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.