introducing
1.
Describe and understanding how international accounting
different from other accounting.
International Accounting is accounting for international transactions, comparisons between countries of different accounting principles and harmonization
of accounting standards in the areas of tax authorities,
auditing and other
accounting areas. Accounting
must be developed in order to provide the
required information in decision-making in the company on any changes
in the business environment.
International accounting aimed at expanding
public accounting (general-purpose national oriented, in a broad sense for:
a.)
An international comparative analysis
b.)
Measurement of the accounting reporting
issues unique to business
transactions multinational
c.)
Accounting needs for international financial markets
d.)
Harmonization of financial reporting diversity
through political activities,
organizations, professions and manufacturing
standards.
International accounting differences with
other accounting found in :
a.)
Reported in International Accounting
is a multinational company (multinational
company - MNC) is
a company headquartered in a country, but also
operates in other
countries.
b.)
Operating transactions across national
borders.
Activities of the transactions carried out not only in one region of the State, but across many national borders.
Activities of the transactions carried out not only in one region of the State, but across many national borders.
c.)
Reporting addressed to users located in countries other than the company. Return to the differences
in number 1, because the International Accounting is a multinational company that reportedly also
ditujukkan reporting to the company that has interests that operate in
other countries.
d.)
International Taxation
Tax
law used is international
tax law.
e.)
International transactions
Transactions
conducted internationally oriented
company that is a
transaction involving two or
more companies that are in a different country.
2.
Describe and understand how international accounting
are divided into three broad areas
International
accounting is divided into three areas, including extensive accounting
processes include :
1.
measurement
Can provide in-depth feedback on the probability of a company operations and financial position of strength. The process of identifying, classifying and counting aktivtias and transactions, providing in-depth feedback on the profitability and operations.
Can provide in-depth feedback on the probability of a company operations and financial position of strength. The process of identifying, classifying and counting aktivtias and transactions, providing in-depth feedback on the profitability and operations.
2.
disclosure
The process by which accounting measurement is communicated to the users of the financial statements and used in decision-making or process of communicating to users.
The process by which accounting measurement is communicated to the users of the financial statements and used in decision-making or process of communicating to users.
3.
auditing
The process by which specific accounting professionals (auditors) perform attestation (testing) the reliability of the measurement and communication.
The process by which specific accounting professionals (auditors) perform attestation (testing) the reliability of the measurement and communication.
3.
Knowing the history of international accounting and
financial sector policies of national trend
History of the International Accounting
In the beginning, starting with the accounting entry system
(double entry bookkeeping) in Italy in the 14th century and 15. Entry system
(double entry bookkeeping), considered the beginning of the creation of
accounting. Modern accounting double entry accounting began to find and use in
the business activities of the system for recording multiple (double entry
bookkeeping), introduced by Luca paciolo (in 1447). Bookkeeping (double entry
bookkeeping) is a standard practice of recording financial transactions. The
process covers only books recording transactions in a variety of journals and
granting estimates ledger classification code (ie raw financial data
collection), which became the basis for the accounting system to collect and
organize raw data into useful information.
Luca Pacioli was born in Italy in 1447, he was not an accountant but the pastor mathematician and lecturer at several universities in Italy. Luca who first published the basic principles of double accounting system in his book titled: Summa Arithmetica Geometria the proportioni et proportionalita in 1494. However many historians argue that the basic principles of double accounting system is not a pure idea luca but he only summarizes the accounting practices that took place at that time and publish it. It is admitted by Lica (Radebaugh, 1998). Business practices with the reference method venetian Luca wrote the book has become the method adopted not only in Italy but almost in all European Countries such as Germany, the Netherlands, the United Kingdom. Accounting accounting model in Dutch exports to Indonesia, among others, the accounting system in the French Polynesian and African territories under French rule. Reporting framework influential German system in Japan, Sweden, and the Russian empire. Half of the 20th century, as the growing economic power of the United States, the complexity of accounting issues arise simultaneously. Then accounting are recognized as a separate academic discipline. After World War II, the effect of accounting more so in the western world. Accounting Developments supported by a study (the emergence of business schools), as the change of time and the development of international relations, accounting hassle getting into.
Luca Pacioli was born in Italy in 1447, he was not an accountant but the pastor mathematician and lecturer at several universities in Italy. Luca who first published the basic principles of double accounting system in his book titled: Summa Arithmetica Geometria the proportioni et proportionalita in 1494. However many historians argue that the basic principles of double accounting system is not a pure idea luca but he only summarizes the accounting practices that took place at that time and publish it. It is admitted by Lica (Radebaugh, 1998). Business practices with the reference method venetian Luca wrote the book has become the method adopted not only in Italy but almost in all European Countries such as Germany, the Netherlands, the United Kingdom. Accounting accounting model in Dutch exports to Indonesia, among others, the accounting system in the French Polynesian and African territories under French rule. Reporting framework influential German system in Japan, Sweden, and the Russian empire. Half of the 20th century, as the growing economic power of the United States, the complexity of accounting issues arise simultaneously. Then accounting are recognized as a separate academic discipline. After World War II, the effect of accounting more so in the western world. Accounting Developments supported by a study (the emergence of business schools), as the change of time and the development of international relations, accounting hassle getting into.
Trend of National Financial Sector Policy
Board of Governors (RDG) Bank Indonesia on January 10, 2013
decided to maintain the BI Rate at 5.75%. The interest rate is assessed to be
consistent with the inflation target in 2013 and 2014, at 4.5% ± 1%. Thorough
evaluation of the performance in 2012 and outlook for the year 2013-2014 showed
Indonesia's economy grew high enough to keep inflation under control and low.
Performance is closely linked to the policies adopted by Bank Indonesia and the
government to maintain macroeconomic stability and economic growth momentum
amid the global economic slowdown. Bank Indonesia policy focus is now directed
to manage the external balance and the stability of the rupiah corresponding
fundamental conditions. Going forward, Bank Indonesia will also strengthen
monetary and macroprudential policy mix and strengthen coordination with the
government to manage domestic demand in line with efforts to maintain the
external balance, achieving the inflation target, and the sustainability of
economic growth.
Global economic growth in 2012 is lower than the previous year. Indonesia's economic growth in 2012 is quite high at 6.3% and expected to rise in 2013 and 2014. Endurance's economy is supported by macroeconomic stability and financial system maintained so as to strengthen domestic demand basis. Performance of Indonesia's balance of payments (BOP) in 2012 still recorded a surplus, despite the pressure of the current account deficit. The rupiah has depreciated in 2012 with relatively low volatility. Rupiah in point-to-point down 5.91% (yoy) during the year 2012 to a level of Rp9.638 per dollar. Downward pressure mainly occurs in the second and third quarter of 2012 related to the deterioration of global economic conditions, particularly in Europe, which contributed to the decline of foreign portfolio inflows into Indonesia. Inflation remains under control during the year 2012 at a low level and the inflation target in the range of 4.5% ± 1%. Stability of the financial system and banking intermediation function properly maintained.
Bank Indonesia policy will be directed to manage domestic demand in line with efforts to maintain external balance. Bank Indonesia will continue to strengthen the policy mix through five pillars policy. First, the interest rate policy will be pursued consistent with the forecasts of future inflation in order to maintain the target range. Second, the exchange rate policy will be directed to keep the movement amount in accordance with the fundamental conditions. Third, macroprudential policies aimed to maintain a stable financial system and support the maintenance of internal and external balance. Fourth, strengthening communication strategy policy to manage inflation expectations. Fifth, strengthening coordination of Bank Indonesia and the Government in supporting macroeconomic management, particularly in strengthening the economic structure, expand the sources of financing the economy, strengthening the supply side response, as well as consolidation Crisis Management Protocol (FMD).
Global economic growth in 2012 is lower than the previous year. Indonesia's economic growth in 2012 is quite high at 6.3% and expected to rise in 2013 and 2014. Endurance's economy is supported by macroeconomic stability and financial system maintained so as to strengthen domestic demand basis. Performance of Indonesia's balance of payments (BOP) in 2012 still recorded a surplus, despite the pressure of the current account deficit. The rupiah has depreciated in 2012 with relatively low volatility. Rupiah in point-to-point down 5.91% (yoy) during the year 2012 to a level of Rp9.638 per dollar. Downward pressure mainly occurs in the second and third quarter of 2012 related to the deterioration of global economic conditions, particularly in Europe, which contributed to the decline of foreign portfolio inflows into Indonesia. Inflation remains under control during the year 2012 at a low level and the inflation target in the range of 4.5% ± 1%. Stability of the financial system and banking intermediation function properly maintained.
Bank Indonesia policy will be directed to manage domestic demand in line with efforts to maintain external balance. Bank Indonesia will continue to strengthen the policy mix through five pillars policy. First, the interest rate policy will be pursued consistent with the forecasts of future inflation in order to maintain the target range. Second, the exchange rate policy will be directed to keep the movement amount in accordance with the fundamental conditions. Third, macroprudential policies aimed to maintain a stable financial system and support the maintenance of internal and external balance. Fourth, strengthening communication strategy policy to manage inflation expectations. Fifth, strengthening coordination of Bank Indonesia and the Government in supporting macroeconomic management, particularly in strengthening the economic structure, expand the sources of financing the economy, strengthening the supply side response, as well as consolidation Crisis Management Protocol (FMD).
4.
Understanding the role
of accounting in the
business and in the global
capital markets
In this era of globalization, the business world and
society has become increasingly complex so it requires the development of a
variety of disciplines including Accounting. Accounting plays an important role
in the economic and social effects of each financial decision should be based
on accounting information. This situation makes accounting as a profession that
is needed existence within the business organization. The business world
becomes increasingly fast and very varied. The areas that were not in the
business sector now imagined as a major sector. The development of the
accounting profession to rise noticeably after 1985, Bank interest rates are
high to encourage people looking for alternatives to meet its capital
requirements, competition among companies has increased with accompanied the
various problems faced by the company in Indonesia. In the face of all the
managers of the company was in dire need of accounting information in the
context of decision making. Accounting has developed very rapidly in line with
business growth and development of the securities business in particular shares
in the capital market. American Society already know the business since the
year 1900 (Belkaoui, 2007). In the transaction, both the investors and
prospective investors have used the company's financial information as one of
the guidelines in making predictions and to make business decisions, the
investment in securities, particularly stocks. These positive developments are
happening to the stock business in U.S. capital markets also showed that
companies will need to increase capital also in tune with the market
developments. This development also shows that capital markets play an
important role in the economy of the country, especially the United States in
that era. In addition, it also means that the need and role of accounting
information has become increasingly important.
Development
and international accounting classification
1.
Identify and explain the factors that influence the development of the accounting
world
Along with the growing awareness of the factors that
influence the development of accounting, there is also the fact that accounting
forms differ in different countries. Various forms of accounting course can be
classified based on the differences and similarities they have.
There
are two approaches to the classification of the accounting system are :
Deductive Approach
Deductive Approach
In
connection with this deductive approach, there are four approaches in the
development of accounting :
a.
Macroeconomic Pattern
In this approach can be seen that in
fact the accounting for business is closely linked to national economic policy.
The company's goal is usually to follow the national economic policy. Some
countries are using this approach is Swedish, French, and German.
b.
Microeconomic Pattern
In this approach is seen as a branch of
economics accounting business. The concept of accounting is derivation of
economic analysis. The main concept is how to maintain a capital investment in
a business entity.
c.
Independent Discipline Approach
Accounting is seen as a function
derived from the services and business practices. The United States and Britain
embraced this approach.
d.
Uniform Accounting Approach
Accounting is seen as an efficient tool
for the administration and control. In this case, the accounting is used to
facilitate the use and good uniformity measurement, disclosure and presentation
as well as a means of control for all types of businesses and consumers,
including the manager, government and tax authorities.
Classification is done G. G. Mueller, published in The International Journal of Accounting (Spring 1968), who used an assessment of economic development, the complexity of business, political and social situation of the legal system, dividing countries into 10 groups based accounting system are :
USA/Canada/Netherlands
British Commonwealth countries
Classification is done G. G. Mueller, published in The International Journal of Accounting (Spring 1968), who used an assessment of economic development, the complexity of business, political and social situation of the legal system, dividing countries into 10 groups based accounting system are :
USA/Canada/Netherlands
British Commonwealth countries
Germany/Japan
European mainland (not including West Germany, the Netherlands and Scandinavia)
Scandinavian
European mainland (not including West Germany, the Netherlands and Scandinavia)
Scandinavian
Israel/Mexico
South America
South America
Developing Countries
Africa (excluding South Africa)
Communist Countries
Inductive Approach
While Nair and Frank in The Accounting Review (July 1980) divides countries into large Group 5: (1) a model British Commonwealth, (2) model Latin America / South Europe, (3) model of Northern and Central Europe, (4 ) model of the United States and (5) Chile based on differences in the practice of disclosure and presentation. Nair and Frank also assess the relationship of grouping countries by a number of variables such as language, economic structure and trade. Apparently there is a difference between disclosure and measurement in each group State.
While Nobes in the Journal of Business Finance and Accounting (Spring 1983) identified factors that distinguish accounting system are :
Type of users of financial
statements are published.
Level of legal certainty.
Tax rules in the measurement.
Level of conservatism.
The level of rigor in the application
of historical cost.
Adjustment replacement cost.
Practice consolidation
The ability to obtain provisions.
Uniformity among companies in
implementing regulations.
INFLUENCES ON THE DEVELOPMENT OF THE WORLD
ACCOUNTING
Culture and historical roots of a State is the first step to identify the factors that influence accounting. Culture is an important element that should be considered to determine how a social system unchanged Karen "cultural influence, namely: (1) a system of norms and values and (2) the behavior of the group in interaction inside and outside the system."
Structural elements that affect business and cultural
Hofstede tried to examine the structural elements of the strong cultural influence behavior in the organizations and institutions. There are four dimensions identified are :
Culture and historical roots of a State is the first step to identify the factors that influence accounting. Culture is an important element that should be considered to determine how a social system unchanged Karen "cultural influence, namely: (1) a system of norms and values and (2) the behavior of the group in interaction inside and outside the system."
Structural elements that affect business and cultural
Hofstede tried to examine the structural elements of the strong cultural influence behavior in the organizations and institutions. There are four dimensions identified are :
Individualism vs. Collectivism
Individualism is the tendency of a
relatively independent social function and individual mean just take care of
themselves and their families. In contrast, collectivism is the tendency of
social functions are relatively strict in which individuals identify themselves
as a group with unquestionable loyalty. The main problem of this dimension is
the degree of interdependence of individuals in a society.
Small vs. Large Power Distance
Power Distance is the extent to which
members receive power in institutions and organizations is distributed
unequally. Society in Small Power Distance require equality of power and
justification for power. People in Large Power Distance receive command
hierarchy in which each person has a place without the need for further
justification. the problem dimension is how a society handles inequalities among
people if it happens.
Strong vs. Weak Uncertainly Avoidance
Uncertainly Avoidance is the degree to
which members of society feel uncomfortable with uncertainty and doubts. Strong
Uncertainly Avoidance trying to maintain a society that is so great faith, and
less tolerant of people or alternative ideas. In contrast to Weak Uncertainly
Avoidance. The main theme of this dimension is how a society react to the fact
that time only goes in one direction and the future is unknown, and whether to try
to control the future or let.
Masculine vs. Feminine
Masculine likely in a society that
provides the parameters to the family, Heroism and material successes. Instead,
feminism tends to personal relationships, tolerance and quality of life at the
flaws. The main theme of this dimension is how society provides social roles
related to gender issues.
2.
Knowing the developmental approach to market-oriented accounting
Four approaches to the development of accounting in Western
countries with market-oriented
economic system :
1.)
Based on the macroeconomic approach
Under
this approach, derived from accounting practices and
is designed to enhance national
macroeconomic objectives. For
example, the Swedish state.
2.)
Based on microeconomic approach
In this approach, accounting evolved from the principles of microeconomics.
An
example of the Netherlands.
3.)
Based on independent approaches
Under
this approach, derived from accounting and
business practices developed
on an ad hoc basis, with the base
slowly from consideration, trial 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 to control the
administration of the central government. An example is the French state
3.
Identifying the dominant state in
the practice of accounting
Some
countries are dominant on the development of accounting include :
(1)France
(2)Japan
(3)United States
(1)France
(2)Japan
(3)United States
In
the development of the French and Japanese are less dominant than the United
States. It can be seen from the development of the Japanese accounting
currently in development are based on existing IFRS.
4. Having
a
basic knowledge of accounting classification and can
compare
Basic Classification
of the International Accounting Classification
international accounting 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: With consideration and empirically.
International accounting classification can be done in two ways: With consideration and empirically.
5.
Explain the difference between fair
presentation and compliance with laws and where the dominant state
in its application
Differences
fair presentation and compliance with the law through many permasahan. It
involves adjustments made to the application of IFRS as the basis for
the presentation. Some of the problems include :
1.)
Depreciation, where the load is
determined by a decrease usability of an asset during times of economic benefits.
2.)
leases that have substance purchases of
fixed assets (property) treated as such (fair presentation) or are treated as
operating leases usual (legal compliance).
3.)
The pension costs are accrued at the
time generated by the employee (fair presentation) or charged according to the
basic pay at the time you stop working (legal compliance).
6.
Knowing the important issue of fair presentation and
compliance with laws
An important issue that occurs when it is about the application of IFRS sebagau basic presentation.
So the countries that have not made adjustments to pass fair presentation report.
accounting comparative
1.
Identifying terms of accounting standards
and standard setting
Standarts (IFRS).
Inetrnasional accounting standards are used as a result of: 1) international
treaty or political, 2) voluntary compliance, 3) the decision by the national
accounting standards making body.
The purpose of this
standard is to ensure that the company's internal financial statements for the
period - a period referred to in the annual financial statements, which were
made the first time oeh IFRS contains high-quality information that is transparent
for users and comparable throughout all periods presented, providing initial
titk adequate accounting based on IFRS and can be produced at a cost that does
not exceed the benefits to the users.
According to Prof.
Haim Falk explained there are four advantages to using international accounting
standards :
1.
With regard to rekonsiliasikepentingan
- the special interests of managers - managers who are responsible for
financial reporting and the needs of users of financial information
2.
Limited capacity of recipients of
financial information ntuk menginterplasikan such information in a timely
3.
The credibility of the whole process of
financial reporting and the accounting profession that supports
4.
The existence of the comparability of the
financial information disclosed is the argument relating to the points above
Internationalization
of accounting standards accounting obstacles caused in the social sciences that
can not be separated with the flexibility to be adapted so that relative.
According Fante identified three barriers stndarisasi international accounting
between countries - developed countries include :
1.
Different backgrounds and traditions
2.
Different needs of different economic
environment
3.
Standardization challenges to national
sovereignty
Forces
that tend to support the formulation of international accounting and reporting
standards include :
1.
Financial Analysis and brokers in the
capital market
2.
The tendency of large companies seeking
capital requirements from other countries
3.
The growing operation - multinational
business operations
4.
Agreement among countries that
encourage various forms of harmonization
5.
Increased road show executives to
various countries Infestor
6.
Survey
7.
global practice of professional accountants
to various State
8.
Policies of creditor organizations that
promote the use of international stndar
9.
Board - the regulatory body of the
capital
10. Books
– textbooks
2.
Understanding why
different accounting
practices prescribed
standards
Rapid
changes in our society has led to the increasing complexity of managing a
business entity or enterprise. In addition to an increase in business activity
of a company both profit and non profit motive motive perceived as a burden.
Therefore, for all of the business can run smoothly, a company needs information
about the state of all activities of the company are fast and reliable.
One of the most important information needed by the company and is the information about the financial condition and results of operations that have been achieved. The information presents a situation known as accounting.
To find more in-depth accounting should understand first
first definition or limitation of accounting.
One of the most important information needed by the company and is the information about the financial condition and results of operations that have been achieved. The information presents a situation known as accounting.
To find more in-depth accounting should understand first
first definition or limitation of accounting.
a.
AICPA (American
Institute of Certified Public Accountans) in 1941,
defined accounting as :
defined accounting as :
"The
art of record, classify and summarize transactions and events which are
financial in a certain way and in the form of units of money, and interpret the
results. " From this definition
there are three important aspects, namely :
a.)
Accounting is a
process, the process of recording, classifying and summarizing transaction
b.)
Accounting for
processing financial transactions in a way that has a specific pattern (not any
or disheveled) and using money as a unit of measure.
c.)
Accounting is not just
a process of recording, classifying and summarizing mere but includes also the interpretation of the results of these
processes.
Another definition stated by the Accounting
Principles Board (APB) in 1970 : "Accounting is a service activity. Its
function presents quantitative information about economic institutions, particularly for finance, which aims to
be useful ineconomic decision-making. "
Definition according to the American Accounting
Association in 1966, is as follows :"The process of identifying, measuring
and communicating economic information to obtained
judgments and decisions by users of the information concerned.
And the other is the definition according to George A. Mac Farland:
"Accounting is an art of recording, classification, presentation, and interpretation systematic review of the financial data company or individual. ", This definition can be drawn from the understanding that:
The procedures used in accounting is to record, classify,
presenting and interpreting. The goal of accounting is financial data or events that are financially. Procedure record, categorize, and present financial data should be compiled systematically, so it can be used to interpret and analyze the statements made.
And the other is the definition according to George A. Mac Farland:
"Accounting is an art of recording, classification, presentation, and interpretation systematic review of the financial data company or individual. ", This definition can be drawn from the understanding that:
The procedures used in accounting is to record, classify,
presenting and interpreting. The goal of accounting is financial data or events that are financially. Procedure record, categorize, and present financial data should be compiled systematically, so it can be used to interpret and analyze the statements made.
3.
Knowing the
state accounting
system in
developed countries
FRENCH
Accounting in France is strongly associated with the code so that it is possible to overlook the fact that the legislation of commercial law (Code de Commerce) and tax law actually determines many accounting and financial reporting practices 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 company's own financial statements with the 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.
Accounting in France is strongly associated with the code so that it is possible to overlook the fact that the legislation of commercial law (Code de Commerce) and tax law actually determines many accounting and financial reporting practices 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 company's own financial statements with the 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 the 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 Commisaires aux Comptes or CNCC (Association of National Compliance Auditor)
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 Commisaires aux Comptes or CNCC (Association of National Compliance Auditor)
The
French company reported a balance sheet, income statement, notes to the
financial statements, directors report and auditors' report. There are no
provisions regarding the statement of changes in financial position or cash
flows although CNCC recommend to make it. To give a picture of the actual and
reasonable (fidele image), the financial statements must be prepared in
accordance with the regulations (Régularité) and sympathetic (sincerite).
In the measurement of accounting, fixed assets depreciated by general tax provisions by a straight line or balance multiple. Inventories should be valued at the lower of cost or realizable value using FIFO or weighted average method. Research costs are not amortized over 5 years. Many risks and uncertainties may be reserved, such as those related to litigation, restructuring, and insurance organizations and this allows the emergence of a chance to do income smoothing.
GERMANY
The German state is one of the countries that dominate the development of the current International Accounting. The German state is one of the founders of the International Accounting Standards Committee or the International Accounting Standards Board (IASB) and has an important role in directing the IASB's agenda. The other countries are France, Japan, Britain, the Netherlands, and the United States.
In the measurement of accounting, fixed assets depreciated by general tax provisions by a straight line or balance multiple. Inventories should be valued at the lower of cost or realizable value using FIFO or weighted average method. Research costs are not amortized over 5 years. Many risks and uncertainties may be reserved, such as those related to litigation, restructuring, and insurance organizations and this allows the emergence of a chance to do income smoothing.
GERMANY
The German state is one of the countries that dominate the development of the current International Accounting. The German state is one of the founders of the International Accounting Standards Committee or the International Accounting Standards Board (IASB) and has an important role in directing the IASB's agenda. The other countries are France, Japan, Britain, the Netherlands, and the United States.
German
accounting environment changes continuously and the results are outstanding
since the end of World War I. Commercial law specifically requires the
bookkeeping principles are regularly and independently audit almost nothing
after the war. Corporate law in 1965 changed the reporting system keunagan
Germany with lead American English ideas but only for large companies. In the
early 1970s, the European Union began issuing harmonization directive, which
must be adopted by Member States into national law. EU directive fourth,
seventh, and eighth entirely into German law through Comprehensive Accounting
Act that entered into force on December 19, 1985. Two new laws enacted in 1998,
the first adding a new paragraph in the third book of German Commercial Law
allowing companies that issue shares / debt in an organized capital market to
use accounting principles accepted internationally in the consolidated
financial statements are made . Second, allow the establishment of private
sector organizations to establish accounting standards on the consolidated
financial statements. Tax law largely determines the commercial accounting. The
principle of determination (Massgeblichkeitsprinzip) determines that the
taxable income is determined by what is recorded in the financial records of
the company.
The law on control and transparency in 1998 introduced a requirement for the Ministry of Justice to recognize a private entity that establishes national standards to meet the following objectives :
The law on control and transparency in 1998 introduced a requirement for the Ministry of Justice to recognize a private entity that establishes national standards to meet the following objectives :
1.)
Develop recommendations on the application of
accounting standards in the consolidated financial statements
2.)
Provide
advice to the Ministry of Justice on the new accounting legislation
3.)
Representing Germany in
international organizations such as the IASB accounting
Accounting Act in 1985 specifically identify the provision of accounting, auditing, and financial reporting vary by company size, not the shape orgasisasi. Accounting Act 1985 specifically determine the content and form of financial statements that include a balance sheet, income statement, notes to the financial statements, management report and auditor's report.
Under commercial law (HGB), the method of purchase / acquisition is a major consolidation method, although pooling can also be applied in limited conditions. Two forms purchase method allowed is the book value method and the revaluation model. HGB does not regulate the translation of foreign currencies and companies in Germany using a number of methods. Translation differences are treated in several ways, as a result special attention should be paid to the financial statements notes in which the method of foreign currency translation had to be explained.
Accounting Act in 1985 specifically identify the provision of accounting, auditing, and financial reporting vary by company size, not the shape orgasisasi. Accounting Act 1985 specifically determine the content and form of financial statements that include a balance sheet, income statement, notes to the financial statements, management report and auditor's report.
Under commercial law (HGB), the method of purchase / acquisition is a major consolidation method, although pooling can also be applied in limited conditions. Two forms purchase method allowed is the book value method and the revaluation model. HGB does not regulate the translation of foreign currencies and companies in Germany using a number of methods. Translation differences are treated in several ways, as a result special attention should be paid to the financial statements notes in which the method of foreign currency translation had to be explained.
JAPAN
Accounting and financial reporting in Japan reflects the combined influence of various domestic and international. To understand accounting in Japan, one must understand the culture, business practices, and history of Japan. Japan is a traditional society with cultural and religious roots strong. Japanese companies have each equity share with each other, and often jointly own other companies. Investment interlocking produces a gigantic industrial conglomerate known as the keiretsu. Venture capital Keiretsu is in line with the changes in the Japanese structural reforms to overcome economic stagnation that began in the 1990s.
Accounting and financial reporting in Japan reflects the combined influence of various domestic and international. To understand accounting in Japan, one must understand the culture, business practices, and history of Japan. Japan is a traditional society with cultural and religious roots strong. Japanese companies have each equity share with each other, and often jointly own other companies. Investment interlocking produces a gigantic industrial conglomerate known as the keiretsu. Venture capital Keiretsu is in line with the changes in the Japanese structural reforms to overcome 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 commercial law,
capital markets law, tax law and corporate income. Commercial law is governed
by the Ministry of Justice (MOJ). The law is at the core of the accounting
regulations in Japan and most have a large influence. Public-owned company must
further comply with the Laws of capital markets (Securities and Exchange
Law-SEL) administered by the Ministry of Finance. SEL main aim is to provide
information in making investment decisions.
The
company established under commercial law required to menyususn reports required
to be approved by the annual meeting of shareholders that contains a balance
sheet, income statement, statement of business, a proposal for the use
(appropriation) retained earnings, supporting schedules. The company listed its
shares also must prepare financial statements in accordance with the laws of
capital markets generally require basic financial statements are the same as
the commercial law ditamabha the cash flow statement. Commercial law requiring large firms to prepare consolidated
financial statements. Subsidiaries are consolidated when the parent company
directly or indirectly control the financial and operating policies. Goodwill
is measured on the basis of fair value of net assets acquired and is amortized
over a maximum of 20 years. Inventories can be valued at cost whichever is
lower of cost or market price, but the cost of the most widely used. Accounting Regulation and Enforcement Rules
The national government has the most influence on accounting signifikann in Japan. Accounting regulation is based on three laws: Commercial Law, Capital Market Law and Income Tax Law Company. The three laws are connected and related to each other. Japanese researchers Someone called the situation a "triangle Legal System". Commercial Law organized by the Ministry of Justice (MOJ). The law is at the core of the accounting regulations in Japan and most have a large influence. The whole company incorporated under Commercial Law is required to meet the accounting provisions, contained in the "rules concerning the balance sheet, income statement, statement of business, and supporting schedules with limited liability corporation. Public-owned company must further comply with the Capital Market Law (Securities and Exchange Law - SEL) administered by the Ministry of Finance. SEL is based on Act - U.S. Capital Market Law and imposed on Japan by the United States during the U.S. occupation after World War II. SEL main aim is to provide information in making investment decisions. Business Accounting Advisory Council (Business Accounting Deliberation Council - BADC) is the agency's special advisor for the Ministry of Finance is responsible for developing accounting standards in accordance with the SEL. BADC appointed by the Ministry of Finance and working part-time. They come from academia, government, business circles as well as members of the Institute of Certified Public Accountants in Japan (Japan Institute Of Certified Accountants - JICPA). (BADC members have accounting backgrounds, different legal background for individuals who work in the problem - the problem of Commercial Law at the Ministry of Justice). BADC supported by a research organization known as the Institute for Financial Research (Corporate Finance Research Institute).
JICPA is a professional organization of CPAs in Japan. The entire CPA must be a member JICPA. In addition to providing guidance in the implementation of an audit, JICPA published implementation guidance in matters of accounting, and consulting with BADC in developing accounting standards. Auditing standards generally accepted (like those in the United States), more than the BADC distributed by JICPA.
The national government has the most influence on accounting signifikann in Japan. Accounting regulation is based on three laws: Commercial Law, Capital Market Law and Income Tax Law Company. The three laws are connected and related to each other. Japanese researchers Someone called the situation a "triangle Legal System". Commercial Law organized by the Ministry of Justice (MOJ). The law is at the core of the accounting regulations in Japan and most have a large influence. The whole company incorporated under Commercial Law is required to meet the accounting provisions, contained in the "rules concerning the balance sheet, income statement, statement of business, and supporting schedules with limited liability corporation. Public-owned company must further comply with the Capital Market Law (Securities and Exchange Law - SEL) administered by the Ministry of Finance. SEL is based on Act - U.S. Capital Market Law and imposed on Japan by the United States during the U.S. occupation after World War II. SEL main aim is to provide information in making investment decisions. Business Accounting Advisory Council (Business Accounting Deliberation Council - BADC) is the agency's special advisor for the Ministry of Finance is responsible for developing accounting standards in accordance with the SEL. BADC appointed by the Ministry of Finance and working part-time. They come from academia, government, business circles as well as members of the Institute of Certified Public Accountants in Japan (Japan Institute Of Certified Accountants - JICPA). (BADC members have accounting backgrounds, different legal background for individuals who work in the problem - the problem of Commercial Law at the Ministry of Justice). BADC supported by a research organization known as the Institute for Financial Research (Corporate Finance Research Institute).
JICPA is a professional organization of CPAs in Japan. The entire CPA must be a member JICPA. In addition to providing guidance in the implementation of an audit, JICPA published implementation guidance in matters of accounting, and consulting with BADC in developing accounting standards. Auditing standards generally accepted (like those in the United States), more than the BADC distributed by JICPA.
4.
Being able to
identify similarities
and differences
in accounting
systems in
developed countries
Rules and accounting
systems in the country - these countries have differences as well as
similarities system, where in each standard that is used by the country's own
shortcomings and advantages of each - each in the application of the accounting
system in the country. Accounting standards and rules established in a
particular country is certainly not entirely the same as other countries. The
role of the accounting profession in setting standards and accounting rules
were more common in those countries wherewith include professional rules in the
rules of the company, as in England and the United States.
Christopher Nobes and Robert Parker (1995:11) explains the seven factors that cause significant differences in the development of international accounting systems and practices. These factors include the
Christopher Nobes and Robert Parker (1995:11) explains the seven factors that cause significant differences in the development of international accounting systems and practices. These factors include the
1.
The legal system Regulation of the
company, including in this case the accounting systems and procedures, much
influenced by the legal system in a country. Some countries such as France,
Italy, Germany, Spain, the Netherlands adheres to the legal system which
classified the codified Roman law. In the codified law, the rules associated
with the basic idea of morality and justice, which tends to be
a doctrine. Meanwhile, countries such as Britain, the United States and
Commonwealth countries English common law. In common law, tested the existence
of an answer to specific cases and did not make a general formulation.
2.
Owner funding By source of funding, the
company can be grouped into two. The first group is a company that gets most of
the funds of the shareholders in the capital market (shareholder). The second
group is a company that gets most of the funds from the bank, or a state family
funds. Generally, in countries with a majority of companies are owned by shareholders
but the shareholders did not have access to internal information, more demands
for disclosure (disclosure), examinations (audits) and get an unbiased (fair
information).
3.
Effect of tax system The extent to
which the tax system can affect the accounting system is to look at the extent
to which tax regulations specify accounting measures (accounting measurement).
In Germany, according to tax accounting should be the same as the commercial
bookkeeping. While in many other countries such as Britain, the United States
and also includes Indonesia, there are rules - rules that differ between
taxation and commercial companies. The most obvious example of this is
depreciation.
4.
Stability of the accounting profession Bodies
apparently formed as a place of different professions in each country, and the
results in the form of rules or standards are influenced by the shape,
authorities and members of such bodies. In some countries it was found that the
separation of the accounting profession, as a tax expert or just as a corporate
accountant. Members of the governing bodies of accounting standards may consist
only of the public accountant or involving parties from the business community,
industry, governments and educators. The level of education and experience in
the practical world as a requirement for someone to be a member of the agency
will also determine the quality of accounting standards and rules as the output
produced.
5.
Inflation
Inflation obscure historical cost accounting through excessive reduction of the values of assets and related expenses, while on the other hand to increase over the revenues. The countries in the high inflation often require businesses to price changes in their financial calculations. Mexico and some South American countries using a common level accounting for nominally experience with hyperinflation. In the late 1970s, with respect to the inflation rate yangtidak usually high, the U.S. and the UK to experiment with reporting the effect of price changes.
Inflation obscure historical cost accounting through excessive reduction of the values of assets and related expenses, while on the other hand to increase over the revenues. The countries in the high inflation often require businesses to price changes in their financial calculations. Mexico and some South American countries using a common level accounting for nominally experience with hyperinflation. In the late 1970s, with respect to the inflation rate yangtidak usually high, the U.S. and the UK to experiment with reporting the effect of price changes.
6.
Accounting theory
Accounting theory greatly affect
accounting practices, as was the case in the Netherlands. In this country
accounting theorists say that users of financial statements will get a fair
assessment of the performance of a company if the accountants are allowed to
use judgment to select and display specific figures. In this case suggested the
use of replacement cost information. One example of the effect of accounting
theory to the practice of accounting is the formulation of conceptual
framework.
7.
Accidents of historySistem and
accounting practices can not be separated from the political and economic
conditions in the country concerned. Certain events usually give immediate
effect to the application of certain methods. The economic crisis in the United
States at the end of the 1920s gave rise to the accounting standards require
the disclosure (disclosure) financial data. For Indonesia, the exchange rate
crisis in mid-1997 led to the emergence of a statement or interpretation
relating to the use of foreign currency in financial reporting and treatment of
foreign exchange differences. Colonization also led the country occupied by
themselves following the state accounting system and practices are occupying.
Accounting standards can not be separated from the influence of the environment
and conditions of legal, social and economic development of a particular
country. These things lead to an accounting standard in a country different
from that in other countries. Globalization appears among other inter-State
trade and the emergence of multinational corporations has resulted in the need
for an accounting standard widely around the world.
Referens :
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