REPORTING AND DISCLOSURE
A. DEVELOPMENT
OF DISCLOSURE
Development of
the disclosure system is closely associated with the
development of accounting systems. Disclosure standards
and practices are influenced by financial resources, legal
systems, political and economic ties, the level
of economic development, education, culture, and other
influences.
National different in disclosure is
driven largely by differences in corporate governance and
finance. In the United States, Britain
and other Anglo-American countries, equity markets provided most
of the funding that the company needs to be very advanced. In these
markets, ownership tends
to spread widely among many
shareholders and investor protection is
emphasized. Institutional investors play an increasingly important role in these
countries, demanding financial returns and increasing shareholder value.
In most other
countries (like France, Japan and some emerging
market countries), share
ownership is still highly concentrated and
the bank (or the owner and family) has
traditionally been a major source of corporate
financing. These bank, and the other in obtaining more
information about the company's financial
position and activities.
§
Voluntary Disclosure
Some studies show that
managers have incentives to reveal information about the company's current
performance and future time voluntarily. In a recent report, the Financial
Accounting Standards Board (FASB) describes a FASB project on business
reporting which supports the view that the company will benefit from the
capital market by increasing voluntary disclosure. The report outlines how
companies can describe and explain its investment potential to investors.
A number of rules, such
as accounting and disclosure rules, and approval by a third party (such as
auditing) can improve the functioning of the market. Accounting rules to
try to reduce the ability of managers in record economic transactions in a
manner that does not represent the best interests of shareholders. Disclosure
rules establish provisions to ensure that shareholders receive timely, complete
and accurate.
Investors the world
demanding more detailed information and more timely voluntary disclosure level
is increasing both in developed countries and developing countries. Financial
reporting to be a mechanism of communication with outside investors who do not
complete if the incentives are not aligned with the interests of managers of
all shareholders. Communications manager with outside investors would be
incomplete if:
1. Manager has the advantage of information about the company.
2. Urge managers are not perfectly aligned with the interests of all shareholders.
3. Accounting and auditing rules are not perfect.
1. Manager has the advantage of information about the company.
2. Urge managers are not perfectly aligned with the interests of all shareholders.
3. Accounting and auditing rules are not perfect.
Company managers often
delay disclosure of negative news and the financial statements further
demonstrate the positive side of the company and assess more performance and financial
prospects set comapany. Rule disclosure provisions - provisions to ensure that
shareholders receive timely, complete and accurate. While the external
auditor to try to ensure that the accounting manager apply appropriate
accounting policies, make a reasonable estimate, has a record of accounting and
control systems provide adequate and timely disclosure. Choice of
disclosure by managers and reflects the combined effect of the disclosure
provisions and incentives to disclose information voluntarily.
§ Mandatory Provisions and Disclosure
Stock
exchanges and government regulatory
agencies generally require that listed companies to
foreign companies to share financial
information and nonfinancial information similar to
that required for domestic firms. Any information
that was announced, which was distributed to
shareholders or reported to regulatory agencies in the
domestic market. However, most states do not monitor or enforce the
implementation of the provisions
of "suitability disclosure between the (jurisdiction)."
Protection
of shareholders differ from country to country. Anglo American countries such
as Canada, Britain and the United States to provide protection to
shareholders who are
widely and strictly enforced. In contrast, the
protection to the shareholders received less
attention in some other countries like China for example, prohibiting insider trading(trading that
involves the inner circle), while weak law enforcement make
the enforcement of these rules are almost non-existent.
§
Reporting and Disclosure Practices
Mandatory disclosure is
the disclosure of accounting and reporting must be reported in accordance with
Accounting Standards which embrace in their respective countries. The goal
Investor Protection. Investor information and material through the
monitoring and enforcement.
In particular:
1) Provide information material to investors.
2) Monitor and enforce market rules.
3) Addressing Cheating in a public offering, trading, voting and securities offerings.
4) Trying to find comparability of financial information.
Market Characteristics :
Market is fair, orderly, and efficient system of free from abuse and error - error:
1. Promote equal access to the information and the opportunity to view (equity market) increase liquidity and reduce transaction costs (market efficiency).
2. Donated through the supervision and enforcement of freedom from abuse through monitoring.
1) Provide information material to investors.
2) Monitor and enforce market rules.
3) Addressing Cheating in a public offering, trading, voting and securities offerings.
4) Trying to find comparability of financial information.
Market Characteristics :
Market is fair, orderly, and efficient system of free from abuse and error - error:
1. Promote equal access to the information and the opportunity to view (equity market) increase liquidity and reduce transaction costs (market efficiency).
2. Donated through the supervision and enforcement of freedom from abuse through monitoring.
The practice of disclosure
in the annual report reflects the response of the manager of the provisions act
of expressing issued by the regulator and the incentives they get if you
provide information to users of financial statements voluntarily. If it is
not required act of expressing becomes voluntary. Company managers will
not comply with disclosure rules if it raises compliance costs greater than the
cost of non-compliance. It is important to distinguish between disclosure
of the "required" and that obviously made the disclosure. Focus
attention only to the rules of disclosure without a real look at the practice
of disclosure would be misleading. Disclosure rules around the world are
very different in some ways like Cash and flow statement of changes in equity,
related party transactions, segment reporting, the fair value of financial
assets and liabilities and profit a stock.
Disclosure to be discussed are:
1) Disclosure of Seeing the Future
Disclosure of information to see the future is considered highly relevant in equity markets around the world. The term "information see the future" include:
a. Forecast revenues, income (loss), earnings (loss) a stock, capital expenditures and other financial post.
b. Prospective information regarding the performance or future economic position is not too sure when compared with the projection of the post, the fiscal period, and the projected amount.
c. Reports of management plans and objectives of future operations.
Most companies in each country presents a disclosure of information about plans and goals managemant. Conversely fewer companies that disclose prophecy, from the lowest two companies in Japan and the highest 31 companies in the United States. Most forecasts in the U.S. and Germany regarding capital expenditure, not profits and sales.
Disclosure to be discussed are:
1) Disclosure of Seeing the Future
Disclosure of information to see the future is considered highly relevant in equity markets around the world. The term "information see the future" include:
a. Forecast revenues, income (loss), earnings (loss) a stock, capital expenditures and other financial post.
b. Prospective information regarding the performance or future economic position is not too sure when compared with the projection of the post, the fiscal period, and the projected amount.
c. Reports of management plans and objectives of future operations.
Most companies in each country presents a disclosure of information about plans and goals managemant. Conversely fewer companies that disclose prophecy, from the lowest two companies in Japan and the highest 31 companies in the United States. Most forecasts in the U.S. and Germany regarding capital expenditure, not profits and sales.
2)
Disclosure of Segment
Investors and analysts
will request information regarding operating results and financial industry
segments classified as significant and increasing. Example, financial
analysts in the United States has consistently been asked disagregat report
data in the form of a much more detailed than they are now. International
Financial Reporting Standards (IFRS) also discussed the highly detailed segment
reporting. This report helps the users of financial statements to better
understand how the parts of a company affects the whole enterprise.
3) Statement of Cash Flows and Flow of Funds
3) Statement of Cash Flows and Flow of Funds
IFRS and accounting
standards in the United States, Britain, and a large number of other countries
require the presentation of cash flows.
4) Disclosure of Corporate Social Responsibility
4) Disclosure of Corporate Social Responsibility
Today the company is
required to demonstrate a sense of responsibility to a bunch of so-called
interested parties (stakeholders) - employees, customers, suppliers,
governments, activist groups, and the general public.
Information regarding
the welfare of employees has long been a concern for labor
organizations. The problem areas of concern related to working conditions,
job security, equality of opportunity, workforce diversity and child
labor. Employee disclosure also preferred by investors because it provides
valuable input regarding labor relations, cost, and productivity.
5) Disclosure of Special For The Non-Domestic Users of Financial Statements and the accounting principles used
5) Disclosure of Special For The Non-Domestic Users of Financial Statements and the accounting principles used
Financial statements
may contain specific disclosures to accommodate the users of financial
statements disdomestic. Such disclosure is:
a) Presentation repeated for the convenience "of financial information into currency disdomestic.
b) Presentation of results and financial position over a limited basis according to the second part accounting standards.
c) A complete set of financial statements prepared in accordance with accounting standards second groups, and some discussion about the differences between the accounting principles that are widely used in the primary financial statements and a few other sets of accounting principles.
a) Presentation repeated for the convenience "of financial information into currency disdomestic.
b) Presentation of results and financial position over a limited basis according to the second part accounting standards.
c) A complete set of financial statements prepared in accordance with accounting standards second groups, and some discussion about the differences between the accounting principles that are widely used in the primary financial statements and a few other sets of accounting principles.
Many companies in
countries that do not use English as primary language translation also perform
throughout the annual report of the home country language into English. Also,
some companies prepare financial statements in accordance with accounting
standards more widely accepted than domestic standards (particularly IFRS or
U.S. GAAP) or in accordance with both domestic and a second group of standard
accounting principles.
§
Implications for Users of Financial
Statements And The Manager
The
managers of many companies are constantly heavily
influenced by the cost of mandatory disclosure, the level
of mandatory and voluntary disclosure is increasing worldwide. Managers in
countries that
traditionally have low disclosure should consider whether
it operates a policy
of disclosure may provide significant benefits
in the amount of their company. Moreover, the
managers who decided to provide more disclosure in
areas considered important by investors and financial
analysts, such as disclosure of segment and reconciliation, can gain competitive
advantage from another company has a
strict disclosure policy.
B. MANAGEMENT AND DISCLOSURE ISSUES DECISION DECISION
B. MANAGEMENT AND DISCLOSURE ISSUES DECISION DECISION
Problem (problem) is a deviation between the should
(should) happen in a real (actual)occurs, so
that the cause should be found and verified.
¨
Decision Making
Decision-making (decision
making) is to assess and impose choise. Decision was taken after some
calculations and considerations alternative . Before option was dropped, there
are several steps that may be traversed by the decision maker. These
stages may include identification of major problems, arrange alternative will
be selected and arrive at the best decision.
¨
Type of management activities
Management activities
associated with its level in the organization is divided into 3 sections:
1) Strategic planning is a top-level management activities, the environmental evaluation process outside the organization, implementation of organizational goals and determining strategies.
= The process of evaluating the environment outside the organization: external environment can affect the course of the organization, therefore it must be good at the top level management to evaluate, react hrs interchangeable eye out kesempatan2 given by the external environment, new products, new markets. Besides the top-level management hrs tekanan2 of responsiveness to the external environment inimical organization and where possible convert pressure into an opportunity.
= Setting goals is what in achieved by the organization based on the vision is owned by management. For example, the company's goal is within the 5 years to be the biggest seller in the industry with a 60% market.
= Determination of the strategy: Management of TKT on determining who tindakan2 hrs undertaken by the organization with the intention of achieving tujuan2nya remedy. With the strategy of all abilities who sumberdaya2 be deployed in order to achieve organizational goals.
2) Management Control is a system to assure that the organization has already established a strategy to effectively and efficiently. This is a tactical level (Tactical Level), which is how middle management tactic to execute strategic planning can be done successfully. Run tactics are usually short term ± 1 year. Management control process consists of: the creation of the work program, budget preparation, execution and measurement, reporting and analysis.
3) Operations Control is a system to assure that each particular task has been carried out effectively and efficiently. This is an application of a predetermined program in management control. Control operations performed under the management control process guidelines and focused on lower-level tasks.
1) Strategic planning is a top-level management activities, the environmental evaluation process outside the organization, implementation of organizational goals and determining strategies.
= The process of evaluating the environment outside the organization: external environment can affect the course of the organization, therefore it must be good at the top level management to evaluate, react hrs interchangeable eye out kesempatan2 given by the external environment, new products, new markets. Besides the top-level management hrs tekanan2 of responsiveness to the external environment inimical organization and where possible convert pressure into an opportunity.
= Setting goals is what in achieved by the organization based on the vision is owned by management. For example, the company's goal is within the 5 years to be the biggest seller in the industry with a 60% market.
= Determination of the strategy: Management of TKT on determining who tindakan2 hrs undertaken by the organization with the intention of achieving tujuan2nya remedy. With the strategy of all abilities who sumberdaya2 be deployed in order to achieve organizational goals.
2) Management Control is a system to assure that the organization has already established a strategy to effectively and efficiently. This is a tactical level (Tactical Level), which is how middle management tactic to execute strategic planning can be done successfully. Run tactics are usually short term ± 1 year. Management control process consists of: the creation of the work program, budget preparation, execution and measurement, reporting and analysis.
3) Operations Control is a system to assure that each particular task has been carried out effectively and efficiently. This is an application of a predetermined program in management control. Control operations performed under the management control process guidelines and focused on lower-level tasks.
¨
Types of Management Decisions
Decision-making
(Decision making): is the selection of alternative management actions to
achieve the target. Decision is divided into 3 types:
a) Decisions programmed / structured decision: the decision repetitive and routine, so it can be programmed. Structured decision happens and is done mainly on the lower level managemant. Example: a decision ordering products, making collection of accounts receivable, etc..
b) Decision half fixed / semi-structured: that decision can be partly programmed, partly repetitive and routine and partly unstructured. These decisions are complex and often require calculations and detailed analysis. Example: The decision to buy a more sophisticated computer systems, making the allocation of campaign funds.
c) The decision is not fixed / unstructured: a decision that does not happen again and again and not always the case. This decision occurred on the upper level management. Information for ill-structured decision-making is not easy to obtain and not readily available and usually come from the outside environment. Manager's experience is very important in decision making is unstructured. The decision to merge with another company is an example of unstructured decisions are rare.
a) Decisions programmed / structured decision: the decision repetitive and routine, so it can be programmed. Structured decision happens and is done mainly on the lower level managemant. Example: a decision ordering products, making collection of accounts receivable, etc..
b) Decision half fixed / semi-structured: that decision can be partly programmed, partly repetitive and routine and partly unstructured. These decisions are complex and often require calculations and detailed analysis. Example: The decision to buy a more sophisticated computer systems, making the allocation of campaign funds.
c) The decision is not fixed / unstructured: a decision that does not happen again and again and not always the case. This decision occurred on the upper level management. Information for ill-structured decision-making is not easy to obtain and not readily available and usually come from the outside environment. Manager's experience is very important in decision making is unstructured. The decision to merge with another company is an example of unstructured decisions are rare.
¨
Type of Information
Role of
information systems now ill just as
the collection of data and process them into information
such as financial reports, but who have
a more important role in providing information for
management functions of planning, a allocation of resources,
measurement and control. Reports
from information systems to provide information to management
about the problems that occurred within the
organization to be the proof is
useful in determining which action is
taken. Information system provides three different types of
information:
1. Data Collection Information (Scorekeeping Information): the information in the form of an accumulation or collection of data to answer questions. Useful for the manager to evaluate the performance of personnel, personnel.
2. Information Briefing Note (Attention Directing Information): helps management focus on the problems of deviant, irregularities. This information helps middle management to seethe distortions that occur.
3. Information Troubleshooting (Problem Solving Information): information to help managers make decisions to solve the problems it faces. Problem solving is usually associated with a decision that was not repeated and the situation that requires the analysis carried out by upper management.
1. Data Collection Information (Scorekeeping Information): the information in the form of an accumulation or collection of data to answer questions. Useful for the manager to evaluate the performance of personnel, personnel.
2. Information Briefing Note (Attention Directing Information): helps management focus on the problems of deviant, irregularities. This information helps middle management to seethe distortions that occur.
3. Information Troubleshooting (Problem Solving Information): information to help managers make decisions to solve the problems it faces. Problem solving is usually associated with a decision that was not repeated and the situation that requires the analysis carried out by upper management.
§
Characteristics of Information
To support the decision
to be made by management, then management needs information that is useful. For
each level of management with different activities, information needs are
different, the characteristics of this information include:
a. Information
density: for the lower levels of
management, characteristics of the information is detailed (detail) and less
dense, mainly used to control the operation. Moderate to higher management
levels, have the characteristics of the filtered information (filtered), more
compact and dense.
b. Wide Information: Under the management characteristics of the information is
focused on a particular issue, because it is used by the managers who have a
specific task. For high-level managers, characteristics of information is
increasingly widespread, as the management problems associated with the area.
c. Frequency
Information: lower levels of
management information it receives is the frequency of routine, because it is
used by the manager who has the task is structured in a pattern that repeated
over time. Menegemant high level, frequency information is not routine or
ad hoc (suddenly), because upper management does not relate to the structured
decision-making patterns and the timing is not clear.
d. Information Time:
lower levels of management, the information required is historical information,
as used by the manager in control of that check the operation of the routine
tasks that have been happening. For high-level management, time to get
over the future of predictive information as it is used for strategic
decision-making concerning the future value.
e. Information Access: Level below which requires information period repeatedly,
so it can be provided by the system that delivers information in the form of periodic
reports. Thus can not access information on line, but can be off line. In
contrast to the higher level, the period required information is not clear, so
that the top-level managers need to be provided access on line to retrieve the
information whenever they need.
f. Source of
Information: Due to the lower
level of management is more focused on the company's internal control, the
lower-level managers need more information with data sourced from the company's
own internal, but the top-level managers are more oriented to the strategic
planning issues related to the environment outside the company, so need
information with external data sources in the company.
§
Role of Management
According to Henry Mintzberg, a
management role consists of :
1) Role of Interpersonal: the role of personal relationships may
consist of: = figure head(figure head): the
manager represents the organization for activities outside the
organization.
¥ leader (leader): manager coordinating, controlling, motivating, and supportingsubordinate
subordinates.
¥ Liaison (liaison): linking personal, personal managers at all levels of management.
¥ leader (leader): manager coordinating, controlling, motivating, and supportingsubordinate
subordinates.
¥ Liaison (liaison): linking personal, personal managers at all levels of management.
2) Informational Role: the role of managers as the central
nervous system (nerve center)organizations to receive the
latest information and asa propagator (disseminator)personal information throughout the organization. Other information is
the manager role as a spokesperson (Spokesman) to answer
questions about the information he had.
3) Decisional role: conducted
by the manager is as entreprenuer, as people who deal
with the disorder, as those who allocate resources power
organitation, and as a negotiation the event of a conflict
within the organization.
§
Stages of Decision Making
Simon (1960) introduced
the four activities in the decision making process:
1. Intelligence : Gathering information to identify the problem.
2. Design : The design phase of the solution in the form of problem-solving alternatives.
3. Choice : Choose from the solution phase of the alternatives provided.
4. Implementation : Phase implement the decision and report the results.
1. Intelligence : Gathering information to identify the problem.
2. Design : The design phase of the solution in the form of problem-solving alternatives.
3. Choice : Choose from the solution phase of the alternatives provided.
4. Implementation : Phase implement the decision and report the results.
C. PURPOSE
OF DISCLOSURE ACCOUNTING IN EQUITY MARKETS
In a competitive
economy, the disclosure is a means to channel coorperation accountability to
capital providers (investors) and to facilitate allocation of resources to
their most productive use.
Cooperate a need to
attract capital in a very large amount to finance the production and
distribution activities are extensive. Therefore internal finance is
highly dependent on external capital invested by the investor on a cooperate,
In return, an investor requires disclosure ( transparation cooperate) in which
investors can assess the quality of their stock to cultivate.
Conceptual link between
increased disclosure and cost of capital of the theory of investment behavior
under conditions of uncertainty, namely :
1. In a world of uncertainty, investors look at returns on
investment securities as money received as a consequence of ownership.
2. Because of the uncertainty of return is viewed in a
probabilistic sense.
3. Investors use a number of different measures to quantify the
expected results of a security.
4. Investors prefer a high return rate for a certain risk level
or vice versa.
5. The value of a security is positively related to the flow of
expected results and inversely related to the risks associated with the refund.
6. Thus, disclosure of the company will increase the probability
distribution of outcomes expected by investors by reducing the uncertainty
associated with the refund. So will improve performance (performance of
the company) in the eyes of investors that lure investors to invest on a larger
similar securities so as to reduce the cost of capital.
Accounting includes
several broad processes:
a) Measurement
a) Measurement
Provide in-depth
feedback on the probability of a company's operations and financial position of
strength.
b) Disclosure
b) Disclosure
The process by which
accounting measurement is communicated to the users of financial statements and
used in decision making.
c) Auditing
c) Auditing
The process by which
the special accounting professionals (auditors) perform attestation (testing)
on reliability of measurement and communication processes.
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.
v Contemporary
Perspective
There are a number of
additional factors that add to the importance of studying international
accounting. These factors and the significant reduction increase of
persistent trade barriers and capital controls are national 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. Increase information
technology led to radical changes in economic production and distribution.
v 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.
v 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".
v 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 score 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.
v Financial
Innovation
Managemant 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,
vollatilytas in commodity prices, foreign currency loans and equity become
commonplace today. By 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.
v Capital Market
Internationalism
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.
Three regions are the
largest equity market, North America, Asia Pacific, and Europe.
North America
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.
Asia
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.
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.
Western Europe
Western Europe
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 the 1990s. Related
factors in continental Europe is slowly changing orientation toward equity have
long been features of London's equity markets and North America.
v European Equity
Markets
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.
Recording and
Publishing Shares of Borders. Wave of interest in doing cross-border
listing of shares in the new markets of Europe, shows evidence that the company
issuing the shares intended to keep records of cross-border in Europe to expand
the group of shareholders, to increase awareness of their products and / or
build community awareness of the company, especially in countries where
the company has significant operations and / or customers.
Many European companies
have difficulties when deciding on which raise capital or list their stocks. Knowledge
on various equity markets with the laws, rules and institutions of different
character is treated today. Understanding of how the characteristics of
the company issuing the shares and stock exchanges are interconnected is also
required. Country of origin, industry, and the amount of shares publishing
company offering just a few factors to consider. Costs and benefits of
different combinations of the market also needs to be understood.
D. DIFFERENT
ASPECTS OF PRACTICE REPORTING AND DISCLOSURE
§ Disclosure of
Corporate Governance
Corporate governance
related to the internal tools used for running and controlling a firm -
responsibility, accountability and the relationship between the shareholders,
board members and managers are designed to achieve corporate objectives. The
problems of corporate governance include the rights and treatment to the
shareholders, the board's responsibilities, disclosure and transparency and the
role of the parties concerned. Corporate govermance practices has gained the
attention of regulators, investors and analysts.
§ Disclosure and Reporting Business Throught the Internet
§ Disclosure and Reporting Business Throught the Internet
World Wide Web is
increasingly being used as channels of information dissemination, where the
print media now plays a secondary role. Business Reporting Language
(Extensible Business Reporting Language - XBRL) is an early stage of financial
reporting revolution. This computer language is built into almost all
software for accounting and financial reporting to be issued in the future, and
most users do not need to learn how to cultivate it so that it can directly
enjoy the benefits.
§ Disclosure of Annual Report on Emerging Market Countries
§ Disclosure of Annual Report on Emerging Market Countries
Disclosure of the
company's annual report on emerging market countries are generally less
extensive and less credible than the reporting companies in developed
countries. For example, the disclosure of which is insufficient and misleading
and neglected consumer protection cited as the cause of the East Asian
financial crisis in 1997.
Low level of disclosure
in emerging market countries is consistent with the system of corporate
governance and finance in these countries. Less developed equity markets,
banks and internal parties such as family groups distribute most funding needs
and generally not too much of a need for public disclosure of credible and
timely manner, when compared with the more advanced economies.
However, investor
demand for information about the company in a timely and credible in emerging
market countries more and more regulators to respond to this demand by creating
more stringent disclosure provisions and increase surveillance efforts and
enforcement.
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http://whindajuli.blogspot.com/2011/04/tujuan-pengungkapan-akuntansi-dalam.html
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