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Jumat, 01 Juni 2012

INTERNATIONAL ACCOUNTING HARMONIZATION


INTERNATIONAL ACCOUNTING HARMONIZATION
A.   Harmonization And Standardization Of Differences In Accounting Standards Applicable.
Harmonization of international encouragement with divided over who represents the state agencies and bodies representing the accounting profession or other related parties. International impetus in international accounting harmonization, among others:
1. International Accounting Standards Boards (IASB)
2. United Nation
3. The Organization for Economic Co-operation and Development (OECD)
4. The European Union
Harmonization can also be interpreted as a group of countries that agree on an accounting standard that is similar, but requires the implementation does not follow the standard should be disclosed and reconciled with mutually agreed standards.

B.     Pro And Cons Of Harmonization International Accounting Standards
Until the present time, western countries are still heavily promoting the need for harmonization of international accounting standards. The main purpose of these efforts is to improve the comparability (comparability) of financial reporting, especially for multinational companies operating in various parts of the world. The main reason the presentation of financial statements that meet the standards for the survival of the company itself in the future, both in terms of internal and external users
The resulting accounting standards of Anglo-Saxon model of accounting that recognizes adopts the time value of money, which produces the concept of interest. Meanwhile, Islam explicitly reject the use of the time value of money in carrying out economic activities.
Another issue to consider is the issue relating to the valuation of the assets. In the Anglo-Saxon accounting, valuation of an asset, especially inventories and securities are generally based on the concept of conservatism.
The third problem is the application of the concept of sustainability (going concern). Use of this concept possible use historical cost valuation of assets based on the measurement to demonstrate objectivity.

C.    Reconciliation And Mutual Recognition (Reciprocal) Differences In Accounting Standards
Two other approaches are proposed as a possible solution is used to solve problems related to the content of cross-border financial statements is reconciliation, and mutual recognition (which is also referred to as "feedback" / reciprocity).
Through reconciliation, foreign companies can set financial reporting using their own country accounting standards. Recognition occurs when the parties together outside the home country regulator of financial report foreign companies which are based on the principles of homestate.

D.    International Organizations That Promote Major Accounting Harmonization
Six organizations have become a major player in the determination of the international accounting standards and in promoting international harmonization of accounting:
1.      International Accounting Standards Board (IASB)
2.      Commission of the European Union (EU)
3.      International Organization of the Capital Market Commission (IOSCO)
4.      International Federation of Accountants (IFAC)
5.      International Standards of Accounting and Reporting (ISAR)
6.      Accounting Standards Working Group in the Organization of Economic Cooperation and Development (OECD Working Group).

E.     New Approach And Relate It To The Integration Of European Financial Markets.
One goal is to achieve the integration of EU financial markets of Europe. To achieve this goal, the EC has introduced a directive and take a huge initiative to achieve a single market for:
-        Acquisition of capital in the EU
-        Create a common legal framework for securities and derivatives markets are integrated
Achieve a single set of accounting standards for companies whose shares are listed



Sources:
1)      Choi, Frederick D.S., and Gerhard D. Mueller, 2005., The International Accounting - Book 1, Issue 5., Salemba Four, Jakarta.
2)      Choi, Frederick D.S., and Gerhard D. Mueller, 2005., The International Accounting - Book 2, Issue 5., Salemba Four, Jakarta.

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