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 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.Harmonization and International Accounting ConvergenceIn the known existence of financial accounting standards must be followed in making the financial statements. The standard is necessary because of the many users of financial statements, even for a similar financial statements. If there is no standard, the company may present its financial statements at their disposal in accordance with the will of their own. This will be a problem for users because it will make it difficult for them to understand the existing financial statements.Existing standards for financial accounting standards made by the board in each country. Council is to set standards of accounting standards applicable in the country and used by entities that exist in the country as well. Because the accounting standards prepared and compiled by each board of standards in each country, accounting standards from country to country may differ greatly.Currently, when the business world can be said almost without limit state, the production of resources (eg money) that is owned by an investor in a particular country can be moved easily and quickly into the country through mechanisms such as the stock market. Of course there will be a problem when the accounting standards used in different countries accounting standards used in other countries. Investors and potential investors and creditors and potential creditors will have great difficulty in understanding the financial statements are presented with different standards.

Harmonization is a process to improve the compatibility (suitability) accounting practices by setting limits on how large these practices may vary. Harmonization of standards will be free of conflicts of logic and can improve the comparability (comparability) of financial information from different countries.Efforts to harmonize accounting standards have been started long before the establishment of the International Accounting Standards Committee in 1973. More recently, a number of companies seeking to raise capital in markets outside the country of origin and the investors who seek to diversify their investments internationally face increasing problems as a result of national differences in terms of accounting, disclosure, and audit.Sometimes people use the term harmonization and standardization as if both have the same meaning. However, contrary to the harmonization, standardization generally means the determination of a group of rigid rules and narrow and may even be the application of a single standard or rule in any situation. Standardization does not accommodate the differences between countries, and therefore more difficult to diimplemntasikan internationally. Harmonization is much more flexible and open, do not use one size fits all approach, but to accommodate some of the differences and have experienced great progress internationally in recent years.Comparability of financial information is a concept that is more clear than harmonize. The information generated from the system of accounting, disclosure and audit different or comparable if it has a similarity in the way in which users can compare the financial statements without the need to familiarize themselves with more than one system.Harmonization of accounting include:
1. Accounting standards (which relates to the measurement and disclosure.
2. Disclosures made by public companies associated with the securities offering and listing on the stock exchange, and
3. Auditing standards
Advantage of international harmonization
• Language, Those who use English as their mother may feel fortunate that English be the language that is widely used around the world.
• Harmonization of taxation's social security system, advantage. Businesses will experienced the benefits of a large cukuo in planning, systems and training costs, and so of harmonization.

Loss of international harmonizationTaxation and social security systems have a strong influence on economic efficiency. Different systems have different effects. The ability to compare how the different approaches in different countries led to the countries capable of increasing their respective systems. Countries competing and competition forced them to adopt an efficient system through the operation of such market power. Approval of the tax system would be like establishing a cartel and would eliminate the potential benefits of interstate competition.A recent paper also supports the existence of a harmonized global GAAP. The benefits:
1. Into global capital markets and investment capital can move across the world without hambaran means. High-quality financial reporting standards that are used consistently throughout the world will improve the efficiency of capital allocation.
2. Investors can make better investment decisions, be more diverse portfolio and reduced financial risk
3. companies can improve decision making strategies in the areas of mergers and acquisitions
Harmonization is a process to improve the comparability (compliance) with the accounting practices to determine the limits on how large these practices may vary. In simple terms the harmonization of accounting standards may mean that a country does not fully follow the internationally accepted standards. Only make the country accounting standards that they have no conflict with international accounting standards.Harmonization is very flexible and open so that there may be differences between the standards followed by the country with international standards. It's just a difference in the standard sought is not a distinction that is contradictory. During the differences were not opposing these standards continues to be used by the country concerned.Convergence in accounting standards and international standards in the context of future intended means there will be only one standard. One then applies that standard to replace the standard that had been made and used by the state itself. Before there was convergence of standards is usually the difference between the standards that were developed and used in the country by international standards.Convergence of standards would remove the differences slowly and gradually so that there will be no longer a difference between the state standards with internationally accepted standards.

ACCOUNTING SYSTEM IN JAPAN


Accounting and financial reporting in Japan reflects a combination of domestic and international influences. Two separate government agency responsible for the regulation of accounting and corporate income tax law in Japan have more influence as well. In the first half of the 20th century, reflecting the effect of German accounting thought; in the second half, the ideas of the influential U.S.. Lately, the influence of the International Accounting Standards Board began to be felt and in 2001 major changes occurred with the establishment of private sector organizations as a maker of accounting standards.Firms - Japanese firms have equity shares each to each other, and often times together have another company. These investments are interlocked industrial conglomerate that produces meraksasa called keiretsu.Keiretsu venture capital is in line with the reform of structural changes in the Japanese to overcome economic stagnation that began in 1990 - an. The financial crisis that followed the breakup of the Japanese bubble economy is also pushing for a thorough evaluation of the Japanese financial reporting. It is apparent that many accounting practices to hide how bad the Japanese companies.A major change in accounting was announced in late 1990 - to create an economic health of Japanese companies become more transparent and bring Japan closer to international standards.Accounting Regulations and Enforcement RulesThe national government has the most influence signifikann of accounting in Japan. Accounting regulation is based on three laws: Commercial Law, Capital Market Law and the Income Tax Law of the Company. These three laws are associated and related to one another. Japanese researchers called the situation a person is a "triangle Legal System".Commercial law is governed by the Ministry of Justice (MOJ). The law is at the core of accounting regulation in Japan and most have a major influence. A company incorporated under the Commercial Law are required to meet the accounting provision, which was published in the "rules concerning the balance sheet, income statement, statement of business, and supporting schedules with a limited liability company.Public-owned enterprises shall further comply with the Capital Market Law (Securities and Exchange Law - SEL) is regulated by the Ministry of Finance. SEL is made pursuant to - U.S. Capital Market Act and imposed on Japan by the United States during the U.S. occupation after World War II. The main purpose of SEL is to provide information in making investment decisions.

Accounting Business Advisory Council (Business Accounting Deliberation Council - BADC) is a special advisory body to the Ministry of Finance is responsible for developing accounting standards in accordance with the SEL. BADC was appointed by the Ministry of Finance and working part time. They come from academia, government, business circles as well as members of the Institute of Certified Public Accountants in Japan (Japan Institute Of Certified Accountants - JICPA). (BADC members have a background in accounting, in contrast to the legal background for individuals who work in the issue - the issue of Commercial Law at the Ministry of Justice). BADC is supported by a research organization known as the Research Institute of Finance (Corporate Finance Research Institute).JICPA a CPA professional organization in Japan. The whole CPA must be a member of JICPA. In addition to providing guidance in the implementation of an audit, JICPA published guidance in the implementation of the accounting issues and consulting with BADC in developing accounting standards. Auditing standards generally accepted (like those in the United States), distributed by the BADC more than by JICPA.Financial ReportingCompany incorporated under the Commercial Law shall be obliged to prepare a report which must be approved in the annual meeting of shareholders, which contains the following:
1. Balance
2. Statement of Income
3. Business Report
4. Proposal for Determination of Use (appropriation) Retained Earnings
5. Supporting Schedule
Companies that list their stocks should also prepare financial statements in accordance with the Capital Market Law (Securities and Exchange Laws - SEL) which generally requires the same basic financial statements with the Commercial Law plus the cash flow statement. However, according to the SEL, konsolidasilah reports of major concern, not the parent company financial statements. Tambhan schedule footnote is also required. Financial statements and schedules are prepared in accordance with the SEL must be audited by independent auditors.Accounting MeasurementCommercial law requires large companies to prepare consolidated reports. In addition, shares of listed companies must prepare consolidated financial statements in accordance with the SEL.Most of the previously described accounting prakrik implemented in recent years as a result of the Great Changes in Accounting as mentioned earlier. Changes - changes in the past include: 
(1) requires companies that list their stocks to make a cash flow statement, 
(2) expand the number of subsidiaries are consolidated under the control of owned and not a percentage of ownership, 
(3) expand the number of affiliated companies accounted for under the based on the equity method and not a significant influence on the percentage of ownership, 
(4) assess the investment in securities of the market price rather than cost, 
(5) full provision for deferred obligations, and
(6) full accrual for pension and other retirement obligations. Accountancy in Japan being reshaped to fit the IFRS

Chinese Accounting System


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

Accounting system IN THE NETHERLANDS

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

Source :

weblog http://wartawarga.gunadarma.ac.id/2011/03/faktor-akuntansi-internasional/

http://akuntansiindra.blogspot.com/2008/08/akuntansi-komparatif.html

http://faris31.wordpress.com/2011/02/22/harmonisasi-dan-konvergensi-akuntansi-internasional/

http://hendriyono120887.wordpress.com/2008/05/19/standar-akuntansi/

PRELIMINARY

International accounting differences bring a number of problems from the standpoint of financial analysis.
 1. First, in an effort to assess foreign companies, there is a tendency to look at revenues and other financial data from the standpoint of their home country, and because of the danger of ignoring the effects of accounting differences. Unless significant difference was taken into account, possibly with some involvement of a restatement, it may have very serious consequences.
 2. Secondly, awareness of international differences suggest the need to become familiar with generally accepted accounting principles as a destination for foreign countries to know better income data in the context of measurement. 
3. Third, the issue of comparable properties and the harmonization of accounting is reviewed in the context of alternative investment opportunities.
Differences that arise due to: 
1. economic growth,  
2. inflation,
3. political system, 
4. education,
5. accounting profession, 
6. tax laws,
7. money market, and
8. capital.In this case, 
Choi and Levich (1991) provides a useful framework for analyzing the impact and relevance of the differences in similarity and no resemblance to the economic environment. In an environment or a situation similar to the accounting, the accounting differences is un logisan and clues to the results that can not be compared. Logical practices suggest that the accounting treatment of similar / same. When the economic environment is not the same, but, as in the case of international investment, accounting differences can be justified, particularly where lies the lack of similarity exists in company laws, tax laws, finance, business customs, culture, accounting and so on. On the other hand, a similar accounting treatment may be justified when several factors have some significant similarities. Understanding the importance of environmental factors and cultural / cultural are all concerned.In the international accounting is divided into three broad areas, Accounting includes several extensive process include:
1. MeasurementCan 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. DisclosureThe 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. AuditingThe process by which the special accounting professionals (auditors) perform attestation (testing) on ​​reliability of measurement and communication processes.At first, beginning with the accounting system of double-entry (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 started in double entry accounting was found and used in business activity, namely the multiple listing system (double entry bookkeeping) Luca introduced by paciolo (in 1447).Double entry bookkeeping (double entry bookkeeping) is a standard practice of recording financial transactions. Bookkeeping process only involves recording transactions in a variety of journals and books giving estimates of the classification code (ie the collection of raw financial data), which became the basis for the accounting systems that collect and organize raw data into useful information.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. Luca who first published the basic principles of double accounting system in his book: the Arithmetica geometria proportioni Summa et proportionalita in 1494. However many historians argue that the basic principles of double accounting system is not a pure idea Luca but he only summarizes the accounting practices that took place at the time and publish it. It is recognized by the Lica (Radebaugh, 1998).Business practices with the reference method venetian Luca wrote the book has become the method adopted not only in Italy but almost all the countries of Europe such as German, Dutch, English.Accounting models in Dutch exports to Indonesia, among others, the accounting system in the French Polynesian and African territories under French rule. Reporting framework of the German system is influential in Japan, Sweden, and Russian empires. Half of the 20th century, as growing economic power of the United States, the complexity of accounting issues arise simultaneously. Then accounting is recognized as a separate academic discipline. After World War II, the accounting impact increasingly felt in the western world. Accounting is supported by the development of education (the emergence of business schools), as times change and the development of international relations, the hassle of getting into accounting.Board of Governors of BI finally lowered the BI Rate by 50 basis points to 8.75%. Consideration, relatively low levels of inflation in December 2008 that inflation in 2008 is still in the range of 11%. The pattern of monetary policy is to inform you that the BI policy rate expected from far more to keep the inflation rate and not be oriented directly stimulate the real sector. Trends in this policy, when implemented in a normal economic conditions are not problematic, but when the economy is experiencing a variety of pressures as they are now, then obviously it will slow efforts to increase the production rate of national output. Therefore, in the context of current policy penutrunan BI rate is indeed very appropriate because it is supported by the decrease in national demand, so that the relative price level maintained the benchmark interest rate reduction can be done.Caring for Purchase PowerOutside the academic debate over, the decline in BI rate today is expected to spur a national production level, either by the micro-small and medium-large. This is because there are fundamental differences between the current crisis with economic tragedy of 1997/1998. In the current context, the economic pressure not only affects large corporations but also micro, small and medium enterprises. Therefore, all the elements of the business in Indonesia must have a policy of equal facilities. If the crisis of 1997/1998 SME sector can be used as substitute support big business, where big corporate layoffs can be transferred to the micro and small sector, so when this pattern can not be done. This caused a decrease in demand nationally and globally to increase the supply of micro and small sector will be difficult to be absorbed by the market.Based on these conditions, the decrease in BI rate today is not only functioned to maintain and increase national production, but also should be used to secure the national purchasing power. That way, the national-level demand for global markets are still depressed and there is no substitute Indonesia's export markets-will be maintained so that the decline in interest rates has a strategic function in accelerating the rate of production offerings. At this point, the various economic stimulus that has been issued by the government and would be positioned integral with monetary policy. The direct economic stimulus policies functioned to maintain and increase national production. Meanwhile, the decline in BI rate is not directly used menjada national purchasing power, so that every occurrence of increased production can be followed by an increase in demand.The issue of "Time Lag"In implementation, the policy does not necessarily decline in BI rate can directly increase the production and consumption through credit schemes. This is due to any decline in interest rates is not immediately followed by a decrease in lending rates by the banking sector. In a normal economy, time lag from the BI rate to decline in mortgage interest required tempo of about 3 months, so the time lag times of crisis is now probably much longer. Worse yet, the issue is not regulated so that the BI as the monetary authority can not force banks directly lowered interest rates following the reduction in the BI rate. This is compounded by the reality that the current banking structure from predominantly foreigners, so that the financial intermediation function to its full potential to be difficult to achieve (though local banks are also contributing to the slow movement of the lending function.)Ineffectiveness of this intermediary function can actually be minimized by effectively utilizing the existing instruments. Four state-owned banks (Mandiri, BNI, BRI and BTN) as a subordinate state can be positioned as a tool to ensure the policy objective of BI is running effectively. Government as majority owner of state-owned banks should be able to force the country's business units so that the lower the mortgage interest credit faster. Acceleration potential of state-owned bank loans is quite large because of the four has a major contribution in the national banking structures. Up to October 2008, four state-owned bank that controls 35.67% of third party funds (DPK) [Banking Statistics Indonesia, 2008]. With the mastery of a relatively large deposits and the interest rate penyesusian the state-owned bank loans to the BI rate, then the national average of 34.52% of credit that has been distributed state-owned banks must be enhanced.It was even so, the overall contradiction between monetary policy and its implementation has provided a description of the current economic structure of the building is very fragile. Monetary policy set by the macro-scale quantitative indicators when implemented on the ground have a much deviation, either because of moral hazard or the infrastructure sector alone are not real good. In a side view, the reluctance of banks lowering mortgage interest can be understood as a still greater credit risk (low purchasing power, political stability is doubtful because of the election events, etc.). However, overall these arguments should not be allowed to become an excuse for all the economic players in the banking sector. This is where the monetary authorities have to be smart to understand the behavior of the banking community in order to decrease BI rate policy effectively run that has implications for the acceleration of the recovery in the real sectorThe Role of Accounting in the Global Capital MarketsIn the era of globalization, businesses and communities have become increasingly complex so requires the development of a variety of disciplines including Accounting. Accounting plays an important role in the economic and social as any financial decisions should be based on accounting information. This situation makes accounting as a profession that is needed existence within business organizations.The business world faster and faster and very varied. Areas that were not of the thought as the business sector is now a major sector. The development of the accounting profession to rise even more after 1985, Bebarengan with the JSE. Bank high interest rates encourage people to find alternatives to meet its capital requirements, increasing competition among companies to be accompanied various problems faced by companies in Indonesia. In the face of all the managers of the company was in dire need of accounting information in decision-making framework.Accounting has developed very rapidly in line with business growth and development of securities, especially shares in the capital markets business. The American public already knows the business since 1900 (Belkaoui, 2007). In the transaction, both the investors and prospective investors have been using the company's financial information as one of the guidelines in making predictions and for making business decisions, the investment in securities, particularly stocks. Positive developments are happening to the stock business in the U.S. capital markets also showed that companies will need capital also increased in step with market developments. This development also shows that capital markets play an important role in the economy of a country, especially the United States in that era. In addition, it also means that the needs and role of accounting information becomes increasingly important.The Role of Accounting in the Global Business SectorIndonesia's economic downturn caused by the 1997 economic crisis mementalkan John Naisbitt predicted that Indonesia will become one of the tigers of Asia. In 2000, three years after the crisis, at a time when other countries are also affected by the crisis such as Thailand, South Korea, the Philippines and Malaysia have obtained a significant improvement of the economy, Indonesia's economy (GDP) grew only 0.2%.(Asian Recovery Information Center - ADB: May 2000) Tanri Abeng (1999) in Djalil (2000), states that there are six basic root of the problem that causes slow improvement in Indonesia's economy, namely: 
1. It turned out that the rapid growth of Indonesia before the crisis because it encouraged more investment growth is not due to efficiency and innovation 
2. The majority of the market value of listed companies on the JSE was overvalued (90% of the value of publicly traded companies is determined by the growth expectation, only 10% above the real ability to earn profits; different from developed countries, 30% growth expectation, 70% of real ability)
3. Company's financial structure is not healthy (loans over 100% compared to its equity, healthy company should be below 50% of ekuitinya)
4. The existence of mark-up in lending.
5. Unhealthy concentrations of economic (economic pyramid, above: there are 200 private conglomerate owned by 50 families, were: almost empty. 
6. There is no good governance (the lowest according to McKinsey 1999)On the other hand, Indonesia faced economic challenges of the 21st century that economic globalization. Economic globalization is a process of economic activity and trade, in which countries around the world into one market power is increasingly integrated with the territorial limits of the state without a hitch.

Source :

http://tikanurmalasari.blogspot.com/2011/03/akuntansi-internasional-part-1.html
http://wartawarga.gunadarma.ac.id/2011/05/1-tugas-soft-skill-akuntansi-internasional/

http://rahasiaakuntansi.blogspot.com/2010/10/perbedaan-akuntansi-internasional-dan.html

http://eriahandaresta.blogspot.com/2011/03/akuntansi-internasional-minggu-1.html