INTERNATIONAL ACCOUNTING

 NAMA : ABDUL AZIS SYAM

KELAS : 4EB 11

NPM 20208003

CHAPTER 1

A. DEFINITION OF INTERNATIONAL ACCOUNTING
International accounting is the international aspects of accounting, including such things as the principles and practice of accounting in various countries and their classification; pattern of accounting development; international and regional harmonization, exchange rate, foreign exchange risk: an international comparison of accounting and inflation accounting consolidation; accounting in developing countries; accounting in communist countries; evaluation of the performance of foreign subsidiaries.
The concept of universal or world of accounting is the most wide-ranging. This concept is directed at the formulation internasioanal study a set of accounting and accounting principles are universally accepted. The goal is to obtain a complete standardization of international accounting principles. In the framework of this concept, the international accounting system is considered as a universal that can be applied in all countries. A set of accounting principles generally accepted (Generally Accepted Accounting Principles-GAAP) accepted throughout the world, as happened in the United States, will be established. Practices and principles developed will be applied throughout the country. This concept will be the ultimate goal of the international system.
The emergence of a new paradigm in international accounting framework and to extend the idea to incorporate new ideas of international accounting. As a result, appears to be a very long list of concepts and theories created by accounting for Amenkhienan include:
A. Universal theory or world
2. The theory of multinational
3. The theory of comparative
4. Theory of international transactions
5. translation theory

B. INTERNATIONAL ACCOUNTING ACCOUNTING DIFFERENCES WITH OTHER
 Along with business and financial markets have a lot to internationalization, as well as differences in international accounting becomes more important from the standpoint of international financial statement analysis. International accounting differences brings a host of problems from the standpoint of financial analysis.
A. First, in an effort to assess foreign companies, there is a tendency to look at revenues and other financial data from the standpoint of their home country, and because the danger of ignoring the effects of accounting differences. Unless significant difference was taken into account, possibly with some involvement of the restatement, may have very serious consequences.
2. Secondly, awareness of international differences indicate the need to become familiar with generally accepted accounting principles as objectives of foreign countries to find a better income data in the context of measurement.
3. Third, the issue of harmonization of accounting and comparable properties are reviewed in the context of alternative investment opportunities.
Differences arising from:

a. growth
b. economy
c. inflation,
d. political
e. system,
f. education,
g. accounting profession,
h. tax law,
i. money market, and
j. capital.

C. HISTORY OF ACCOUNTING
Accounting records of the earliest discovered among the ruins of ancient Babylon, Assyria and Sumer, which dates back over 7,000 years. Society at that rely on primitive methods of accounting to record the growth of crops and livestock. Because there is a natural season for farming and herding, it is easy to calculate and determine if the surplus has been obtained after the crop has been harvested or weaned young animals. Accounting token is made of clay, from Susa, Uruk period, around 3500 BC. Department of Oriental Antiquities, Louvre. The discovery of a form of bookkeeping used clay tokens represented a big cognitive leap for mankind. Globular mark the envelope with a bunch of accounting token. Clay, Susa, Uruk period (4000-3100 BC). Department of Oriental Antiquities, Louvre. Economic tablet with numerical signs. Proto-Elamite script on clay, Susa, Uruk period (3200 BC to 2700 BC). Department of Oriental Antiquities, Louvre.
Accounting in the Roman Empire
Part of the Res Gestae Divi Augusti of Ancyranum Monumentum (Temple of Augustus and Roma) in Ankara, was built between 25 BC - 20 BC. The Res Gestae Divi Augusti (Latin: "The deed of the Divine Augustus") is a remarkable account of the stewardship of the Romans Emperor Augustus. It is registered and counted in public spending, which includes distribution to the public, grant of land or money for veteran soldiers, subsidies to aerarium (treasury), built temples, religious offerings, and spending at the theater and gladiatorial games. That's not an explanation of state revenue and expenditure, but is designed to show mercy Augustus. The significance of the Res Gestae Divi Augusti from an accounting perspective lies in the fact that it illustrates that the executive authority has access to detailed financial information, covering a period of forty years, is still retrievable after the event. The scope of the accounting information at the disposal of the emperor showed that its purpose includes the planning and decision making. The Roman historian Suetonius and Cassius Dio records that in 23 BC, Augustus set up rationarium (accounts) listed public revenue, the amount of cash in aerarium (treasury), in the province fisci (tax officers), and in the hands of the publicani (general contractor), and that it includes the names of freedmen and slaves from whom the full report can be obtained. The closeness of this information to the executive authority of the emperor is evidenced by the statement of Tacitus, "written by Augustus himself. Writing tablet from Vindolanda Roman fort Roman Hadrian's Wall, in Northumberland (1st-2nd century) asks for money to buy the 5000 cereal size used for brewing beer. Department of Prehistory and Europe, British Museum. Records of cash, commodities, and transactions are stored carefully by military personnel of the Roman army. Petty cash account in the amount received for several days in Vindolanda fort around the year 110 CE indicates that the fort can calculate cash income every day, probably from the sale of surplus materials or manufactured goods in the camp, the items were distributed to slaves as cervesa (beer) and clavi caligares (spikes for shoes), as well as commodities purchased by individual soldiers. Fort to meet basic needs with a mix of direct, purchase of production and demand, in a letter, the demand for money to buy a 5000 modii (action) of the braces (cereals used in brewing) show that the castle buy provisions for a large number of people.
Heroninos archive is the name given to a large collection of papyrus documents, mostly letters, but also includes quite a lot of accounts, which comes from Roman Egypt in the 3rd century AD. Most of the documents relating to the course of a large private estates [14] is named Heroninos because he phrontistes (Koine Greek: Manager) from plantations that have complex systems and accounting standarised followed by all the local farm managers [15]. Every administrator in each sub division of the inheritance bit set his own account, for the daily running of the estate, payment of labor, plant production, product sales, the use of animals, and public expenditure on staff. This information is then summarized as a piece of papyrus scroll to one of the annual account for each particular sub-division of the estate. Entries arranged by sector, with cash costs and benefits are extrapolated from all different sectors. Such an account gives the owner the opportunity to take a better economic decision because the information was deliberately chosen and arranged. Simple accounting is mentioned in the Christian Bible (New Testament) in the Book of Matthew, the Parable of the Talents.
Especially since World War II, many countries have developed national systems to regulate the form and content of company accounts. In some countries, this responsibility has been given to the government and has been regulated in certain legal actions, usually under the company law. An example here is komtabel Plan (General Accounting) system is very detailed codification in France and several other European countries countries.In, these responsibilities have been discharged in whole or in part by the representatives of the professional accounting bodies acting either on their own authority or with the support of the most common laws to regulate "good practice" accounting standards.
In countries where a significant market for long-term capital has grown, additional influence on accounting norms derived from the "list of agreements" made by companies seeking to trade rights in the stock market. In certain positions of rule-based regime is found in the United States. It is operated jointly by the U.S. Securities & Exchange Commission (SEC) for more than 12,000 companies listed on U.S. stock market and by the Financial Accounting Standards Board (FASB), a non-statutory independent institution that provides for the SEC job setting accounting standards for companies in general. Approximately 140 Statement of Financial Accounting Standards is an important part of the U.S. General Accounting Principles (U.S. GAAP). SEC requires that foreigners (including Europe) the applicant either to prepare a report U.S. GAAP or reconcile them directly with the SEC the information required in Form 2. The emergence of multinational corporations and large increase in international capital movements over the past decade and has been aligned, on the world stage, with the creation of international organizations involved in various ways with the standards of commercial behavior.
One is the International Accounting Standards Committee (IASC) was formed in 1973 by the accounting bodies from nine countries and with the membership, in 2000, accounting bodies from more than 100 countries. IASC to produce about 40 International Accounting Standards (IAS) and some 20 "Standard Interpretation" to assist in accordance with IAS. This body of standards has been very influential on the consolidated financial statements, and the original standard on the consolidated financial statements (IAS 3) to contribute to the formulation of the EU Seventh Accounting Instructions (see below). Legislation passed in 1998 in Belgium, France, Germany and Italy to facilitate the use of IAS for listed companies report and economically significant, but a small number of volunteer companies also use IAS.
Also relevant in this context is the International Organization of Securities Commissions (IOSCO), which was founded in 1983 as a committee of government agencies (such as the SEC) by setting the power of the stock market. However, only one organization at the national level has made the subject of legal accounting norms, the European Union.

D. FINANCIAL SECTOR DEVELOPMENT POLICIES
Do not feel we have entered in 2011. Government is optimistic the economy will be better next year. Of course, the measure used is the estimated economic growth of 6.4%, continuing the achievement of 2010. In addition, according to President Yudhoyono in his speech in East Java, Indonesia's economic growth ranked third in the G-20 after China and India. When using indicators of economic growth, the claim is false.
Economic growth until the third quarter of 2010 reached 5.9% higher than this year's target of 5.8%. In addition, the financial indicators in 2010 has set a new record for the Indonesia Stock Exchange recorded an increase of composite stock price index (CSPI), the highest in the world in early 2575, through 3600 in December this year.
Other financial indicators, such as foreign exchange reserves and the strengthening of the rupiah also show a remarkable increase of only about U.S. $ 51 billion to over U.S. $ 90 billion at the end of 2010. Wave of hot money has inflated reserves and encourage the strengthening of the rupiah by 19%, the highest among Asian countries. "Need a change in budget politics that is not just a collection of state budget funds allocated to stimulate economic growth. However, also as a political tool to maintain the level of social welfare by making changes in priorities.
It is surprising that for Indonesia 2010 will take a different policy direction to the trend of financial policies in the countries of the world. Rupiah strengthened it rated as a strength. CSPI considered performance rebound, but there are threats of financial bubbles. Trends in the financial sector is not integrated with strategy and policy on trade and industry sectors. By doing so, consideration is not clear why the exchange should be strengthened or weakened.
E. THE ROLE OF BUSINESS AND ACCOUNTING IN GLOBAL CAPITAL MARKETS
In the era of globalization, businesses and communities have become increasingly complex and require the development of a variety of disciplines including Accounting. Accounting plays an important role in the economic and social development as a financial decision should be based on accounting information. This makes accounting as a profession which required the existence of the business organization.
Business world faster and faster and very varied. Areas which are not of the mind as the business sector is now the primary sector. The development of the accounting profession to rise even more after 1985, Bebarengan with the JSE. High interest rates encourage people to seek alternatives to meet capital requirements, increasing competition between companies must be accompanied by various problems faced by companies in Indonesia. In the face of all the managers of the company in dire need of accounting information in decision-making framework.
Accounting has been developing very rapidly in line with business growth and development of securities, especially shares in the capital markets business. The American public already knows the business since 1900 (Belkaoui, 2007). In the transaction, both investors and potential investors have been using the company's financial information as one of the guidelines in making predictions and to make business decisions, investments in securities, particularly stocks. Positive developments that occurred in the stock business in the U.S. capital markets also showed that companies will need capital also increased in line with market developments. This development also shows that capital markets play an important role in the economy of a country, especially the United States at the time. Moreover, it also means that the needs and role of accounting information becomes increasingly important.
Indonesia's economic crisis caused by the economic crisis of 1997 mementalkan John Naisbitt predicted that Indonesia would be one of the Asian tiger. In 2000, three years after the crisis, when other countries are also affected by the crisis such as Thailand, South Korea, the Philippines and Malaysia have gained a significant improvement of the economy, Indonesia's economy (GDP) grew only 0.2%. (Asian Recovery Information Center - ADB: May 2000) Tanri Abeng (1999) in Djalil (2000), states that there are six basis of the root problems that cause slow economic recovery in Indonesia, namely:
A. It turned out that the rapid growth of Indonesia before the crisis because it encouraged more investment growth is not due to efficiency and innovation.
2. The majority of the market value of companies listed on the JSE was overvalued (90% of the value of public companies is determined by expectations of growth, only 10% above the real ability to make a profit, unlike developed countries, 30% growth expectations, 70% of the apparent ability ).
3. The Company's financial structure is not healthy (loans over 100% compared to equity, healthy companies should be under 50% of ekuitinya)
4. The existence of the mark-up in lending.
5. Unhealthy concentration of the economy (the economic pyramid, above: there are 200 private conglomerate owned by 50 families, is: almost empty.
6. There is no good governance (the lowest according to McKinsey 1999).
On the other hand, Indonesia faced economic challenges of the 21st century that economic globalization. Economic globalization is a process of economic activity and trade, where countries around the world into one market power is increasingly integrated with the boundaries of the country without hindrance.

CHAPTER 2

A. DEVELOPMENT AND INTERNATIONAL ACCOUNTING CLASSIFICATION
Development of accounting practices, there are many differences in the number of privatized industries, the level of industrialization, the level of inflation, and economic growth rates that approach developed by Mueller differently to the development of accounting can be observed in western countries which have a market-oriented economic system include:
• Macroeconomic Patterns
Accounting-oriented macroeconomic formal finance to recognize the value of the discovery of mineral deposits or oil, calculate depreciation on productive equipment based on units of production, and allows the elimination of certain expenses quickly if it is of interest to regional or national economic development.
• Pattern of Micro Economics
Market-oriented economy, including the economy is not so much have the administrative center of government intervention, largely entrusted to the economic welfare of the individual activities of individuals and businesses of each company. Consider accounting as a business service functions to provide enough space to conclude that accounting can build a useful framework to be filtered out of the business process it serves.
• Independent Discipline
International accounting classification can be done in two ways: With consideration and empirically. Classification with consideration relies on intuition, knowledge and experience. Classification empirically using statistical methods to collect data that accounting principles and practices worldwide.
Factors that influence the development of international accounting are:
A. Sources of Funding
In countries with strong equity markets, accounting has focused on how well management runs the company (profitability), and is designed to help investors analyze the future cash flows and related risks. In contrast, credit-based system in which the bank is the main source of funding, accounting has focused on the protection of creditors through conservative accounting measurements.
2. Legal System
The western world has two basic orientations: the legal code (civil) and common law (case). In code law countries, law is a complete group that includes the provision of accounting rules and procedures that are incorporated in national law and tend to be very complete.
3. Taxation
In most countries, tax rules effectively set the standard because the company should record revenue and expenses in their accounts to claim it for tax purposes. When separate financial accounting and tax, tax regulations sometimes require the application of certain accounting principles.
4. Inflation
Inflation causes the distortion of historical cost accounting and affect the propensity (tendency) of a country to apply the changes to the company account.
5. Political and economic relations
Political factors affecting economic development and international accounting because of government policy and the current economic situation in a country that can make it difficult for developing accounting.
6. Level of economic development
These factors influence the types of business transactions conducted in the economy and determine what is most important.
7. Culture
Four dimensions of national culture, according to Hofstede: individualism, power distance, uncertainty avoidance, masculinity.
8. Level of Education
Standard practice is very complex accounting would not be useful if misunderstood and misused. Disclosures about the risks of derivative securities will not be informative unless read by the authorities.
B. ACCOUNTING APPROACH IN ECONOMIC DEVELOPMENT ORIENTED MARKET
Four approaches to the development of accounting in Western countries with market-oriented economic system:
A. Based on macro-economic approach
In this approach, which is obtained from the accounting practices and are designed to improve the national macroeconomic objectives. Examples from Sweden.
2. Based on micro-economic approach
In this approach, accounting developed from microeconomic principles. Examples from the Netherlands.
3. Based on an independent approach
In this approach, derived from accounting and business practices that are developed on an ad hoc, based on considerations slowly, to try. For example, Britain and the United States.
4. Based on a uniform approach
In this approach, accounting standards and is used as a tool for administrative control by the central government. An example is the French state.
C. STATE DOMINANT IN ACCOUNTING PRACTICE DEVELOPMENT
Some countries are dominant in the development of accounting include:
A. France
2. Japan
3. 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.
D. ACCOUNTING CLASSIFICATION OF KNOWLEDGE
Classification of the International Accounting basis of international accounting classification can be done in two ways, namely:
A. Deductive approach
Which identifies the relevant environmental factors and correlates with the national accounting practices, an international group or pattern of the proposed development.
2. Inductive Approach
Accounting practices were analyzed individually, the pattern of development or grouping identified and at the end of this description is made from the standpoint of economic factors, social, political and other.
International accounting classification can be done in two ways:
With consideration and empirically.
Accounting Code of Public Laws. Accounting can also be classified in accordance with the legal system of a country.
A. Accounting in common law countries have oriented characteristics of
"Fair presentation", transparency and full disclosure as well as the separation between financial and tax accounting. Accounting for common law is often referred to as the "Anglo Saxon". Accounting from the UK and then exported to various countries such as Australia, Canada, Hong Kong, India, Malaysia, Pakistan and the United States.
2. Accounting in code law countries have a legalistic-oriented characteristics, does not allow disclosure of the amount is less, and conformity between financial and tax accounting. Accounting code of law is often referred to as the "continent", and is mostly found in Continental European countries and their former colonies in Africa, Asia and America.

E. REASONABLE AND COMPLIANCE WITH DIFFERENT PRESENTATION OF THE DOMINANT Constitution
Differences in the presentation reasonably and in accordance with the law through permasahan much. It involves an adjustment to the application of IFRS as the basis for the presentation. Some problems include:
A. Depreciation, where the load is determined based on the decrease in the usefulness of an asset during times of economic benefits.
2. A rent which is substantially the purchase of fixed assets (property) treated as such (fair presentation) or are treated as operating leases are common (legal compliance).
3. Pension costs accrued at the time generated by the employee (fair presentation) paid or charged on the basis of the time you stop working (legal compliance).

F. REASONABLE DIFFERENCES IN PRESENTATION AND COMPLIANCE WITH THE LAW
Important problem that occurs when it is on the application of IFRS as the basis for the presentation. So that the countries that have not made reasonable adjustments to the presentation of the report. Many law firms originating from countries such as corporate codes of Germany and Switzerland, now using IFRS in the consolidated financial statements. Some Japanese companies using U.S. GAAP in the consolidated financial statements have been prepared. After 2005, all shares of European companies that will record the fair presentation of accounting used in the report because they will be using IFRS.

CHAPTER 3

A. STANDARD TERMS AND DETERMINATION OF ACCOUNTING STANDARDS
Accounting standard setting involve a combination of private sector group that includes the accounting profession, users and compilers of financial statements, which include employee and community agencies such as the tax authorities, ministries in charge of commercial law and capital market commission. Stock exchanges are private or public sector (depending on the state) also affects the process. In common law countries, the private sector is more influential and auditing profession tends to regulate itself and to better be able to prove the consideration of the fairness of the financial statement presentation. In code law countries, public sector and influence on the accounting profession tend to be regulated by the State. This is why the different accounting standards around the world.
Accounting standards can be used as guidance in the preparation of financial statements is appropriate and has a charm that can provide valuable information for the parties concerned. Accounting standards are the basis or guide for them to practice or activities in order of accounting, financial reporting more useful. This is made clear by the Indonesia Institute of Accountancy in Financial Accounting Standards (IFRS) as the main guideline for the preparation and presentation of financial statements for companies, pension funds and other economic units is very important, so that the financial statements more useful, understandable and comparable, and not misleading.
In determining the standard there are two approaches, namely:
A. Representatives of loyalty, this approach requires the reporting is neutral and fair presentation of financial statements through the process of setting standards. Accounting approach to equate with the mapping process which maps should be accurate to describe the company's financial condition is fair.
2. Economic consequences, this approach requires standard asoption have favorable economic consequences. This approach tends to lead to the determination of standards has a positive influence.

Some of the history of international accounting standard setting
A. In 1973 formed the International Accounting Standards Committee (International Accounting Standards IASC Comunite =)
2. In 1977 the Organization of Economic Cooperation and Development (Organization for Economic Corporation and development = OECD) issued a declaration on multinational investment company that contains the
3. In 1977 the International Federation of Accountants (IFAC International Federation of Accountants =) was established in the same pre experts appointed by the UN economic and social council mangeluarkan report consists of four parts of the international standards of accounting and reporting for international companies
4. The European Commission issued a directive four people as a first step towards Europe accounting harmonisai
5. Years of capital markets 1987Organisasi Interantional Committee (IOSCO) said in its annual conference to encourage the use of common standards in accounting and auditing practices
6. IASC and IOSCO approved the settlement plan which then issued IAS kerj groups that formed the core of a comprehensive standard
7. In 1996, U.S. Capital Markets Commission (SEC) announced that they "support the objectives of the IASC to develop as quickly as possible, accounting stadar can be used to feed the financial statements that can be used in cross-border securities offerings.
8. IASB replaced the IASC in 2001 and took charge on 1 April 2001. IASB standards are called international financial reporting standards (IFRS) and include the IASC issued IAS.
9. In 2002 the European Parliament approved the European Commission's proposal that clearly listed EU companies must mengikutistandar IASB shares later - in 2005 compared to consolidated financial statements.
B. DETERMINATION OF ACCOUNTING STANDARDS

Setting standards is that standara choice may favor certain social and harm others. Most of the accounting problems associated with politically sensitive because of:
A. The need for accounting standards arise when there is disagreement
2. Accounting information can affect the level of welfare use.

In determining the standard there are two approaches, namely:
a. A loyalty. representative, this approach requires the reporting is neutral and fair presentation of financial statements through the process of setting standards. Accounting approach to equate with the mapping process which maps should be accurate to describe the company's financial condition is fair.
b. Economic consequences, this approach requires standard asopsi have favorable economic consequences. This approach tends to lead to the determination of the influence of a positive standard meemiliki.
Arguments supporting accounting standards The parties will use the theory of regulation to the public interest (Public Interest Theory) and the interest group theory (Theory of Interest Group) desire to succeed because in essence, both market failure and the need to achieve social objectives of regulation to force accounting (Scott , 2000).
Public interest theory states that the regulation was due to public demand and appears as a correction of market failures. Market failure occurs because the allocation information is not optimal and this can be caused by (1) reluctance of companies to disclose information, (2) misuse of information, and (3) the presentation of accounting information is incorrect. In this theory, also called the central authority and the regulator is assumed that people have the greatest importance on accounting information. Regulators try to make arrangements with the best as it will maximize social welfare. In practice the theory of general interest appeared to have a problem with that theory is said to have implementation problems because it is difficult to determine how much regulation is appropriate.
Determination of the number of rules is something that is difficult for information such as commodities. More difficult problem lies in the motivation of the regulator itself. It must be realized that it is very difficult to monitor the operation of regulators and the public power to force the regulator to operate in the public interest is weak. Weaknesses will also increase the likelihood that the agency will operate for private gain and not for public use.
The theory of interest groups hold the view that an industry operates because there are a number of interest groups. Political or legislative authority may also be classified as an interest group that has the power to supply power to maintain regulation. Therefore, this theory has the view that regulation is a commodity where there is supply and demand. Commodities will be allocated to constituencies with political and legislative convince effective legal assistance for him.
The opponents of the argument that accounting standards do not want to argue with the regulatory agency theory (agency theory) stating that management has an incentive to report reliably and voluntarily presented to the owners (shareholders) solely to resolve the conflict between owners and management. Financial reports used to monitor the employment relationship (sexual intercourse) and to assess and determine the compensation to be paid to the manager (Belkaoui, 2007).
In addition to using agency theory, the regulations also do not want a free market approach. According to this approach is the product of accounting information that is economical, as well as other goods or services. Accounting information is also subject to the power needs of users and are provided by the renderer. The result is the optimal amount of disclosure of information on the optimal price level as well. When the necessary information and a price offered for it, then the market will provide information for the asking price exceeds the cost of such information.
Approach to setting accounting standards in the private sector
A. Basic assumption that the public interest served by the setting of accounting standards is good if left to the private sector.
2. Proponents of this approach using the argument:
FASB looks responsive to constituents of the various
FASB seems able to attract, as a member or staff, people who have the technical knowledge necessary to develop and implement alternative measurement and disclosure system.
FASB seem to be successful in obtaining feedback from various constituencies and in response to a number of inputs.
Opponents of this approach using the argument:
FASB does not have the legal authority and power to impose rules that make, as well as the challenges faced rejection by Congress or by other government agencies
FASB constituents are often accused of being independent and large public accounting firms, and firms
FASB is often accused of slow in responding to major issues.
C. DIFFERENCES IN PRACTICE WITH ACCOUNTING STANDARDS SET

Harmonization and International Accounting Convergence
In the presence of known financial accounting standards to be followed in making the financial statements. This standard is needed because many users of financial statements, even for the same financial statements. If there is no standard, companies can present their financial statements in accordance with the will of their own. It will be a problem for users because it will make it difficult for them to understand the existing financial statements.
Existing standards for financial accounting standards made by the board in every state. Council is to establish standards of accounting standards applicable in the country and used by entities that exist in this country. Because the accounting standards prepared and compiled by each council in every state standards, accounting standards from country to country may differ greatly.
Currently, when the business world can be said almost without limit state, the production of resources (eg money) are owned by the investor in a particular country can be moved easily and quickly into the country through mechanisms such as the stock market. Of course there will be a problem when the accounting standards used in different countries with the accounting standards used in other countries. Investors and potential investors and creditors and potential creditors will have great difficulty in understanding the financial statements are presented with different standards.
Harmonization is a process to improve the practice of compatibility (compatibility) accounting by setting limits on how large these practices may vary. Harmonization of standards will be free of conflicts of logic and can improve the comparability (comparability) of financial information from various countries.
Efforts to harmonize accounting standards has been initiated long before the establishment of the International Accounting Standards Committee in 1973. More recently, a number of companies seeking to raise capital in markets outside the country of origin and the investors who seek to diversify their investments internationally face increasing problems as a result of national differences in accounting, audit disclosure, and.
Sometimes people use the term harmonization and standardization as both have the same meaning. However, contrary to the harmonization, standardization generally means the determination of a group of rigid rules and narrow and possibly even a single application of standards or rules in any situation. Standardization does not accommodate the differences between countries, and therefore more difficult for international diimplemntasikan. Harmonization is much more flexible and open, do not use one-size-fits-all approach, but to accommodate some of the differences and have experienced great progress internationally in recent years.
Comparability of financial information is a clearer concept of harmonization. The information generated from the system of accounting, disclosure and audit different or comparable if it has a similarity in the way in which users can compare the financial statements without the need to familiarize themselves with more than one system.

D. ACCOUNTING SYSTEM DEVELOPED COUNTRIES
• Accounting and financial reporting in Japan
Reflects a combination of domestic and international influences. Two separate government agency responsible for the regulation of accounting and corporate income tax law in Japan have more influence. In the first half of the 20th century, reflecting the influence of German accounting thought, in the second half, the ideas of the influential U.S.. Lately, the influence of the International Accounting Standards Board began to be felt and in 2001 major changes occurred with the establishment of private sector organizations as a maker of accounting standards.
Firms - Japanese firms have an equity stake of each one another, and often jointly own other companies. These investments are interlocked industrial conglomerates that produce meraksasa called keiretsu.
Keiretsu venture capital is in line with the reform of the structural changes in Japan to overcome the economic stagnation that began in 1990 - an. The financial crisis that followed the breakup of the Japanese bubble economy also encouraged to conduct a thorough evaluation of Japan's financial reporting. It is clear that many accounting practices to hide how bad the Japanese companies.
Major changes in accounting announced in the 1990's - to make the economic health of the Japanese companies become more transparent and bring Japan closer to international standards.
Accounting Regulations and Enforcement Rules
The national government has the most influence on Japanese accounting signifikann. Accounting policies that are based on three laws: Commercial Law, Capital Market Law and Corporate Income Tax Law. These three laws related and related to one another. Japanese researchers called the situation a person is a "triangle Legal System".
Commercial law is governed by the Ministry of Justice (Minister of Justice). Law is at the core of accounting regulation in Japan and most have a major influence. A company incorporated under the Commercial Law are required to comply with accounting, which was published in the "rules of the balance sheet, income statement, business reports, and supporting schedules with limited liability.
Publicly owned companies must match up with the Capital Market Law (Securities and Exchange Law - SEL) is set by the Ministry of Finance. SEL is based on - U.S. Capital Market Act 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 making investment decisions.
Accounting Business Advisory Council (Business Accounting Deliberation Council - BADC) is a special advisory body to the Ministry of Finance is responsible for developing accounting standards in accordance with the SEL. BADC is appointed by the Treasury Department and worked part-time. They come from academia, government, businesses and members of the Institute of Certified Public Accountants in Japan (Japan Institute Of Accountants - JICPA). (BADC members have a background in accounting, in contrast to the legal background for individuals who work in the issue - the issue of Commercial Law at the Department of Justice). BADC is supported by a research organization known as the Research Institute of Finance (Corporate Finance Research Institute).
JICPA professional CPA organization in Japan. Overall CPA must be a member of the JICPA. In addition to providing guidance in the implementation of the audit, JICPA published guidance in the implementation of accounting issues and consultation with the BADC in developing accounting standards. Generally accepted auditing standards (such as those in the United States), distributed by more than BADC by JICPA.
Financial Reporting
Company incorporated under the Commercial Law shall prepare a report which must be approved at the annual shareholders' meeting, which contains:
A. Balance
2. Statement of Income
3. Business Report
4. Proposal Determination of Use (appropriation) Retained Earnings
5. Supporting Schedule
Companies that list their stocks should also prepare financial statements in accordance with the Capital Market Law (Securities and Exchange Law - SEL), which generally require the same basic financial statements with the Commercial Law plus the cash flow statement. However, according to the SEL, the report konsolidasilah main concern, not the parent company financial statements. Tambhan schedule footnote is also required. Financial statements and schedules prepared in accordance with the SEL must be audited by independent auditors.
Accounting Measurement Commercial law requires large companies to prepare consolidated reports. In addition, shares of listed companies must prepare consolidated financial statements in accordance with the SEL.
Most of the previously described accounting prakrik implemented in recent years as a result of the Great Changes in Accounting as mentioned earlier. Changes - changes in the past include: (1) requires companies that list their stocks to make a cash flow statement, (2) expand the number of consolidated subsidiaries under the control of owned and not a percentage of ownership, (3) expand the number of affiliated companies accounted for under based on the equity method and not a significant effect on the percentage of ownership, (4) assess the effects of investment in the market price rather than cost, (5) the full provision for deferred obligations, and (6) full accruals for pensions and other retirement obligations. Accountancy in Japan being reshaped to fit the IFRS

• China's Accounting System
At the end of the 1970s, Chinese leaders began to change from a centrally planned Soviet-style economy becomes more market-oriented but still under the control of the Communist Party.
Accounting in China has a long history. Accounting functions in terms of accountability can be traced far back to the year 2200 BC during the dynasty Hsiu and a number of documents show that the accounting is used to measure and compare the achievement of wealth among the nobility and the Princess in the Xia Dynasty (2000 -1500 BC). Young Confucius (551-479 BC) had become a warehouse manager and tulisanya menebutkan which includes accounting work should - make a record of receipts and expenditure every day. Among the teachings of Confucius is required to maintain accounting records and history is seen as bagiaian history.
The main characteristics of accounting in China today comes from the founding of the People's Republic of China in 1949. China adopted a highly centralized planned economy, which reflects the principles of Marxism and the pattern adopted by the Soviet Union where the State controls the use and distribution rights for all means of production and imposed a rigid planning and control over the economy.
Financial reporting is often done, and quite complete. Its main characteristic is the orientation where the management of the fund, which fund is defined as property, goods, and materials used during the production process.
China's economy today is best described as an economic hybrid (mixed), where state control of strategic commodities and industries, while other industries as well as commercial and private sector, governed by market-oriented system. With the economic reforms that include privatization, including the transfer of state-owned enterprises into stock companies by the company, the new accounting rules have been developed for the newly privatized companies and independent companies with limited liability, as well as foreign-owned companies such as joint ventures.
Regulali and enforcement of accounting rules
Accounting law, amended in 2000, covers all companies and organizations, including the TIDA owned and controlled by the State. The State Council (the Executive unit associated with the Cabinet) has also issued rules for Corporate Financial Reporting and Accounting (Financial Accounting and Reporting Regulation Business-Farr). Farr book focuses on record keeping, preparation of financial statements, practices, and financial accounting issues and other peaporan. Farr Applies to all companies except very small companies that do not get dariluar funds, the finance ministry, which dawasi by the State Council, formulate accounting standards and auiditing.
In 1992 the Minister of Finance issued Financial Accounting Standard for Business Companies (Accounting Standards for Business Enterprises-ASBE). New ASBE published in 2001.
China Accounting Standards Committee (China Accounting Standards Committee-CASC) was established in 1998 as an authorized body under the Ministry of Finance is responsible for developing accounting standards.
Accounting System in China for Business Company
basic principles:. Business Continuity, substance over form, consistency, timeliness, it is understood the accrual basis, penyandingan, prudence, materiality of impairment.
b Definition of Element:. assets, liabilities owner's equity, revenues, expenses, profit
c Classification and principles for the recognition and measurement:. assets, kewajiban.ekuitas.
d. Principles for recognition and classification of revenues and expenses.

• Accounting system in the Netherlands
Dutch accounting has some interesting Pardoks. The Netherlands has the financial reporting provisions of Accounting and relatively permissive, but the standards of professional practice tinggi.Belanda code law countries accounting-oriented presentations, but fair. Financial reporting and tax accounting is a separate activity for the modern. In addition, the orientation of developing without adnya affect the fairness of the stock market. England and Amrika States has influenced the Dutch accounting melabihi same or even other continental countries, and unlike other continental Europe, the accounting profession has a significant influence on accounting standards and rules.
The Netherlands is one of the first supporters of international standards for accounting practices and acceptable. The Netherlands is also home to some of the world's largest multinational companies, like Philips, Royal Dutch / Shell and Unilever.
Annual Reporting Council published guidance on accounting principles generally accepted. Council consists of:
A. The preparation of financial statements (Company)
2. Users of financial statements (union representatives and financial analysts)
3. Auditors of financial statements (the Netherlands Institute of Registered Accountants or Nirva).