Internaional Accounting Essay Example | Topics and Well Written Essays - 1500 words

Internaional Accounting - Essay Example Russia borders on the Arctic Ocean, the North Pacific Ocean, and Europe. The neighbouring countries are China, North Korea, Finland, Georgia, etc. (Russia: Introduction n.pag.). It is an independent economy having a budget expenditure of around $372 billion and the unemployment rate being 6.6% (Russia: Statistics n.pag.). In the year of 1990, the economy changed itself from being a centrally planned to that of a free market economy (Russia: Economy n.pag.). FINANCIAL ENVIRONMENT IN RUSSIA\ According to Vladimir Putin, the Prime Minister of the Russian Federation, Russia has been ranked among the top five economies for alluring foreign direct investment (FDI) (Doing Business in Russia n.pag.). The country has shown a good figure in terms of GDP (Gross Domestic Product) in 2011 where the Government debt was around 10% of GDP and the inflation rate being 6%. The Government is also planning to invest around $1.5 trillion for developing the country’s economy for the upcoming three years. However, the figure of FDI has not grown substantially as it is just accounting to an amount nearly $40 billion coming to the third year. And that means there are not many multinationals or foreign companies investing in the country (Doing Business in Russia n.pag.). BUSINESS ENVIRONMENT For doing business in Russia, there are certain accounting principles that one needs to follow. Each and every registered company or firm is required to prepare individual RAS financial statements for each financial year ending on the 31st of December. The framing of the financial statements are prescribed by the Ministry of Finance, and it includes a two-year’ comparative balance sheet, profit and loss accounts, a statement for equity changes, and a one-year’s comparative cash-flow statement. Supplementary notes are also required (Financial Reporting Framework in Russia n.pag.). Various international organizations like the World Bank and IMF are giving their supporting hand to the Russian Federation in order to improve the GDP rate. According to a study by the World Bank, the following data has been figured out (World Bank n.pag.). Figure one. Graph showing the growth of GDP over the years in comparison with Europe & Central Asia: Source: World Bank Here we can see that in Russia, the growth of GDP was very low in 2003 and gradually became somewhat consistent over the years of 2006 and 2007. There were no production in 2009, but it came to a considerable position in 2010 and 2011. According to IMF, this has also been found that Russia has been the largest borrower. Hence IMF is examining what Russia, in return, has produced or improved before sanctioning any more funds (Russia: The IMF’s biggest failure n.pag.). LEGAL ENVIRONMENT Taking the legal environment into consideration, if a person gets engaged into a tax or commercials dispute in Russia, according to the Court of Law, he/she will have to approach the arbitrazh courts. The procedure starts with filling in a form, and the whole procedure, in original, takes around 9 to 12 months to get completed. There are also some business regulations that are practiced in Russia which are the competition policy and the policy of price controlling (Business Environment in Russia n.pag.). Russia adopted the Civil Law for its jurisdiction in order to compete with the Western-European nation states by strengthening political and economic power (The Common Law and Civil Law Traditions n.pag.). Investor protection and

Business Ethics and Virtue Ethics Case Study Example | Topics and Well Written Essays - 1250 words

Business Ethics and Virtue Ethics - Case Study Example The core of virtue ethics is perfecting attributes such as integrity that makes the individual truly ethical (Crisp 87). Virtue ethics requires the existence of a society that supports and nurtures these virtues. Virtue ethics also requires identification of role models in the society or the moral exemplars that disseminate morality or act of benchmarks of moral character in the society. A virtuous individual will try to emulate the moral exemplars in the community (Mizzoni 105). Virtues develop through continuous learning and practice in ethical decision making. According to Aristotle, a person will improve his integrity and character through repeated self-discipline (Crisp 92). Business ethics entails the principles and standards that shape behavior in the business world. Management roles and especially leadership requires an individual to exercise high ethical standards in making decisions ((Hursthouse 36). For instance, the human resource manager should not disclose employee priv ate information like disease history (Hursthouse 29). Managers face many instances of conflict of interest in day to day running of the business. The management is supposed to make ethical decisions that cater for the welfare of all employees. Most business transactions involve elements of trust, fairness and self-control (Hursthouse 63). Virtue ethics can be applied in business ethics to reduce the instances of corruption and fraud. For instance, a virtuous employee who value trustworthy will consider it wrong to receive kickbacks from a supplier of the organization. Other employees will such employee ethical, but they will also consider the society expectations on such behavior. Unethical behavior results to lost business revenues and high costs of operation thus adversely affecting the profitability and return to the stakeholders. Virtuous salespersons will advise the customer on the health risks associated with the product before closing the sale (Darwall 82). Virtues like trust will eliminate the agency costs associated with monitoring contracts and agreements with stakeholders. Empathy will help the business in identifying and meeting customer needs since economic success depends on courteous treatment of the customers (Statman 45). Honesty is a human characteristic that defines a virtuous person. Honest agents will tell the truth and make true promises (Dobson 1). An honest person can easily be trusted by others since he never lie, steal or cheat. Virtue ethics assert that if children are directed to be honest, they must also be taught the prize of truth. Fairness is another ethical virtue that guides ethical decision making. Fairness entails compliance with the accepted standards of conduct and making decisions without discrimination (Darwall 37). According to Fairness approach by Aristotle, favoritism will benefit a section of the society without any justifiable reason (Dobson 3). Another ethical virtue that individuals try to nurture is justice. Aqui nas has defined justice as the consistent will to render everyone his due. Justice entails doing what is right; therefore, the moral agent has an obligation to render justice and respect the other people in the society. Commutative justice serves equality in the society by restitution (Hursthouse 66). For instance, employees should be compensated according to the efforts and time invested in their work. Deceiving customers on quality of goods and demanding a higher price