The administrative account – system of gathering and grouping of the financial and not financial information on which basis managers make decisions for achievement of the purposes of the organisation (definition from the book of Charlza Horngrena, George Fostera and Shrikanta Datara «the Administrative account»).
The conventional guru in the field of the administrative account Kolin Druri in the book «the Administrative account for business decisions» defines the administrative account as granting to heads of the organisation «information on which basis they can обоснованно make decisions and raise efficiency and productivity of current operations. The information under the administrative account allows to measure economic indicators of operational structures of the organisation operating децентрализованно, such as its separate divisions, цехи and departments. The administrative reporting is to the full facultative, that is such information prepares only in the event that it is supposed that benefits from it will be above expenses on its preparation».
According to Svetlana Nikolaevoj and Sergey Shebeka, authors of the book «the Administrative account. Legends and myths», the administrative account is «the control system of the organisation assuming realisation of administrative functions in the relation:
Sets of the processes making activity of the organisation;
Structural units of the organisation participating in processes;
Resources used in processes;
The indicators reflecting the characteristics of all other categories of objects of management, for achievement flowing and organisation strategic targets ».
Long time in practice of the Russian companies the administrative account was perceived as «the real account objectively reflecting operations of the company» (see, in particular, article: Божко P.Osobennosti of the administrative account at the Russian enterprises//the Financial director. 2003. №2). It has been connected by that else about five years ago the majority of the domestic companies was used by various methods of minimisation of the taxation. In these purposes the fictitious organisations were created, schemes of the tax planning were applied, some operations were not fixed in the official account. And that proprietors of business and heads of the enterprises saw all picture of business, the administrative account was conducted. As a rule, in its basis the principles similar with established for book keeping lay, and more advanced companies for a basis took МСФО. Last variant most visually shows the contradiction in understanding of the administrative account in Russia and abroad as МСФО is by definition the financial account which, despite the transparency, does not provide management of the company by all necessary for acceptance of administrative decisions by the information. Recently owing to change in Russia tax climate and development of practice of the administrative account more and more the domestic companies apply the administrative account in its classical understanding.