SOFTSKILL AKUNTANSI INTERNASIONAL

CHAPTER 4

REPORTING AND DISCLOSURE

4.1. DISCLOSURE ACCOUNTING PRACTICES INFLUENCE BY DIFFERENCES GOVERNANCE FINANCE COMPANY IN ANY STATE.

Development of disclosure Development of the disclosure system is closely associated with the development of accounting systems. Disclosure standards and practices are influenced by financial resources, legal systems, political and economic ties, the level of economic development, education, culture, and other influences.

National differences in disclosure is driven largely by differences in corporate governance and finance. In the United States, Britain and other Anglo-American countries, equity markets provided most of the funding that the company needs to be very advanced. In these markets, ownership tends to spread widely among many shareholders and investor protection is emphasized. Institutional investors play an increasingly important role in these countries, demanding financial returns and increasing shareholder value.

In most other countries (like France, Japan and some emerging market countries), share ownership remains highly concentrated and the bank (or the owner and family) has traditionally been a major source of corporate financing. These banks, and the other in obtaining more information about the company’s financial position and activities.

VOLUNTARY DISCLOSURE

The Company will make disclosures beyond minimum disclosure if they feel that such disclosure would lower the cost of capital or if they do not want to miss the disclosure practices are competitive. Instead, the company will reveal company if they  feel less financial disclosure would reveal the secrets to competitors or to show the bad side of the company in front of the various parties.

Pros:
• Provide an international appearance to the primary reports

• Provide benefits in terms of public relations
Disadvantages:
• Translation is misleading, as if to give the impression to the foreign reader as if the accounting principles underlying financial statements have been associated also translated, so that wrong conclusions could arise.

• Financial analysts tend to finance interpretation report such as financial statements is substantially comparable to the domestic financial statements, so the potential for abuse will occur.

4.2. MANAGEMENT AND DISCLOSURE ISSUES DECISION DECISION

Problem (problem) is a deviation between the should (should) happen in a real (actual) occurs, so that the cause should be found and verified. Decision-making (desicion making) is to assess and impose choise. Decision was taken after some calculations and considerations alternative. Before option was dropped, there are several steps that may be traversed by the decision maker. These stages may include identification of major problems, planning alternative will be selected and arrive at the best decision.

4.3. PURPOSE OF DISCLOSURE ACCOUNTING IN EQUITY MARKETS

In a competitive economy, the disclosure is a means to channel  cooperation accountability to capital providers (investors) and to facilitate allocation of resources to their most productive use. Cooperation a need to attract capital in a very large amount to finance the production and distribution activities are extensive. Therefore internal costing is highly dependent on external capital invested by the investor on a corporation, In return, an investor requires disclosure in which investors can assess the quality of their stock to cultivate. Disclosure of the company will increase the probability distribution of outcomes expected by investors by reducing the uncertainty associated with the refund. So will improve performance (performance of the company) in the eyes of investors that lure investors to invest on a larger similar securities so as to reduce the cost of capital.
4.4. DIFFERENT ASPECTS OF PRACTICE REPORTING AND DISCLOSURE

Disclosure of Corporate Governance: Corporate Governance relating to internal tools used for running and controlling a firm – responsibility, accountability and the relationship between the shareholders, board members and managers are designed to achieve corporate objectives. The problems of corporate governance include the rights and treatment to the shareholders, the board’s responsibilities, disclosure and transparency and the role of the parties concerned. Corporate governance practices has gained the attention of regulators, investors and analysts.
Disclosure and Reporting Business Through the Internet: World Wide Web is increasingly being used as channels of information dissemination, where the print media now plays a secondary role. Business Reporting Language (Extensible Business Reporting Language – XBRL) is an early stage of financial reporting revolution. This computer language is built into almost all software for accounting and financial reporting to be issued in the future, and most users do not need to learn how to cultivate it so that it can directly enjoy the benefits.

Disclosure of the Annual Report on Emerging Markets Countries: disclosure of the company’s annual report on emerging market countries are generally less extensive and less credible than the reporting companies in developed countries. Low level of disclosure in emerging market countries is consistent with the system of corporate governance and finance in these countries. Less developed equity markets, banks and internal parties such as family groups distribute most funding needs and generally not too much of a need for public disclosure of credible and timely manner, when compared with the more advanced economies.

CHAPTER 5

FOREIGN CURRENCY TRANSLATION

5.1. DIFFERENCES BETWEEN TRANSLATION AND FOREIGN CURRENCY CONVERSION

1. Translation is just a change of monetary units, There is no physical exchange that occurred, and no related transactions that have occurred as it carried out the conversion.
2. Balances in foreign currencies are translated into domestic currency equivalent value based on the foreign exchange rate is the price of one unit of a currency expressed in another currency.
   Foreign currency transactions occur on the spot market, forward, or swap. Spot market exchange rate is influenced by many factors, including differences in inflation rates between countries, differences in national interest and expectations of the future exchange rate.
3. Transaction on forward markets is an agreement to exchange one currency for a certain amount into another currency at a future date.
4. Swap transaction involves the purchase of spot and forward sales or spot sales or purchases forward, on a currency simultaneously.

5.2. TERMS IN FOREIGN CURRENCY TRANSLATION

1. Conversion, an exchange of one currency into another currency.

2. Exchange rate now, the exchange rate prevailing on the date of the relevant financial report.

3. Net asset position at risk, the excess assets are measured or denominated in foreign currency and in translation at the exchange rate of duty is now measured or denominated in foreign currencies and translated at the exchange rate now.

4. Exchange forward contracts, an agreement to exchange currencies of different countries by using a specific rate (forward rate) at a given date in the future.

5. Functional currency, is the main currency used by a company in the conduct of business activities. Usually such currency is the currency of the State where the company is located.

6. Historical exchange rate, the exchange value of foreign currency that is used when an asset or liability denominated in foreign currencies bought or going.

7. Reporting currency, the currency used in preparing the company financial statements.

8. Spot exchange rate, the exchange rate for currency exchange in the time immediately.

9. Translation adjustments, the adjustments arising from the translation of financial statements of a company’s functional currency into the reporting currency.

Glossary of foreign currency translation, adapted from GAAP (SFAS) No.52, 1981.
1. Attributes, quantitative characteristics of an item being measured for accounting purposes. Example, historical cost and replacement cost which is an attribute of an asset.

2. Conversion, pertukatan a currency into another currency.

3. Present exchange rate, exchange rate prevailing on the date of the relevant financial statements.

4. Discount, while the subsequent exchange rate lower than current levels.

5. Net asset position at risk, as measured in excess of assets or denominated in foreign currencies and translated at the exchange rate of duty is now measured or denominated in foreign currencies and translated at the exchange rate now.

6. Foreign currency, a currency other than the currency used by a State, a currency other than the reporting currency used by the company.

7. Financial statements in foreign currencies, the financial statements using foreign currency as the unit of measurement.

8. Foreign currency transactions, the transaction (ie sale or purchase of goods or services, or debt loans or accounts receivable) under the conditions stated in currencies other than the functional currency of the company.

9. Foreign currency translation, the process to declare the amounts denominated or measured in one currency into another currency using the exchange rate between two currencies.

10. Foreign operation, an operation that produces financial statements that (1) combined or consolidated or accounted for under the equity method in reporting the company’s financial statements and (2) arranged in foreign currencies other than the reporting currency of the reporting enterprise.

11. Forward exchange contacts, an agreement to exchange currencies of different countries by using a specific rate (forward rate) at a given date in the future.

12. Functional currency, the currency used by major companies in the course of business, and in generating or using cash.

13. Historical exchange rate, exchange rate of foreign currency that is used when an asset or liability denominated in foreign currencies bought or going.

14. Local currency, the currency of a State that is used; the reporting currency used by a domestic or foreign operations.

15. Items of monetary policy, the obligation to pay or the right to receive a unit of currency in a fixed value in the future.

16. Reporting currency, the currency used in preparing the company financial statements.17. Completion date, the date when the debt is paid by an uncollectible receivables.

18. Spot exchange rate, exchange rate for currency exchange in the time immediately.

19. Date of the transaction, the date when a transaction is recorded in the accounting records of the reporting company.

20. Translation adjustments, adjustments arising from the translation of financial statements of a company’s functional currency into the reporting currency.

21. Unit of measurement, the currency used to measure the assets, liabilities, revenues and expenses.

5.3. DIFFERENCE OF PROFITS AND FOREIGN CURRENCY TRANSLATION LOSES

• If the point of view of local currency to be used (local companies viewpoint), the entry of the translation adjustment in current earnings do not need to be done.
• Entering translation gains and losses in earnings will distort the real financial relationships and can mislead the users of such information.
• If the parent company’s reporting currency is the unit of measurement of the financial statements are translated (the parent company’s point of view), it is advisable to recognize gain or loss on translation of profit as soon as possible.
• parent company perspective view foreign subsidiaries as an extension of its parent company.

5.4. BENEFITS AND FOREIGN CURRENCY TRANSLATION LOSES

1) Suspension

Changes in the value of domestic currency equivalent of the net assets of foreign subsidiaries are not realized and no effect on the local currency cash flows generated from foreign entities. Translation adjustment should be accumulated separately as part of consolidated equity.
2) Suspension and Amortization

Suspension of translation gains or losses and to amortize it over the useful adjustment items related to balance, especially as related to the debt will be amortized over ditangguhakan and related fixed assets, which is charged against earnings in the same way with the burden of depreciation or deferred and amortized over the remainder of the loan as an adjustment to interest expense.
3) Partial Suspension

Translation gains and losses is to recognize the losses as soon as possible after it happens, but admitted only after the profits realized, this is simply because it is an advantage, it ignores the changes in exchange rates.

4) Not be suspended

Recognize translation gains and losses in the income statement as soon as possible. However, inserting translation gains and losses in the current year’s profit will introduce a random element in the profits that may result in significant fluctuations in earnings in case of exchange rate changes.

5.5. EFFECT OF FOREIGN CURRENCY TRANSLATION METHOD TO THE FINANCIAL STATEMENTS

Present exchange rate (current) is the exchange rate at the date of the financial statements. Historical exchange rate is the exchange rate at the time an asset is denominated in foreign currency was first acquired, or when a foreign currency liabilities in the first place. Average rate (average) is the simple average of the exchange rate now and historically.
Effect of exchange rate against the use of financial statements
1. The use of the exchange rate to protect the historical financial statements of profits and foreign currency translation loss.

2. The use of the exchange rate now lead to a gain or loss on translation.
• Transactions in foreign currencies occurs when a company buys or sells goods to the payments made in a foreign currency or when companies borrow or lend in foreign currencies.
• A foreign currency transactions can be denominated in one currency, but the measured or recorded in other currencies.

5.6. EVALUATION AND SELECTION OF FOREIGN CURRENCY TRANSLATION METHOD ACCORDING TO CONDITION OF THE BEST AND THE MONEY MARKET
Translation methods can be classified into two types of methods that use a single exchange rate for the present re-translation of foreign currency balances to the equivalent value in domestic currency or a method that uses a variety of rates.

1. Methods Single Currency.

This method has long been popular in Europe, applying the exchange rate, the current exchange rate and the closing exchange rate, for all assets and liabilities lancer. Revenues and expenses denominated in foreign currencies are generally translated using the exchange rate prevailing at the time the posts are recognized. However, to facilitate these items are generally translated using the weighted average exchange rates are appropriate for the period. The financial statements of a foreign operation has its own reporting domicile, local currency environment in which the foreign affiliate companies do business. An asset or liability denominated in foreign currency is said to face foreign exchange risk if the equivalent in the currency used to translate the asset or liability.

2. Multiple methods of exchange rate

The method combines Multiple Currency exchange rate exchange rate historically and now in the process of translation.

3.Kini-Nonkini Method

Based on the Method of Kini, lancer current assets and liabilities of foreign subsidiaries are translated into the reporting currency of its parent company based on the exchange now. Assets and liabilities are translated lancer historical rates of exchange. Items of income statement (except for depreciation and amortization) are translated based on the average rate prevailing in each month of operation, or based on a weighted average over the entire reporting period. Depreciation and amortization are translated based on the historical exchange rate recorded when assets acquired. However, this method does not consider the economic element. Using year-end exchange rate to translate the lancer assets implies that cash, receivables, and inventory in foreign currencies are equally at risk of exchange rate.

4. Monetary-nonmonetary method

Non-monetary method Monetary also use the balance sheet classification scheme fatherly determine the appropriate exchange rate translation. Monetary assets and liabilities are translated based on the exchange rate now. Items of non-monetary assets, long-term investment, and stock investors are translated using historical exchange rates. Items of income statements are translated using a procedure similar to that described for the concept of non-present now.

5. Temporal method

By using the temporal method, translation currency conversion is a process of re-measurement or presentation of a certain value. This method does not change the attributes of an item being measured, but only change the unit of measurement. Translation of these balances in foreign currency-denominated causes repeated measurements such items but not the actual assessment. Under U.S. GAAP, measured by the amount of cash on hand at the balance sheet date. Receivables and liabilities are stated at amounts expected to be received or paid at maturity.

CHAPTER 6

FINANCIAL REPORTING AND PRICE CHANGES

6.1. FINANCIAL STATEMENTS MAY HAVE THE POTENTIAL FOR MISLEADING PRICES DURING THE PERIOD OF CHANGE

Changes the definition of price

To understand the notion of price changes (changing prices), the following terms in use:
A general price changes occur when the average price of all goods and services in an economy subject to change. Price increases are collectively known as inflation (inflation), while the price declines known as deflation (deflation). Specific price changes refers to changes in the price of goods or services which are caused by changes in demand and supply. A stable price level becomes a national priority for many countries around the world. Although the price changes occur throughout the world, the influence of business and financial reporting varies from one country to another.
• The lack of accuracy of measurement is distorted:

-          The financial projections are based on historical time series of data

-          The budget is the basis for performance measurement

-          Data can not isolate the performance effects of inflation can not be controlled

• Earnings are valued more in turn will lead to:

-       An increase in the proportion of tax

-       Request for more dividends of shareholders

-       Request for salary and wages higher than the workers. Adverse action of the host country (such as the taxation of a huge advantage).

• Index

-       Changes in the general price level is usually measured by the price level.

-       A price index is the ratio of the cost. The use of price index consists of:

-       Number of price index used to translate the amount of money paid during the previous period to the equivalent purchasing power at the end of the period.

-       Numbers – numbers that have been adjusted price levels do not represent the current cost items in question or the numbers are still the historical cost figures – historical cost figures are presented only repeated in the new measurement unit – the general purchasing power at the end of the period.
• Objects General Price Level Adjustment

-       Traditionally, profit is part of the company’s assets that could be drawn by the company during an accounting period without reducing his wealth to below the starting position.

-       Accounting conventional measure of income as the maximum amount that can be drawn from the company without reducing the amount of money into capital initially.

-       During inflation, the company will experience a change in wealth that is not related to operating activities which generally arises from changes in assets or liabilities.

6.2. ACCOUNTING TERMS AND EFFECT OF INFLATION ADJUSTMENT TO THE FINANCIAL STATEMENTS PRICE

The method used in inflation accounting is similar to the method of determination of the profits, the emphasis is more value relevant earnings are described by the financial statements, Whereas, the inflation value of all items contained in the financial statements. The method of measuring assets and liabilities can be divided as follows:
1. The entry value of the common price system consisting of:

a. Historical cost

b. General price level

c. Replacement cost

d. Reproduction cost

2. The exit value or current market pricing system that consists of market value:

a. Net realizable value

b. Selling price

c. Expexted value.
General Price Level, the advantages of using the General Price Level Adjustment (GPLA) is as follows:

a. Explain the effect of inflation on the company

b. Improve the usefulness of comparative reports between periods

c. Help users assess the statement of cash flows in the future better

d. Improve the confidence level of financial statement ratios are calculated from the figures that have been customized reports.

Current Cost Accounting

In this measuring method assumes that what is needed by managers is how they allocate economic resources that exist to maximize profit. Therefore we need answers to three questions:

a. How many assets that must be owned at a specific date.

b. How should the form of assets;

c. How the assets financed.
To make decisions about the three questions above, then the managers need to formulate expectations about the future events. Managers often face the problem of whether to retain an asset or debt or sell or pay for it and how to use or fund company. To answer this it is proposed the calculation of profit business that has two components:
a) Current operating profit

b) the realizable cost saving (Holding Gain)

Current cost five forms, namely:

a. Replacement cost, is  the measured current value to obtain new assets or replace it with the same production capacity.

b. Reproduction Cost, This method is similar to the replacement cost.
c. Net realizable value

Which is a method in which the selling price less the costs of sale. NRV during inflation is greater than replacement cost because management may not sell the goods without expecting profit margins general price level. The method of depreciation is calculated based on the difference in sale price of assets at the beginning of the period compared to the end of the period.

d. Selling Price

In this method the values ​​used are the selling price less cost of sales so that no financial statements prepared according to the selling price will be greater than the net value reliazable and other methods.

e. Expected value

This method is highly dependent on the hope that someone can be larger or smaller than the other methods.

6.3. CURRENT COST ACCOUNTING MODEL DIFFERENCES AND CONVENTIONAL

• conventional accounting, financial statements are presented based on the historical value that assumes that the price (monetary unit) is stable.
• Conventional accounting does not recognize the changes in general price levels or changes in the level of rates.
• During this period generally scored higher revenues while fixed assets valued lower.
• Actually, there are several methods of accounting on the effect of price changes, such as accounting fixed price, current value accounting, and general price level accounting. General price level accounting restatement will hold the components of financial statements into dollars at the same level of purchasing power, but did not change the accounting principles used in accounting at historical value.

Historical Cost Financial Statements Statements of Financial Position

1) The amount in the statement of financial position is not expressed in the units of measurement are now at the end of the reporting period, are restated by applying a general price index.
2) monetary items are not restated because they are expressed in monetary units is now at the end of the reporting period. Monetary posts are owned and the money to be received or paid in cash.
3) The assets and liabilities, with the agreement, which is connected with changes in prices such as index linked bonds and loans, adjusted in accordance with the agreement to ensure the balance at the end of the reporting period. The posts are recorded at amounts have been adjusted in the statement of financial position are restated.

4) All other assets and liabilities are non-monetary. Some noted the number of non-monetary post is now at the end of the reporting period, such as net realizable value and fair value, then the post is not restated. All assets and liabilities to other non-monetary restated.

5) Most of the non-monetary items carried at cost or cost less depreciation.

6) detailed notes on the acquisition of units of fixed assets may not be available or can not be estimated.
7) the general price index may not be available for a period of time restate fixed assets required by this Statement. Under these circumstances, an entity may need to use the basic estimates, for example, the transfer rate between the functional currency and foreign currencies are relatively stable.8) Some non-monetary posts are recorded on the number now on a date other than the date of acquisition or date of statement of financial position, for example, fixed assets have been revalued in the previous date.

9) The amounts are restated from net non-monetary items, in accordance with relevant GAAP, when the amount exceeds the recoverable amount.

10) the investee are recorded under the equity method may make a report in the currency hyperinflation economy.

11) The effect of inflation is usually recognized in borrowing costs.

12) An entity may acquire assets in a deal that allows entities to defer payment without incurring an explicit interest charge.

13) At the beginning of the first period of application of this, a component of equity, except retained earnings and revaluation surplus, are restated using general price index from the date of the equity component is contributed or appear.

14) At the end of the first period and subsequent periods, all components of equity are restated by applying a general price index from the beginning of the period or the date of contribution, if more recent. Shift in owners’ equity during the period disclosed in accordance with IAS 1 (revised 2009).

Presentation of Financial Statements. Comprehensive Income Statement

This statement requires that all items in comprehensive income statement are expressed in units of measurement are now at the end of the reporting period. Therefore, the entire amount necessary to implement the changes and display it in the general price index from the date income and expenses were initially recorded in the financial statements.

Gain or Loss on Net Monetary Position

1.    Monetary position gain or loss is the difference in net non-monetary assets, and equity items in the comprehensive income statement are restated and the adjustment of index linked assets and liabilities.

2.    Gains or losses can be estimated using changes in the general price index to the weighted average over the period of the difference between monetary assets and monetary liabilities.

3.    Gains or losses net monetary position is included in the income statement.

Financial Statements Statements of Financial Position Costs Now

Items that are presented at current cost are not restated because they are expressed in units of measurement are now at the end of the reporting period.

Comprehensive Income Statement

Comprehensive income statement using the current cost, before restatement, generally reports costs are now at the time of the underlying transactions or events. Therefore, the entire amount is to be presented again in the unit of measurement is now at the end of the reporting period by using a general price index

Related Figures

Corresponding number in the previous reporting period, whether based on a historical cost approach or a current cost approach, are restated using general price index, so the comparative financial statements are presented in units of measurement are now at the end of the reporting period. Information disclosed in connection with previous periods is also expressed in units of measurement are now at the end of the reporting period. For the purpose of presenting comparative amounts in the presentation of foreign currency, applied IAS 10 (revised 2010).

Consolidated Financial Statements

The parent entity financial reports in the currency hyperinflation economy may have subsidiaries that also make a report in the currency hyperinflation economy. Entity’s financial statements are restated the child’s needs by using the general price index of the country whose currency is reported prior to inclusion in the consolidated financial statements issued by the parent entity. When a foreign subsidiary is an entity, then the restated financial statements are translated at the closing exchange rate. Entity’s financial statements were reported in children who are not hyper-inflation economy currencies are treated according to Foreign Exchange.

6.4. INFLATION ACCOUNTING DIFFERENCES IN THE U.S., ENGLAND, AND BRAZIL

Differences in inflation accounting in the United States, Britain, Brazil

• State of the United States

In 1979, the FASB issued Statement of Financial Accounting Standards / SFAS No.33, entitled “Financial Reporting and Changing Values” statement requires U.S. companies that have supply and asset still worth more than $ 125 million or assets of more than $ 1 billion, for the past 5 years trying to make disclosure of constant purchasing power as the basic framework of the historical cost basis of measurement for the primary financial statements.
FASB is allowing companies to use the present re-translation method or adjust to the foreign inflation and then do a translation into U.S. dollars. Thus, the adjustment of the data to reflect the current cost inflation index can be based on the general price level of the U.S. or abroad.

• State of Britain

UK Accounting Standards Committee / ACS issued a “Statement of Standard Accounting Practice 16 / SSAP,” Accounting for Costs Now “for a trial period of 3 years in March 1980. Although SSAP 16 was canceled in 1988, the methodology is recommended for companies that voluntarily report accounts-their account adjusted for inflation.

• State of Brazil

Although no longer required the recommended inflation accounting in Brazil today reflects two groups of reporting options, the Brazilian Corporate Law and Capital Market Supervisory Commission of Brazil. Inflation adjustment in accordance with the law firm presenting the accounts re-permanent assets and shareholders’ equity by using a price index which is recognized by the federal government to measure the local currency devaluation.
Inflation adjustment to permanent assets and shareholders’ equity are presented net of the amount over that disclosed separately in the profit gain or loss is now as monetary correction. Price-level adjustments to equity shareholders are shareholders in the amount of investment which should grow to period begin not loss with inflation. Adjustments to assets permanently smaller than equity adjustments cause loss of purchasing power that reflects the risk faced by the company on the net monetary assets.

The recommended inflation accounting in Brazil reflects the two groups reporting options, namely:

a) The Brazilian Corporate Law

Presenting the accounts re-permanent assets and shareholders’ equity by using a price index which is recognized by the federal government to measure the local currency devaluation.
b) Commission of the Brazilian Securities and Exchange Commission

Requires that the method of accounting for companies whose shares are publicly traded must resize all transactions that occur within a period by using the functional currency.

6.5. FINANCIAL REPORTING IN THE ECONOMY HYPERINFLATION

Financial Reporting in Hyperinflation Economic Statement of Financial Accounting Standard 63: Financial Reporting in Hyperinflation Economic consists of paragraphs 1-40. The entire paragraph has the power to set the same. Paragraphs which are printed in bold and italics to set the main principles. IAS 63 should be read in the context of goal setting and the Framework of the Preparation and Presentation of Financial Statements.

6.6. CONSTANT DOLLARS ARE NOW OR COST (CURRENT COST) BETTER FOR MEASURING INFLATION EFFECT

Current  Cost

According to Philips Edgar Edwards and Bell (1961) is the most intense character of this CCA concept. According merka required by managers is how they allocate economic resources available. Here are some current forms of cost:

Replacement cost is the value of the measured current (current cost) to obtain new assets or replace it with the same production capacity. This method has been criticized in terms of:

• The subjectivity of judgment or estimate of the price so that the numbers that arise are not based on actual transactions.
• In the case of an asset price decline that would cause the decrease in charges to the income statement (such as depreciation and cost of production) is lower than the load at historical cost. Finally, income will be higher than historical cost.
• Changes in the general price is not reflected in the replacement cost method, as it was for certain assets. Therefore this method of replacement cost is not considered a method of inflation accounting
• It is hard to make comparisons between companies that differ from each other.

6.7. PREVENTION OF “DOUBLE-DIP”

• At the time to restate the estimates beyond horrified to account for inflation abroad, caution must be maintained to prevent the phenomenon of “double-dip”.
• inflation adjustment to the cost of goods sold and depreciation expense are designed to suppress earnings “as reported” in order not terjadioverstate ment laba.meskipun so, due to the negative relationship between local inflation and currency values, changes in exchange rates between the financial statements of the other sequence, which in generally caused by inflation (at least for a certain period), will lead the company at least partly reflect the impact of inflation (ie the currency translation adjustment), the profits “as dilaporkanya”.
• Adjustment on relevant for multinational companies based in the U.S. for adopting the dollar as the functional currency of foreign operations by FA SB 52 and the translating inventory at the exchange rate goes.

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).

HUBUNGAN KODE ETIK DENGAN NORMA PEMERIKSAAN AKUNTANSI

ABDUL AZIS SYAM

4EB 11

20208003

Kode Etik Profesi Akuntan Publik adalah aturan etika yang harus diterapkan oleh anggota Institut Akuntan Publik Indonesia atau IAPI (sebelumnya Ikatan Akuntan Indonesia – Kompartemen Akuntan Publik atau IAI-KAP) dan staf professional (baik yang anggota IAPI maupun yang bukan anggota IAPI) yang bekerja pada satu Kantor Akuntan Publik (KAP).

Sehubungan dengan perkembangan yang terjadi dalam tatanan global dan tuntutan transparansi dan akuntabilitas yang lebih besar atas penyajian Laporan Keuangan, IAPI merasa adanya suatu kebutuhan untuk melakukan percepatan atas proses pengembangan dan pemutakhiran standar profesi yang ada melalui penyerapan Standar Profesi International. Sebagai langkah awal IAPI telah menetapkan dan menerbitkan Kode Etik Profesi Akuntan Publik, yang berlaku efektif tanggal 1 Januari 2010. Untuk Standar Profesional Akuntan Publik, Dewan Standar Profesi sedang dalam proses “adoption” terhadap International Standar on Auditing yang direncanakan akan selesai di tahun 2010, berlaku efektif 2011.

Setiap bidang profesi tentunya harus memiliki aturan-aturan khusus atau lebih dikenal dengan istilah “Kode Etik Profesi”. Dalam bidang akuntansi sendiri, salah satu profesi yang ada yaitu Akuntan Publik. Sebenarnya selama ini belum ada aturan baku yang membahas mengenai kode etik untuk profesi Akuntan Publik. Namun demikian, baru-baru ini salah satu badan yang memiliki fungsi untuk menyusun dan mengembangkan standar profesi dan kode etik profesi akuntan publik yang berkualitas dengan mengacu pada standar internasional yaitu Institut Akuntan Publik Indonesia (IAPI) telah mengembangkan dan menetapkan suatu standar profesi dan kode etik profesi yang berkualitas yang berlaku bagi profesi akuntan publik di Indonesia.

Kode Etik Profesi Akuntan Publik (Kode Etik) ini terdiri dari dua bagian, yaitu Bagian A dan Bagian B. Bagian A dari Kode Etik ini menetapkan prinsip dasar etika profesi dan memberikan kerangka konseptual untuk penerapan prinsip tersebut. Bagian B dari Kode Etik ini memberikan ilustrasi mengenai penerapan kerangka konseptual tersebut pada situasi tertentu.

Kode Etik ini menetapkan prinsip dasar dan aturan etika profesi yang harus diterapkan oleh setiap individu dalam kantor akuntan publik (KAP) atau Jaringan KAP, baik yang merupakan anggota IAPI maupun yang bukan merupakan anggota IAPI, yang memberikan jasa profesional yang meliputi jasa assurance dan jasa selain assurance seperti yang tercantum dalam standar profesi dan kode etik profesi. Untuk tujuan Kode Etik ini, individu tersebut di atas selanjutnya disebut ”Praktisi”. Anggota IAPI yang tidak berada dalam KAP atau Jaringan KAP dan tidak memberikan jasa profesional seperti tersebut di atas tetap harus mematuhi dan menerapkan Bagian A dari Kode Etik ini. Suatu KAP atau Jaringan KAP tidak boleh menetapkan kode etik profesi dengan ketentuan yang lebih ringan daripada ketentuan yang diatur dalam Kode Etik ini.

Setiap Praktisi wajib mematuhi dan menerapkan seluruh prinsip dasar dan aturan etika profesi yang diatur dalam Kode Etik ini, kecuali bila prinsip dasar dan aturan etika profesi yang diatur oleh perundang-undangan, ketentuan hukum, atau peraturan lainnya yang berlaku ternyata berbeda dari Kode Etik ini. Dalam kondisi tersebut, seluruh prinsip dasar dan aturan etika profesi yang diatur dalam perundang-undangan, ketentuan hukum, atau peraturan lainnya yang berlaku tersebut wajib dipatuhi, selain tetap mematuhi prinsip dasar dan aturan etika profesi lainnya yang diatur dalam Kode Etik ini.

Etika Profesi adalah etika moral yang khusus diciptakan untuk kebaikan jalannya profesi yang bersangkutan, karena setiap profesi mempunyai identitas, sifat/ciri dan standar profesi tersendiri, sesuai dengan kebutuhan profesi masing-masing.

Kode etik akuntan Indonesia memuat delapan prinsip etika sebagai berikut :

1.    Tanggung Jawab Profesi

Dalam melaksanakan tanggung jawabnya sebagai profesional, setiap anggota harus senantiasa menggunakan pertimbangan moral dan profesional dalam semua kegiatan yang dilakukannya. Sebagai profesional, anggota mempunyai peran penting dalam masyarakat. Sejalan dengan peran tersebut, anggota mempunyai tanggung jawab kepada semua pemakai jasa profesional mereka. Anggota juga harus selalu bertanggungjawab untuk bekerja sama dengan sesama anggota untuk mengembangkan profesi akuntansi, memelihara kepercayaan masyarakat dan menjalankan tanggung jawab profesi dalam mengatur dirinya sendiri. Usaha kolektif semua anggota diperlukan untuk memelihara dan meningkatkan tradisi profesi.

2.    Kepentingan Publik

Setiap anggota berkewajiban untuk senantiasa bertindak dalam kerangka pelayanan kepada publik, menghormati kepercayaan publik, dan menunjukan komitmen atas profesionalisme. Satu ciri utama dari suatu profesi adalah penerimaan tanggung jawab kepada publik. Profesi akuntan memegang peran yang penting di masyarakat, dimana publik dari profesi akuntan yang terdiri dari klien, pemberi kredit, pemerintah, pemberi kerja, pegawai, investor, dunia bisnis dan keuangan, dan pihak lainnya bergantung kepada obyektivitas dan integritas akuntan dalam memelihara berjalannya fungsi bisnis secara tertib. Ketergantungan ini menimbulkan tanggung jawab akuntan terhadap kepentingan publik. Kepentingan publik didefinisikan sebagai kepentingan masyarakat dan institusi yang dilayani anggota secara keseluruhan. Ketergantungan ini menyebabkan sikap dan tingkah laku akuntan dalam menyediakan jasanya mempengaruhi kesejahteraan ekonomi masyarakat dan negara.
Kepentingan utama profesi akuntan adalah untuk membuat pemakai jasa akuntan paham bahwa jasa akuntan dilakukan dengan tingkat prestasi tertinggi sesuai dengan persyaratan etika yang diperlukan untuk mencapai tingkat prestasi tersebut. Dan semua anggota mengikat dirinya untuk menghormati kepercayaan publik. Atas kepercayaan yang diberikan publik kepadanya, anggota harus secara terus menerus menunjukkan dedikasi mereka untuk mencapai profesionalisme yang tinggi.
Untuk memelihara dan meningkatkan kepercayaan publik, setiap anggota harus memenuhi tanggung jawab profesionalnya dengan integritas setinggi mungkin.

3.    Integritas

Integritas adalah suatu elemen karakter yang mendasari timbulnya pengakuan profesional. Integritas merupakan kualitas yang melandasi kepercayaan publik dan merupakan patokan (benchmark) bagi anggota dalam menguji keputusan yang diambilnya. Integritas mengharuskan seorang anggota untuk, antara lain, bersikap jujur dan berterus terang tanpa harus mengorbankan rahasia penerima jasa. Pelayanan dan kepercayaan publik tidak boleh dikalahkan oleh keuntungan pribadi. Integritas dapat menerima kesalahan yang tidak disengaja dan perbedaan pendapat yang jujur, tetapi tidak menerima kecurangan atau peniadaan prinsip.

4.    Obyektivitas

Setiap anggota harus menjaga obyektivitasnya dan bebas dari benturan kepentingan dalam pemenuhan kewajiban profesionalnya. Obyektivitasnya adalah suatu kualitas yang memberikan nilai atas jasa yang diberikan anggota. Prinsip obyektivitas mengharuskan anggota bersikap adil, tidak memihak, jujur secara intelektual, tidak berprasangka atau bias, serta bebas dari benturan kepentingan atau dibawah pengaruh pihak lain. Anggota bekerja dalam berbagai kapasitas yang berbeda dan harus menunjukkan obyektivitas mereka dalam berbagai situasi. Anggota dalam praktek publik memberikan jasa atestasi, perpajakan, serta konsultasi manajemen. Anggota yang lain menyiapkan laporan keuangan sebagai seorang bawahan, melakukan jasa audit internal dan bekerja dalam kapasitas keuangan dan manajemennya di industri, pendidikan, dan pemerintah. Mereka juga mendidik dan melatih orang orang yang ingin masuk kedalam profesi. Apapun jasa dan kapasitasnya, anggota harus melindungi integritas pekerjaannya dan memelihara obyektivitas.

5.    Kompetensi dan Kehati-hatian Profesional

Setiap anggota harus melaksanakan jasa profesionalnya dengan berhati-hati, kompetensi dan ketekunan, serta mempunyai kewajiban untuk mempertahankan pengetahuan dan ketrampilan profesional pada tingkat yang diperlukan untuk memastikan bahwa klien atau pemberi kerja memperoleh manfaat dari jasa profesional dan teknik yang paling mutakhir. Hal ini mengandung arti bahwa anggota mempunyai kewajiban untuk melaksanakan jasa profesional dengan sebaik-baiknya sesuai dengan kemampuannya, demi kepentingan pengguna jasa dan konsisten dengan tanggung jawab profesi kepada publik. Kompetensi diperoleh melalui pendidikan dan pengalaman. Anggota seharusnya tidak menggambarkan dirinya memiliki keahlian atau pengalaman yang tidak mereka miliki. Kompetensi menunjukkan terdapatnya pencapaian dan pemeliharaan suatu tingkat pemahaman dan pengetahuan yang memungkinkan seorang anggota untuk memberikan jasa dengan kemudahan dan kecerdikan. Dalam hal penugasan profesional melebihi kompetensi anggota atau perusahaan, anggota wajib melakukan konsultasi atau menyerahkan klien kepada pihak lain yang lebih kompeten. Setiap anggota bertanggung jawab untuk menentukan kompetensi masing masing atau menilai apakah pendidikan, pedoman dan pertimbangan yang diperlukan memadai untuk bertanggung jawab yang harus dipenuhinya.

6.    Kerahasiaan

Setiap anggota harus menghormati kerahasiaan informasi yang diperoleh selama melakukan jasa profesional dan tidak boleh memakai atau mengungkapkan informasi tersebut tanpa persetujuan, kecuali bila ada hak atau kewajiban profesional atau hukum untuk mengungkapkannya. Kepentingan umum dan profesi menuntut bahwa standar profesi yang berhubungan dengan kerahasiaan didefinisikan bahwa terdapat panduan mengenai sifat sifat dan luas kewajiban kerahasiaan serta mengenai berbagai keadaan di mana informasi yang diperoleh selama melakukan jasa profesional dapat atau perlu diungkapkan. Anggota mempunyai kewajiban untuk menghormati kerahasiaan informasi tentang klien atau pemberi kerja yang diperoleh melalui jasa profesional yang diberikannya. Kewajiban kerahasiaan berlanjut bahkan setelah hubungan antar anggota dan klien atau pemberi jasa berakhir.

7.    Perilaku Profesional

Setiap anggota harus berperilaku yang konsisten dengan reputasi profesi yang baik dan menjauhi tindakan yang dapat mendiskreditkan profesi. Kewajiban untuk menjauhi tingkah laku yang dapat mendiskreditkan profesi harus dipenuhi oleh anggota sebagai perwujudan tanggung jawabnya kepada penerima jasa, pihak ketiga, anggota yang lain, staf, pemberi kerja dan masyarakat umum.

8.    Standar Teknis

Setiap anggota harus melaksanakan jasa profesionalnya sesuai dengan standar teknis dan standar profesional yang relevan. Sesuai dengan keahliannya dan dengan berhati-hati, anggota mempunyai kewajiban untuk melaksanakan penugasan dari penerima jasa selama penugasan tersebut sejalan dengan prinsip integritas dan obyektivitas.
Standar teknis dan standar professional yang harus ditaati anggota adalah standar yang dikeluarkan oleh Ikatan Akuntan Indonesia. Internasional Federation of Accountants, badan pengatur, dan pengaturan perundang-undangan yang relevan.

Norma Pemeriksaan Akuntansi

Norma pemeriksaan akuntansi yang diakui oleh IAI terdiri dari 3 norma besar: norma-norma umum, norma-norma pelaksanaan, dan norma-norma laporan.

Norma Umum

Norma Umum terdiri dari 3 norma, yaitu :

1. Pemeriksaan harus dilakukan oleh seseorang atau beberapa orang yang telah memiliki ketrampilan teknis yang cukup serta berkeahlian sebagai auditor.
2. Dalam segala suasana yang berkaitan dengan pemeriksaan, sikap netral yang independen harus senantiasa dipertahankan oleh auditor.
3. Auditor garus menggunakan kesungguhan dan ketrampilan profesionalnya dalam pelaksanaan pemeriksaan dan penyiapan laporan dokumen.

Norma Pelaksanaan Pemeriksaan

1. Pemeriksaan harus direncanakan sebaik – baiknya dan asisten auditor jika ada harus memperoleh pengawasan yang memadai.
2. Pengetahuan yang cukup mengenai struktur pengendalian intern klien harus didapatkan untuk dipergunakan dalam perencanaan dan penentuan sifat, waktu, dan luas pengujian.
3. Bukti yang kompeten dan cukup utnuk mendukung pendapat didapatkan dengan cara inspeksi, observasi, wawancara dan konfirmasi untuk digunakan sebagai dasar pernyataan pendapat atas laporan keuangan yang diperiksa.

Norma Pelaporan

1. Laporan akuntan harus mendukung pernyataan apakah laporan keuangan disajikan menurut prinsip akuntansi yang lazim.
2. Laporan akuntan harus mengidentifikasikan konsistensi penerapan prinsip akuntansi yang lazim pada periode berjalan dibandingkan dengan periode sebelumnya.
3. Pengungkapan informatif dalam laporan keuangan dianggap cukup kecuali dinyatakan lain dalam laporan dokumen.