Development Of International Accounting And Classification
1. Identify and explain factors that influence the development of the accounting world
Choi et. al (1998; 36) number of environmental factors are believed to have a direct impact on the development of accounting, among others:
A. Legal System
Codification of standards and accounting procedures seemed natural and appropriate in countries that adhere to code law. In contrast, the formation of a non-legalistic accounting policies by the professional organizations which work in the private sector more in line with the prevailing system in common law countries (common law). In the law of war or other emergency situations nasonal, all aspects of accounting functions may be regulated by a court or government agency. An example is the period of Nazi Germany, when preparations for war intensified and then during World War II the national accounting system requires a very uniform to control all activities of the national economy in total.
B. Political System
The existing political system in a country, too, accounting coloring, because the political system is "importing" and "export" and standards-prakti prktik accounting. For example, the existing UK accounting during the turn of the 20th Century, "exported" to the Commonwealth countries. The Netherlands did the same to the Philippines and Indonesia, France to countries in Asia da African colonies. The Germans used to influence the political sympathies, among others, accounting in Japan and Sweden.
C. The nature of Business Ownership
Public ownership of the shares of the company implies the principles of financial accounting reporting and disclosure are different from companies whose ownership is dominated by the family or the bank. For example, public ownership is very high on the shares in U.S. corporations has resulted in the so-called Sunshine accounting disclosure standards of wide open, while the absence of public participation in the ownership of shares in French companies have limited financial communication is effective only to the channels of communication "insider" only. Bank ownership is high in Germany also produces a response different accounting. In the U.S., AICPA standards make specific recomedations for certain financial and accounting practices used by non-public are smaller.
D. Differences in magnitude and complexity of Business Companies
Dichotomy between large and small companies continues, ranging from insurance, up to all the parent-child hierarchy, including the complexity of the problem. Large conglomerate that operates in a very diverse line of business requires financial reporting techniques that are different from small firms that produce a single product. Multinational companies are also requiring different accounting systems to accounting systems of domestic firms.
Dichotomy between large and small companies continues, ranging from insurance, up to all the parent-child hierarchy, including the complexity of the problem. Large conglomerate that operates in a very diverse line of business requires financial reporting techniques that are different from small firms that produce a single product. Multinational companies are also requiring different accounting systems to accounting systems of domestic firms.
E. Social Climate
Social climate also contribute to the development of accounting in different parts of the world. In France, leading to social responsibility reporting, whereas in Switzerland is still very conservative so large Swiss companies report their financial condition is relatively compact. The Italian is still very much oriented to the tax, even in some parts of East and South America, together with the bookkeeping and accounting is not considered socially appropriate.
F. Competency levels of Business Management and Finance Community
Competence or ability of the user business management and accounting output will largely determine the development of accounting. Because the output is as sophisticated and as powerful as any accounting, business management, and if users can not read, interpret, and understand it will not do any good.
Competence or ability of the user business management and accounting output will largely determine the development of accounting. Because the output is as sophisticated and as powerful as any accounting, business management, and if users can not read, interpret, and understand it will not do any good.
G. Interference with a Business degree Legislature
Regulation of taxation may require certain accounting principles. As in Sweden, where certain tax concessions should be recorded in accounting before it can be claimed for tax purposes; this is also the situation for the LIFO method of inventory valuation in the U.S.. Social protection laws also affect the various accounting standards. An example is the obligation to pay severance dio several South American countries.
H. There are certain Accounting Legislation
In some cases, there are specific legislative regulations for the rules and certain accounting techniques. In the U.S., the SEC determines standards of disclosure and accounting for large companies, with reference to the FASB.
I. Speed Business Innovation
Initially, merger and acquisition activity is not taken into account in accounting, but due to the incorporation of a business that is so popular in accounting erofa force also developed to meet the needs of those concerned.
J. Economic development stage
Countries still rely on the agricultural economy requiring accounting principles that are different from the advanced industrial countries. In agricultural countries, the level of dependence on credit and long-term business contracts may still be small. So sophisticated accrual accounting is not useful and what is needed is a simple cash accounting.
K. Economic growth patterns
Stable economic conditions encourage greater competition for existing markets that require a stable pattern of accounting and will be much different in countries where conditions are experiencing a prolonged war.
L. Status of Education and Professional Organizations
In the absence of an organized professional accounting and accounting source of local authorities of a country, the standards of another area or another country may be used to fill the vacancy. Adaptation of the factors accounting from the UK is a significant environmental impact in the accounting world until the end of World War II. Since then, international adaptation process to switch to U.S. sources. Development of accounting, both from the state itself or adapted from other countries, will not succeed unless the environmental conditions such as those listed above are fully considered.
2. Approach to the development of accounting in a market-oriented economy
Portion of the International Accounting Development
Furthermore Choi et.al (1998: 38) revealed that the structural development of international accounting happens now includes serving as follows:
A. Pattern of Comparative Development
The approach developed by Mueller differently to the development of accounting can be observed in western countries that have market-oriented economic system, including; makorekonomis pattern, the pattern mikroekonomis, disciplined approach to independent, and uniform accounting approach.
Patterns of macro economic
Business enterprise goal of course is narrower than the national economic policy. The Company has certain goals to be achieved, often operate in a dimension of time and space is limited, and accountable to the groups a clear ownership. Consequently, normally follows the company's goal of national policy. This is not an absolute condition, because the company is part of the business that affects public kepntingan and directing national policies, so there is a causal relationship of reciprocity. There are three statements related to this pattern are:
1. Business enterprise is an essential unit in the structure of a country's economy.
2. Business companies achieve their goals with the best possible way through its activities in close coordination with the policy-the policy of the national economy in its environment.
3. The public interest is well served if the company's accounting business is closely linked with national policy.
Financial accounting-oriented makrekonomi may formally recognize the value of the discovery of mineral or oil content, calculate depreciation on productive equipment based on units of production, and allow the elimination of certain expenses quickly if this is of interest to regional or national economic development.
Micro economis pattern
Market-oriented economy, including the economy is not so much got a central government administrative intervention, largely entrusted to the economic prosperity of the business activities indvidu individuals and businesses of each company. Thus, in this economy, there is a fundamental orientation which leads to every cell of the activity of the economy. It is so engrained in Western economic organizations in which the orientation is applicable to many business processes, legal, legislative and social issues.
With the activities of private and business as a core business in the market-oriented economy and to perform accounting services for business functions and business firms, it seems only natural that the accounting will orient itself to micro considerations of the same, which was formed in established in the environment. Some of the statements related to this pattern involves:
1. The company provides vocal spots for economic activities
2. The company's main policy is to ensure business survival.
3. Optimization in the economic sense is the best policy of the company to survive
4. Accounting, economics as a branch of business, get the concepts and applications of the application of economic analysis.
The main accounting concepts in the pattern of development that is based on micro-economics is that the accounting must maintain a constant amount of monetary capital investment in the company's real value.
Independent Discipline
Consider accounting as a function of business services to provide enough space to conclude that accounting can build a useful framework for the screened himself from the business process it serves. If this is possible, then the conceptual support of a discipline such as economics is not required. Accounting in other words, relying on him to be an independent discipline.
3. The dominant state in the Development of Accounting Practices
Some countries are dominant on the development of accounting include:
Some countries are dominant on the development of accounting include:
· France
· Japan
· United States
In the progress the countries France and Japan are less dominant than the United States. It can be seen from the development of Japanese accounting in its development is currently based on existing IFRS.
* Knowledge of Basic Accounting Classification
Classification of the International Accounting basis of international accounting classification can be done in two ways, namely:
deductive approachWhich identifies the relevant environmental factors and linking it with national accounting practices, an international grouping or pattern of development proposed.
Inductive ApproachAccounting 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: By considerations and empirically.
4. Basic knowledge of Accounting and Classification of Local Accounting Comparison with International Accounting
Differences in international accounting studies are to:
v Reporting for MNC / MNE
v Border
v Reporting to the other parties in different countries
v International Taxation
v International transactions
5. On the presentation of natural differences and Compliance Law and the State
Classification based Padada fair presentation versus legal compliance pose a major influence on many accounting issues, such as:
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).
Company regulations, including in this case is the accounting systems and procedures, much influenced by the legal system in force in a country. Some countries such as France, Italy, Germany, Spain, the Netherlands adhere to the legal system that is classified in the codified Roman law. Codified in law, the rules associated with the basic idea of moral and justice, which tends to be a doctrine. Meanwhile, countries like Britain, the United States and British Commonwealth countries adopted the common law. In common law, the existence of an attempted answer to specific cases and not make a general formulation.
6. Issues Important Differences Fair Presentation and Compliance Against the Law
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.
COMPARATIVE ACCOUNTING
a. Identifying terms of accounting standards by setting standards
accounting standards
Accounting standards can be considered as general guidelines for the preparation of financial statements are an official statement about certain accounting issues issued by regulatory authorities and applicable in a particular environment. Accounting standards generally consists of:
1) a description of the problems encountered
2) a logical discussion or how to solve the problem
3) associated with the decision / theory proposed a solution
Accounting standards by Edey (1977) is divided into four types, that is:
1) type 1 Ã accountant should notify the user about what they do by making the methods and assumptions (accounting policies) are in the embrace.
2) type 2 Ã helping to achieve some keseraaman presentation of certain accounting statements.
3) type 3 Ã requires disclosure of specific things that affect the user's consideration.
4) 4 types of decisions require implicit / explicit to be made about the valuation of assets and determination of the profits are approved.
Standards in determining objectives
Determination of the standard is that a social choice standara may benefit a particular party and harm others. Most of the issues relating to accounting politically sensitive due to:
1) the need for accounting standards appears when there is disagreement
2) accounting information can affect the level of welfare use
b. Understanding the differences in accounting practices with the standards set
ACCOUNTING PRINCIPLES
The financial statements are compiled from hundreds or thousands of transactions in a systematic way with a certain basis. This basic-principle called the principle of common accounting (General Accepted Accounting Principles). Precisely because the inexact nature of this accounting would require "the principles of the common accounting". Without the principle that serves as a benchmark or guideline, then the likelihood of each accountant will use caranyasendiri, so that the resulting financial statements would be confusing.
Accounting profession has sought to develop a set of standards that are generally accepted and universally practiced. Efforts that have resulted in wearing a set of rules and procedures referred to as the general accounting principles generally acceptable that merupaka guideliness (standard) that shows on the procedures for reporting economic events. Accounting profession in Indonesia who are members of Indonesian Accountants Association (IAI) has managed to put together a 35 GAAP Statement of Financial Accounting Standards (SFAS).
Standard Accounting Practice
Standard accounting practice requires publicly traded companies to follow certain accounting rules when preparing the consolidated financial statements so that readers can easily compare different companies. Private companies are also often required by banks and shareholders, for example, to present information in accordance with rules established mereka.Biasanya, the countries of civil law practice to a standard writing system in the country by law and English common law system has a private organization to set the rules.
The reason for the practice of uniform
Lack of transparent accounting standards in several countries have been cited as increasing the difficulty of doing business in it. In particular, the Asian financial crisis in late 1990 was partly due to the lack of detailed accounting standards. Giant companies in several Asian countries were able to take advantage of accounting standards designed to cover bad debts and losses, which produce collective effects that eventually lead the whole region into financial crisis.
Accounting Standards
Science is a science of accounting is more art in the implementation of data management to prepare financial statements, notes, classify and summarize a number of financial data or transactions, or using certain basics. This is called the standard basis of accounting.
This standard is made through a process of formation that occurs gradually over a rather long period of accounting practices. Here, the facts of the habits and assumptions and even estimates based on certain limits which will be the basis. Precisely because it is not eksas this, it is necessary to "Commonly Accepted Accounting Standards". In the absence of these standards then the accountants will prepare financial statements in their own way. Accounting standards is the basis of generally accepted accounting truth.
Baridwan accounting standards according to Zaki (1997: 10), among others:
-Historical Cost Principle
-Revenue of Principle
- Matching Principle
-Principle of Consistency
-Principle of Disclosure
c. Knowing the accounting system in the developed countries, along with examples
Accounting standards are rules regulations (including laws and statutes as well) that govern the preparation of financial statements. Standard setting is the process of formulating or formulation of accounting standards. Accounting standards can be said is the result of standard setting, although not in accordance with standard practice.
Four (4) The reason why the practice is not in accordance with the standards, namely:
Four (4) The reason why the practice is not in accordance with the standards, namely:
In most countries the penalty for noncompliance with the official accounting tend to be weak and ineffective
The company may voluntarily report more information than that required
Some states allow companies to ignore the accounting standards if by doing
Some states allow companies to ignore the accounting standards if by doing
operations and financial position will be better tersajikan
In some countries accounting standards only apply to the separate financial statements and not to the consolidated report.
In some countries accounting standards only apply to the separate financial statements and not to the consolidated report.
Auditing profession tends to regulate itself in countries that adhere to fair presentation (specifically British-influenced) and more auditors to conduct an objective consideration of the audit was to attest to the fair presentation of financial statements. Whereas in countries with a legal code, the accounting profession tend to be regulated by the state because the primary purpose of the audit is to ensure that the records and financial statements in accordance with the provisions of the law.
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:
purposes and principles of accounting financial reporting seta
definition of assets, liabilities, shareholders equity, revenues and expenses
definition of assets, liabilities, shareholders equity, revenues and expenses
aturan recognition and assessment standard chart of accounts, provision for its use, and provisions of other books sample financial statements and rules presentations.
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)
b. Comite de la Reglemetation Comptable or CRC (Akntansi Regulatory Committee)
c. Autorite des Marches financiers or AMF (Financial Markets Authority)
d. Order des Experts-Comtable or OEC (Association of Public Accountancy)
e. 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
Financial Reporting
French companies have to report the following:
i. Balance
ii. The income statement
iii. Notes to the financial statements
iv. Report of directors
v. Auditor's report
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.
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
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 regarding 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
Develop recommendations regarding 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:
i. Balance
ii. The income statement
iii. Notes to the financial statements
iv. Management reports
v. 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
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.
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.
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.
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:
i. Balance
ii. Profit and loss
iii. Business Report
iv. Proposal for Determination of Use (appropriation) Retained earnings
v. 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:
The preparation of financial statements (the company)
Users of financial statements (union representatives and financial analysts)
Auditors of financial statements (the Dutch institute or NivRA Registered Accounting)
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:
i. Balance
ii. Statement of Income
iii. Records
iv. Report of the Board of Directors
v. 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 are not possible or is not common for the uninsured
Similar losses due to nationalization or other confiscation
consequensi due to financial restructuring
Catastrophic losses are not possible or is not common for the uninsured
Similar losses due to nationalization or other confiscation
consequensi due to financial restructuring
England 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: Revenues and expenses should be matched according to the accrual basis. Postal assets and liabilities separately in each category of assets, and liabilities are assessed separately. The principle of conservatism. Application of accounting policies that are consistent from year to year are required. 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
Financial Reporting
UK financial reporting, including the most comprehensive in the world. The financial statements generally include:
i. Report of the Board of Directors
ii. Profit and Loss and Balance Sheet
iii. Statement of Cash Flows
iv. Report of Total recognized Gains and Losses
v. Accounting policy statements
vi. References in the notes to the Financial Statements
vii. 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 public.
Financial reporting
The mannual report should be made of a large U.S. companies include:
a. Management reports
b. Independent auditors' report
c. Primary financial statements (income statement, cash flows,
d. comprehensive income, stockholders' equity)
e. Management discussion and analysis of operating results and financial condition
f. Disclosure of accounting policies with the most important influence on the financial statements
g. Notes to the financial statements
h. Comparative financial data for five or ten years
Selected quarterly data
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
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.
After understanding some of the accounting systems in some developed countries just as described above, it can be concluded that there are similarities and differences between them. This is due to historical factors and the needs and conditions in which it grows and develops accounting
d. Identify 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 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 ‘t 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
Source :
7. emmy.staff.gunadarma.ac.id/Downloads/files/17734/bab+1.ppt
10. http://ahmaderik.blogspot.com/2011/04/istilah-standar-akuntansi-dan-penentuan.html
