akuntansi internasional chapter3 (putri kusuma p)

NAMA : PUTRI KUSUMA P

NPM:20208973

KELAS:4EB11

CHAPTER 3

COMPARATIVE ACCOUNTING
Accounting standards are the regulations or rules (including also the laws and statutes) that govern the preparation of financial statements. Standard setting is the process of formulating or formulation of accounting standards. Standards are the result of standard setting. However, actual practice differs from the prescribed standard. That is because the 4 things: in most countries the penalty for noncompliance with the provisions of the official accounting tends to be weak and ineffective voluntary infomasi company may report more than required; some countries allow companies to ignore the accounting standards if by doing operations and financial position will tersajikan better results, and in some countries, the standard only applies to the separate financial statements, and not for the consolidated report.

Accounting standard setting involve a combination of private sector group that includes the accounting profession, users and compilers of financial statements, the employees and the public which includes 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 country) also affect 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 attest to the consideration of the fair presentation of financial statements. In code law countries, public sector and influence over the accounting profession tend to be more regulated by the State. This is why different accounting standards around the world.

SIX NATIONAL ACCOUNTING SYSTEM
FRANCE

Accountancy in France is strongly associated with the code so it is possible to overlook the fact that the legislation of commercial law (Code de Commerce) and the actual tax laws determine many accounting practices and financial reporting in France. The primary basis of accounting rules is the Accounting Law 1983 and Decree 1983 which includes accounting Compatible General Plan shall be used by all companies. Every company should have a manual accounting. The special feature is the presence of accounting in France dichotomy between the separate financial statements of companies with a consolidated group reports. French law allows French companies to follow International Financial Reporting Standards (International Financial Reporting Standards-IFRS). The reason, many multinational companies from France who recorded their shares abroad.

Five major organizations involved in standard-setting process in France:

a. Counseil National de la Comptabilite or CNC (National Accounting Board)

b. Comite de la Reglementation Comptable or CRC (Accounting Regulation Committee)

c. Autorite des Marches financiers or AMF (Financial Markets Authority)

d. Ordre des Experts-Comptables or OEC (Institute of Certified Public Accountants)

e. Compagnie Nationale des Comptes Commisaires aux or CNCC (Association of National Compliance Auditor)

French company reported a balance sheet, income statement, notes to financial statements, directors report and auditors report. There are no provisions regarding the statement of changes in financial position or cash flows although CNCC recommends to him. To give you an actual and reasonable (fidele image), the financial statements have been prepared in accordance with the regulations (regularite) and with good intentions (sincerite).

In the measurement of accounting, fixed assets are generally depreciated according to the tax provision in a straight line or multiple balances. Inventories should be valued at the lower of cost or net realizable value using FIFO or weighted average method. Research costs are not amortized over 5 years. Many risks and uncertainties can be reserved, such as those associated with litigation, restructuring, and self-insurance and this allows the emergence of opportunities for income smoothing.

GERMANY

German accounting environment changes continuously and the results are remarkable since the end of World War I. Commercial law specifically calls for the principles of orderly bookkeeping and audit independently barely left after the war. Corporate law in 1965 changed the reporting system led to keunagan German American English ideas, but only for large companies. In the early 1970s, began to issue a directive of the European Union harmonization, which should be adopted by Member States into national law. EU directive fourth, seventh, and eighth all the way into German law through the Comprehensive Accounting Act which came into force on December 19, 1985. Two new laws were enacted in 1998, the first one to add a new paragraph in the third book of the German Commercial Law that allows the company to issue shares / debt on an organized capital market to use the principles of internationally accepted accounting in the consolidated financial statements made . Second, allow the establishment of private sector organizations to establish accounting standards for consolidated financial statements. Tax law largely determines the commercial accounting. The principle of determination (Massgeblichkeitsprinzip) determines that the taxable income is determined by what is recorded in the company’s financial records.

Law on control and transparency in 1998 introduced a requirement for the Ministry of Justice to recognize a private entity that sets national standards to meet the following objectives:

A. Develop recommendations regarding the application of accounting standards in the consolidated financial statements

2. Provide advice to the Ministry of Justice for a new accounting legislation

3. Represents Germany in international accounting organizations such as the IASB

Accounting Act in 1985 specifically define the terms of accounting, auditing, and financial reporting varies according to firm size, rather than according to the form orgasisasi. Accounting Act 1985 specifically determine the content and form of financial statements that include balance sheets, income statements, notes to financial statements, management reports and auditor’s report.

Based on commercial law (HGB), the method of purchase / acquisition is the primary method of consolidation, although pooling can also be applied in limited conditions. Two forms of the purchase method allowed is the book value method and revaluation method. HGB does not regulate the translation of foreign currencies and companies in Germany using a number of methods. Translation differences are treated in several ways, as a result special attention should be paid to the notes of financial statements in which the foreign currency translation method must be explained.

JAPAN

Accounting and financial reporting in Japan reflects a combination of domestic and international influences. To understand accounting in Japan, one must understand the culture, business practices, and history of Japan. Japan is a traditional community with cultural and religious roots are strong. Japanese companies have equity shares each to each other, and together often have other companies. These investments are interlocked industrial conglomerate that produces meraksasa called keiretsu. Keiretsu venture capital is in line with refomasi structural changes in the Japanese to overcome the economic stagnation that began in the 1990s.

The national government still has the most significant influence on accounting in Japan. Accounting regulation is based on three laws, namely the commercial law, capital market law, tax law and corporate income. Commercial law is governed by the Ministry of Justice (MOJ). The law is at the core of accounting regulation in Japan and most have a major influence. Public-owned enterprises shall further comply with the Laws of capital markets (Securities and Exchange Law-SEL) is regulated by the Ministry of Finance. The main purpose of SEL is to provide information in making investment decisions.

Company incorporated under commercial law are required to menyususn reports required to be approved in the annual meeting of shareholders which contains balance sheet, income statement, business reports, proposals for the use (appropriation) retained earnings, supporting schedules. Companies that list their stocks should also prepare financial statements in accordance with the laws of capital markets in general require the same basic financial statements of the commercial law ditamabha the cash flow statement.

Commercial law requires large firms to prepare consolidated reports. Consolidated subsidiary if the parent company directly and indirectly control the financial and operational policies. Goodwill is measured on the basis of the fair value of net assets acquired and is amortized over a maximum of 20 years. Inventories can be valued at cost which is the lower of cost or market price, but cost the most widely used.

NETHERLANDS

Accounting in the Netherlands has some interesting paradox. The Netherlands has the provision of accounting and financial reporting are relatively permissive, but the professional practice standards are very high. The Netherlands is the country code of law, but accounting-oriented penjayian reasonable. In the Netherlands, accounting is considered as a branch of the business economy. As a result, many economic thought devoted to the topics of accounting and in particular to the accounting measurement.

Regulation in the Netherlands remained until 1970 when liberal laws enacted annual financial statements. Among the major provisions of the law in 1970 are as follows:

A. The annual financial statements must demonstrate a reasonable picture of the financial position and results for one year

2. Keuangn report should be prepared in accordance with good business practices

3. Basic presentation of assets and liabilities and determination of operating results should be disclosed

4. The financial statements have been prepared in accordance with a consistent base material and the effect of changes in accounting principles should be disclosed to taste

5. Noted that financial comparative information for prior periods should be disclosed in the financial statements and accompanying footnotes

The quality of the Dutch financial statements are very uniform. The financial statements shall be prepared in Dutch but in English, French, and German can be accepted. The financial statements must contain the following: balance sheets, income statements, records, reports of directors, and other information are recommended. The annual financial statements must be presented either by the parent company only and consolidated. Groups of companies for the purpose of consolidation of the companies that make up the economic unit under the control of the same.

Although the pooling method for business combinations may be used under certain conditions, such methods are rarely used in the Netherlands. Goodwill is the difference between acquisition cost and fair value of purchased assets and liabilities. Dutch flexibility in accounting measurements can be seen with the permissibility of the use of present value for intangible assets such as inventory and assets are depreciated. Because the Dutch companies have flexibility in applying the rules of measurement, can be presumed that there is a chance to melakakukan earnings smoothing. Certain items can ignore the statements of income and adjusted directly against reserves in shareholders’ equity. It includes:

A. Catastrophic losses are not possible or is not common for the uninsured

2. Similar losses due to nationalization or other confiscation

3. Consequences of the financial restructuring

ENGLISH

Accounting in the UK to grow as an independent branch of science and pragmatically address the needs and business practices. UK accounting for the world heritage is very important. Britain was the first country in the world to develop the accounting profession as we know it. The concept of presenting the results and financial position of the fair is also from England.

The two main sources of financial accounting standards in the UK is the company’s legal and accounting professions. Activities of a company incorporated in England is widely regulated by the assets of the so-called law firm. Firm laws adapted, expanded, and consolidated throughout the year.

Here are six UK accounting bodies in dealing with the consultative committee of accounting bodies that stood in 1970:

A. Institute officially licensed Accountants in England and in Wales (The Institute of Chartered Accountants in England and Wales, ICAEW)

2. Institute officially licensed Accountants in Ireland (The Institute of Chartered Accountants in Ireland, ICAI)

3. Institute officially licensed Accountants in Scotland (The Institute of Chartered Accountants in Scotland, ICAS)

4. Accounting Association officially licensed and certified (The Association of Chartered Certified Accountants, ACCA)

5. Institute of Management Accountants officially licensed (The Chartered Institute of Management Accountants-CIMA)

6. Institute of Public Finance and Accountancy officially licensed (The Chartered Institute of Public Finance and Accountancy, CIPFA)

UK financial reporting, including the most comprehensive in the world. The financial statements generally includes directors reports, income statements and balance sheets, cash flow statement, statement of total recognized gains and losses, statement of accounting policies, notes to the references in the financial statements and auditor’s report. Directors report discusses the major business activities, our discussion of the operation and the possibility of development, significant events after balance sheet date, dividends are following after, the names of board members, and the amount of stock ownership, as well as political and charitable kontibusi done.

Britain to allow both methods of recording the acquisition and merger accounting for business combinations. However, the conditions of the merger method of use is so tight that almost no use. Based on the method of acquisition, goodwill is calculated as the difference between the fair value of the submission made and the fair value of acquired assets.

UNITED STATES

Accounting in the United States regulated by the private sector (Financial Accounting Standards Board, Accounting Standards Board or Fincancial-FASB), but a government agency (Capital Market Supervisory Commission or the Securities Exchange Commission-SEC) also has the power to set its own standards.

The U.S. system has no general legal provisions regarding the issuance of audited financial statements periodically. U.S. companies formed under state law, not federal hum. Although it has the legal power to determine the accounting and reporting standards for public companies, SEC continue to rely on the private sector that sets the standard stretcher. SEC and FASB to work together to provide pressure when viewing the FASB moving too slowly or in the wrong direction.

Annual financial report should be made by a major U.S. company that includes the following components:

A. Management reports

2. Independent auditor’s report

3. Primary financial statements (income statement, balance sheet, statement of cash flows, comprehensive income, stockholders’ equity and statements)

4. Management discussion and analysis of operating results and financial condition

5. Disclosure of accounting policies with the most important influence on the financial statements

6. Notes to the financial statements

7. Comparison of certain financial data for 5 or 10 years

8. Selected quarterly data

U.S. accounting measurement rules assume that a business entity will continue to carry out its business. Accrual basis of measurements with a very broad and the recognition of transactions and events are highly dependent on the matching concept. Business combination should be recorded as a purchase. Goodwill is capitalized as the difference between the fair value of the gifts given in exchange and the fair value of net assets acquired. Goodwill must be reviewed for impairment annually and written off and charged in the profit if the book value exceeds fair value.

Similarities and differences in accounting systems in developed countries’
Convergence of accounting standards is essentially equating the language of business. Each state has a regulatory agency financial reporting standards. Indonesia Indonesian Institute of Accountants has issued Statement of Financial Accounting Standards as the only standard that is accepted as ‘business language’ companies in Indonesia. United States has a Generally Accepted Accounting Principles (GAAP), which was released by the Financial Accounting Standards Board (FASB). The European Union has the International Accounting Standard (IAS) issued by International Accounting Standard Board (IASB). And so, each country using a standard reporting-reporting standards that are likely to diverge from one another. There is no assurance that the financial statements are presented in different countries can be read with the same language. Difference in the end of this standard will also hamper international business people in business decisions.
By far the leading to the reference standard is the International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board (IASB). IASB standards are the governing body of International Accounting Standards Committee Foundation, an independent international non-profit institutions engaged in financial reporting is based in the UK.
Today, more than 100 countries require or allow the application has IFRS, and is expected to be more and more countries around the world use IFRS. In fact, 10 countries have global capital markets has made convergence to IFRS as Japan, Britain, France, Canada, Germany, Hong Kong, Spain, Switzerland, Australia, including the superpower United States has said it will make the convergence to IFRS. As can be seen on the map, the blue states are the countries that have require or permit the application of IFRS. While the gray are the countries that are in the process of convergence with IFRS.

For Indonesia, as a first step the Financial Accounting Standards Board Indonesia Institute of Accountants (DSAK-IAI) will mengonvergensikan GAAP with IFRS fully through three stages, namely stages of adoption, the final preparation phase and implementation phase. Stages of adoption made in the period 2008-2011 includes activities throughout the IFRS to GAAP adoption, infrastructure preparation, and evaluation of IAS regulations.
Of course not easy to reconcile IAS 62 standard which is owned by owned 37 IFRS standards. There are still considerable gaps between GAAP with IFRS, there are even 20 or 32% IAS standards that can not be compared. When compared with the IFRS, there are still significant differences include financial instruments, investment property, business combination, property, plan and equipment, intangible assets, service concession agreement, the presentation of financial statements, leases, insurance contracts, accounting for banking to be removed , exploration and evaluation of mineral assets, agriculture, and accounting for reporting currencies, and other major differences.
“IFRS convergence targets that have been launched IAI in 2012 is revised IAS that are materially in accordance with IFRS version of January 1, 2009 which became effective in 2011/2012,” said the Chairman of IAI Rosita DSAK Uli Sinaga Public Hearing on the exposure draft of IAS 1 (Revised 2009) of the Financial Statements, in Jakarta last Thursday, August 20, 2009. For the twenty-ninth of Financial Accounting Standards (GAAP) included in the IFRS convergence program launched by IAI DSAK 2009 and 2010. The number of standards to be implemented in the convergence program is a tough challenge for the period 2009-2012 DSAK IAI. If the experience of the implementation of SFAS 50 and 55 concerning financial instruments that have been published in 2008, but it gets the strong pressure of the unpreparedness of the financial industry that have delayed its implementation, then you can imagine how powerful enact dozens of standards in such a short time.
In addition to the readiness of the companies, the implementation of this program also requires the readiness of practitioners of management accountants, public accountants, academics, regulators and other support professionals such as actuaries and appraisers. Public accountants are expected to immediately update their knowledge in relation to changes in GAAP, SPAP update and adjust the IFRS-based audit approach. Management Accountant / Company can anticipate immediately formed a team of successful convergence of IFRS Accountant in charge of updating the knowledge of management, conduct gap analysis and prepare road map for IFRS convergence and coordination with other projects for the optimization of resources. Accounting Academics / University are expected to form a successful team of IFRS convergence to update the knowledge of academics, revising the curriculum and syllabus as well as perform a variety of related research and provide input / comments on the ED and the Discussion Papers published by the IASB DSAK well.
Regulators need to make adjustments to regulations related to financial reporting and taxation and make efforts toward professional development and supervision associated with the reporting keuanganseperti appraisers and actuaries. Industry associations are expected to develop Guidelines for Industrial Accounting in accordance with GAAP developments, and create a forum that is intensively discussed various issues with respect to the impact of the application of GAAP and proactively provide input / comments to DSAK IAI.
SIMILARITIES AND DIFFERENCES IN ACCOUNTING SYSTEM DEVELOPED COUNTRIES

DEVELOPMENT

Accounting standards and practices in each country is the result of complex interactions among economic, historical, and cultural institutions. Can be expected to be the difference between countries. Factors that influence the development of national accounting can also help explain differences in accounting between nations.

We believe that the following eight factors that influence the development of accounting seignifikan. Seven main factors of economic, social history, and / or institutional and merupaka factor that is often mentioned by the authors of accounting. Lately, the relationship between culture (following eight factors) and the development of accounting began explored further.

A. Funding system

In countries with strong equity markets, such as the United States and Britain, accounting has a focus or how well management runs the company (profitability) and is designed to help investors analyze the cash flow risk associated depandan. Full disclosure is made to comply with extensive public ownership. Instead, the credit-based system in which the bank is the main source of funding, accounting has focused on the protection of creditors through conservative accounting pengukurang minimize dividend payments and maintain adequate funding in the framework of protection for borrowers. Because financial institutions have the direct access to what information is desired, an extensive public disclosure deemed unnecessary. Examples are Japan and Switzerland.

2. The legal system

Legal system to determine how individuals and institutions interact. The western world has two basic orientations: the codification of law (civil) and common law (case). Mainly drawn from the legal codification of Roman law and because ode Napoleon. In countries which adhere to the legal system is Latin-codification of Roman law is a complete group that includes the provisions and procedures. Codification of accounting standards and procedures are fair and appropriate thing in there. Thus, in countries that adhere to the codification of law, accounting rules are incorporated in national law and tend to be very comprehensive and covers many of the procedures. In contrast, common law developed on a case by case basis without any attempt to cover all cases in the complete code. Of course, there is a fundamental law, but tended to be less detailed and more flexible when compared with the general codification system. This encourages businesses to try and allow the application of judgment. Common law derived from English case law. In most common law countries, the accounting rules established by private sector professional organizations. This allows accounting rules become more adaptive and innovative. Except for the provisions of a broad base, most of the accounting rules are not incorporated directly into the basic law. Codification of the law (legal code) tend to stare at the payload (contents) of its economy. For example, the lease under the common law rule is usually not capitalized. Instead, the lease under the general law can basically be capitalized if it becomes part of the property buyer.

3. Taxation

In most countries, tax legislation effectively determines accounting standards because the company should record revenue and expenses in their accounts to claim the tax purposes. In other words, financial and tax accounting tax is the same. In this case, as an example is the case in Germany and Sweden. In other countries like the Netherlands, different financial accounting and tax: taxable income is basically the accounting profit adjusted for differences in tax law. Of course, when the separate financial accounting and tax, tax rules sometimes require the application of certain accounting principles. Inventory valuation according Last Sign In First Out (last-in, first-out, LIFO) in the United States is an example.

4. Economic and political ties

Accounting ideas and technologies transferred through conquest, trade and similar forces. Recording system in pairs (double-entry) that began in Italy in the 1400’s is slowly spreading in Europe along with the ideas of reform (rannaissance) others. British colonialism and export accountant accounting concepts throughout the British dominions. German occupation during World War II caused the French to implement Plan Comptable. The United States forced the U.S. style of accounting regulatory regimes in Japan after the end of World War II. Many developing countries use accounting system that was developed elsewhere, either because it imposed on these countries (like India) or because of their own choice (such as Eastern European countries are now imitating the accounting system according to the rules of the European Union (EU).

5. Inflation

Obscure the historical cost accounting inflation through excessive reduction terhadapnilai asset values ​​and related expenses, while on the other hand to an increase in excess of revenues. Countries with high inflation often requires companies to perform a variety of price changes in their financial calculations. Mexico and several South American countries using the common accounting because of their experience with hyperinflation.

akuntansi internasional chapter2 (putri kusuma p)

NAMA :PUTRI KUSUMA P
NPM:20208973
KELAS:4EB11


CHAPTER 2 DEVELOPMENT AND INTERNATIONAL ACCOUNTING CLASSIFICATION

* Preliminary
Accounting functions are so important in life and business finance, indicates that the accounting in the international community to do business or service functions. Accounting must be responsive to the changing needs of society and must reflect the cultural, economic, legal, social and political life of the communities in which it operates. Thus accounting should be fixed in its position that it is technically and socially useful.
International accounting is accounting for international transactions, the comparison between countries of different accounting principles and harmonization of accounting standards in the field of tax authorities, auditing and other accounting areas. Accounting must evolve in order to provide the information required in decision-making in the company in any business environment changes.
In the International Accounting, there are several characteristics of the era of global economy, among others:

1.. International business
2. Loss of boundaries between countries global economic era is often difficult to identify the country of origin of a product or company, this is the case in multinational companies
3. Dependence on international trade

The reasons for Go International company:
1. Theory of comparative advantage
2. Imperfect market theory
3. Product cycle theory
4. Technology transfer and Strategic Alliance

The challenge for the accounting profession in the development of accounting:
1. Skill and competency of

2. Understanding the Cross Functional Linkages, accountants are not only quite proficient in the techniques, procedures and accounting standards but should also be used to view the business as an integrated form. Such as: product quality, production flexibility and the ability to rapidly produce and export in order to win the global competition

3. Financial analysis and comparison
The development of International Accounting has been accompanied by the ability of individuals should be engaged in the field of accounting for advance accounting contribute. International Accounting is a liaison between states. Eight factors that influence the development of international accounting should be well understood in order to create harmony between countries that trade.
Development of International Accounting
International accounting is accounting for international transactions, the comparison between countries of different accounting principles and harmonization of accounting standards in the field of tax authorities, auditing and other accounting areas. Accounting must evolve in order to provide the information required in decision-making in the company in any business environment changes.
Here are the characteristics of the era of global economy:
1. International business
2. Loss of boundaries between States era of global economy is often difficult to identify the country of origin of a product or company, this is the case in multinational companies
3. Dependence on international trade
There are 8 (eight) factors that influence the development of international accounting:
1. 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. Instead, the 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. In contrast, common law developed on a case by case basis without any attempt to cover all cases in which a complete code.

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. While a separate tax and financial accounting, tax rules sometimes require the application of certain accounting principles.

4. Politics and Economics Association

5. Inflation
Inflation causes the distortion of historical cost accounting and affect the propensity (tendency) of a State to apply the changes to the accounts of the company.

6. Levels of Economic Development
These factors influence the types of business transactions are conducted in an economy and determine what is most important.

7. Level of Education
Standard accounting practices are highly complex would be useless if misunderstood and misused. Disclosures about the risks of derivative securities will not be informative unless it is read by the competent authorities.

8. Culture
Four dimensions of national culture, according to Hofstede: individualism, power distance, uncertainty avoidance, masculinity.
The dimensions in the Accounting Practices Affecting Accounting:
1. Professionalism versus control mandatory preference to the implementation of individual professional balance and regulation of their own professional circles as compared to the compliance with legal provisions that have been determined.

2. Uniformity versus flexibility preference for uniformity and consistency than the flexibility to react to specific circumstances.

3. Conservatism versus optimism.

4. Confidentiality versus transparency preference for confidentiality and restrictions on business in accordance with the basic information need to know than the willingness to disclose information to the public.

Factors Affecting Development of Accounting World

There are eight factors that have significant influence in the development of accounting:

A. Sources of funding
2. The legal system
3. Taxation
4. Political and economic ties
5. Inflation
6. Level of economic development
7. Level of education
8. Culture

Four dimensions of national culture according to Hofstede, namely:
a) Individualism vs. collectivism is the tendency towards a social order composed of loosely arranged compared to the strict order and interdependent.
b) Large vs. Small Powr Distance (distance power) is the extent to which hierarchy and division of power in a power-sharing institutions and agencies and organizations in an unfair acceptable.
c) Strong vs Weak Uncertainty Avoidance (avoidance ketidakpasian) is the extent to which people feel uncomfortable with ambiguity and an uncertain future.
d) Masculinity versus femininity is the degree to which gender roles are differentiated and the performance and achievement can be seen more emphasis and attention than the relationship.

Choi et. al (1998: 36) describes a number of environmental factors are believed to have a direct impact on the development of accounting, among others:
1. Legal System
Codification of standards and accounting procedures seemed natural and appropriate in countries that adhere to code law. In contrast, the formation of a non-legalistic accounting policies by the professional organizations which work in the private sector more in line with the prevailing system in common law countries (common law). In the law of war or other emergency situations nasonal, all aspects of accounting functions may be regulated by a court or government agency. An example is the period of Nazi Germany, when preparations for war intensified and then during World War II the national accounting system requires a very uniform to control all activities of the national economy in total.
2. Political System
The existing political system in a country, too, accounting coloring, because the political system is “importing” and “export” standards and accounting practices. For example, the existing UK accounting during the turn of the 20th Century, “exported” to the Commonwealth countries. The Netherlands did the same to the Philippines and Indonesia, France to countries in Asia da African colonies. The Germans used to influence the political sympathies, among others, accounting in Japan and Sweden.
3. The nature of Business Ownership
Public ownership of the shares of the company implies the principles of financial accounting reporting and disclosure are different from companies whose ownership is dominated by the family or the bank. For example, public ownership is very high on the shares in U.S. corporations has resulted in the so-called Sunshine accounting disclosure standards of wide open, while the absence of public participation in the ownership of shares in French companies have limited financial communication is effective only to the channels of communication “insider” only. Bank ownership is high in Germany also produces a response different accounting. In the U.S., AICPA standards make specific recommendations for certain financial and accounting practices used by non-public companies are smaller.
4. Differences in magnitude and complexity of Business Companies
Dichotomy between large and small companies continues, ranging from insurance, up to all the parent-child hierarchy, including the complexity of the problem. Large conglomerate that operates in a very diverse line of business requires financial reporting techniques that are different from small firms that produce a single product. Multinational companies are also requiring a different accounting system accounting system with domestic firms.
5. Social Climate
Social climate also contribute to the development of accounting in different parts of the world. In France, leading to social responsibility reporting, whereas in Switzerland is still very conservative so large Swiss firms to report their financial condition is relatively compact. The Italian is still very much oriented to the tax, even in some Eastern countries and South America, together with the bookkeeping and accounting is not considered socially appropriate.
6. Competency levels of Business Management and Finance Community
Competence or ability of the user business management and accounting output will largely determine the development of accounting. Because the output is as sophisticated and as powerful as any accounting, business management, and if users can not read, interpret, and understand it will not do any good.
7. Interference with a Business degree Legislature
Regulation of taxation may require certain accounting principles. As in Sweden, where certain tax concessions should be recorded in accounting before it can be claimed for tax purposes; this is also the situation for the LIFO method of inventory valuation in the U.S.. Social protection laws also affect the various accounting standards. An example is the obligation to pay severance dio several South American countries.
8. There are certain Accounting Legislation
In some cases, there are specific legislative regulations for the rules and certain accounting techniques. In the U.S., the SEC determines standards of disclosure and accounting for large companies, with reference to the FASB.
9. Speed ​​Business Innovation
Initially, merger and acquisition activity is not taken into account in accounting, but due to the incorporation of a business that is so popular in accounting erofa force also developed to meet the needs of those concerned.
10. Economic development stage
Countries still rely on the agricultural economy requiring different accounting principles in the advanced industrial countries. In agricultural countries, the level of dependence on credit and long-term business contracts may still be small. So sophisticated accrual accounting is not useful and what is needed is a simple cash accounting.
11. Economic growth patterns
Stable economic conditions encourage greater competition for existing markets that require a stable pattern of accounting and will be much different in countries where conditions are experiencing a prolonged war.
12. Status of Education and Professional Organizations
In the absence of an organized professional accounting and resource
local accounting authority of a country, the standards of another area or another country may be used to fill the vacancy. English adaptation of the factors accounting is a significant environmental impact in the accounting world until the end of World War II. Since then, international adaptation process to switch to U.S. sources. Development of accounting, both from the state itself or adapted from other countries, will not succeed unless the environmental conditions such as those listed above are fully considered.

Like the business world in general, and its accounting practices in corporate financial disclosure in different countries is influenced by various factors. Radebaugh and Gray (1997:47) mentions at least two dozen factors that affect the company’s accounting system. Those factors are the nature of corporate ownership, business activities, funding sources and capital markets, tax system, the existence and importance of the accounting profession, accounting education and research, political systems, social climate, economic growth and development rates, inflation, regulatory systems regulations, and accounting rules.

More details, Radebaugh and Gray describes the relationship between the factors mentioned above with the following corporate accounting system.

1. Nature of corporate ownership
The need for disclosure of information and greater public accountability to be found on the company’s publicly-owned companies compared with the family firm.
2. Business activities
The accounting system is influenced by the type of business activity, such as agribusiness which is different from manufacturing, or a different small companies with multinational companies.
3. Sources of funding
The need for disclosure of information and greater public accountability to be found in companies that get funding from external shareholders as compared to the company with funding from banks or from the fund family.
4. Tax system
Countries like France and Germany using the company’s financial statements as a basis for determining income tax debt, while countries like the United States and Britain to use financial statements have been adjusted by the tax code as a basis for determining the tax debt and delivered separately to the financial statements to shareholders .
5. The existence and importance of accounting profession
Accounting profession that is more advanced in developed countries also make the accounting system used by more advanced than in countries that are implementing a centralized accounting system and uniform.
6. Accounting education and research
Accounting education and research carried out less well in countries that are developing. Professional development is also influenced by education and the quality of accounting research.
7. The political system
Political system run by a very influential country in the accounting system created to describe the philosophy and political objectives in the country, as does the choice of centralized planning (central planning) or privatization (private enterprises).
8. Social climate
Social climate is defined as the attitude of respect for workers’ rights and concern for the environment. Information relating to such matters generally affected the social system.
9. Rate of economic growth and development
Changes in economic structure from agriculture to manufacturing will show the other side of the accounting system, among others, began accounting for depreciation of machinery. Services industry also gave rise to consideration of the recording of intangible assets such as brands, goodwill and human resources.
10. The inflation rate
The onset of hyperinflation in some countries in South America makes the thought of using another approach as an alternative to historical cost approach.
11. Regulatory system
In countries such as France and Germany are using the civil codes, the accounting rules used tend to be detailed and comprehensive, in contrast to the United States and Britain are using the common law.

12. The accounting rules
Accounting standards and rules set out in certain countries is certainly not entirely the same as other countries. Role in determining standards of professional accountants and accounting rules were more common in those countries wherewith to enter the professional rules in the rules of the company, such as in Britain and the United States. Meanwhile, Christopher Nobes and Robert Parker (1995:11) explains the presence of seven factors that lead to important differences in the development of international accounting systems and practices. Such factors include (1) the legal system, (2) the owner of the funds, (3) the influence of the tax system, and (4) stability of the accounting profession. (5) inflation, (6) accounting theory and (7) accidents of history.

* The portion of the International Accounting Development

Furthermore Choi et.al (1998: 38) revealed that the structural development of international accounting happens now includes serving as follows:

A. Pattern of Comparative Development
The approach developed by Mueller differently to the development of accounting can be observed in western countries that have market-oriented economic system, including; makorekonomis pattern, the pattern mikroekonomis, disciplined approach to independent, and uniform accounting approach.

Patterns of macroeconomic
Business enterprise goal of course is narrower than the national economic policy. The Company has certain goals to be achieved, often operate in a dimension of time and space is limited, and accountable to the groups a clear ownership. Consequently, normally follows the company’s goal of national policy. This is not an absolute condition, because the company is part of the business that affects public kepntingan and directing national policies, so there is a causal relationship of reciprocity. There are three statements related to this pattern are:

1. Business enterprise is an essential unit in the structure of a country’s economy.
2. Business companies achieve their goals with the best possible way through its activities in close coordination with the policy-the policy of the national economy in its environment.
3. The public interest is well served if the company’s accounting business is closely linked with national policy.

Financial accounting-oriented makrekonomi may formally recognize the value of the discovery of mineral or oil content, calculate depreciation on productive equipment based on units of production, and allow the elimination of certain expenses quickly if this is of interest to regional or national economic development.

Mikroekonomis pattern
Market-oriented economy, including the economy is not so much got a central government administrative intervention, largely entrusted to the economic prosperity of the business activities indvidu individuals and businesses of each company. Thus, in this economy, there is a fundamental orientation which leads to every cell of the activity of the economy. It is so engrained in Western economic organizations in which the orientation is applicable to many business processes, legal, legislative and social issues.

With the activities of private and business as a core business in the market-oriented economy and to perform accounting services for business functions and business firms, it seems only natural that the accounting will orient itself to micro considerations of the same, which was formed in established in the environment. Some of the statements related to this pattern involves:

1. The company provides vocal spots for economic activities
2. The company’s main policy is to ensure business survival.
3. Optimization in the economic sense is the best policy of the company to survive
4. Accounting, economics as a branch of business, get the concepts and applications of the application of economic analysis.

The main accounting concepts in the pattern of development that is based on micro-economics is that the accounting must maintain a constant amount of monetary capital investment in the company’s real value.

Independent Discipline
Consider accounting as a function of business services to provide enough space to conclude that accounting can build a useful framework for the screened himself from the business process it serves. If this is possible, then the conceptual support of a discipline such as economics is not required. Accounting in other words, relying on him to be an independent discipline.

The dominant state in the Development of Accounting Practices

Some countries are dominant on the development of accounting include:
(1) 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.

* Knowledge of Basic Accounting Classification

Classification of the International Accounting basis of international accounting classification can be done in two ways, namely:

(1) deductive approach
Which identifies the relevant environmental factors and linking it with national accounting practices, an international grouping or pattern of development proposed.
(2) Inductive Approach
Accounting practices were analyzed individually, the pattern of development or grouping identified and at the end of the explanation is made from the standpoint of economic, social, political and other factors.

International accounting classification can be done in two ways: By considerations and empirically.

Classification of the International Accounting
International accounting classification can be done in two ways: By considerations and empirically. Classification with consideration depends on the knowledge, intuition and experience. Classification empirically using statistical methods to collect data accounting principles and practices worldwide.
There are 4 (four) approach to the development of accounting:
1. Based approach to macroeconomic
obtained from the accounting practices and are designed to improve the national macroeconomic objectives.

2. Based on microeconomic approach
accounting bekembang of microeconomic principles. The goal lies in the individual companies that have the purpose to survive.

3. Based on independent approaches
derived from the business accounting practices and develop an ad hoc basis, with the base slowly and consideration, trial and error, and errors. Accounting services is seen as a function of the concepts and principles taken from the business process being run, and not from the branches of science such as economics.

4. Based on a uniform approach
accounting distandariasi and used as a tool for administrative control by the central government. Uniformity in the measurement, disclosure, and will facilitate the presentation of the designer of government, tax authorities, and even managers to use accounting information in controlling all types of businesses.
Accounting system can also be classified by the laws of a State, namely:
1. Accounting in common law countries have a fair presentation of the character-oriented, transparency and full disclosure and the separation between financial and tax accounting. Dominate the stock market financial resources and financial reporting needs inofrmasi shown to outside investors. Accounting law commonly referred to as the Anglo Saxon.
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 ankuntansi. Bank or financial ksumber dominate the government and financial reporting and financial reporting is intended to protect creditors. Accounting is also called continental. Provision of accounting parallels the character referred to as the shareholder model and stakeholder role in corporate governance kelila state common law and the legal code.
Many differences in national accounting is becoming increasingly lost. There are several reasons for this
• Hundreds of companies today recorded its shares on stock exchanges outside their home country
• Some state legal code, in particular Germany and Japan to shift responsibility from the government’s establishment of accounting standards to private sector groups and independent professional
• The importance of the stock market as a source of funding is growing worldwide.
Classification based Padada fair presentation versus legal compliance pose a major influence on many accounting issues, such as:
1. depreciation, where the load is determined based on the reduction in the usefulness of an asset over the useful economic (fair presentation) or the amount allowed for tax purposes (legal compliance),

2. lease which is substantially the purchase of fixed assets treated as such (fair presentation) or treated as operating leases are common (legal compliance),

3. pension costs accrued at the time generated by the employee (fair presentation) or charged on the basis paid at the time to stop working (legal compliance).
Three regions are the largest equity market, North America, Asia Pacific, and Europe
1. North America
The U.S. economy is experiencing growth and market share without interruption for the year 1990 in 2000, both the NYSE and Nasdaq stock exchanges dominate others around the world in terms of market capitalization, trading value of domestic stocks, foreign stocks trading value, capital of the newly acquired company is registered, the number of shares of domestic companies listed and the number of foreign companies that list their stocks
2. Asia
Asia is expected to become the second most important equity markets. PRC (People’s Republic of China) has emerged as a major global economy and the countries of the “tigers” experienced phenomenal growth and development.
Some of the Asian financial crisis shows the vulnerability and immaturity of the economies in Asia and the slow growth of capital markets in the region. Plus the opinion of critics about the lack of accounting measurement, disclosure and auditing standards and monitoring the implementation and enforcement of these standards.
However, future growth prospects in Asia looks strong equity markets. Market capitalization as a percentage of gross domestic product (Gross Domestic Product-GDP) in Asia is low compared to the United States and some major European markets, which suggests that equity markets can play a bigger role in Asia’s economy
West

3.Eropa
Europe is the second largest equity market in the world in terms of market capitalization and trading volume. Economic expansion also contributed significantly to rapid growth in equity markets during the second half of 1990-related an.Faktor in continental Europe is slowly changing orientation towards equity has long been characteristic of London’s equity markets and North America.
EUROPEAN EQUITY MARKET
European capital markets are undergoing major changes in a short time, partly due to the globalization of world economy and the increasing economic integration within the European Union.
The new culture of equity in Continental Europe
The growth of equity culture in Europe is the basis for estimating the continued growth in European equity markets. Intense competition among European exchanges lead to the development of a culture of equity, which then become more oriented to the investor to enhance the credibility and attract new listings
Many securities regulators and stock exchange markets of Europe has carried out more stringent rules and strengthening enforcement efforts. However, fierce competition also led to the stock exchanges and national regulators to facilitate the listing rules of stock and give a special exemption for the company issuing the stock.
Although during the 1990’s the company in the Continental European corporate governance has begun to attract new capital and investors, but many companies including the world’s largest companies, is still far behind the standard of disclosure and listing of shares in the UK and North America.

* Differences Fair Presentation and Compliance with State Laws Against the Dominant

Differences fair presentation and compliance with law through many permasahan. This concerns the adjustments made to the application of IFRS as the basis for the presentation. Some problems include:

(1) Depreciation, where the load is determined based on the reduction in the usefulness of an asset during times of economic benefits.
(2) A lease which is substantially the purchase of fixed assets (property) treated as such (fair presentation) or treated as operating leases are common (legal compliance).
(3) 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).

* Differences Important Issues Fair Presentation and Compliance Against the Law

Important issues that occur when it is about the application of IFRS basis sebagau presentation. So that the countries that have not made adjustments to the fair presentation put through his report.

* The difference between fair presentation and conformity of law pose a major influence

The difference between fair presentation and conformity of law pose a major influence on many accounting issues. Accounting for common law oriented to the needs of decision-making by outside investors. Compliance with accounting laws are designed to comply with government imposed such as the calculation of taxable income or comply with the national government’s economic plan. After 2005, all listed shares of European companies will use fair presentation of accounting in consolidated statements because they will be using IFRS.

akuntansi internasional chapter1 (putri kusuma p)

NAMA : PUTRI KUSUMA P

NPM : 20208973

KELAS: 4EB11

CHAPTER 1 INTRODUCTION
1.1 Distinguishing local and international accounting
DIFFERENT INTERNATIONAL ACCOUNTING ACCOUNTING WITH OTHER

International accounting is accounting for international transactions, the comparison between countries of different accounting principles and harmonization of accounting standards in the field of tax authorities, auditing and other accounting areas. Accounting must evolve in order to provide the information required in decision-making in the company in any business environment changes.
Accounting and International Business
Some time ago, accounting for its ability to attract public attention through the accounting and human resource measurement, reporting and audit of the social responsibility of organizations. Current accounting operations including behavior in the environment, public sector and international. Accounting provides information to capital markets, large capital markets, both domestically and internationally. Accounting has been extended to the area of ​​management consulting and involving the greater portion of the information technology systems and procedures. Thus accounting clearly responsive to environmental stimuli. According to Choi and Muller, there are three major forces that drive the field of international accounting into the growing international dimension, namely (1) environmental factors, (2) The internationalization of the accounting discipline, and (3) The internationalization of the accounting profession. These three factors are in transit / progression was instrumental accounting and determine the direction of accounting theory for years and decades many experts and devote his mind to develop a theory of accounting and was a failure and that led to the evolution of "theorizing" to " conceptualizing ".
History and Development of the international accounting
Initially, the accounting begins with the double-entry system (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting. Modern accounting double entry accounting began to find and use in the business activities of multiple listing system (double entry bookkeeping) that was introduced by Lucas Pacioli (th 1447).
Lucas Pacioli was born in Italy in 1447, he was not an accountant but the priest who is an expert mathematician, and lecturer at several universities in Italy. Pacioli was the person who first published the basic principles of double accounting system in his book Summa Arithmeticageometria the proportionietproportionalita in the year 1494. Many historians argue that the basic principles of double accounting system is not a pure idea Pacioli but he only summarizes the accounting practices that took place at the time and publish it. It is recognized by Pacioli himself: "That Pacioli did not claim his ideas were original, just that he was the one WHO was Trying to organize and publish them. He objective was to publish a popular book That Could be used by all, following the influence of the venetian businessmen rather than bankers ". Business practices with the reference method VeneziaPacioli wrote the book has become the method adopted not only in Italy but in almost all European countries like Germany, Holland, and England.
Pacioli introduced three important notes that must be done:
A. Memorandum book, the book records of all business transaction information.
2. Journals, where the transaction whose information has been stored in a memorandum book and then recorded in the journal.
3. Great book, is a book that summarizes the above journals. General ledger is the center of the accounting system
Development of accounting systems is driven by the growth of international trade in Northern Italy during the late Middle Ages and the government's desire to find ways to impose taxes on commercial transactions.
"Bookkeeping Italian style" and then move on to Germany to help day traders and groups Hanseatik Fugger. At the same time the Dutch philosopher sharpen business income to calculate the periodic and French governments to implement the whole system of government in planning and accountability.
1850's double-entry bookkeeping reached the British Isles that causes the growth of public accounting and public accounting profession is organized in Scotland and England in the 1870s. UK accounting practice spread throughout North America and throughout the British Commonwealth. Besides the Dutch accounting model exported to Indonesia, among others, the accounting system in Polynesia French and African territories under French rule. Reporting framework of the German system is influential in Japan, Sweden, and the Russian Empire.
First half of the 20th century, as the growing strength of the U.S. economy, the complexity of accounting issues arise simultaneously. Accounting then recognized as a separate academic discipline. After World War II, the influence of Accountancy increasingly felt in the Western World.
For many countries, accounting is a national problem with national standards and practices that become embedded in national law and professional rules.
There are eight of eight factors that influence the development of international accounting:
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. Instead, the 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. In contrast, common law developed on a case by case basis without any attempt to cover all cases in which a complete code.
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 rules sometimes require the application of certain accounting principles.
4. Politics and Economics Association
5. Inflation. Inflation causes the distortion of historical cost accounting and affect the propensity (tendency) of a State to apply the changes to the accounts of the company.
6. This affects the level of development Ekonomi.Faktor types of business transactions are conducted in an economy and determine what is most important.
7. Education level. Standards are very complicated accounting practices will become useless if misunderstood and misused. Disclosures about the risks of derivative securities will not be informative unless it is read by the competent authorities.
8. Culture. Four dimensions of national culture, according to Hofstedeis individualism, power distance, uncertainty avoidance, and masculinity.
Growth and Spread of Multinational Operations
International business has traditionally been associated with foreign trade. This activity is rooted in the past, will continue berlanjut.Isu major accounting related to export and import activities are accounting for foreign currency transactions. International business are increasingly associated with foreign direct investment, which include the establishment manufacturing or distribution system from abroad by establishing a wholly owned affiliates, joint ventures or strategic alliances. Operations are carried out outside the country makes financial managers and accountants face the risk of all kinds of problems they face when the operation is not implemented in the company of the country.
The principle of national financial reporting may differ significantly from one country to another because of the accounting principles established by the different socio-economic environment. In addition there is a choice of the exchange rate used to convert foreign accounts into a single reporting currency. Financial managers and accountants must also understand the complexity of the environmental impact of accounting measurement of a multinational company, understand the effect of exchange rate changes and inflation is essential, knowledge of tax law and currency values ​​for the businesses that operate in more of the country.
Other factors also contributed the growing importance of international accounting is the phenomenon of global competition. Determination of reference (benchmarking), to compare the performance of an act of the parties with a reasonable standard is nothing new, but the standard of comparison used is now beyond national borders is nothing new.
Classification of the International Accounting
International accounting classification can be done in two ways: with consideration and empirically. Classification with consideration depends on the knowledge, intuition and experience. Classification empirically using statistical methods to collect data accounting principles and practices worldwide.
There are four approaches to the development of accounting:
A. Based on the macroeconomic approach, obtained from the accounting practices and are designed to improve the national macroeconomic objectives.
2. Based on microeconomic approach, accounting bekembang of microeconomic principles. The goal lies in the individual companies that have the purpose to survive.
3. Based on an independent approach, derived from accounting and business practices developed on an ad hoc, with the base slowly and consideration, trial and error, and errors. Accounting services is seen as a function of the concepts and principles taken from the business process being run, and not from the branches of science such as economics.
4. Based on a uniform approach, accounting distandariasi and used as a tool for administrative control by the central government. Uniformity in the measurement, disclosure, and will facilitate the presentation of the designer of government, tax authorities, and even managers to use accounting information in controlling all types of businesses.
Accounting can also be classified by the legal system of a country:
A. Accounting in common law countries have a fair presentation of the character-oriented, transparency and full disclosure and the separation between financial and tax accounting. Dominate the stock market financial resources and financial reporting needs infrmasi shown to outside investors. Accounting law commonly referred to as the Anglo-Saxon.
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 ankuntansi. Bank or financial ksumber dominate the government and financial reporting and financial reporting is intended to protect creditors. Accounting is also called continental. Provision of accounting parallels the character referred to as a model of shareholders and other interested parties kelila corporate governance role in common law countries and the legal code.
Many differences in national accounting is becoming increasingly lost. There are several reasons for this:
A. Hundreds of companies today recorded its shares on stock exchanges outside their home country.
2. Some state codes of law, in particular Germany and Japan to shift responsibility from the government's establishment of accounting standards to the private sector and independent professionals.
3. The importance of the stock market as a source of funding is growing worldwide.
Classification based Padada fair presentation versus legal compliance pose a major influence on many accounting issues, such as:
A. Depreciation, where the load is determined based on the reduction in the usefulness of an asset over the useful economic (fair presentation) or the amount allowed for tax purposes (legal compliance).
2. Lease which is substantially the purchase of fixed assets treated as such (fair presentation) or treated as operating leases are common (legal compliance).
3. Accrued pension cost at the time generated by the employee (fair presentation) or charged on the basis paid at the time to stop working (legal compliance).
Another problem is the use of reserves to smooth earnings discrete from one period to another. And fair presentation of substance over form (substance over form) is the main characteristic of the general accounting laws. Accounting drancang legal compliance to meet government regulations such as dikenankan calculation of taxable income or meet the national government's macroeconomic plans. Mamastikan conservative measurement that the number of shared care. Accounting for legal compliance will continue to be used in the financial statements of individual firms in code law countries where consolidated statements apply to the presentation of fair reporting. In this way, consolidated statements may provide information to investors, while individual company reports to comply with the law.

1.2 Explaining and understanding international accounting is divided into 3 parts
In the international accounting is divided into three broad areas, Accounting includes several extensive process include:
1. Measurement
Can provide in-depth feedback on the probability of a company’s operations and financial position of strength. The process of identifying, classifying and counting aktivtias and transactions, to provide input regarding the profitability and operating depth.
2. Disclosure
The process by which accounting measurement is communicated to the users of financial statements and used in decision making or process of communicating to the user.
3. Auditing
The process by which the special accounting professionals (auditors) perform attestation (testing) on ​​reliability of measurement and communication processes.

1.3 Knowing the history of international accounting and financial sector policy trend

Initially, the Accounting begins with double-entry system (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting. Modern accounting double entry accounting began to find and use in the business activities of multiple listing system (double entry bookkeeping) Luca Pacioli introduced by (yr 1447).
Luca Pacioli was born in Italy in 1447, he was not an accountant but the priest who is an expert mathematician, and lecturer at several universities in Italy. Lucalah person who first published the basic principles of double accounting system in his book: the Arithmeticageometriaproportioni Summa etproportionalita in the year 1494. Many historians argue that the basic principles of double accounting system is not a pure idea Luca, but he only summarizes the accounting practices that took place at the time and publish it. It is admitted by Luca (Radebaugh, 1998) “Pacioli did not claim That his ideas were original, just that he was the one WHO was Trying to organize and publish them. He objective was to publish a popular book That Could be used by all, following the influence of the venetian businessmen rather than bankers “. Business practices with the reference method venetian Luca wrote the book has become the method adopted not only in Italy but in almost all European countries like Germany, the Netherlands, Inggris.
Luca introduced the 3 (three) important notes that must be done:
1. Memorandum book, the book records of all business transaction information.
2. Journals, where the transaction whose information has been stored in a memorandum book and then recorded in the journal.
3. Great book, is a book that summarizes the above journals. General ledger is the center of the accounting system (Raddebaugh, 1996).
Development of accounting systems is driven by the growth of international trade in Northern Italy during the late Middle Ages and the government’s desire to find ways to impose taxes on commercial transactions.
“Bookkeeping Italian style” and then move on to Germany to help day traders and groups Hanseatik Fugger. At the same time the Dutch philosopher sharpen business income to calculate periodic and French governments to implement the whole system of government in planning and accountability.

1850’s double-entry bookkeeping reached the British Isles that causes the growth of public accounting and public accounting profession is organized in Scotland and England in the 1870s. UK accounting practice spread throughout North America and throughout the British Commonwealth. Besides the Dutch accounting model exported to Indonesia, among others, the French accounting system in Polynesia and Africa regions under French rule. Reporting framework of the German system is influential in Japan, Sweden, and the Russian Empire.
First half of the 20th century, as the growing strength of the U.S. economy, the complexity of accounting issues arise simultaneously. Accounting then recognized as a separate academic discipline. After World War II, the influence of Accountancy increasingly felt in the Western World.

For many countries, accounting is a national problem with national standards and practices that become embedded in national law and professional rules.
CONTEMPORARY PERSPECTIVE
There are a number of additional factors that add to the importance of studying international accounting. These factors and the significant reduction tumbah of persistent trade barriers and capital controls are nasioanal that has occurred over the progress of information technology.
National controls on capital flows, foreign exchange, foreign direct investment and related transactions have been liberalized dramatically in recent years, so the resistance is reduced international business.
Advances in information technology led to radical changes in economic production and distribution.

GROWTH AND SPREAD OF MULTINATIONAL OPERATIONS
International business has traditionally been associated with foreign trade. This activity is rooted in the past, will continue.
The main accounting issues related to export and import activities are accounting for foreign currency transactions. International business are increasingly associated with foreign direct investment, which include the establishment manufacturing or distribution system from abroad by establishing a wholly owned affiliates, joint ventures or strategic alliances.
Operations are carried out outside the country makes financial managers and accountants face the risk of all kinds of problems they face when the operation is not implemented in the company of the country.
The principle of national financial reporting may differ significantly from one country to another because of the accounting principles established by the different socio-economic environment. In addition there is a choice of the exchange rate used to convert foreign accounts into a single reporting currency.
Financial managers and accountants must also understand the complexity of the environmental impact of accounting measurement of a multinational company, understand the effect of exchange rate changes and inflation is essential, knowledge of tax law and currency values ​​for the businesses that operate in more of the country.
GLOBAL COMPETITION
Other factors also contributed the growing importance of international accounting is the phenomenon of global competition. Determination of reference (benchmarking), to compare the performance of an act of the parties with a reasonable standard is nothing new, but the standard of comparison used is now beyond national borders is nothing new.
Examples of relevant questions “if I add much value to me compared to their customers located in other countries”.
MERGERS AND ACQUISITIONS TRANSBOUNDARY
Mergers are generally summarized by the term operating synergies or economies of scale, accounting plays an important role in this mega consolidation because the numbers generated fundamental accounting firms in the assessment process. National measurement differences can complicate the process of appraisal firms.
For example, the company penialaian often based on a factor – factor-based pricing (price), such as price earnings ratio (P / E). The approach here is to reduce the average – average factor P / E for comparable companies in the industry and the application of this factor on earnings reported by companies that are rated to produce an adequate bid price.
The main concern that the company will make acquisitions when the target is to offer a foreign acquisition is the extent to which factor E (earnings – earnings) in the size of the P / E is a reflection of precisely the variable being measured, when compared with results from differences in accounting measurement.
FINANCIAL INNOVATION
Manejemen risk has become a popular term in the corporate environment and management. With the deregulation of financial markets and capital controls continue to be made, vollatilitas in commodity prices, foreign currency loans and equity become commonplace today. Berdasaran today’s world financial managers need to be aware of the risks they face, decide which risks need to be protected and evaluate risk management strategies are executed. Although advances in technology allow the shifting of financial risk to others, but to measure the burden of risk between the parties are not transferable and are now on the part of a large group of market participants in other countries.
Internationalism CAPITAL MARKET
That many factors contribute more attention to international accounting among corporate executives, investors, market regulators, accounting standard makers and science educators is the internationalization of capital markets businesses around the world.
Federation of World Capital Markets (World Federation of Exchanges) reports that domestic companies listed its shares rising in some markets and decreases in some other markets during periods of decades now, which is partly due to mergers and acquisitions, which also resulted in the delisting of shares (delisting) conducted several related companies.

1.4 Understanding the role of accounting in the field of global business and market modak.
* THE INTERNATIONAL ACCOUNTING

International accounting covers two main aspects of the discussion is a description and comparison of the dimensions of accounting and accounting for international transactions. In the first aspect, discussed the idea of ​​international accounting standards and accounting practices in various countries as well as accounting standards and practices are compared to each country are discussed. In addition, international accounting aspects also discussed financial reporting, foreign exchange, taxation, international auditing and management for international business.

* ROLE IN THE AREA OF ACCOUNTING AND CAPITAL MARKETS GLOBAL

Other factors also contributed the growing importance of international accounting is the phenomenon of global competition. Determination of reference (benchmarking), to compare the performance of an act of the parties with a reasonable standard is nothing new, but the standard of comparison used is now beyond national borders is nothing new.

According to the regulations in the United States, to be listed on the NYSE Market issuers need to do the following.
A. The registration process
2. Submit financial statements. They can use U.S. GAAP, IAS or GAAP of each country but each have additional requirements include:
a. Fill out Form 20-7 for the annual report
b. To reconcile net earnings and equity to conform with U.S. GAAP
c. Provide disclosure in accordance U.S. GAAP
d. Submit quarterly reports that are not necessary in the audit

As we know that the capital market watchdog aims to protect public shareholders, especially individual investors (individual investors). While the Private Placement or Institutional Investor market is usually considered to have the ability to examine the feasibility of an investment sehinggan not need to specifically get government protection.

In global capital markets transactions known QIB (Qualified Institutional Buyers). This grouping is intended to limit the institutional market participants. This group must be at least menginvest of U.S. $ 250 quadrillion. For this investor group typically does not require much disclosure (disclosure) the financial statements.

In addition known as ADR or American Depositary Receipts. This method is intended to convert the shares into the domestic market from outside the United States making it more compatible with economic conditions and investors. For example, the stock value of $ 10,000 can be broken down to be worth U.S. $ 100 per share or U.S. $ 0.10 seballiknya can be made to U.S. $ 100.00 per share. In addition there is another ADR GDR (Global Depository Receipts) that the nature and meaning as to facilitate the investors to invest in a variety of markets, companies or countries.
This situation is all the trigger and accelerate the process towards a global market and global accounting standards.