Nama : Nurbani Ismei Daryani
Kelas : 4EB12
NPM : 20208922
INTRODUCTION
1. INTERNATIONAL ACCOUNTING ACCOUNTING DIFFERENCES WITH OTHER
Along with business and financial markets that have a lot to internationalization, as well as differences in international accounting is becoming more important from the standpoint of international financial statement analysis. International accounting differences bring a number of problems from the standpoint of financial analysis.
1. First, in an effort to assess foreign companies, there is a tendency to look at revenues and other financial data from the standpoint of their home country, and because of the danger of ignoring the effects of accounting differences. Unless significant difference was taken into account, possibly with some involvement of a restatement, it may have very serious consequences.
2. Secondly, awareness of international differences suggest the need to become familiar with generally accepted accounting principles as a destination for foreign countries to know better income data in the context of measurement.
3. Third, the issue of comparable properties and the harmonization of accounting is reviewed in the context of alternative investment opportunities.
Differences that arise due to:
A. economic growth,
2. inflation,
3. political system,
4. education,
5. accounting profession,
6. tax laws,
7. money market, and
8. capital.
Then also there are some things that the international accounting different from the others, the study of international accounting differences are in:
A. Reporting for MNC / MNE (Multi National Corporation)
2. Border
3. Reporting to the other parties in different countries
4. International Taxation
5. International Transactions
2. INTERNATIONAL ACCOUNTING FIELDS ARE DIVIDED INTO THREE BROAD
In the international accounting is divided into three broad areas, Accounting includes several extensive process include:
A. Measurement
Can provide in-depth feedback on the probability of a company's operations and financial position of strength. The process of identifying, classifying and counting aktivtias and transactions, to provide input regarding the profitability and operating depth.
2. Disclosure
The process by which accounting measurement is communicated to the users of financial statements and used in decision making or process of communicating to the user.
3. Auditing
The process by which the special accounting professionals (auditors) perform attestation (testing) on reliability of measurement and communication processes.
3. INTERNATIONAL ACCOUNTING HISTORY
Initially, the accounting begins with the double-entry system (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting.
Modern accounting started in double entry accounting was found and used in business activity, namely the multiple listing system (double entry bookkeeping) Luca Pacioli introduced by (yr 1447). Luca Pacioli was born in Italy in 1447, he was not an accountant but the priest who is an expert mathematician, and lecturer at several universities in Italy.
Lucalah person who first published the basic principles of double accounting system in his book entitled: "Summa Arithmetica geometria the proportioni et proportionalita" in the year 1494.
Luca introduced the 3 (three) important notes that must be done:
A. Memorandum book, the book records of all business transaction information.
2. Journals, where the transaction whose information has been stored in a memorandum book
then recorded in a journal.
3. Great book, is a book that summarizes the above journals. General ledger is the center
of the accounting system (Raddebaugh, 1996).
1850's double-entry bookkeeping reached the British Isles that causes the growth of public accounting and public accounting profession is organized in Scotland and England in the 1870s. UK accounting practice spread throughout North America and throughout the British Commonwealth. Besides the Dutch accounting model exported to Indonesia, among others. First half of the 20th century, as the growing strength of the U.S. economy, the complexity of accounting issues arise simultaneously. Accounting then recognized as a separate academic discipline. After World War II, the influence of Accountancy increasingly felt in the Western World. For many countries, accounting is a national problem with national standards and practices that become embedded in national law and professional rules.
1. INTERNATIONAL ACCOUNTING ACCOUNTING DIFFERENCES WITH OTHER
Along with business and financial markets that have a lot to internationalization, as well as differences in international accounting is becoming more important from the standpoint of international financial statement analysis. International accounting differences bring a number of problems from the standpoint of financial analysis.
1. First, in an effort to assess foreign companies, there is a tendency to look at revenues and other financial data from the standpoint of their home country, and because of the danger of ignoring the effects of accounting differences. Unless significant difference was taken into account, possibly with some involvement of a restatement, it may have very serious consequences.
2. Secondly, awareness of international differences suggest the need to become familiar with generally accepted accounting principles as a destination for foreign countries to know better income data in the context of measurement.
3. Third, the issue of comparable properties and the harmonization of accounting is reviewed in the context of alternative investment opportunities.
Differences that arise due to:
A. economic growth,
2. inflation,
3. political system,
4. education,
5. accounting profession,
6. tax laws,
7. money market, and
8. capital.
Then also there are some things that the international accounting different from the others, the study of international accounting differences are in:
A. Reporting for MNC / MNE (Multi National Corporation)
2. Border
3. Reporting to the other parties in different countries
4. International Taxation
5. International Transactions
2. INTERNATIONAL ACCOUNTING FIELDS ARE DIVIDED INTO THREE BROAD
In the international accounting is divided into three broad areas, Accounting includes several extensive process include:
A. Measurement
Can provide in-depth feedback on the probability of a company's operations and financial position of strength. The process of identifying, classifying and counting aktivtias and transactions, to provide input regarding the profitability and operating depth.
2. Disclosure
The process by which accounting measurement is communicated to the users of financial statements and used in decision making or process of communicating to the user.
3. Auditing
The process by which the special accounting professionals (auditors) perform attestation (testing) on reliability of measurement and communication processes.
3. INTERNATIONAL ACCOUNTING HISTORY
Initially, the accounting begins with the double-entry system (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting.
Modern accounting started in double entry accounting was found and used in business activity, namely the multiple listing system (double entry bookkeeping) Luca Pacioli introduced by (yr 1447). Luca Pacioli was born in Italy in 1447, he was not an accountant but the priest who is an expert mathematician, and lecturer at several universities in Italy.
Lucalah person who first published the basic principles of double accounting system in his book entitled: "Summa Arithmetica geometria the proportioni et proportionalita" in the year 1494.
Luca introduced the 3 (three) important notes that must be done:
A. Memorandum book, the book records of all business transaction information.
2. Journals, where the transaction whose information has been stored in a memorandum book
then recorded in a journal.
3. Great book, is a book that summarizes the above journals. General ledger is the center
of the accounting system (Raddebaugh, 1996).
1850's double-entry bookkeeping reached the British Isles that causes the growth of public accounting and public accounting profession is organized in Scotland and England in the 1870s. UK accounting practice spread throughout North America and throughout the British Commonwealth. Besides the Dutch accounting model exported to Indonesia, among others. First half of the 20th century, as the growing strength of the U.S. economy, the complexity of accounting issues arise simultaneously. Accounting then recognized as a separate academic discipline. After World War II, the influence of Accountancy increasingly felt in the Western World. For many countries, accounting is a national problem with national standards and practices that become embedded in national law and professional rules.
TREND INTERNATIONAL FINANCIAL SECTOR POLICY
When using indicators of economic growth, the claim is not false. Economic growth until the third quarter of 2010, which reached 5.9% is higher than this year's target of 5.8%. Moreover, the financial indicators in 2010 has set new records for Indonesia Stock Exchange recorded an increase of composite stock price index (CSPI), the highest in the world of 2575 in the early years, through 3600 in December this year. Other financial indicators, such as foreign exchange reserves and the strengthening of the rupiah also show a tremendous increase of only about U.S. $ 51 billion to over U.S. $ 90 billion at the end of 2010. Wave of hot money has inflated reserves and encourage the strengthening of the rupiah by 19%, the highest among Asian countries.
"Need a change in budget politics that is not just a collection of state budget funds allocated to stimulate economic growth. However, also as a political tool to maintain the level of social welfare by making changes in priorities.
DO NOT feel we have entered in 2011. Government is optimistic the economy will be better next year. Of course, the measure used is the economic growth that is predicted to reach 6.4%, continuing the achievement of 2010. Moreover, according to President Yudhoyono in his speech in East Java, Indonesia's economic growth ranked third in the G-20 after China and India.
Achievement without significance, however, how much financial benefit from the achievements of the shine for the national economy? In any country the size of the economic success rather than the achievement of the financial sector. The proof, since the beginning of the year, almost all countries are busy playing in the financial sector policy whose main objective for the real sector. Like for example, developed countries and developing a continued attempt to lower their interest rates to near zero and weaken its currency to boost the real sector and reduce unemployment. China for example, continued to maneuver to avoid the pressure of U.S. and European countries who wish to accelerate the appreciation of the Central Bank of China for the yuan exchange rate policies flexibly run since mid-2010 the maximum rated yet.
Certainly not easy for China and other developing countries to comply with these demands because of a weak exchange rate strategy is a stronghold for the processing industry. Appreciation of the yuan against the U.S. dollar would have hoisted the price and press the competitiveness of China's export products. Meanwhile, for China, manufacturing is strategic because it became a mainstay in creating jobs. The decline in the competitiveness of the industry would jeopardize the country's political social stability of over 1.3 billion. Very surprising that during 2010Indonesia actually take a different policy direction to the trend of the financial policy of countries in the world. Rupiah strengthened precisely assessed as a strength. JCI is considered performance rebound, but there is the threat of financial bubbles. Trends in the financial sector policies are not integrated with strategy and policy on trade and industry sectors. That way, no consideration is unclear why the exchange should be strengthened or weakened.
4. THE ROLE OF ACCOUNTING AND BUSINESS IN GLOBAL CAPITAL MARKETS
In the era of globalization, businesses and communities have become increasingly complex so requires the development of a variety of disciplines including Accounting. Accounting plays an important role in the economic and social as any financial decisions should be based on accounting information. This situation makes accounting as a profession that is needed existence within business organizations.
The business world faster and faster and very varied. Areas that were not of the thought as the business sector is now a major sector. The development of the accounting profession to rise even more after 1985, Bebarengan with the JSE. Bank high interest rates encourage people to find alternatives to meet its capital requirements, increasing competition among companies to be accompanied various problems faced by companies in Indonesia. In the face of all the managers of the company was in dire need of accounting information in decision-making framework.
Accounting has developed very rapidly in line with business growth and development of securities, especially shares in the capital markets business. The American public already knows the business since 1900 (Belkaoui, 2007). In the transaction, both the investors and prospective investors have been using the company's financial information as one of the guidelines in making predictions and for making business decisions, the investment in securities, particularly stocks. Positive developments are happening to the stock business in the U.S. capital markets also showed that companies will need capital also increased in step with market developments. This development also shows that capital markets play an important role in the economy of a country, especially the United States in that era. In addition, it also means that the needs and role of accounting information becomes increasingly important.
Indonesia's economic downturn caused by the 1997 economic crisis mementalkan John Naisbitt predicted that Indonesia will become one of the tigers of Asia. In 2000, three years after the crisis, at a time when other countries are also affected by the crisis such as Thailand, South Korea, the Philippines and Malaysia have obtained a significant improvement of the economy, Indonesia's economy (GDP) grew only 0.2%.
(Asian Recovery Information Center - ADB: May 2000) Tanri Abeng (1999) in Djalil (2000), states that there are six basic root of the problem that causes slow improvement in Indonesia's economy, namely:
A. It turned out that the rapid growth of Indonesia before the crisis because it encouraged more investment growth is not due to efficiency and innovation
2. The majority of the market value of listed companies on the JSE was overvalued (90% of the value of publicly traded companies is determined by the growth expectation, only 10% above the real ability to earn profits; different from developed countries, 30% growth expectation, 70% of real ability)
3. Company's financial structure is not healthy (loans over 100% compared to its equity, healthy company should be below 50% of ekuitinya)
4. The existence of mark-up in lending.
5. Unhealthy concentrations of economic (economic pyramid, above: there are 200 private conglomerate owned by 50 families, were: almost empty.
6. There is no good governance (the lowest according to McKinsey 1999)
On the other hand, Indonesia faced economic challenges of the 21st century that economic globalization. Economic globalization is a process of economic activity and trade, in which countries around the world into one market power is increasingly integrated with the territorial limits of the state without a hitch.
CHALLENGES IN THE GLOBAL ERA
Globalization that has been faced by the nation of Indonesia would insist on efficiency and competitiveness in the business world. In intraregional relations concerning globalization and international competition will occur between nations. Tangible manifestation of economic globalization faced by Indonesia, among others, occur in the following forms (Damanhuri, 2003):
• Financing. Global companies have access to loans or investments (whether in the form of direct or portfolio) in all countries in the world. For example, in multiplying a unit of PT Telkom telephone line, or PT Jasa Marga to expand the highway network has been utilizing the system of financing by the pattern of BOT (build-operate-transfer) with mitrausaha from abroad.
• Labor. Global companies will be able to utilize the labor of the world according to its class, such as the use of professional staff drawn from workers who have had international experience and \ or workers from developing countries. With the globalization of human movement will be more easy and free.
• Network information. Society of a country easily and quickly obtain information from the countries of the world due to technological advances, including through: TV, radio, print media and others. With increasingly advanced communications network that has helped to spread to different parts of the world market for the same. For example, KFC, Hoka Hoka Bento, Mac Donald, etc. hit markets everywhere. As a result, the taste of the world (both those residing in cities and villages) to the global tastes.
• Trade. This is manifested in the form of tariff reduction and harmonization and elimination of non tariff barriers. Thus the activities of trade and competition is becoming increasingly stringent and fair. In fact, the transaction becomes faster because of "less papers / documents" in the trade, but can use the telecommunications networks that increasingly sophisticated technology.
With the business activities of the corporation (corporate business) of the above can be said that globalization leads to increasing economic interdependence between countries through increased volume and diversity of transactions between countries (cross-border transactions) in the form of goods and services, international financial flows (international capital flows), the movement of labor labor (human movement) and the rapid spread of information technology. Global economic power led to a business corporation to conduct a review of the structure and business strategy and management bases its strategy on the basis of entrepreneurship, cost efficiency and competitive advantages. Problems of competitiveness in an increasingly open world markets is a key issue and challenge, not light. Without the capability and equipped with high competitive advantages necessarily the product of a country, including the products of Indonesia, will not be able to penetrate the international market. Even the entry of imported products could threaten the position of the domestic market. In other words, in a competitive market, competitive advantage (competitive advantage) is a very important factor in improving company performance. Many large corporations Indonesia crashing because of the crisis, as global competition, suggesting that they are not efficient.
When using indicators of economic growth, the claim is not false. Economic growth until the third quarter of 2010, which reached 5.9% is higher than this year's target of 5.8%. Moreover, the financial indicators in 2010 has set new records for Indonesia Stock Exchange recorded an increase of composite stock price index (CSPI), the highest in the world of 2575 in the early years, through 3600 in December this year. Other financial indicators, such as foreign exchange reserves and the strengthening of the rupiah also show a tremendous increase of only about U.S. $ 51 billion to over U.S. $ 90 billion at the end of 2010. Wave of hot money has inflated reserves and encourage the strengthening of the rupiah by 19%, the highest among Asian countries.
"Need a change in budget politics that is not just a collection of state budget funds allocated to stimulate economic growth. However, also as a political tool to maintain the level of social welfare by making changes in priorities.
DO NOT feel we have entered in 2011. Government is optimistic the economy will be better next year. Of course, the measure used is the economic growth that is predicted to reach 6.4%, continuing the achievement of 2010. Moreover, according to President Yudhoyono in his speech in East Java, Indonesia's economic growth ranked third in the G-20 after China and India.
Achievement without significance, however, how much financial benefit from the achievements of the shine for the national economy? In any country the size of the economic success rather than the achievement of the financial sector. The proof, since the beginning of the year, almost all countries are busy playing in the financial sector policy whose main objective for the real sector. Like for example, developed countries and developing a continued attempt to lower their interest rates to near zero and weaken its currency to boost the real sector and reduce unemployment. China for example, continued to maneuver to avoid the pressure of U.S. and European countries who wish to accelerate the appreciation of the Central Bank of China for the yuan exchange rate policies flexibly run since mid-2010 the maximum rated yet.
Certainly not easy for China and other developing countries to comply with these demands because of a weak exchange rate strategy is a stronghold for the processing industry. Appreciation of the yuan against the U.S. dollar would have hoisted the price and press the competitiveness of China's export products. Meanwhile, for China, manufacturing is strategic because it became a mainstay in creating jobs. The decline in the competitiveness of the industry would jeopardize the country's political social stability of over 1.3 billion. Very surprising that during 2010Indonesia actually take a different policy direction to the trend of the financial policy of countries in the world. Rupiah strengthened precisely assessed as a strength. JCI is considered performance rebound, but there is the threat of financial bubbles. Trends in the financial sector policies are not integrated with strategy and policy on trade and industry sectors. That way, no consideration is unclear why the exchange should be strengthened or weakened.
4. THE ROLE OF ACCOUNTING AND BUSINESS IN GLOBAL CAPITAL MARKETS
In the era of globalization, businesses and communities have become increasingly complex so requires the development of a variety of disciplines including Accounting. Accounting plays an important role in the economic and social as any financial decisions should be based on accounting information. This situation makes accounting as a profession that is needed existence within business organizations.
The business world faster and faster and very varied. Areas that were not of the thought as the business sector is now a major sector. The development of the accounting profession to rise even more after 1985, Bebarengan with the JSE. Bank high interest rates encourage people to find alternatives to meet its capital requirements, increasing competition among companies to be accompanied various problems faced by companies in Indonesia. In the face of all the managers of the company was in dire need of accounting information in decision-making framework.
Accounting has developed very rapidly in line with business growth and development of securities, especially shares in the capital markets business. The American public already knows the business since 1900 (Belkaoui, 2007). In the transaction, both the investors and prospective investors have been using the company's financial information as one of the guidelines in making predictions and for making business decisions, the investment in securities, particularly stocks. Positive developments are happening to the stock business in the U.S. capital markets also showed that companies will need capital also increased in step with market developments. This development also shows that capital markets play an important role in the economy of a country, especially the United States in that era. In addition, it also means that the needs and role of accounting information becomes increasingly important.
Indonesia's economic downturn caused by the 1997 economic crisis mementalkan John Naisbitt predicted that Indonesia will become one of the tigers of Asia. In 2000, three years after the crisis, at a time when other countries are also affected by the crisis such as Thailand, South Korea, the Philippines and Malaysia have obtained a significant improvement of the economy, Indonesia's economy (GDP) grew only 0.2%.
(Asian Recovery Information Center - ADB: May 2000) Tanri Abeng (1999) in Djalil (2000), states that there are six basic root of the problem that causes slow improvement in Indonesia's economy, namely:
A. It turned out that the rapid growth of Indonesia before the crisis because it encouraged more investment growth is not due to efficiency and innovation
2. The majority of the market value of listed companies on the JSE was overvalued (90% of the value of publicly traded companies is determined by the growth expectation, only 10% above the real ability to earn profits; different from developed countries, 30% growth expectation, 70% of real ability)
3. Company's financial structure is not healthy (loans over 100% compared to its equity, healthy company should be below 50% of ekuitinya)
4. The existence of mark-up in lending.
5. Unhealthy concentrations of economic (economic pyramid, above: there are 200 private conglomerate owned by 50 families, were: almost empty.
6. There is no good governance (the lowest according to McKinsey 1999)
On the other hand, Indonesia faced economic challenges of the 21st century that economic globalization. Economic globalization is a process of economic activity and trade, in which countries around the world into one market power is increasingly integrated with the territorial limits of the state without a hitch.
CHALLENGES IN THE GLOBAL ERA
Globalization that has been faced by the nation of Indonesia would insist on efficiency and competitiveness in the business world. In intraregional relations concerning globalization and international competition will occur between nations. Tangible manifestation of economic globalization faced by Indonesia, among others, occur in the following forms (Damanhuri, 2003):
• Financing. Global companies have access to loans or investments (whether in the form of direct or portfolio) in all countries in the world. For example, in multiplying a unit of PT Telkom telephone line, or PT Jasa Marga to expand the highway network has been utilizing the system of financing by the pattern of BOT (build-operate-transfer) with mitrausaha from abroad.
• Labor. Global companies will be able to utilize the labor of the world according to its class, such as the use of professional staff drawn from workers who have had international experience and \ or workers from developing countries. With the globalization of human movement will be more easy and free.
• Network information. Society of a country easily and quickly obtain information from the countries of the world due to technological advances, including through: TV, radio, print media and others. With increasingly advanced communications network that has helped to spread to different parts of the world market for the same. For example, KFC, Hoka Hoka Bento, Mac Donald, etc. hit markets everywhere. As a result, the taste of the world (both those residing in cities and villages) to the global tastes.
• Trade. This is manifested in the form of tariff reduction and harmonization and elimination of non tariff barriers. Thus the activities of trade and competition is becoming increasingly stringent and fair. In fact, the transaction becomes faster because of "less papers / documents" in the trade, but can use the telecommunications networks that increasingly sophisticated technology.
With the business activities of the corporation (corporate business) of the above can be said that globalization leads to increasing economic interdependence between countries through increased volume and diversity of transactions between countries (cross-border transactions) in the form of goods and services, international financial flows (international capital flows), the movement of labor labor (human movement) and the rapid spread of information technology. Global economic power led to a business corporation to conduct a review of the structure and business strategy and management bases its strategy on the basis of entrepreneurship, cost efficiency and competitive advantages. Problems of competitiveness in an increasingly open world markets is a key issue and challenge, not light. Without the capability and equipped with high competitive advantages necessarily the product of a country, including the products of Indonesia, will not be able to penetrate the international market. Even the entry of imported products could threaten the position of the domestic market. In other words, in a competitive market, competitive advantage (competitive advantage) is a very important factor in improving company performance. Many large corporations Indonesia crashing because of the crisis, as global competition, suggesting that they are not efficient.
Realizing that some big companies do not anticipate trying to be a bubble but a sustainable company company (Hasan, 2000). Good corporate governance, good corporate governance, it is believed capable of realizing that desire, because it not only aims to profit-oriented but also focus on the needs of its stakeholders. For that transparency, accountability, fairness, and responsibility is particularly important to understand both the organization and realized private organizations and public sector organizations. Accounting, as an information provider, need to realize that high quality information is the foundation of good corporate governance. Therefore accounting principals need to be aware of their responsibilities to provide information and financial statements are reliable and accurate.
Conclusion: The existence of accounting differences across the world are no doubt significant enough to make the work of financial analysts is very difficult in a period of making international comparisons. There is some opinion that the historical development that has been described previously have had a uniform accounting system throughout the world, but it is so far from actual reality. Although there are some similarities, but no two are exactly the same system. The reason is the difference in the environment. The reality is the environment and developing countries in the world do not simultaneously.
Conclusion: The existence of accounting differences across the world are no doubt significant enough to make the work of financial analysts is very difficult in a period of making international comparisons. There is some opinion that the historical development that has been described previously have had a uniform accounting system throughout the world, but it is so far from actual reality. Although there are some similarities, but no two are exactly the same system. The reason is the difference in the environment. The reality is the environment and developing countries in the world do not simultaneously.
DEVELOPMENT AND INTERNATIONAL ACCOUNTING CLASSIFICATION
1. FACTORS AFFECTING THE WORLD ACCOUNTING
Accounting must evolve in order to provide the information required in decision-making in the company in any business environment changes.
Some characteristics of the existing global economic era in international accounting
among others:
1. International business
2. Loss of boundaries between States era of global economy is often difficult to identify the country of origin of a product or company, this is the case in multinational companies
3. Dependence on international trade
In addition there are 8 (eight) factors that influence the development of international accounting, namely:
1. Sources of funding
In countries with strong equity markets, accounting has focused on how well management runs the company (profitability), and is designed to help investors analyze the future cash flows and related risks. Instead, the credit-based system in which the bank is the main source of funding, accounting has focused on the protection of creditors through conservative accounting measurements.
2. Legal System
The western world has two basic orientations: the legal code (civil) and common law (case). In code law countries, law is a complete group that includes the provision of accounting rules and procedures that are incorporated in national law and tend to be very complete. In contrast, common law developed on a case by case basis without any attempt to cover all cases in which a complete code.
3. Taxation
In most countries, tax rules effectively set the standard because the company should record revenue and expenses in their accounts to claim it for tax purposes. While a separate tax and financial accounting, tax rules sometimes require the application of certain accounting principles.
4. Politics and Economics Association
Political & Economic factors influence the development of international accounting because of government policy and the current economic situation in a country that can make the accounting difficult to develop.
5. Inflation
Inflation causes the distortion of historical cost accounting and affect the propensity (tendency) of a State to apply the changes to the accounts of the company.
6. Levels of Economic Development
These factors influence the types of business transactions are conducted in an economy and determine what is most important
7. Level of Education
Standard accounting practices are highly complex would be useless if misunderstood and misused. Disclosures about the risks of derivative securities will not be informative unless it is read by the competent authorities
8. Culture
Four dimensions of national culture, according to Hofstede: individualism, power distance, uncertainty avoidance, masculinity.
International Accounting Developments should be followed by the ability of an individual who is engaged in accounting to contribute to advancing accounting. International Accounting is a liaison between states. Eight factors that influence the development of international accounting should be well understood in order to create harmony between countries that trade, in Indonesia alone international accounting developments are very rapid, as has been accompanied by the relations between other countries are getting stronger.
2. ACCOUNTING APPROACH IN ECONOMIC DEVELOPMENT ORIENTED MARKET
1. FACTORS AFFECTING THE WORLD ACCOUNTING
Accounting must evolve in order to provide the information required in decision-making in the company in any business environment changes.
Some characteristics of the existing global economic era in international accounting
among others:
1. International business
2. Loss of boundaries between States era of global economy is often difficult to identify the country of origin of a product or company, this is the case in multinational companies
3. Dependence on international trade
In addition there are 8 (eight) factors that influence the development of international accounting, namely:
1. Sources of funding
In countries with strong equity markets, accounting has focused on how well management runs the company (profitability), and is designed to help investors analyze the future cash flows and related risks. Instead, the credit-based system in which the bank is the main source of funding, accounting has focused on the protection of creditors through conservative accounting measurements.
2. Legal System
The western world has two basic orientations: the legal code (civil) and common law (case). In code law countries, law is a complete group that includes the provision of accounting rules and procedures that are incorporated in national law and tend to be very complete. In contrast, common law developed on a case by case basis without any attempt to cover all cases in which a complete code.
3. Taxation
In most countries, tax rules effectively set the standard because the company should record revenue and expenses in their accounts to claim it for tax purposes. While a separate tax and financial accounting, tax rules sometimes require the application of certain accounting principles.
4. Politics and Economics Association
Political & Economic factors influence the development of international accounting because of government policy and the current economic situation in a country that can make the accounting difficult to develop.
5. Inflation
Inflation causes the distortion of historical cost accounting and affect the propensity (tendency) of a State to apply the changes to the accounts of the company.
6. Levels of Economic Development
These factors influence the types of business transactions are conducted in an economy and determine what is most important
7. Level of Education
Standard accounting practices are highly complex would be useless if misunderstood and misused. Disclosures about the risks of derivative securities will not be informative unless it is read by the competent authorities
8. Culture
Four dimensions of national culture, according to Hofstede: individualism, power distance, uncertainty avoidance, masculinity.
International Accounting Developments should be followed by the ability of an individual who is engaged in accounting to contribute to advancing accounting. International Accounting is a liaison between states. Eight factors that influence the development of international accounting should be well understood in order to create harmony between countries that trade, in Indonesia alone international accounting developments are very rapid, as has been accompanied by the relations between other countries are getting stronger.
2. ACCOUNTING APPROACH IN ECONOMIC DEVELOPMENT ORIENTED MARKET
Initial classification was proposed by Mueller mid-1960s. He identified four approaches to the development of accounting in Western countries with market-oriented economic system.
1. Based approach to macroeconomic
Obtained from the accounting practices and are designed to improve the national macroeconomic objectives. General corporate purposes and not to follow the lead of national policy, because the business enterprise mengordinasikan their activities with national policy. Therefore, for example, a national policy of stable employment to avoid major changes in the business cycle will result in a leveling of income accounting practices. Or, to encourage the development of a particular industry, a State can permit rapid removal of capital expenditure on some of the industry. Accounting in Sweden evolved from macroeconomic approach.
2. Based on microeconomic approach
Accounting evolved from the principles of microeconomics. The focus is on individual companies that have the purpose to survive. To achieve this goal, the company must maintain physical capital owned. It is equally important that the company is clearly separate capital from profits to evaluate and control the business activity. Accounting measurements are based on replacement cost is supported as best suited to this approach. Accounting in the Netherlands grew from microeconomics.
3. Based on an independent disciplinary approach
Derived from the business accounting practices and develop an ad hoc basis, with the base slowly from consideration, trial and error. Accounting services is considered as a function of the concepts and principles taken from the business process being run, and not from the branches of science such as economics. Businesses face the real world complexity and uncertainty that always happens through experience, practice, and intuition. Accounting develops the same way. For example, profit is simply the most useful thing in a pragmatic and disclosure practices in responding to the needs of its users. Independently developed accounting in Britain and the United States.
4. Based on a uniform approach,
Standardized accounting and is used as a tool for administrative control by the central government. Uniformity in the measurement, disclosure and presentation of accounting information makes it easier to control all types of businesses. In general, uniform approach is used in countries with large government ketelibatan in perncanaan economy in which the accounting is used among others for measuring performance, allocating resources, collect taxes and control prices. France, with a uniform chart of national accounting is a major supporter of the uniform accounting approach.
1. Based approach to macroeconomic
Obtained from the accounting practices and are designed to improve the national macroeconomic objectives. General corporate purposes and not to follow the lead of national policy, because the business enterprise mengordinasikan their activities with national policy. Therefore, for example, a national policy of stable employment to avoid major changes in the business cycle will result in a leveling of income accounting practices. Or, to encourage the development of a particular industry, a State can permit rapid removal of capital expenditure on some of the industry. Accounting in Sweden evolved from macroeconomic approach.
2. Based on microeconomic approach
Accounting evolved from the principles of microeconomics. The focus is on individual companies that have the purpose to survive. To achieve this goal, the company must maintain physical capital owned. It is equally important that the company is clearly separate capital from profits to evaluate and control the business activity. Accounting measurements are based on replacement cost is supported as best suited to this approach. Accounting in the Netherlands grew from microeconomics.
3. Based on an independent disciplinary approach
Derived from the business accounting practices and develop an ad hoc basis, with the base slowly from consideration, trial and error. Accounting services is considered as a function of the concepts and principles taken from the business process being run, and not from the branches of science such as economics. Businesses face the real world complexity and uncertainty that always happens through experience, practice, and intuition. Accounting develops the same way. For example, profit is simply the most useful thing in a pragmatic and disclosure practices in responding to the needs of its users. Independently developed accounting in Britain and the United States.
4. Based on a uniform approach,
Standardized accounting and is used as a tool for administrative control by the central government. Uniformity in the measurement, disclosure and presentation of accounting information makes it easier to control all types of businesses. In general, uniform approach is used in countries with large government ketelibatan in perncanaan economy in which the accounting is used among others for measuring performance, allocating resources, collect taxes and control prices. France, with a uniform chart of national accounting is a major supporter of the uniform accounting approach.
3. STATE ACCOUNTING PRACTICE DEVELOPMENT IN DOMONAN
Development of the Accounting Practices
According to Wikipedia encyclopedia, Accountancy is the measurement, translation, or provision of assurance about information that will help managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and government agencies.
International accounting is the international dimension in accounting for the user (users), matters related to accounting issues from the perspective of international (global) and the rules and accounting standards in some countries.
In the development of international accounting has a significant influence on some of the State
1. Sources of funding
The United States and Britain have a strong equity markets, has focused on how well management runs the company (profitability) and is designed to help the investor to analyze future cash and risk, while credit-based system has a focus on perlindungann creditors through the accounting measurement konservatif.nSebagai Japanese and Swiss examples that revealed widespread public disclosure deemed unnecessary because financial institutions have access to a very wide to get the desired information.
2. Taxation
German and Swedish tax rules effectively determine the set standards for corporate accounting must record income and expenses claimed in the tax account. Netherlands to determine taxable income based on accounting profit
3. Economic and political ties
Starting in the rope and spread in European countries along with the idea of renewal. UK export accountants and accounting concepts in the areas of power. American-style accounting regulatory regime forces As in Japan and many countries that use accounting system that was developed elsewhere either forced or by choice.
4. Inflansi
Inflansi affect a country's tendency to deploy an account of price changes to the company account. Israel, Mexico, and several South American countries in general price level accounting using as experienced by hyperinflansi.
4. ACCOUNTING CLASSIFICATION OF KNOWLEDGE
Classification of the International Accounting basis of international accounting classification can be done in two ways, namely:
1. Deductive approach
Which identifies the relevant environmental factors and linking it with national accounting practices, an international grouping or pattern of development proposed.
2. Inductive Approach
Accounting practices were analyzed individually, the pattern of development or grouping identified and at the end of the explanation is made from the standpoint of economic, social, political and other factors.
International accounting classification can be done in two ways, namely:
With consideration and empirically.
Approach to Development Accounting
Four approaches to the development of accounting in Western countries with market-oriented economic system:
1. Based approach to macroeconomic
Under this approach, obtained from the accounting practices and are designed to improve the national macroeconomic objectives. An example of Sweden.
2. Based on microeconomic approach
In this approach, accounting evolved from the principles of microeconomics. An example of the Netherlands.
3. Based on an independent approach
Under this approach, derived from accounting and business practices developed on an ad hoc, on the basis of considerations slowly, to try and error. For example the United Kingdom and the United States.
4. Based on a uniform approach
In this approach, standardized accounting and is used as a tool for administrative control by the central government. An example is the French state.
5. SERVING THE DIFFERENCE BETWEEN NATURAL AND COMPLIANCE WITH THE LAW IN THE STATE OF DOMINANT
Differences fair presentation and compliance with law through many permasahan. This concerns the adjustments made to the application of IFRS as the basis for the presentation. Some problems include:
1. Depreciation, where the load is determined based on the reduction in the usefulness of an asset during times of economic benefits.
2. Lease which is substantially the purchase of fixed assets (property) treated as such (fair presentation) or treated as operating leases are common (legal compliance).
3. Accrued pension cost at the time generated by the employee (fair presentation) paid or charged on the basis of the time you stop working (legal compliance).
6. IMPORTANT DIFFERENCES IN PRESENTATION ISSUES AND REASONABLE COMPLIANCE WITH LAWS
Important issues that occur when it is about the application of IFRS basis sebagau presentation. So that the countries that have not made adjustments to the fair presentation put through his report.
The difference between fair presentation and conformity of law pose a major influence on many accounting issues. Accounting for common law oriented to the needs of decision-making by investors luar.Akuntansi compliance with the law is designed to meet the government imposed regulations such as the calculation of taxable income or comply with the national government's economic plan. After 2005, all listed shares of European companies will use fair presentation of accounting in consolidated statements because they will be using IFRS.
Development of the Accounting Practices
According to Wikipedia encyclopedia, Accountancy is the measurement, translation, or provision of assurance about information that will help managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and government agencies.
International accounting is the international dimension in accounting for the user (users), matters related to accounting issues from the perspective of international (global) and the rules and accounting standards in some countries.
In the development of international accounting has a significant influence on some of the State
1. Sources of funding
The United States and Britain have a strong equity markets, has focused on how well management runs the company (profitability) and is designed to help the investor to analyze future cash and risk, while credit-based system has a focus on perlindungann creditors through the accounting measurement konservatif.nSebagai Japanese and Swiss examples that revealed widespread public disclosure deemed unnecessary because financial institutions have access to a very wide to get the desired information.
2. Taxation
German and Swedish tax rules effectively determine the set standards for corporate accounting must record income and expenses claimed in the tax account. Netherlands to determine taxable income based on accounting profit
3. Economic and political ties
Starting in the rope and spread in European countries along with the idea of renewal. UK export accountants and accounting concepts in the areas of power. American-style accounting regulatory regime forces As in Japan and many countries that use accounting system that was developed elsewhere either forced or by choice.
4. Inflansi
Inflansi affect a country's tendency to deploy an account of price changes to the company account. Israel, Mexico, and several South American countries in general price level accounting using as experienced by hyperinflansi.
4. ACCOUNTING CLASSIFICATION OF KNOWLEDGE
Classification of the International Accounting basis of international accounting classification can be done in two ways, namely:
1. Deductive approach
Which identifies the relevant environmental factors and linking it with national accounting practices, an international grouping or pattern of development proposed.
2. Inductive Approach
Accounting practices were analyzed individually, the pattern of development or grouping identified and at the end of the explanation is made from the standpoint of economic, social, political and other factors.
International accounting classification can be done in two ways, namely:
With consideration and empirically.
Approach to Development Accounting
Four approaches to the development of accounting in Western countries with market-oriented economic system:
1. Based approach to macroeconomic
Under this approach, obtained from the accounting practices and are designed to improve the national macroeconomic objectives. An example of Sweden.
2. Based on microeconomic approach
In this approach, accounting evolved from the principles of microeconomics. An example of the Netherlands.
3. Based on an independent approach
Under this approach, derived from accounting and business practices developed on an ad hoc, on the basis of considerations slowly, to try and error. For example the United Kingdom and the United States.
4. Based on a uniform approach
In this approach, standardized accounting and is used as a tool for administrative control by the central government. An example is the French state.
5. SERVING THE DIFFERENCE BETWEEN NATURAL AND COMPLIANCE WITH THE LAW IN THE STATE OF DOMINANT
Differences fair presentation and compliance with law through many permasahan. This concerns the adjustments made to the application of IFRS as the basis for the presentation. Some problems include:
1. Depreciation, where the load is determined based on the reduction in the usefulness of an asset during times of economic benefits.
2. Lease which is substantially the purchase of fixed assets (property) treated as such (fair presentation) or treated as operating leases are common (legal compliance).
3. Accrued pension cost at the time generated by the employee (fair presentation) paid or charged on the basis of the time you stop working (legal compliance).
6. IMPORTANT DIFFERENCES IN PRESENTATION ISSUES AND REASONABLE COMPLIANCE WITH LAWS
Important issues that occur when it is about the application of IFRS basis sebagau presentation. So that the countries that have not made adjustments to the fair presentation put through his report.
The difference between fair presentation and conformity of law pose a major influence on many accounting issues. Accounting for common law oriented to the needs of decision-making by investors luar.Akuntansi compliance with the law is designed to meet the government imposed regulations such as the calculation of taxable income or comply with the national government's economic plan. After 2005, all listed shares of European companies will use fair presentation of accounting in consolidated statements because they will be using IFRS.
ACCOUNTING COMPARATIVE
1. STANDARD TERMS AND DETERMINATION OF ACCOUNTING STANDARDS
The Financial Accounting Standards Board (FASB) is a private, not-for profit organization whose sole purpose is to develop generally accepted accounting principles (GAAP) in the United States in the public interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the United States was created in 1973, replacing the Committee on Accounting Procedure (CAP) and Accounting Principles Board (APB) of the American Institute of Accountants Certified Public (AICPA). FASB's mission is "to establish and improve standards of accounting and financial reporting guidance and education to the public, including issuers, auditors, and users of financial information." [1] To achieve this, the FASB has five goals [1]:
• Increase the benefits of financial reporting by focusing on the main characteristics of relevance and reliability, and on the comparative quality and consistency.
• Keep standards current to reflect changes in methods of doing business and the economy.
• Consider promptly any significant areas of deficiency in financial reporting that might be enhanced through the establishment of standards.
• Promote the international convergence of accounting standards concurrent with improving the quality of financial reporting.
• Improve public understanding of the nature and purpose of the information in the financial statements.
Description
FASB is not a government agency. . The SEC has the legal authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the policy of the Commission has relied on the private sector for this function if the private sector demonstrates the ability to fulfill responsibilities in the public interest.
FASB is an independent part of the structure of all businesses and professional organizations. Before the present structure was created, financial accounting and reporting standards was first established by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants (1936-1959) and then by the Accounting Principles Board, also part of the AICPA (1959 -73). Statement of its predecessor bodies remain in effect unless amended or superseded by the FASB.
FASB subject to supervision by the Financial Accounting Foundation (FAF), FASB members who voted and the Governmental Accounting Standards Board and funds both organizations. FAF Board of Trustees, in turn, partly elected by a group of organizations including:
• American Institute of Accountants
• American Institute of Certified Public Accountants
• CFA Institute
• Financial Executives International
• The Government Finance Officers Association
• Institute of Management Accountants
• National Association of State Auditors, Comptrollers and Treasurers
• Securities Industry Association
FASB structure is very different from its predecessor in many ways. Council consists of seven full members. The members are required to sever all ties with companies and institutions that previously they may have served prior to joining the FASB .. This is to ensure the impartiality and independence of the FASB. They are appointed for a term of five years and is eligible for one additional term of five years.
The current members (with the end of this time period stated date):
• Robert H. Herz, Chairman (2012)
• Thomas J. Linsmeier (2011)
• Leslie F. Seidman (2011)
• Marc A. Siegel (2013)
• Lawrence W. Smith (2012)
In addition to full-time members, there are about 68 members of staff. This staff is, "professionals drawn from public accounting, industry, academia, and government, plus support personnel."
This group was formed in order to provide quick response to their financial problems arise. This group includes 15 people from both public and private sectors coupled with the representatives of the FASB and the SEC observer. As problems arise, the task force consider them and try to reach consensus on what action to take. If a consensus can be achieved, they EITF issues and FASB are not involved. EITF considered as a legitimate issue as FASB statements and are included in GAAP.
Creation of Codification
On July 1, 2009, FASB announced the launch of the Accounting Standards Codification, stating that a "single source of authoritative nongovernmental U.S. generally accepted accounting principles." The Codification regulate many statements which are U.S. GAAP to be sought, consistent format. [3] Codification is not to be confused with the FASB Conceptual Framework, a project initiated in 1973 to develop a sound theoretical basis for the development of accounting standards in the United States.
Norwalk Agreement
FASB is pursuing convergence project with the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS). On 18 September 2002, in Norwalk, Connecticut, FASB and IASB met and issued a Memorandum of Understanding. [4] This document describes a plan to converge IFRS and U.S. GAAP into a single set of high quality and compatible standards. As part of the project, the FASB has begun to move from the principle of historical cost to fair value.
The independence
In June 2009, the FASB has been criticized by investor advisory panel after making the change-to-market accounting as a sign of a response to political pressure. Lobbyists have obtained permission for banks to apply a special accounting treatment for toxic assets. [5]
FASB statement
In order to establish accounting principles, FASB issue public statements, each of which address problems or special general accounting. This statement is:
• Statement of Financial Accounting Standards
• Statement of Financial Accounting Concepts
• FASB Interpretation
• FASB Technical Bulletins
• EITF Abstracts
Accounting standard setting involve a combination of private sector group that includes the accounting profession, users and compilers of financial statements, the employees and the public which includes agencies such as the tax authorities, ministries in charge of commercial law and capital market commission. Stock exchanges are private or public sector (depending on country) also affect the process. In common law countries, the private sector is more influential and auditing profession tends to regulate itself and to better be able to attest to the consideration of the fair presentation of financial statements. In code law countries, public sector and influence over the accounting profession tend to be more regulated by the State. This is why different accounting standards around the world.
FRANCE
Accountancy in France is strongly associated with the code so it is possible to overlook the fact that the legislation of commercial law (Code de Commerce) and the actual tax laws determine many accounting practices and financial reporting in France. The primary basis of accounting rules is the Accounting Law 1983 and Decree 1983 which includes accounting Compatible General Plan shall be used by all companies. Every company should have a manual accounting. The special feature is the presence of accounting in France dichotomy between the separate financial statements of companies with a consolidated group reports. French law allows French companies to follow International Financial Reporting Standards (International Financial Reporting Standards-IFRS). The reason, many multinational companies from France who recorded their shares abroad.
Five major organizations involved in standard-setting process in France:
a. Counseil National de la Comptabilite or CNC (National Accounting Board)
b. Comite de la Reglementation Comptable or CRC (Accounting Regulation Committee)
c. Autorite des Marches financiers or AMF (Financial Markets Authority)
d. Ordre des Experts-Comptables or OEC (Institute of Certified Public Accountants)
e. Compagnie Nationale des Comptes Commisaires aux or CNCC (the Association of Compliance Auditor
National)
French company reported a balance sheet, income statement, notes to financial statements, directors report and auditors report. There are no provisions regarding the statement of changes in financial position or cash flows although CNCC recommends to him. To give you an actual and reasonable (fidele image), the financial statements have been prepared in accordance with the regulations (regularite) and with good intentions (sincerite).
In the measurement of accounting, fixed assets are generally depreciated according to the tax provision in a straight line or multiple balances. Inventories should be valued at the lower of cost or net realizable value using FIFO or weighted average method. Research costs are not amortized over 5 years. Many risks and uncertainties can be reserved, such as those associated with litigation, restructuring, and self-insurance and this allows the emergence of opportunities for income smoothing.
JAPAN
Accounting and financial reporting in Japan reflects a combination of domestic and international influences. To understand accounting in Japan, one must understand the culture, business practices, and history of Japan. Japan is a traditional community with cultural and religious roots are strong. Japanese companies have equity shares each to each other, and together often have other companies. These investments are interlocked industrial conglomerate that produces meraksasa called keiretsu. Keiretsu venture capital is in line with refomasi structural changes in the Japanese to overcome the economic stagnation that began in the 1990s.
The national government still has the most significant influence on accounting in Japan. Accounting regulation is based on three laws, namely the commercial law, capital market law, tax law and corporate income. Commercial law is governed by the Ministry of Justice (MOJ). The law is at the core of accounting regulation in Japan and most have a major influence. Public-owned enterprises shall further comply with the Laws of capital markets (Securities and Exchange Law-SEL) is regulated by the Ministry of Finance. The main purpose of SEL is to provide information in making investment decisions.
Company incorporated under commercial law are required to menyususn reports required to be approved in the annual meeting of shareholders which contains balance sheet, income statement, business reports, proposals for the use (appropriation) retained earnings, supporting schedules. Companies that list their stocks should also prepare financial statements in accordance with the laws of capital markets in general require the same basic financial statements to be added to the commercial law of the cash flow statement.
Commercial law requires large firms to prepare consolidated reports. Consolidated subsidiary if the parent company directly and indirectly control the financial and operational policies. Goodwill is measured on the basis of the fair value of net assets acquired and is amortized over a maximum of 20 years. Inventories can be valued at cost which is the lower of cost or market price, but cost the most widely used.
1. STANDARD TERMS AND DETERMINATION OF ACCOUNTING STANDARDS
The Financial Accounting Standards Board (FASB) is a private, not-for profit organization whose sole purpose is to develop generally accepted accounting principles (GAAP) in the United States in the public interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the United States was created in 1973, replacing the Committee on Accounting Procedure (CAP) and Accounting Principles Board (APB) of the American Institute of Accountants Certified Public (AICPA). FASB's mission is "to establish and improve standards of accounting and financial reporting guidance and education to the public, including issuers, auditors, and users of financial information." [1] To achieve this, the FASB has five goals [1]:
• Increase the benefits of financial reporting by focusing on the main characteristics of relevance and reliability, and on the comparative quality and consistency.
• Keep standards current to reflect changes in methods of doing business and the economy.
• Consider promptly any significant areas of deficiency in financial reporting that might be enhanced through the establishment of standards.
• Promote the international convergence of accounting standards concurrent with improving the quality of financial reporting.
• Improve public understanding of the nature and purpose of the information in the financial statements.
Description
FASB is not a government agency. . The SEC has the legal authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the policy of the Commission has relied on the private sector for this function if the private sector demonstrates the ability to fulfill responsibilities in the public interest.
FASB is an independent part of the structure of all businesses and professional organizations. Before the present structure was created, financial accounting and reporting standards was first established by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants (1936-1959) and then by the Accounting Principles Board, also part of the AICPA (1959 -73). Statement of its predecessor bodies remain in effect unless amended or superseded by the FASB.
FASB subject to supervision by the Financial Accounting Foundation (FAF), FASB members who voted and the Governmental Accounting Standards Board and funds both organizations. FAF Board of Trustees, in turn, partly elected by a group of organizations including:
• American Institute of Accountants
• American Institute of Certified Public Accountants
• CFA Institute
• Financial Executives International
• The Government Finance Officers Association
• Institute of Management Accountants
• National Association of State Auditors, Comptrollers and Treasurers
• Securities Industry Association
FASB structure is very different from its predecessor in many ways. Council consists of seven full members. The members are required to sever all ties with companies and institutions that previously they may have served prior to joining the FASB .. This is to ensure the impartiality and independence of the FASB. They are appointed for a term of five years and is eligible for one additional term of five years.
The current members (with the end of this time period stated date):
• Robert H. Herz, Chairman (2012)
• Thomas J. Linsmeier (2011)
• Leslie F. Seidman (2011)
• Marc A. Siegel (2013)
• Lawrence W. Smith (2012)
In addition to full-time members, there are about 68 members of staff. This staff is, "professionals drawn from public accounting, industry, academia, and government, plus support personnel."
This group was formed in order to provide quick response to their financial problems arise. This group includes 15 people from both public and private sectors coupled with the representatives of the FASB and the SEC observer. As problems arise, the task force consider them and try to reach consensus on what action to take. If a consensus can be achieved, they EITF issues and FASB are not involved. EITF considered as a legitimate issue as FASB statements and are included in GAAP.
Creation of Codification
On July 1, 2009, FASB announced the launch of the Accounting Standards Codification, stating that a "single source of authoritative nongovernmental U.S. generally accepted accounting principles." The Codification regulate many statements which are U.S. GAAP to be sought, consistent format. [3] Codification is not to be confused with the FASB Conceptual Framework, a project initiated in 1973 to develop a sound theoretical basis for the development of accounting standards in the United States.
Norwalk Agreement
FASB is pursuing convergence project with the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS). On 18 September 2002, in Norwalk, Connecticut, FASB and IASB met and issued a Memorandum of Understanding. [4] This document describes a plan to converge IFRS and U.S. GAAP into a single set of high quality and compatible standards. As part of the project, the FASB has begun to move from the principle of historical cost to fair value.
The independence
In June 2009, the FASB has been criticized by investor advisory panel after making the change-to-market accounting as a sign of a response to political pressure. Lobbyists have obtained permission for banks to apply a special accounting treatment for toxic assets. [5]
FASB statement
In order to establish accounting principles, FASB issue public statements, each of which address problems or special general accounting. This statement is:
• Statement of Financial Accounting Standards
• Statement of Financial Accounting Concepts
• FASB Interpretation
• FASB Technical Bulletins
• EITF Abstracts
Accounting standard setting involve a combination of private sector group that includes the accounting profession, users and compilers of financial statements, the employees and the public which includes agencies such as the tax authorities, ministries in charge of commercial law and capital market commission. Stock exchanges are private or public sector (depending on country) also affect the process. In common law countries, the private sector is more influential and auditing profession tends to regulate itself and to better be able to attest to the consideration of the fair presentation of financial statements. In code law countries, public sector and influence over the accounting profession tend to be more regulated by the State. This is why different accounting standards around the world.
FRANCE
Accountancy in France is strongly associated with the code so it is possible to overlook the fact that the legislation of commercial law (Code de Commerce) and the actual tax laws determine many accounting practices and financial reporting in France. The primary basis of accounting rules is the Accounting Law 1983 and Decree 1983 which includes accounting Compatible General Plan shall be used by all companies. Every company should have a manual accounting. The special feature is the presence of accounting in France dichotomy between the separate financial statements of companies with a consolidated group reports. French law allows French companies to follow International Financial Reporting Standards (International Financial Reporting Standards-IFRS). The reason, many multinational companies from France who recorded their shares abroad.
Five major organizations involved in standard-setting process in France:
a. Counseil National de la Comptabilite or CNC (National Accounting Board)
b. Comite de la Reglementation Comptable or CRC (Accounting Regulation Committee)
c. Autorite des Marches financiers or AMF (Financial Markets Authority)
d. Ordre des Experts-Comptables or OEC (Institute of Certified Public Accountants)
e. Compagnie Nationale des Comptes Commisaires aux or CNCC (the Association of Compliance Auditor
National)
French company reported a balance sheet, income statement, notes to financial statements, directors report and auditors report. There are no provisions regarding the statement of changes in financial position or cash flows although CNCC recommends to him. To give you an actual and reasonable (fidele image), the financial statements have been prepared in accordance with the regulations (regularite) and with good intentions (sincerite).
In the measurement of accounting, fixed assets are generally depreciated according to the tax provision in a straight line or multiple balances. Inventories should be valued at the lower of cost or net realizable value using FIFO or weighted average method. Research costs are not amortized over 5 years. Many risks and uncertainties can be reserved, such as those associated with litigation, restructuring, and self-insurance and this allows the emergence of opportunities for income smoothing.
JAPAN
Accounting and financial reporting in Japan reflects a combination of domestic and international influences. To understand accounting in Japan, one must understand the culture, business practices, and history of Japan. Japan is a traditional community with cultural and religious roots are strong. Japanese companies have equity shares each to each other, and together often have other companies. These investments are interlocked industrial conglomerate that produces meraksasa called keiretsu. Keiretsu venture capital is in line with refomasi structural changes in the Japanese to overcome the economic stagnation that began in the 1990s.
The national government still has the most significant influence on accounting in Japan. Accounting regulation is based on three laws, namely the commercial law, capital market law, tax law and corporate income. Commercial law is governed by the Ministry of Justice (MOJ). The law is at the core of accounting regulation in Japan and most have a major influence. Public-owned enterprises shall further comply with the Laws of capital markets (Securities and Exchange Law-SEL) is regulated by the Ministry of Finance. The main purpose of SEL is to provide information in making investment decisions.
Company incorporated under commercial law are required to menyususn reports required to be approved in the annual meeting of shareholders which contains balance sheet, income statement, business reports, proposals for the use (appropriation) retained earnings, supporting schedules. Companies that list their stocks should also prepare financial statements in accordance with the laws of capital markets in general require the same basic financial statements to be added to the commercial law of the cash flow statement.
Commercial law requires large firms to prepare consolidated reports. Consolidated subsidiary if the parent company directly and indirectly control the financial and operational policies. Goodwill is measured on the basis of the fair value of net assets acquired and is amortized over a maximum of 20 years. Inventories can be valued at cost which is the lower of cost or market price, but cost the most widely used.
2. ACCOUNTING PRACTICES WITH DIFFERENT STANDARDS TO SPECIFY
Harmonization and International Accounting Convergence
In the known existence of financial accounting standards must be followed in making the financial statements. The standard is necessary because of the many users of financial statements, even for a similar financial statements. If there is no standard, the company may present its financial statements at their disposal in accordance with the will of their own. This will be a problem for users because it will make it difficult for them to understand the existing financial statements.
Existing standards for financial accounting standards made by the board in each country. Council is to set standards of accounting standards applicable in the country and used by entities that exist in the country as well. Because the accounting standards prepared and compiled by each board of standards in each country, accounting standards from country to country may differ greatly.
Currently, when the business world can be said almost without limit state, the production of resources (eg money) that is owned by an investor in a particular country can be moved easily and quickly into the country through mechanisms such as the stock market. Of course there will be a problem when the accounting standards used in different countries with the accounting standards used in other countries. Investors and potential investors and creditors and potential creditors will have great difficulty in understanding the financial statements are presented with different standards.
Harmonization is a process to improve the compatibility (suitability) accounting practices by setting limits on how large these practices may vary. Harmonization of standards will be free of conflicts of logic and can improve the comparability (comparability) of financial information from different countries.
Efforts to harmonize accounting standards have been started long before the establishment of the International Accounting Standards Committee in 1973. More recently, a number of companies seeking to raise capital in markets outside the country of origin and the investors who seek to diversify their investments internationally face increasing problems as a result of national differences in terms of accounting, disclosure, and audit.
Sometimes people use the term harmonization and standardization as if both have the same meaning. However, contrary to the harmonization, standardization generally means the determination of a group of rigid rules and narrow and may even be the application of a single standard or rule in any situation. Standardization does not accommodate the differences between countries, and therefore more difficult to diimplemntasikan internationally. Harmonization is much more flexible and open, do not use one size fits all approach, but to accommodate some of the differences and have experienced great progress internationally in recent years.
Comparability of financial information is a concept that is more clear than harmonize. The information generated from the system of accounting, disclosure and audit different or comparable if it has a similarity in the way in which users can compare the financial statements without the need to familiarize themselves with more than one system.
Include the harmonization of accounting harmonization
A. Accounting standards (which relates to the measurement and disclosure
2. Disclosures made by public companies associated with the securities offering and listing on the stock exchange, and
3. Auditing standards
Advantage of international harmonization
• Language, Those who use English as their mother may feel fortunate that English be the language that is widely used around the world.
• Harmonization of taxation's social security system, advantage. Businesses will experience great benefits cukuo in planning, systems and training costs, and so of harmonization.
Loss of international harmonization
Taxation and social security systems have a strong influence on economic efficiency. Different systems have different effects. The ability to compare how the different approaches in different countries led to the countries capable of increasing their respective systems. Countries competing and competition forced them to adopt an efficient system through the operation of such market power. Approval of the tax system would be like establishing a cartel and would eliminate the potential benefits of interstate competition.
A recent paper also supports the existence of a harmonized global GAAP. The benefits:
A. Into global capital markets and investment capital can move across the world without hambaran means. High-quality financial reporting standards that are used consistently throughout the world will improve the efficiency of capital allocation.
2. Investors can make better investment decisions, be more diverse portfolio and reduced financial risk
3. companies can improve decision making strategies in the areas of mergers and acquisitions
A. The best ideas arising from the creation of standards activities can be deployed in developing high-quality global standard.
To prevent problems caused by the differences in accounting standards used by different countries, the Council of the International Accounting Standards Committee (Board of IASC) was established in 1973 issued international accounting standards (IAS). IAS exit was followed by some interpretations of IAS in the form of SIC (Standing Committee Intepretation).
The next development is established IASC IASC Foundation. Through the IASC Foundation is the development of accounting standards and reporting standards entered a new phase. New stage in the development of accounting and reporting standards are the establishment of several entities that exist under the IASC Foundation. Some bodies are formed by the IASC Foundation
A. IASB (International Accounting Standard Board)
2. IFRIC (International Financial Reporting Committee)
3. SAC (Standard Advissory Committee).
IASB publishes a role in the new accounting standards with input from the SAC to look after. Contribute to the IFRIC inteprestasi standards issued by the IASB. IASB step in addition to issuing the new standards is to revise and replace the old standards that have been there before. Standards issued by the IASB are then given the name of IFRS (international calls Financial Reporting Standard). IFRS may contain standard that replaces the previous standard or standards that are truly new.
These standards, IFRS and IAS, the reference or adopted directly by the standard setter in each country who want to revise their standards to conform with internationally accepted standards. Standards have been made by the standard setter, which may have been referring to IFRS and IAS, and then used as guidance in the accounting records for companies that are in the enactment of these standards.
In relation to international standards, there are several kinds of steps taken by many countries in relation to differences in the standards they previously made. Outline the steps that can be taken can be divided into the harmonization and convergence.
Harmonization is a process to improve the comparability (compliance) with the accounting practices to determine the limits on how large these practices may vary. In simple terms the harmonization of accounting standards may mean that a country does not fully follow the internationally accepted standards. Only make the country accounting standards that they have no conflict with international accounting standards.
Harmonization is very flexible and open so that there may be differences between the standards followed by the country with international standards. It's just a difference in the standard sought is not a distinction that is contradictory. During the differences were not opposing these standards continues to be used by the country concerned.
Convergence in accounting standards and international standards in the context of future intended means there will be only one standard. One then applies that standard to replace the standard that had been made and used by the state itself. Before there was convergence of standards is usually the difference between the standards that were developed and used in the country by international standards.
Convergence of standards would remove the differences slowly and gradually so that later there will be no difference between the state standards with internationally accepted standards.
Harmonization and International Accounting Convergence
In the known existence of financial accounting standards must be followed in making the financial statements. The standard is necessary because of the many users of financial statements, even for a similar financial statements. If there is no standard, the company may present its financial statements at their disposal in accordance with the will of their own. This will be a problem for users because it will make it difficult for them to understand the existing financial statements.
Existing standards for financial accounting standards made by the board in each country. Council is to set standards of accounting standards applicable in the country and used by entities that exist in the country as well. Because the accounting standards prepared and compiled by each board of standards in each country, accounting standards from country to country may differ greatly.
Currently, when the business world can be said almost without limit state, the production of resources (eg money) that is owned by an investor in a particular country can be moved easily and quickly into the country through mechanisms such as the stock market. Of course there will be a problem when the accounting standards used in different countries with the accounting standards used in other countries. Investors and potential investors and creditors and potential creditors will have great difficulty in understanding the financial statements are presented with different standards.
Harmonization is a process to improve the compatibility (suitability) accounting practices by setting limits on how large these practices may vary. Harmonization of standards will be free of conflicts of logic and can improve the comparability (comparability) of financial information from different countries.
Efforts to harmonize accounting standards have been started long before the establishment of the International Accounting Standards Committee in 1973. More recently, a number of companies seeking to raise capital in markets outside the country of origin and the investors who seek to diversify their investments internationally face increasing problems as a result of national differences in terms of accounting, disclosure, and audit.
Sometimes people use the term harmonization and standardization as if both have the same meaning. However, contrary to the harmonization, standardization generally means the determination of a group of rigid rules and narrow and may even be the application of a single standard or rule in any situation. Standardization does not accommodate the differences between countries, and therefore more difficult to diimplemntasikan internationally. Harmonization is much more flexible and open, do not use one size fits all approach, but to accommodate some of the differences and have experienced great progress internationally in recent years.
Comparability of financial information is a concept that is more clear than harmonize. The information generated from the system of accounting, disclosure and audit different or comparable if it has a similarity in the way in which users can compare the financial statements without the need to familiarize themselves with more than one system.
Include the harmonization of accounting harmonization
A. Accounting standards (which relates to the measurement and disclosure
2. Disclosures made by public companies associated with the securities offering and listing on the stock exchange, and
3. Auditing standards
Advantage of international harmonization
• Language, Those who use English as their mother may feel fortunate that English be the language that is widely used around the world.
• Harmonization of taxation's social security system, advantage. Businesses will experience great benefits cukuo in planning, systems and training costs, and so of harmonization.
Loss of international harmonization
Taxation and social security systems have a strong influence on economic efficiency. Different systems have different effects. The ability to compare how the different approaches in different countries led to the countries capable of increasing their respective systems. Countries competing and competition forced them to adopt an efficient system through the operation of such market power. Approval of the tax system would be like establishing a cartel and would eliminate the potential benefits of interstate competition.
A recent paper also supports the existence of a harmonized global GAAP. The benefits:
A. Into global capital markets and investment capital can move across the world without hambaran means. High-quality financial reporting standards that are used consistently throughout the world will improve the efficiency of capital allocation.
2. Investors can make better investment decisions, be more diverse portfolio and reduced financial risk
3. companies can improve decision making strategies in the areas of mergers and acquisitions
A. The best ideas arising from the creation of standards activities can be deployed in developing high-quality global standard.
To prevent problems caused by the differences in accounting standards used by different countries, the Council of the International Accounting Standards Committee (Board of IASC) was established in 1973 issued international accounting standards (IAS). IAS exit was followed by some interpretations of IAS in the form of SIC (Standing Committee Intepretation).
The next development is established IASC IASC Foundation. Through the IASC Foundation is the development of accounting standards and reporting standards entered a new phase. New stage in the development of accounting and reporting standards are the establishment of several entities that exist under the IASC Foundation. Some bodies are formed by the IASC Foundation
A. IASB (International Accounting Standard Board)
2. IFRIC (International Financial Reporting Committee)
3. SAC (Standard Advissory Committee).
IASB publishes a role in the new accounting standards with input from the SAC to look after. Contribute to the IFRIC inteprestasi standards issued by the IASB. IASB step in addition to issuing the new standards is to revise and replace the old standards that have been there before. Standards issued by the IASB are then given the name of IFRS (international calls Financial Reporting Standard). IFRS may contain standard that replaces the previous standard or standards that are truly new.
These standards, IFRS and IAS, the reference or adopted directly by the standard setter in each country who want to revise their standards to conform with internationally accepted standards. Standards have been made by the standard setter, which may have been referring to IFRS and IAS, and then used as guidance in the accounting records for companies that are in the enactment of these standards.
In relation to international standards, there are several kinds of steps taken by many countries in relation to differences in the standards they previously made. Outline the steps that can be taken can be divided into the harmonization and convergence.
Harmonization is a process to improve the comparability (compliance) with the accounting practices to determine the limits on how large these practices may vary. In simple terms the harmonization of accounting standards may mean that a country does not fully follow the internationally accepted standards. Only make the country accounting standards that they have no conflict with international accounting standards.
Harmonization is very flexible and open so that there may be differences between the standards followed by the country with international standards. It's just a difference in the standard sought is not a distinction that is contradictory. During the differences were not opposing these standards continues to be used by the country concerned.
Convergence in accounting standards and international standards in the context of future intended means there will be only one standard. One then applies that standard to replace the standard that had been made and used by the state itself. Before there was convergence of standards is usually the difference between the standards that were developed and used in the country by international standards.
Convergence of standards would remove the differences slowly and gradually so that later there will be no difference between the state standards with internationally accepted standards.
3. ACCOUNTING SYSTEM IN THE COUNTRY - DEVELOPED COUNTRIES
SIX NATIONAL ACCOUNTING SYSTEM
France
France is a major supporter of national uniformity in the accounting world. Ministry of National Economy approved the General Plan Comptale (national accounting code) is the first official in September 1947. In the Year 1986, renana expanded to implement the provisions in the EU Seventh Directive on consolidated financial statements and further revised in 1999. Comptable General Plan contains:
• the purpose and principles of financial accounting reporting seta
• the definition of assets, liabilities, shareholders equity, revenues and expenses
• atauran recognition and assessment
• a list of standard accounts, provision for its use, and provisions of other books
• examples of financial statements and rules penyajiannya2
The special feature is the presence of accounting in France dichotomy between the separate financial statements of companies with the financial statements are consolidated business group. Although the accounts of the separate companies must meet the mandatory reporting provisions, the law allows French companies to follow International Financial Reporting Standards.
Accounting Regulations and Enforcement Rules
Five major organizations involved in standard-setting process in France is:
A. Counseil National de la Comptabilite ATAC CNC (National Accounting Board)
2. Comite de la Reglemetation Comptable or CRC (Akntansi Regulatory Committee)
3. Autorite des Marches financiers or AMF (Financial Markets Authority)
4. Ordre des Experts-Comtable or OEC (Association of Public Accountancy)
5. Compagnie Nationale des Comptes Commisaires aix or CNCC (Association of National Compliance Auditor)
In France the profession of accounting and auditing have been separated long ago. Accountants and auditors France was represented by two agencies, the OEC and CNCC, although there are a number of people who belong to both. Indeed, 80% of qualified accountants in France have both these classifications. Two professional organizations have close ties and work together for the common good. Both are involved in the development of accounting standards through the CNC and CRC and keduannya represent France at the IASB
Financial Reporting
A. Balance
2. The income statement
3. Notes to the financial statements
4. Report of directors
5. Auditor's report
Perseroaan company financial statements and other companies with limited liabilities that exceed a certain size must be audited. Large companies also have menyiapka documents related to the prevention of insolvency and corporate social reporting, which are both only available in French.
The main feature of reporting in France are the regulations on the disclosure of extensive footnotes and details that include the following:
• A description of the measurement rules in force
• The accounting treatment for items in foreign currency
• Report changes in fixed assets and depreciation
• Detailed provisions
• Detail revaluation undertaken
• Analysis of accounts receivable and debt according to maturity
• List of subsidiaries and shareholdings
• The number of pension commitments and other post-employment benefits
• Detail the tax effects on the financial statements
• Average number of employees in group
• Analysis of revenue by activity and geographic
Accounting measurement
Accountancy in France has a double characteristic: The company must comply with the separate paraturan fixed, while the consolidation of business groups have greater flexibility. Accounting for individual firm legal basis for share dividends and compute taxable income.
Payment method (purchase method) is generally used to account for business combinations, yet pooling of interest method (pooling method) can be used in some circumstances. Goodwill (goodwill) generally capitalized and amortized to earnings, but not determined how long the maximum amortization period. Goodwill does not need to be tested for impairment. Use proportionate consolidation for joint ventures and equity method is used to record investments in companies that are not consolidated, which can be affected significantly. Foreign currency translation practices with IAS 21. Assets and liabilities of subsidiaries with stand-alone translated menggunakam closing rate method (late) and inserted into the translation differences in equity.
German
In the early 1970s, the European Union (EU) began to issue a harmonization directive, which must be adopted by member states into national law. EU directive fourth, seventh, eighth entirely into German law through the Comprehensive Accounting Act which came into force on December 19, 1985
The third fundamental characteristic of Accountancy in Germany is its dependence on the statutes and court decisions. Besides those two things that have no binding status or authority. To understand accounting in Germany, one must mmerhatikan HGB and legal frameworks related cases.
Accounting Regulations and Enforcement Rules
Prior to 1998, the Germans did not have the financial accounting standard-setting functions as understood in English-speaking countries. Law on control and transparency in 1998 introduced the requirement to recognize a private entity that sets national standards to meet the following objectives:
• Develop recommendations on the application of accounting standards in the consolidated financial statements
• Provide advice to the Ministry of Justice for a new accounting legislation
• Representing Germany in an international accounting organization, as the IASB
System implementation of new accounting standards in Germany largely similar to existing systems in the United Kingdom and the United States. But to note that the standard of GaSb is a mandatory recommendation applies only u / lapoaran financial statements.
Financial Reporting
Law - Accounting Act in 1985 specifically determine the content and form of financial statements that include:
A. Balance
2. The income statement
3. Notes to the financial statements
4. Management reports
5. Auditor's report
The main feature of the financial reporting system in Germany is a personal statement by the auditor to the company's management board and supervisory board of the company, for the purpose of consolidation, all firms in the group must use the accounting and valuation principles are the same.
Accounting Measurement
GAS is more stringent when compared to HGB in the consolidated financial statements, Menurt GAS 4, revaluation methods should be used, while the assets and liabilities acquired in business combination must be revalued to fair value and the remaining excess was allocated to goodwill. Goodwill is amortized over a period no more than 20 years and tested for impairment annually.
As mentioned earlier, the company - the German company can now choose to prepare consolidated financial statements in accordance with the rules of German, as described above, the international accounting standards or U.S. GAAP. The third option can be found in practice and the readers of German financial statements must be careful to find out which accounting standards are used.
Japan
Accounting and Financial Reporting in Japan reflects the combined influence of various domestic and international, to understand Japanese accounting, one must understand the culture, business practices and history of Japan. Firms - Japanese firms belonging akuitas share with each other, and often jointly own other companies. These investments are interlocked industrial conglomerate that produces meraksasa - known as keiretsu
Keiretsu venture capital, is in line with changes in the Japanese structural reforms to overcome economic stagnation that began in the 1990s. The financial crisis that followed the breakup of the Japanese bubble economy is also pushing for a thorough evaluation of the Japanese financial reporting standards.
Accounting Regulations and Enforcement Rules
The national government still has the most significant influence on accounting in Japan. Accounting regulation is based on three laws - Law: Commercial Law, Capital Market Law and the income tax law firm. Commercial law is governed by the Ministry of Justice (MOJ), the law is at the core of accounting regulation in Japan and most have a major influence.
Publicly owned companies must meet further in the capital market laws administered by the finance ministry made under the laws of the U.S. capital markets and imposed on Japan by the United States during the U.S. occupation after World War II, the main purpose of SEL is to provide information in decision decision.
Financial Reporting
Company incorporated under the Commercial Law shall be obliged to prepare a report which must be approved in the annual meeting of shareholders, which contains the following:
A. Balance
2. Profit and loss
3. Business Report
4. Proposal for Determination of Use (appropriation) Retained earnings
5. Supporting Schedule
Companies that list their stocks should also prepare financial statements in accordance with the Law of the capital market in general require the same basic financial statements of the commercial law coupled with the cash flow statement.
Accounting Measurement
Commercial law firm requires large companies to prepare consolidated statements, the company recorded consolidated shares shall prepare reports in accordance with the SEL. Account is a separate company basis for consolidated reporting and general accounting principles as used for both. Consolidated subsidiary if the parent company directly and indirectly control the financial and operational policies.
Although the pooling of interest method is allowed, the purchase method for business combinations commonly used. Goodwill is measured on the basis of the fair value of net assets acquired and is amortized over a maximum of 20 years, the equity method is used to record the joint venture.
Netherlands
Accounting in the Netherlands has some interesting paradox. The Netherlands has the provision of accounting and financial reporting are relatively permissive, but the standards for professionalism is very high. The Netherlands is the country code of law, but accounting-oriented fair presentation. Financial reporting and tax accounting are two separate activities.
Dutch accounting is willing to consider ideas from outside. The Netherlands is one of the first supporters of the international standards for accounting and financial reporting, and the IASB statement received great attention in determining acceptable practice.
Accounting Regulations and Enforcement Rules
Regulation in the Netherlands remained so in 1970 when liberal laws enacted Annual Financial Report, the 1970 Act introduced a mandatory audit. The law also encourages the formation of Accounting Studies Three Parties (Tripaartif) (which was replaced by the Council's Annual Report on the Year 1981)
Annual reporting of the Council issued guidance on acceptable accounting principles (not accepted) in general, the Council has members from three different groups:
A. The preparation of financial statements (the company)
2. Users of financial statements (union representatives and financial analysts)
3. Auditors of financial statements (the Dutch institute or NivRA Registered Accounting)
Financial Reporting
Quality of the Netherlands is very uniform financial reporting, financial statements shall be drawn up in Dutch, but in English, French, and German can be accepted. Financial reports should contain the following:
A. Balance
2. Statement of Income
3. Records
4. Report of the Board of Directors
5. Other information recommended
Accounting Measurement
The method used is the purchase method, goodwill is the difference between acquisition cost and fair value of purchased assets and liabilities. Dutch flexibility in accounting measurements can be seen with the permissibility of the use of nilaii now for tangible assets such as inventory and assets are depreciated. Because the company - a Dutch company has flexibility in applying the rules of measurement, can be presumed that there is a chance to perform smoothing earnings. Certain items can ignore the statements of income and adjusted directly against reserves in shareholders' equity. It includes:
• Catastrophic losses that are not possible or is not common for the uninsured
• Losses due to nationalization or confiscation of other similar
• Onsekuensi due to financial restructuring
English
British heritage is very important for the world. Britain was the first country in the world to develop the accounting profession as we know it. The concept of presenting the results and financial position of the natural (true and fair view) is also from England.
Accounting Regulations and Enforcement Rules
The two main sources of financial accounting standards in the UK is the company's legal and accounting professions. Act of 1981 set out five basic principles of accounting:
A. Revenues and expenses should be matched according to the accrual basis
2. Postal assets and liabilities separately in each category of assets, and liabilities are assessed separately
3. The principle of conservatism
4. Application of accounting policies that are consistent from year to year are required
5. Business continuity principle is applied to companies that use accounting
The Act contains a broad assessment of rules in which the accounts can be determined based on historical cost or current cost.
Financial Reporting
UK financial reporting, including the most comprehensive in the world. The financial statements generally include:
A. Report of the Board of Directors
2. Profit and Loss and Balance Sheet
3. Statement of Cash Flows
4. Report of Total recognized Gains and Losses
5. Accounting policy statements
6. References in the notes to the Financial Statements
7. Auditor's Report
Accounting Measurement
Britain to allow both methods of acquisition and mergers in the accounting records for the merger. However, the conditions of the merger method of use is so tight that it almost never used.
In 2003, the Department of trade and Industry announced that starting in January 2005, All UK companies are allowed to use IFRS, in addition to GAAP
United States
Accounting in the United States governed by the Private Sector (Badab GAAP / FASB), until 2002 the American Institute for Certified Public Accountants.
Accounting Regulations and Enforcement Rules
Accounting principles generally accepted (GAAP) consists of all standards, rules and financial regulations that must be considered when preparing financial statements, financial statements should present fairly the financial position and results of operations of an enterprise in accordance with accounting principles accepted secar public.
Financial reporting
The annual report should be made of a large U.S. companies include:
A. Management reports
2. Independent auditors' report
3. Primary financial statements (income statement, cash flows, comprehensive income, stockholders' equity)
4. Management discussion and analysis of operating results and financial condition
5. Disclosure of accounting policies with the most important influence on the financial statements
6. Notes to the financial statements
7. Comparative financial data for five or ten years
8. Selected quarterly data
The consolidated financial statements and financial statements shall be published in the U.S. typically does not include only the parent report alone. Consolidation rules require that all subsidiaries that are controlled (ie, with holdings that exceed 50 percent of the shares with voting rights) should be consolidated in full, although operations were no longer homogeneous. Interim financial statements (quarterly) is required for a company whose shares are listed on major stock exchanges. This report usually contains only a summary financial statements are unaudited and management are briefly commented.
Accounting Measurement
Accounting measurement rules in the United States assumes that a business entity will continue to carry out its business. Accrual basis of measurements with a very broad and the recognition of transactions and events are highly dependent on the concept penanding.
SIX NATIONAL ACCOUNTING SYSTEM
France
France is a major supporter of national uniformity in the accounting world. Ministry of National Economy approved the General Plan Comptale (national accounting code) is the first official in September 1947. In the Year 1986, renana expanded to implement the provisions in the EU Seventh Directive on consolidated financial statements and further revised in 1999. Comptable General Plan contains:
• the purpose and principles of financial accounting reporting seta
• the definition of assets, liabilities, shareholders equity, revenues and expenses
• atauran recognition and assessment
• a list of standard accounts, provision for its use, and provisions of other books
• examples of financial statements and rules penyajiannya2
The special feature is the presence of accounting in France dichotomy between the separate financial statements of companies with the financial statements are consolidated business group. Although the accounts of the separate companies must meet the mandatory reporting provisions, the law allows French companies to follow International Financial Reporting Standards.
Accounting Regulations and Enforcement Rules
Five major organizations involved in standard-setting process in France is:
A. Counseil National de la Comptabilite ATAC CNC (National Accounting Board)
2. Comite de la Reglemetation Comptable or CRC (Akntansi Regulatory Committee)
3. Autorite des Marches financiers or AMF (Financial Markets Authority)
4. Ordre des Experts-Comtable or OEC (Association of Public Accountancy)
5. Compagnie Nationale des Comptes Commisaires aix or CNCC (Association of National Compliance Auditor)
In France the profession of accounting and auditing have been separated long ago. Accountants and auditors France was represented by two agencies, the OEC and CNCC, although there are a number of people who belong to both. Indeed, 80% of qualified accountants in France have both these classifications. Two professional organizations have close ties and work together for the common good. Both are involved in the development of accounting standards through the CNC and CRC and keduannya represent France at the IASB
Financial Reporting
A. Balance
2. The income statement
3. Notes to the financial statements
4. Report of directors
5. Auditor's report
Perseroaan company financial statements and other companies with limited liabilities that exceed a certain size must be audited. Large companies also have menyiapka documents related to the prevention of insolvency and corporate social reporting, which are both only available in French.
The main feature of reporting in France are the regulations on the disclosure of extensive footnotes and details that include the following:
• A description of the measurement rules in force
• The accounting treatment for items in foreign currency
• Report changes in fixed assets and depreciation
• Detailed provisions
• Detail revaluation undertaken
• Analysis of accounts receivable and debt according to maturity
• List of subsidiaries and shareholdings
• The number of pension commitments and other post-employment benefits
• Detail the tax effects on the financial statements
• Average number of employees in group
• Analysis of revenue by activity and geographic
Accounting measurement
Accountancy in France has a double characteristic: The company must comply with the separate paraturan fixed, while the consolidation of business groups have greater flexibility. Accounting for individual firm legal basis for share dividends and compute taxable income.
Payment method (purchase method) is generally used to account for business combinations, yet pooling of interest method (pooling method) can be used in some circumstances. Goodwill (goodwill) generally capitalized and amortized to earnings, but not determined how long the maximum amortization period. Goodwill does not need to be tested for impairment. Use proportionate consolidation for joint ventures and equity method is used to record investments in companies that are not consolidated, which can be affected significantly. Foreign currency translation practices with IAS 21. Assets and liabilities of subsidiaries with stand-alone translated menggunakam closing rate method (late) and inserted into the translation differences in equity.
German
In the early 1970s, the European Union (EU) began to issue a harmonization directive, which must be adopted by member states into national law. EU directive fourth, seventh, eighth entirely into German law through the Comprehensive Accounting Act which came into force on December 19, 1985
The third fundamental characteristic of Accountancy in Germany is its dependence on the statutes and court decisions. Besides those two things that have no binding status or authority. To understand accounting in Germany, one must mmerhatikan HGB and legal frameworks related cases.
Accounting Regulations and Enforcement Rules
Prior to 1998, the Germans did not have the financial accounting standard-setting functions as understood in English-speaking countries. Law on control and transparency in 1998 introduced the requirement to recognize a private entity that sets national standards to meet the following objectives:
• Develop recommendations on the application of accounting standards in the consolidated financial statements
• Provide advice to the Ministry of Justice for a new accounting legislation
• Representing Germany in an international accounting organization, as the IASB
System implementation of new accounting standards in Germany largely similar to existing systems in the United Kingdom and the United States. But to note that the standard of GaSb is a mandatory recommendation applies only u / lapoaran financial statements.
Financial Reporting
Law - Accounting Act in 1985 specifically determine the content and form of financial statements that include:
A. Balance
2. The income statement
3. Notes to the financial statements
4. Management reports
5. Auditor's report
The main feature of the financial reporting system in Germany is a personal statement by the auditor to the company's management board and supervisory board of the company, for the purpose of consolidation, all firms in the group must use the accounting and valuation principles are the same.
Accounting Measurement
GAS is more stringent when compared to HGB in the consolidated financial statements, Menurt GAS 4, revaluation methods should be used, while the assets and liabilities acquired in business combination must be revalued to fair value and the remaining excess was allocated to goodwill. Goodwill is amortized over a period no more than 20 years and tested for impairment annually.
As mentioned earlier, the company - the German company can now choose to prepare consolidated financial statements in accordance with the rules of German, as described above, the international accounting standards or U.S. GAAP. The third option can be found in practice and the readers of German financial statements must be careful to find out which accounting standards are used.
Japan
Accounting and Financial Reporting in Japan reflects the combined influence of various domestic and international, to understand Japanese accounting, one must understand the culture, business practices and history of Japan. Firms - Japanese firms belonging akuitas share with each other, and often jointly own other companies. These investments are interlocked industrial conglomerate that produces meraksasa - known as keiretsu
Keiretsu venture capital, is in line with changes in the Japanese structural reforms to overcome economic stagnation that began in the 1990s. The financial crisis that followed the breakup of the Japanese bubble economy is also pushing for a thorough evaluation of the Japanese financial reporting standards.
Accounting Regulations and Enforcement Rules
The national government still has the most significant influence on accounting in Japan. Accounting regulation is based on three laws - Law: Commercial Law, Capital Market Law and the income tax law firm. Commercial law is governed by the Ministry of Justice (MOJ), the law is at the core of accounting regulation in Japan and most have a major influence.
Publicly owned companies must meet further in the capital market laws administered by the finance ministry made under the laws of the U.S. capital markets and imposed on Japan by the United States during the U.S. occupation after World War II, the main purpose of SEL is to provide information in decision decision.
Financial Reporting
Company incorporated under the Commercial Law shall be obliged to prepare a report which must be approved in the annual meeting of shareholders, which contains the following:
A. Balance
2. Profit and loss
3. Business Report
4. Proposal for Determination of Use (appropriation) Retained earnings
5. Supporting Schedule
Companies that list their stocks should also prepare financial statements in accordance with the Law of the capital market in general require the same basic financial statements of the commercial law coupled with the cash flow statement.
Accounting Measurement
Commercial law firm requires large companies to prepare consolidated statements, the company recorded consolidated shares shall prepare reports in accordance with the SEL. Account is a separate company basis for consolidated reporting and general accounting principles as used for both. Consolidated subsidiary if the parent company directly and indirectly control the financial and operational policies.
Although the pooling of interest method is allowed, the purchase method for business combinations commonly used. Goodwill is measured on the basis of the fair value of net assets acquired and is amortized over a maximum of 20 years, the equity method is used to record the joint venture.
Netherlands
Accounting in the Netherlands has some interesting paradox. The Netherlands has the provision of accounting and financial reporting are relatively permissive, but the standards for professionalism is very high. The Netherlands is the country code of law, but accounting-oriented fair presentation. Financial reporting and tax accounting are two separate activities.
Dutch accounting is willing to consider ideas from outside. The Netherlands is one of the first supporters of the international standards for accounting and financial reporting, and the IASB statement received great attention in determining acceptable practice.
Accounting Regulations and Enforcement Rules
Regulation in the Netherlands remained so in 1970 when liberal laws enacted Annual Financial Report, the 1970 Act introduced a mandatory audit. The law also encourages the formation of Accounting Studies Three Parties (Tripaartif) (which was replaced by the Council's Annual Report on the Year 1981)
Annual reporting of the Council issued guidance on acceptable accounting principles (not accepted) in general, the Council has members from three different groups:
A. The preparation of financial statements (the company)
2. Users of financial statements (union representatives and financial analysts)
3. Auditors of financial statements (the Dutch institute or NivRA Registered Accounting)
Financial Reporting
Quality of the Netherlands is very uniform financial reporting, financial statements shall be drawn up in Dutch, but in English, French, and German can be accepted. Financial reports should contain the following:
A. Balance
2. Statement of Income
3. Records
4. Report of the Board of Directors
5. Other information recommended
Accounting Measurement
The method used is the purchase method, goodwill is the difference between acquisition cost and fair value of purchased assets and liabilities. Dutch flexibility in accounting measurements can be seen with the permissibility of the use of nilaii now for tangible assets such as inventory and assets are depreciated. Because the company - a Dutch company has flexibility in applying the rules of measurement, can be presumed that there is a chance to perform smoothing earnings. Certain items can ignore the statements of income and adjusted directly against reserves in shareholders' equity. It includes:
• Catastrophic losses that are not possible or is not common for the uninsured
• Losses due to nationalization or confiscation of other similar
• Onsekuensi due to financial restructuring
English
British heritage is very important for the world. Britain was the first country in the world to develop the accounting profession as we know it. The concept of presenting the results and financial position of the natural (true and fair view) is also from England.
Accounting Regulations and Enforcement Rules
The two main sources of financial accounting standards in the UK is the company's legal and accounting professions. Act of 1981 set out five basic principles of accounting:
A. Revenues and expenses should be matched according to the accrual basis
2. Postal assets and liabilities separately in each category of assets, and liabilities are assessed separately
3. The principle of conservatism
4. Application of accounting policies that are consistent from year to year are required
5. Business continuity principle is applied to companies that use accounting
The Act contains a broad assessment of rules in which the accounts can be determined based on historical cost or current cost.
Financial Reporting
UK financial reporting, including the most comprehensive in the world. The financial statements generally include:
A. Report of the Board of Directors
2. Profit and Loss and Balance Sheet
3. Statement of Cash Flows
4. Report of Total recognized Gains and Losses
5. Accounting policy statements
6. References in the notes to the Financial Statements
7. Auditor's Report
Accounting Measurement
Britain to allow both methods of acquisition and mergers in the accounting records for the merger. However, the conditions of the merger method of use is so tight that it almost never used.
In 2003, the Department of trade and Industry announced that starting in January 2005, All UK companies are allowed to use IFRS, in addition to GAAP
United States
Accounting in the United States governed by the Private Sector (Badab GAAP / FASB), until 2002 the American Institute for Certified Public Accountants.
Accounting Regulations and Enforcement Rules
Accounting principles generally accepted (GAAP) consists of all standards, rules and financial regulations that must be considered when preparing financial statements, financial statements should present fairly the financial position and results of operations of an enterprise in accordance with accounting principles accepted secar public.
Financial reporting
The annual report should be made of a large U.S. companies include:
A. Management reports
2. Independent auditors' report
3. Primary financial statements (income statement, cash flows, comprehensive income, stockholders' equity)
4. Management discussion and analysis of operating results and financial condition
5. Disclosure of accounting policies with the most important influence on the financial statements
6. Notes to the financial statements
7. Comparative financial data for five or ten years
8. Selected quarterly data
The consolidated financial statements and financial statements shall be published in the U.S. typically does not include only the parent report alone. Consolidation rules require that all subsidiaries that are controlled (ie, with holdings that exceed 50 percent of the shares with voting rights) should be consolidated in full, although operations were no longer homogeneous. Interim financial statements (quarterly) is required for a company whose shares are listed on major stock exchanges. This report usually contains only a summary financial statements are unaudited and management are briefly commented.
Accounting Measurement
Accounting measurement rules in the United States assumes that a business entity will continue to carry out its business. Accrual basis of measurements with a very broad and the recognition of transactions and events are highly dependent on the concept penanding.
4. SIMILARITIES AND DIFFERENCES IN ACCOUNTING SYSTEM DEVELOPED COUNTRIES
Convergence of accounting standards is essentially equating the language of business. Each state has a regulatory agency financial reporting standards. Indonesia Indonesian Institute of Accountants has issued Statement of Financial Accounting Standards as the only standard that is accepted as 'business language' companies in Indonesia. United States has a Generally Accepted Accounting Principles (GAAP), which was released by the Financial Accounting Standards Board (FASB). The European Union has the International Accounting Standard (IAS) issued by International Accounting Standard Board (IASB). And so, each country using a standard reporting-reporting standards that are likely to diverge from one another. There is no assurance that the financial statements are presented in different countries can be read with the same language. Difference in the end of this standard will also hamper international business people in business decisions.
By far the leading to the reference standard is the International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board (IASB). IASB standards are the governing body of International Accounting Standards Committee Foundation, an independent international non-profit institutions engaged in financial reporting is based in the UK.
Today, more than 100 countries require or allow the application has IFRS, and is expected to be more and more countries around the world use IFRS. In fact, 10 countries have global capital markets has made convergence to IFRS as Japan, Britain, France, Canada, Germany, Hong Kong, Spain, Switzerland, Australia, including the superpower United States has said it will make the convergence to IFRS. As can be seen on the map, the blue states are the countries that have require or permit the application of IFRS. While the gray are the countries that are in the process of convergence with IFRS.
For Indonesia, as a first step the Financial Accounting Standards Board Indonesia Institute of Accountants (DSAK-IAI) will mengonvergensikan GAAP with IFRS fully through three stages, namely stages of adoption, the final preparation phase and implementation phase. Stages of adoption made in the period 2008-2011 includes activities throughout the IFRS to GAAP adoption, infrastructure preparation, and evaluation of IAS regulations.
Of course not easy to reconcile IAS 62 standard which is owned by owned 37 IFRS standards. There are still considerable gaps between GAAP with IFRS, there are even 20 or 32% IAS standards that can not be compared. When compared with the IFRS, there are still significant differences include financial instruments, investment property, business combination, property, plan and equipment, intangible assets, service concession agreement, the presentation of financial statements, leases, insurance contracts, accounting for banking to be removed , exploration and evaluation of mineral assets, agriculture, and accounting for reporting currencies, and other major differences.
"IFRS convergence targets that have been launched IAI in 2012 is revised IAS that are materially in accordance with IFRS version of January 1, 2009 which became effective in 2011/2012," said the Chairman of IAI Rosita DSAK Uli Sinaga Public Hearing on the exposure draft of IAS 1 (Revised 2009) of the Financial Statements, in Jakarta last Thursday, August 20, 2009. For the twenty-ninth of Financial Accounting Standards (GAAP) included in the IFRS convergence program launched by IAI DSAK 2009 and 2010. The number of standards to be implemented in the convergence program is a tough challenge for the period 2009-2012 DSAK IAI. If the experience of the implementation of SFAS 50 and 55 concerning financial instruments that have been published in 2008, but it gets the strong pressure of the unpreparedness of the financial industry that have delayed its implementation, then you can imagine how powerful enact dozens of standards in such a short time.
In addition to the readiness of the companies, the implementation of this program also requires the readiness of practitioners of management accountants, public accountants, academics, regulators and other support professionals such as actuaries and appraisers. Public accountants are expected to immediately update their knowledge in relation to changes in GAAP, SPAP update and adjust the IFRS-based audit approach. Management Accountant / Company can anticipate immediately formed a team of successful convergence of IFRS Accountant in charge of updating the knowledge of management, conduct gap analysis and prepare road map for IFRS convergence and coordination with other projects for the optimization of resources. Accounting Academics / University are expected to form a successful team of IFRS convergence to update the knowledge of academics, revising the curriculum and syllabus as well as perform a variety of related research and provide input / comments on the ED and the Discussion Papers published by the IASB DSAK well.
Regulators need to make adjustments to regulations related to financial reporting and taxation and make efforts toward professional development and supervision associated with the reporting keuanganseperti appraisers and actuaries. Industry associations are expected to develop Guidelines for Industrial Accounting in accordance with GAAP developments, and create a forum that is intensively discussed various issues with respect to the impact of the application of GAAP and proactively provide input / comments to DSAK IAI.
Convergence of accounting standards is essentially equating the language of business. Each state has a regulatory agency financial reporting standards. Indonesia Indonesian Institute of Accountants has issued Statement of Financial Accounting Standards as the only standard that is accepted as 'business language' companies in Indonesia. United States has a Generally Accepted Accounting Principles (GAAP), which was released by the Financial Accounting Standards Board (FASB). The European Union has the International Accounting Standard (IAS) issued by International Accounting Standard Board (IASB). And so, each country using a standard reporting-reporting standards that are likely to diverge from one another. There is no assurance that the financial statements are presented in different countries can be read with the same language. Difference in the end of this standard will also hamper international business people in business decisions.
By far the leading to the reference standard is the International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board (IASB). IASB standards are the governing body of International Accounting Standards Committee Foundation, an independent international non-profit institutions engaged in financial reporting is based in the UK.
Today, more than 100 countries require or allow the application has IFRS, and is expected to be more and more countries around the world use IFRS. In fact, 10 countries have global capital markets has made convergence to IFRS as Japan, Britain, France, Canada, Germany, Hong Kong, Spain, Switzerland, Australia, including the superpower United States has said it will make the convergence to IFRS. As can be seen on the map, the blue states are the countries that have require or permit the application of IFRS. While the gray are the countries that are in the process of convergence with IFRS.
For Indonesia, as a first step the Financial Accounting Standards Board Indonesia Institute of Accountants (DSAK-IAI) will mengonvergensikan GAAP with IFRS fully through three stages, namely stages of adoption, the final preparation phase and implementation phase. Stages of adoption made in the period 2008-2011 includes activities throughout the IFRS to GAAP adoption, infrastructure preparation, and evaluation of IAS regulations.
Of course not easy to reconcile IAS 62 standard which is owned by owned 37 IFRS standards. There are still considerable gaps between GAAP with IFRS, there are even 20 or 32% IAS standards that can not be compared. When compared with the IFRS, there are still significant differences include financial instruments, investment property, business combination, property, plan and equipment, intangible assets, service concession agreement, the presentation of financial statements, leases, insurance contracts, accounting for banking to be removed , exploration and evaluation of mineral assets, agriculture, and accounting for reporting currencies, and other major differences.
"IFRS convergence targets that have been launched IAI in 2012 is revised IAS that are materially in accordance with IFRS version of January 1, 2009 which became effective in 2011/2012," said the Chairman of IAI Rosita DSAK Uli Sinaga Public Hearing on the exposure draft of IAS 1 (Revised 2009) of the Financial Statements, in Jakarta last Thursday, August 20, 2009. For the twenty-ninth of Financial Accounting Standards (GAAP) included in the IFRS convergence program launched by IAI DSAK 2009 and 2010. The number of standards to be implemented in the convergence program is a tough challenge for the period 2009-2012 DSAK IAI. If the experience of the implementation of SFAS 50 and 55 concerning financial instruments that have been published in 2008, but it gets the strong pressure of the unpreparedness of the financial industry that have delayed its implementation, then you can imagine how powerful enact dozens of standards in such a short time.
In addition to the readiness of the companies, the implementation of this program also requires the readiness of practitioners of management accountants, public accountants, academics, regulators and other support professionals such as actuaries and appraisers. Public accountants are expected to immediately update their knowledge in relation to changes in GAAP, SPAP update and adjust the IFRS-based audit approach. Management Accountant / Company can anticipate immediately formed a team of successful convergence of IFRS Accountant in charge of updating the knowledge of management, conduct gap analysis and prepare road map for IFRS convergence and coordination with other projects for the optimization of resources. Accounting Academics / University are expected to form a successful team of IFRS convergence to update the knowledge of academics, revising the curriculum and syllabus as well as perform a variety of related research and provide input / comments on the ED and the Discussion Papers published by the IASB DSAK well.
Regulators need to make adjustments to regulations related to financial reporting and taxation and make efforts toward professional development and supervision associated with the reporting keuanganseperti appraisers and actuaries. Industry associations are expected to develop Guidelines for Industrial Accounting in accordance with GAAP developments, and create a forum that is intensively discussed various issues with respect to the impact of the application of GAAP and proactively provide input / comments to DSAK IAI.
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