Scientific periodical

ISSN 2658-5332

Financial Journal № 1(3) January 2010

M. Afanasyev
The Fundamentals of the Budget System: the European Dimension
The article is about the European Union budget structure described in the relevant EC Regulation adopted in 2002. The article author examines the budget structure, the sources from where the funds are coming, the budget formation principles, budget adoption rules, and the budget execution principles. The author identifies and dwells on the key budget formation principles which form the base for the efficient and timely execution of the EU budget. The operations performed in line with the principles are the base upon which the European budget system is built.
Keywords: budget, budget formation principles, European Union, budget formation, budget execution

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L. Ovsyannikov
State Financial Control System Formation Process: the Key Issues
The article author dwells on the status quo in today’s Russian state financial control system. According to the representatives of the Russian government, one of the priorities the state has is to form the efficient state financial control system. The task has not been performed yet and the state financial control system has not reached its main goal, that is, the system efficiency has not been improved. The article author offers his own definitions of the state financial control system elements elaborated together with the FRI staff members and shows why the approach chosen is important for the methodology experts and practitioners. Using the approach chosen, the author identifies the tasks that are to be fulfilled in order to put the single state financial control system formation process on the right track and complete the long-due work.
Keywords: state financial control, formation process, system, legal base, control bodies, methods of regulation

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E. Gutzait
The Audit and the Externalities
The article author describes the audit process and the approaches to defining the externalities (neighborhood effects), the audit issues are identified that arise due to the fact that the external users’ interests are in contrast with the internal users’ interests. Similar issues are identified that are found in the adjacent fields and the basic reference model is built. The conventions-related model modification possibilities are described. Some recommendations are made to be used by the state regulatory bodies and public institutions.
Keywords: audit, basic reference model, neighborhood effects, external users’ interests, internal users’ interests, regulatory bodies, externalities, collusion

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M. Karev
Income Tax Revenue Forecasts: the Specifics
The post-crisis year 2009 saw a sharp drop in the public revenues gained on different levels, low proceeds from the oil and gas sales and the budget deficit. The latter notion has not been around for a long time. At the same time, a unique opportunity has arisen under the circumstances to check the efficiency of and adjust the models used in making forecasts for the coming fiscal year or some other period. Primarily, the quality issues arise when the budget revenues-related forecast is made. It is especially difficult to make profit tax-related and VAT-related forecasts as the taxable base identification procedure is complex because of a large number of tax allowances available to taxpayers. A large number of international experts have examined the revenue forecast models but they have not paid much attention to the profit tax forecast-related issues. The article author examines the advantages and disadvantages of the approaches used when addressing the issue, and identifies the forecast methods that perfectly match today’s economic reality.
Keywords: profit tax, revenue forecasts, state budget, taxation, micromodeling

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M. Danilkevich
Presumptive Income Tax and the International Best Practices
Presumptive income tax collection is a widespread practice in the developing countries and the economies in transition. It is done in order to collect taxes from the taxpayers who pay taxes in accordance with a complicated scheme. The Ukraine, Kazakhstan and Byelorussia charge the taxpayers with such a tax. Russia has at least 4 types of similar taxation schemes. They are: the simplified tax system, a single tax, a gambling business tax, and a patent-based simplified tax system. The goal of the article author is to examine the presumptive tax concept and compare the Russian presumptive tax schemes and the schemes used in some of the CIS countries with the modern international similar tax collection practices.
Keywords: taxation, public finance, SMEs, presumptive income tax, imputed income tax

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T. Kulakova, E. Rudnova
Direct Foreign Investment and the Role of Germany in Forming the DFI Flows
The article authors see the DFI as a form of international economic relations where the globalization trends can be observed very clearly. They take Germany as an example and identify its position in the world DFI market. They examine in detail its DFI change pattern and their financing component structure, i. e. the share capital, intracompany loans, reinvested profit and the place each component occupies within the structure. The authors describe the specifics of the German investment in the regions and identify such reasons for making investments as the development of the new market exploration strategy and the sales market expansion. They examine the statistical data available and identify the place Russia occupies among the emerging and transition economies that attract German DFI.
Keywords: foreign investment, direct foreign investment (DFI), portfolio investment, joint ventures, DFI financing components

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E. Dirkova
Amendments to the Accounting and Bookkeeping Law: the Reality and the Expectations
The article author examines a number of new clauses included into the new Federal draft law «On Accounting» that have something to do with the accounting practices in the business entities. The article author stresses that today’s system of rules and regulations is an integral part of the Federal law and the amendments made to a part of the system cannot solve all the problems the industry faces. The article author describes the term definition unification issues, the necessity to harmonize the Russian accounting regulations and the international accounting standards, and the controversial rules on the exemptions from the accounting regulations.
Keywords: accounting, draft law, accounting rules and regulations, internationally accepted accounting standards, a small business

N. Nikiforova, Е. Konkova
IAAS-Based Hedge Accounting on the Russian Energy Market: the Specifics
The article author examines the issues related to the hedge accounting in the businesses that operate in the electric power industry during the period of crisis. These are the methodological issues. They arise when various hedge accounting patterns and tools are implemented in line with the IAAS.
Keywords: accounting models, hedge operations, optimal risk pattern analysis, impact of hedge accounting on the financial statements, international standards

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Yu. Putikhin
The Tariff and Customs Regulation and the Russian Foreign Trade in the Globalized Economy
The article authors examine the Russian customs and tariff regulations and the way they contribute to the economic security in the country. The authors identify the advantages the Russian Federation will gain and the disadvantages it will have when it becomes member of the WTO and identify the key principles to be used when developing the policy related to tariff and customs regulation.
Keywords: economic security, national security, tariff regulation, customs regulation, customs tariffs, policy related to customs and tariff regulation

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A. Semenov, L. Chernyshov
Fractoid-Based Financial Organizations’ Structuring
The article author examines the characteristics of the method based upon the use of the algebraic operators that form the mathematical fractoid. The method is utilized when structuring the financial organizations and functional divisions in order to make them flexible and enable their adaptation to the rapidly changing environment. Purposeful changes made to the fractal dimensions enable variations in the financial organizations’ structure to occur.
Keywords: financial pattern, fractal factory, self-organization, fractoid, fractal algebra

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А. Belenchuk
Result-Oriented Budgeting: the Strategies and the Prospects
The question of how to improve the efficiency of the revenue amount use becomes topical in the times of crises when the budget revenues are limited. It is a widespread practice among the international community to use the result-oriented budgeting in order to solve the problem. However, the result-oriented budgeting patterns are adjusted in order to reflect each country’s political regime characteristics and institutional reality. It is possible to identify a number of factors that influence the choice of the strategy to be used when result-oriented budgeting pattern is chosen. These are such factors as the form of government, the structure of the state, etc. The fact that different countries have different combinations of the above factors is the reason why their governments use various strategies when choosing the budget reform patterns, and the patterns chosen determine to a large extent the way their public finance sector is developing.
Keywords: budget reform, result-oriented budgeting, reform strategy, medium-term planning of the budget revenue, assessment of the efficiency

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S. Tarakanov
IPO for the Public: on Investments Made by Physical Entities
There are many approaches to be used for utilizing the individuals’ potential in order to develop the investment projects. The article author examines the best practices gained when the wide public (the citizens of Russia) were made the project investors for the first time. The examples are examined of using the physical entities’ funds via the IPO of the shares of the large Russian joint stock companies that are well-know both in Russia and abroad. Two years have passed since the date when the IPO project was launched and one can say the project was a failure. The world economic crisis has played a major part in this, of course, but it is clear that one should be extremely careful when dealing with such matters.
Keywords: investments, investors, shares, physical entities, securities market, IPO

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L. Kapranova
Financial Globalization and the ICT Market
The article author examines what part the information and communication technologies (ICT) play in the economy today. The author identifies the key role the US companies play in producing the e-components for the industrial use, for the microprocessors and the equipment for making semiconductors as well as their role in developing the operational systems (OS). The positions the US multinational companies occupy on the world ICT market are identified. The author draws special attention to and examines the trends observed in the affiliated trade between the multinationals and their overseas branches.
Keywords: ICT, multinational companies, ICT products, affiliated trade

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А. Buravlev, N. Serdyukova, V. Serdyukov
Crisis Management and the Loan Strategies for Industrial Entities
A pressing issue the theory experts and applied scientists have during the period of a crisis is to develop a loan strategy that supports the industrial entities’ operational activity and helps them fully comply with the terms of the contracts concluded with the staterun institutions. The article authors examine the efficiency of each of the loan strategies available using the rate-of-return criterion and the entities’ financial stability indicators.
Keywords: loan-issuing, loan strategy, crisis management, mathematical modeling

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I. Klimova, N. Lizunova
Interaction in Foreign Language Teaching in the Economist-Training Universities
The authors examine the major development trends and the ways to improve the student independent study opportunities in order to improve quality of provision and the teaching and learning process efficiency. The authors give a summed-up description of their colleagues’ experience gained in teaching foreign languages and identify the promising ways to develop the practical foreign language skills that are needed for the graduates to be successful on their workplace in the 21st century.
Keywords: foreign languages, innovations-based approach, independent work, case studies, WebQuests, improvement of student motivation

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E. Kolomin
The Scholars’ Tasks in Providing Better Theoretical Backing to the Insurance Business Development Plans
The author’s report made at the Scientific Priorities in Realisation of the Insurance Business Development Strategy in the Medium Term International Workshop is dedicated to the role the scholars play in the Russian insurance business development. The author gives his arguments for making a clear division between the term risk management and insurance, for forming a separate insurance services market and introduction of new insurance services. He dwells on the necessity of using a scientific approach to the identification of the role the insurance businesses plays in the social and economic development of the country.
Keywords: insurance business development strategy, insurance services market formation, the role of scientists

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A. Arkhipov
On Improvement of the Compulsory Health Insurance System
The author in his report made at the Scientific Priorities in Realisation of the Insurance Business Development Strategy in the Medium Term International Workshop dwells on the problems the CHI system faces. The system covers a highly sensitive area and is crucial for protecting the public interests in the national healthcare. The author gives his arguments for the necessity of improvements in the CHI system. The author suggests that the amendments should be made via the risk management. According to him, the amendments can improve the system financial stability and efficiency.
Keywords: compulsory health insurance (CHI), financial stability of the CHI system, CHI system efficiency

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N. Malis
Up-to-Date Manual on Budget and Budget Issues
The article is a book review. The authors examine The Budget and the Budget System manual (by M. Afanasyev, A. Belenchuk and I. Krivogov, edited by M. Afanasyev) published in 2009 by Urait Publishing House. The article authors note that the modern economic environment requires a new generation of experts. They should be the readers of the manual. The book is a fairly topical edition. The article authors give a detailed review of all the book chapters and state that there are innovations in each of them (both in terms of the content and in terms of the content presentation). The article authors make a conclusion that the manual can be of use not only to the would-be economists and financial experts but also to the experts in public finance.
Keywords: budget, budget system, manual, budget structure of the Russian Federation, budget process reforms

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Scientific periodical

ISSN 2658-5332