis of investments, allowing to take into account the inflation, uncertainty and risks. Another article, by 0.0 Komleva, the expert of Joint-Stock Company “Intercom-Audit”, gets the readers involved into Russian practice of the evaluation of market cost of share portfolios.

  The section “Business Re-engineering” contains two articles. Honored economist, professor, AS. Mudunov shares his experience in modeling of functioning of objects of the sphere of services under market relations. S.R.Hachatryan, Candidate of Science (Economics), Corresponding member of the Academy of Housing, Leading scientific employee of CEMI RAS; E.J. Faerman, SC. D (Economics), the honored worker of science of the Russian Federation, the head of a department; N.V.Korolyova, Scientific Employee of CEMI RAS; M.V.Pinegina, Candidate of Science (Economics), Project manager of the Fund of the Institute of Municipal Economy develop the methods of the analysis and modeling of processes of the implementation of up-to-date technologies into housing fund management.

  The section on “Problems of Financial Management” contains two articles. A.V. Beglarjan, assistant of the chief of department AKB "IntrastBank”, postgraduate student CEMI the Russian Academy of Science, tells about how redistribution of incomes between rich and poor is reflected in a market price. AO. Nedossekin, candidate of science (engineering), Chief consultant of “Siemens Business Services” Co, forecasts share indexes.

  In section “Reviews” manager faculty MESI, Doctor of Science (Economics), professor B.A. Lagosha reviews the book N.E. Egorova and A.M. Smulov “About the enterprise and banks: interaction, economic analysis, modeling”.

           For auditors, managers and accountants P.S.
           Published in Russian and English languages.
           Authors are kindly requested to present their papers in both languages.

                    Passed for printing 15.10.2002. Format 60684 1/8.
                                   Offset. Paper 70.
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            CONTENTS



   TAXATION AND FINANCIAL CONTROL............................................................5

CONCEPTUAL FOUNDATION OF STATE FINANCIAL
CONTROL REFORMING IN THE RUSSIAN FEDERATION
UNDER PRESENT CONDITIONS
V. V.Burtsev....................................................................................................... 5
   1. THE STATUS OF THE STATE FINANCIAL CONTROL IN THE RUSSIAN FEDERATION AND THE WAYS OF ITS DEVELOPMENT..........................................................5
   2. THE BASIC QUESTIONS OF ORGANIZATION OF THE STATE CONTROL OVER THE MAINTENANCE OF FINANCIAL SAFETY OF THE RUSSIAN FEDERATION............................13
LAW-ENFORCEMENT MECHANISMS OF MAINTENANCE
OF ECONOMIC SAFETY OF RUSSIA IN TAX SPHERE
V.A.Zaytsev................................................................................................................................... 21
   GENERAL AUDIT............................................................................27
ORGANIZATION OF MANAGERIAL ACCOUNTING
IN RETAIL TRADE ENTERPRISES OF THE SYSTEM
OF CONSUMERS' COOPERATIVE SOCIETY
V.E. Kerimov, R.A. Sukhov, P.V. Selivanov, E.V. Ivanov, A.A. Epifanov...................................................... 27
   1. THEORETICAL FUNDAMENTALS OF MANAGERIAL ACCOUNTING.....................................27
   2. INTERNAL CALCULATION AND BUDGETING IN SYSTEM OF MANAGERIAL ACCOUNTING.................35
   3. ANALYSIS OF DISTRIBUTION COSTS, REVENUES AND PROFIT...................................44
   4. MAKING MANAGERIAL DECISIONS...........................................................59
   5. ORGANIZATION OF OPERATING ACCOUNTING IN RETAIL TRADE ENTERPRISE.......................69
   BANK AUDIT...............................................................................72
PLANNING OF COMMERCIAL BANK ACTIVITY
К. V. Shchiborshch........................................................................................................................... 72
   1. MAJOR PRINCIPLES OF PLANNING OF COMMERCIAL BANK ACTIVITY..............................72
   2. STRATEGIC PLANNING....................................................................73
   3. OPERATING MANAGEMENT..................................................................81
   4. ORGANIZATIONAL STRUCTURE OF THE BANK AT STRATEGIC PLANNING AND OPERATING MANAGEMENT.....................................................................88
   PROBLEMS OF INVESTMENT...................................................................90
STRATEGIC ANALYSIS OF INVESTMENTS
V.A. Chernov................................................................................90
   1. PRINCIPLES OF STRATEGIC INVESTMENT....................................................90
   2. ANALYSIS OF THE EFFICIENCY OF INVESTMENTS............................................101
   3. CONSIDERATION OF INFLATION, UNCERTAINTY AND RISK AT EVALUATION OF THE EFFICIENCY OF INVESTMENTS........................................................108
EVALUATION OF THE MARKET COST OF SHARE PORTFOLIOS
(FROM RUSSIAN PRACTICE) O.O. Komleva...............................................................................122
   1. THEORETICAL PRINCIPLES OF EVALUATION OF SHARE PORTFOLIOS.............................122
   2. PRACTICE OF EVALUATION OF THE MARKET COST OF SHARE PORTFOLIOS.........................135

V.E. Kerimov, etc

ACCOUNTING IN RETAIL TRADE ENTERPRISES


        GENERAL AUDIT


ORGANIZATION OF MANAGERIAL ACCOUNTING IN RETAIL TRADE ENTERPRISES OF THE SYSTEM
OF CONSUMERS' COOPERATIVE SOCIETY
V.E. Kerimov, Doctor of Economics, Senior Lecturer, R.A. Sukhov, Candidate of Science, Senior Lecturer, P.V. Selivanov, Assistant,
E.V. Ivanov, Assistant, A.A. Epifanov, the post-graduate

  The Moscow University of consumers' cooperative Society, the department of Accounting

INTRODUCTION
 According to the concept of the development of consumers' cooperative society of the Russian Federation for the period till 2010 the retail trade including the network of supermarkets, department stores, shops, trade outlets, etc is called to take the main part in solving economic and social problems of consumers' cooperative society.
 The enterprises of retail trade should become the centers of cooperative sites, they should carry out alongside with the trading activity also other kinds of the activity, master and introduce new kinds of services and communications. Under these conditions the role and the importance of the heads of retail trade enterprises raises. They are called to become professional managers, to operate skilfully the commodity resources to provide their safety, to find the reserves of the increase of the efficiency of economic activities, to maintain the activities with shareholders and population of the serviced region (or a district).
 Actual head of the retail trade enterprise should have sufficient knowledge in the field of managerial accounting being an integrated system of internal accounting which gives the information on costs and results of the activity necessary for making operating and forecast managerial decisions. The basic functions of managerial accounting are as follows: forecasting, planning, the organization, the accounting, the control, regulation, stimulation and the analysis.
 Managerial accounting is a new complex branch of economics. In it consists its great advantage, because just at the boundary of sciences, at use of different scientific methods there arise a remarkable progress in knowledge and technologies.
 Under actual conditions the managerial accounting through the functions represents itself as the basic information base of management by internal activity of the organization. Its basic purpose is getting information for making operative and forecast managerial decisions.
 The problems of the organization of managerial accounting in system of consumers' cooperative society are developed, basically, with reference to industrial enterprises. With reference to retail trade enterprises these problems both in the theory and in practice are considered for the first time.
 As a whole the present work is devoted to the formation of an effective system of managerial accounting in retail trade of the system of consumers' cooperative society. The recommendations contained in it may promote the increase of the efficiency of production and commercial activity, strengthening of the control, analyticity and reliability of the estimated factors and more full revealing and use of reserves of the growth of profitability of economic activities.


    1. THEORETICAL FUNDAMENTALS OF MANAGERIAL ACCOUNTING

1.1. Managerial accounting, its objects, functions and tasks
  Managerial accounting is an integrated system of internal accounting giving the information on costs and results of the activity of the organization as a whole, and its separate structural divisions, intended for making tactical (operative) and strategic (forecast) managerial decisions.
  Managerial accounting is intended for the decision of internal tasks of management and is its “knowhow". In opposite to financial accounting, managerial accounting is subjective and confidential, but just it bears the basic loading of the maintenance of making managerial decisions.
  The interrelation between the managerial and financial accounting can be represented in the following kind (fig. 1.1).


Fig. 1.1. Interrelation between managerial and financial accounting

  Managerial accounting is historically a consequence of the production accounting. The production accounting includes, basically, registration - settlement procedures which basic purpose is the definition of costs and sales revenues per unit of goods.
  The production accounting in retail trade is called to estimate the distribution of expenses and sales revenues and to reveal possible reserves of the increase of profitability of industrial-economic activities. It should reflect precisely in details all processes at the enterprise connected with the purchase and sale of goods. The basic sections of the production accounting in retail trade should be as follows:
•   The accounting of expenses and sales revenues by their kinds;
•   The accounting of expenses and sales revenues by centers of responsibility;
•   The accounting of expenses and sales revenues on their carriers.
  The accounting of expenses and sales revenues by their kinds should show, what groups of expenses arose at the enterprise during the purchase of goods in the accounting period and how they were compensated during their sale.

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