Financial Journal № 4(6) October 2010
Interagency Special Purpose Programs
The article author examines the experience gained by the international budget experts and shows that the program-based budgeting has the advantages that the line item budgeting method lacks. He also describes how the program-based budgeting methodology is implemented on the agency level. The interagency special purpose programs have been elaborated that are based on the Federal Financial and Budget Supervision Service data.
Keywords: budget, expenditure, agency, program
The Russian Stock Market: Can it Demonstrate Efficiency, albeit on a Small Scale?
The article author uses statistical data to examine how the MICEX Index changed during the last decade. The researcher looks into the changes in the cumulative distribution functions for earnings and comes to the conclusion that the efficient market hypothesis is ungrounded and that the price formation patterns that are based on the assumption that the asset risk can be measured by the earning variances are erroneous.
Keywords: efficient market hypothesis, fractal market hypothesis, stable distributions, Lévy processes
Russian Capital Flight: the Scope of the Problem
The article author dwells on the problem of Russian capital flight that hampers the country’s economic development. Various ways to illegally transfer the capital to a different state are examined. The author examines what role the offshore companies play in the illegal money laundering. The author stresses that the appropriate laws should be in place to fight the capital flight.
Keywords: capital flight, withdrawal of capital, currency control, export and import-related transactions, capital repatriation, offshore companies
Tax Avoidance: an Inescapable Evil or an Issue for the Controllers to Solve?
The value added tax is the main source of revenue for the federal budget. This is why much attention has always been paid to the issue of tax collection and tax control. One of the most acute VAT collection management-related issues is examined in the article. It is a tax avoidance issue. As a result of the phony companies’ fraudulent operations, the federal government undercollects tens of billions of dollars each year. The article author examines the current legislation, identifies the areas for improvement and makes suggestions as to how the legal base can be improved in order to make it impossible to build the illegal cashing schemes.
Keywords: VAT, phony company, fraudulent scheme, ungrounded tax benefit, bad faith practices
Creative Accounting: from the Practical Use to the Theoretical Concept
Can the approaches utilized in creative accounting be used by the ordinary accounting practitioners? There is no definite answer to this question so far. The article author gives her own definition of the term and identifies the areas where the term can be applied. She offers comparative analysis of the IAS and the Russian accounting rules in order to identify the situations that are not covered by the national accounting standards when an accountant should abide by the IAS provisions.
Keywords: creative accounting, norms and regulations, IAS introduction, window dressing, fraud
Market in Forest Products and Resources in Russia: the Development Trend
The article author dwells on the formation and development of the market in forest products and resources and on the search for an efficient way to publicly manage the resources. The specificity of the property rights dictates the special way in which the forest resources are used in Russia. Namely, the right of ownership and disposal rests with the state and the right to use the resources belongs to the individuals thus making the market unmanageable. In order to form an efficiently operating market of forest resources, the government should find an economic mechanism that could help get the maximal revenue (rent) by improving the enterprises’ profitability and by forming public private partnerships.
Keywords: forest resources management, market in forest products and resources, forest law, forest use, differential rent, public private partnership (PPP)
An Optimal Loan Plan for Businesses
The article author examines how a business organization can form an optimal loan plan using the data available on the future revenue and expenditure, terms and conditions of loan issuing and use of temporarily available assets. A recurrent pattern is formed for calculating the businesses’ funds availability in real time and an optimal loan plan identification task is set using linear programming tools. The author gives the examples of calculations that show the efficiency of the solutions suggested. The author identifies the ways to solve the problem of optimal loan plan formation if various loan issuing terms are involved and if the available information is inaccurate.
Keywords: budgeting, loan plan optimization, improvement of the loan servicing scheme, linear programming
A Look into the Bankruptcy Forecasting Models
It is necessary to identify the markers of the pre-bankruptcy setting, the reasons why a business finds itself in the situation and to take all the necessary steps to stabilize the financial situation in the time of the financial crisis and economic instability. The author examines the methodologies used for business entity bankruptcy forecasting by the Russian and international experts, shows the advantages and disadvantages of each methodology and identifies the methodologies that can be the best option for the Russian businesses.
Keywords: forecasting, bankruptcy, methodology, crisis, factor, analysis, indicators
E. Grishina, O. Feoktistova
The Main Tools Used in the Result-Oriented Budgeting and the Goals-Tasks-Performance Indicators Model
The article authors examine the tools used in the result-oriented budgeting (ROB) and the issues associated with the ROB introduction in the constituent territories and municipal entities of the Russian Federation. The authors identify and describe the basic requirements to be met by the ROB tools used within the Goals – Tasks – Performance Indicators model. The authors stress that the goal setting process and the identification of areas where the goals and objectives of various tools overlap are very important. They describe the requirements that should be set for the performance indicators that are used to describe the budget funds use efficiency and the overall operational efficiency of the fund-using entities. They also describe the main approaches that can be used to develop a comprehensive performance indicator system.
Keywords: result-oriented budgeting, ROB tools, Goals-Tasks-Performance Indicators model requirements, expected results, performance indicator mandatory requirements
All-Russia Population Census 2010: the Methodological Foundation
The article author describes the key methodological issues, the newly introduced rules and the specifics of the All-Russia Population Census 2010. Additionally, the article author dwells on the history of conducting the censuses in Russia, the common features shared by the different census campaigns and the international best practices gained while conducting censuses in other countries of the world.
Keywords: statistical observation, census, individual census questionnaire, object of statistical data, statistical unit, survey instance, observation period, register
Business Company Value Assessment in M&A Deals
In the times of financial crisis, a company can gain some competitive advantages by engaging in an M&A deal. One of the pressing issues the acquiring party has to deal with is the assessment of the acquired company’s value. The article author examines the key methods used to assess a business company’s value and assesses the value of OAO Surgutneftegaz using the cost and benefit-based approach.
Keywords: M&A, assessment of value, assessment methodology, expert predictions
Factor Analysis of the Indicators that Mark the Interaction between the Research and Industrial Components of the National Innovation Introduction Program
The article author describes how the research organizations interact with the production plants at the innovation introduction stage that follows the theoretical research stage of the Russian economy development. He uses the factor and correlative analysis methods to show how the goals set in Part 1 of the Research and Analysis to Be Done in the Russian Science and Technology Prioritized Development Areas during the Period of 2007 − 2012 Federal special purpose program are achieved. The author makes suggestions as to how to improve the Federal program management system.
Keywords: Federal special purpose program, national innovation introduction program, innovation introduction process, regulatory methods, program indicators
Small Business: the Defining Criteria and the Tax Exemptions
There are many definitions of the term small business. The variations depend on the objective of the definition and the field of study where it is used. The article author examines the criteria that are used when a business is defined as a small business for the purposes of taxation, statistical data gathering or fund raising. The concept of a small business elaborated for the purposes of taxation in Russia, USA and France is examined.
Keywords: taxes, taxation, public finance, SME, concept of a small business for the purposes of taxation, small businesses support from government programs
France: Pension System Reform
The pension system reform that is being implemented in France, the availability of many schemes used to cover the needs of all the categories of population, and the emergence of new pension plans are the factors that made the author look into the reform issue that, if solved, in itself contributes to building social sustainability. The article author examines the draft pension system reform plan presented to the members of the French Parliament for consideration and the way the current pension system operates in the country. The author examines the rules concerning the mandatory provision of pension-related information to the public set by the French regulatory bodies. The experience gained can be shared by their Russian counterparts.
Keywords: pension, pension system, pension coverage
Taxation of Not-for-Profit Organizations
The article author examines the way the not-for-profit organizations that are involved in solving the most serious social problems in the country are taxed. She examines the provisions of the Russian Tax Code that govern the taxation of the not-for-profit organizations and identifies the issues associated with the VAT setting for grants and endowments. She also suggests which steps are to be taken to improve the legal base in order to foster the operation of the not-for-profit organizations that are currently found in Russia.
Keywords: not-for-profit organizations, operations of the not-for-profit organizations, grants, endowments, taxation
Financial Literacy Seen as Part of the Human Capital and a Factor Contributing to the Social and Economic Development
The article author describes a methodology to be used to assess the degree of importance, efficiency and topicality of the state-run program that aims at promoting public financial literacy and developing programs of study in financial literacy that is seen as part of the human capital. It is necessary to use a scientific approach to assessing the efficiency of the investment made by the state into the public financial literacy promotion program development as the state-run program aimed at educating the public about the new personal finance management market-oriented rules is nation-wide.
Keywords: human capital, financial literacy, innovation-based society, competences, financial behavior, personal finance
Differentiated Instruction in Mathematics
The article author describes the differentiated teaching methodology to be used for teaching mathematics to higher education institutions’ students. The methodology can help them benefit from the potential the discipline has and help acquire more mathematical knowledge while gaining experience in independently solving the problems using creative approaches. The article author examines the concepts that underpin the methodology. They are: the inclusion into the learning content of the specialism-oriented component, of a project work-based component which helps the students get independent work experience, the inclusion of the discipline into the individual learning trajectory, etc.
Keywords: differentiated instruction in mathematics, individual learning trajectory (path), project work, tests
Life and Work of Mikhail Lomonosov
The article author dwells on marking the 300th anniversary of Mikhail Lomonosov’s birth. The Russian scientific community will celebrate the day in 2011. The article author describes in detail the great Russian scientist’s economic views and shows in what way he participated in the social life and the life of the Russian academic and industrial community.
Keywords: Lomonosov’s biography, Lomonosov’s economic views