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According to various estimates, the telecommunications services market grew by 5-10% in 2023. Companies optimize costs and launch new related areas to maintain competitiveness. The Government has approved a Strategy for the development of the communications industry until 2035. For its implementation, it is planned to provide benefits to companies in the telecommunications industry. However, the main challenge of the time remains the need for import substitution.

Given the current trends in the formation of the information space, today it is more usual to talk about the sphere of information communications, which includes, in addition to telecom operators, also media business enterprises. Information technologies include provision of services, software development, production and sale of IT equipment.

Telecommunications infrastructure is a necessary component of an efficiently operating economy. The peculiarity of the Russian telecommunications industry is that formally the main owner of all large fixed-line companies is the state, due to which this industry is the most regulated by state authorities (licensing, state tariff policy, requirements for participation of companies in national social programs, etc.). The situation with the media market in Russia is similar: there is a very large influence of the state, both formal, through numerous regulatory rules in this area, and informal, through directly or indirectly state-owned media assets, as well as through its influence on non-state media.

Our specialists, who have been working with companies in the industry for a long time and effectively, are ready to provide professional support in the following key areas:

  • Advising on the specifics of telecommunications companies' operations
  • Valuation of market and fair value of companies, networks, etc.
  • Regulatory reporting in the field of telecommunications
  • Taxation of telecommunications companies
  • Comprehensive support of accounting and tax accounting of telecommunication companies
  • Audit of companies under RAS, audit of consolidated statements
Key Experts

Alexander Malkov

Partner
Audit and related services
Profile email

Dmitry Sherstobitov

Practice Supervisor
Legal services
Profile email

Elena Dmitrieva

Practice Supervisor
Consulting
Profile email

Olga Lidogoster

Director
Accounting services
Profile email
50
Among our clients are 50 plus companies active in telecommunication, mass media and IT
4
Among our clients are TOP-4 players in telecommunication market present in all main segments of the telecommunication industry (2nd and 4th position by sales volume)
75 000
We provide services to the Russian subsidiary of an international company - owner of the largest network of trunk channels for data communication - 75,000 km
10
Our mass media clients are among TOP-10 largest players in the Russian mass-media market
10 топ
Our clients are among TOP-100 largest fixed-line telephony providers of Moscow region – the largest telecommunication market of Russia
Business cases
High degree of specification of accounting data on the basis of a unique software configuration developed for corporate accounting of a Branch office of a foreign company - a leader in the global market for collecting, processing and analysis of energy market data
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High degree of specification of accounting data on the basis of a unique software configuration developed for corporate accounting of a Branch office of a foreign company - a leader in the global market for collecting, processing and analysis of energy market data

Client

Client is a global market leader in the sphere of information sources and solutions for strategic and tactical business objectives, specializing in collection, processing and analysis of energy market data.

Issues to resolve

  • Day-to-day support of the Russian Branch's accounting, calculation of taxes and filing tax returns, timely settlements with counteragents and employees 
  • High labor intensity of issuing sales documents
  • Regular malfunctions during the process of preparing consolidating financial statements
  • In the view of constant expansion of the Branch's activity in Russia, the financial service of the Client had to tune up the Branch's accounting in accordance with requirements of the corporate financial and tax accounting system

Proposed solutions

  • A structure of agreements with companies of the Group was developed with account of specifics of the Branch's taxation
  • A process of collaboration with the Client's financial service was set up for the purposes of receiving up-to-date and correct data on the Branch's activity 
  • A system of day-to-day management of the Branch's bank accounts was built for the purposes of settlements with counteragents and employees
  • A unique accounting software configuration was created on the basis of 1C program
  • Accounting system of the Branch was tuned up and aligned with the corporate accounting system in order to upload its data into the corporate system in accordance with the Group's monthly closing schedule 

Deliverables for the Client

  • Data confidentiality
  • Calculation of taxes of the foreign organization's Branch in accordance with the RF legislation and timely payment of taxes accrued 
  • Up-to-date financial information on the Branch's activity
  • High level of accounting data detailing 
  • Less time spent on month-end closing 
  • First-line support during preparation of monthly reports
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Provision of financial information, calculation of taxes, representing the client in dealings with tax bodies
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Provision of financial information, calculation of taxes, representing the client in dealings with tax bodies

Client

Client is a leading supplier of global communication solutions, providing services to transnational corporations, government agencies and local companies.

Objectives

  • Maintaining accounting of the Russian company of the group, calculation of taxes and filing tax returns and financial statements
  • Support for specific accounting processes
  • Setting up document turnover procedure
  • Cash flow management in accordance with corporate policies 
  • Tuning up day-to-day accounting of the Russian company in accordance with global taxation policy of the Group
  • Consolidation of accounting data received from an external service provider

Proposed solutions

  • A procedure was developed for document turnover between Moscow office, including documents for buyers
  • Regulations were tuned up to ensure that data for general and tax accounting were provided  in accordance with the group policies
  • A system was built for day-to-day management of bank accounts of the Moscow office for the purposes of settlements with counteragents in accordance with the group policies
  • Tax calculation process was synchronized in accordance with the RF legislation and corporate reporting schedule of the group. A process was developed for timely approval of tax calculations

Deliverables for the Client

  • Reliable financial information on company activity confirmed by auditors
  • Data confidentiality
  • Tax calculation for the Russian company of the group in accordance with the RF legislation and timely tax payments to the budget. 
  • Representation of the company in dealings with tax bodies (IFTS, registering bodies)
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Calculation of fair market fee for the use of transport infrastructure for installation of telecommunication equipment
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Calculation of fair market fee for the use of transport infrastructure for installation of telecommunication equipment

One of the largest telecommunications companies in Moscow, which provides onboard internet access services for public transportation engaged our company to calculate fair market fee for the use of transport infrastructure to install telecommunication equipment. Our specialists performed the task successfully and the client has been using our company since for various valuation needs. Our deliverables were used in negotiation process to determine fair rent value.

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