3. COMPARATIVE
ACCOUNTING
A. ACCOUNTING TERMS AND DETERMINATION OF ACCOUNTING
A. ACCOUNTING TERMS AND DETERMINATION OF ACCOUNTING
International
Financial Reporting Standards / Iternational Standarts Financial Reporting
(IFRS). Inetrnasional accounting standards are used as a result of:
1) international
treaties or political,
2) voluntary
compliance,
3) the decision by
the national accounting standards-making body.
The
purpose of this standard is to ensure that the company's internal financial
statements for the period - the period referred to in the annual financial
statements, which created the first time by the NII IFRS contains information
berkualitastinggi for pengguana transparent and comparable throughout all
periods presented, provides adequate initial titk for accounting based on
IFRS and can be produced at a cost not to exceed the benefits to the users.
According
to Prof. Haim Falk explained that there are four advantages to using international
accounting standards:
1. With regard to rekonsiliasikepentingan - special interests of managers - managers who are responsible for financial reporting and the needs of users of financial information
2. The limited capacity of financial information ntuk menginterplasikan recipient of such information appropriately
3. The overall credibility of financial reporting process and the accounting profession to support it
4. Because of the comparative financial information is disclosed is an argument relating to the above point
1. With regard to rekonsiliasikepentingan - special interests of managers - managers who are responsible for financial reporting and the needs of users of financial information
2. The limited capacity of financial information ntuk menginterplasikan recipient of such information appropriately
3. The overall credibility of financial reporting process and the accounting profession to support it
4. Because of the comparative financial information is disclosed is an argument relating to the above point
Internationalization
of accounting standards has disebsbkan accounting entry barriers in the social
sciences that can not be separated with flexibility so that relative to
adapted.According Fante stndarisasi identified three barriers between the
countries of international accounting - Developed countries include:
1. Differences in background and tradition of the rear
2. Different needs of different economic environments
3. Standardization challenges to national sovereignty
1. Differences in background and tradition of the rear
2. Different needs of different economic environments
3. Standardization challenges to national sovereignty
Forces
that tend to support the development of international accounting and reporting
standards include:
1. Financial analysis and brokers in the stock market
2. The tendency of large companies looking for capital needs of another State
3. The growing operations - multinational business operations
4. Approval of the encourages inter-state harmonization of the various forms of
5. Increased road show to various state executives infestor
6. Survey
7. Mengglobalnya practice of professional accountants to various State
8. Policies of organizations that promote the use of creditors international stndar
9. Body - the regulatory body of the capital
10. Books – textbooks
1. Financial analysis and brokers in the stock market
2. The tendency of large companies looking for capital needs of another State
3. The growing operations - multinational business operations
4. Approval of the encourages inter-state harmonization of the various forms of
5. Increased road show to various state executives infestor
6. Survey
7. Mengglobalnya practice of professional accountants to various State
8. Policies of organizations that promote the use of creditors international stndar
9. Body - the regulatory body of the capital
10. Books – textbooks
Some
of the history of the international accounting standard setting
1. Kmite in 1973 the International Accounting Standards (International Accounting Standard Comunite = IASC)
2. In 1977 the Organization for economic cooperation and development (Organization for economic coorporation and development = OECD) issued a declaration of multinational investment in the company 'that contains
3. In 1977 the International Federation of Accountants (International Federation of Accountant = IFAC) was founded in the same pre experts appointed by the board of United Nations economic and social mangeluarkan reports comprising four parts of the international standards of accounting and reporting for international companies
4. European Commission issued a directive four people as a first step towards European accounting harmonisai
5. Year 1987Organisasi Interantional Capital market Committee (IOSCO) said in its annual conference to encourage the use of common standards in accounting and auditing practices
6. IASC and IOSCO approved a settlement plan that kerj then issued IAS which form a core group of a comprehensive standard
7. In 1996, U.S. Capital Markets Commission (SEC) announced that it "supports the purpose of IASC to develop as quickly as possible, stadar accounting can be used to feed the financial statements that can be used in cross-border securities offerings'.
8. IASB replaced the IASC in 2001 and took to take responsibility as of 1 April 2001.IASB standards referred to international financial Reporting Standards (IFRS) and includes IASC issued IAS
9. In 2002 the European Parliament approved the European Commission proposal that clearly listed EU companies must mengikutistandar IASB shares later - later than 2005 in the consolidated financial statements
Determination of Accounting Standards
Standards in determining objectives
1. Determination of the standard is that a social choice standara may benefit a particular party and harm others. Most of the issues relating to akunyansi politically sensitive due to:
2. the need for accounting standards appears when there is disagreement
3. accounting information can affect the level of welfare use.
4. In determining the standard there are two approaches, namely:
5. representative faithfulness, this approach requires that the reporting is neutral and fair presentation of financial statements through the process of setting standards. This approach to accounting equates with the mapping process which maps should be accurate to describe the company's financial condition is fair.
6. economic Consequences, this approach requires a standard asopsi have favorable economic consequences. This approach tends to lead to the determination of standards meemiliki positive influence.
1. Kmite in 1973 the International Accounting Standards (International Accounting Standard Comunite = IASC)
2. In 1977 the Organization for economic cooperation and development (Organization for economic coorporation and development = OECD) issued a declaration of multinational investment in the company 'that contains
3. In 1977 the International Federation of Accountants (International Federation of Accountant = IFAC) was founded in the same pre experts appointed by the board of United Nations economic and social mangeluarkan reports comprising four parts of the international standards of accounting and reporting for international companies
4. European Commission issued a directive four people as a first step towards European accounting harmonisai
5. Year 1987Organisasi Interantional Capital market Committee (IOSCO) said in its annual conference to encourage the use of common standards in accounting and auditing practices
6. IASC and IOSCO approved a settlement plan that kerj then issued IAS which form a core group of a comprehensive standard
7. In 1996, U.S. Capital Markets Commission (SEC) announced that it "supports the purpose of IASC to develop as quickly as possible, stadar accounting can be used to feed the financial statements that can be used in cross-border securities offerings'.
8. IASB replaced the IASC in 2001 and took to take responsibility as of 1 April 2001.IASB standards referred to international financial Reporting Standards (IFRS) and includes IASC issued IAS
9. In 2002 the European Parliament approved the European Commission proposal that clearly listed EU companies must mengikutistandar IASB shares later - later than 2005 in the consolidated financial statements
Determination of Accounting Standards
Standards in determining objectives
1. Determination of the standard is that a social choice standara may benefit a particular party and harm others. Most of the issues relating to akunyansi politically sensitive due to:
2. the need for accounting standards appears when there is disagreement
3. accounting information can affect the level of welfare use.
4. In determining the standard there are two approaches, namely:
5. representative faithfulness, this approach requires that the reporting is neutral and fair presentation of financial statements through the process of setting standards. This approach to accounting equates with the mapping process which maps should be accurate to describe the company's financial condition is fair.
6. economic Consequences, this approach requires a standard asopsi have favorable economic consequences. This approach tends to lead to the determination of standards meemiliki positive influence.
B. DIFFERENCES
IN ACCOUNTING WITH PRACTICE STANDARDS SPECIFIED
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. Accounting standards is
the result ofstandard setting. But in practice is different from that specified by
the standard. There are four reasons that explain them, among
others:
1) In most countries the penalty for disobedience to the provisions of
akauntansi tend to be weak and ineffective.
2) The company may voluntarily report more information
than is required.
3) Some states allow companies to ignore
accounting standards if the operation and positioning melakukannnya
financial companies will tersajikan better results.
4) In some countries accounting standards apply only to report
finances independently, and not for the consolidated report.
1) In most countries the penalty for disobedience to the provisions of
akauntansi tend to be weak and ineffective.
2) The company may voluntarily report more information
than is required.
3) Some states allow companies to ignore
accounting standards if the operation and positioning melakukannnya
financial companies will tersajikan better results.
4) In some countries accounting standards apply only to report
finances independently, and not for the consolidated report.
Accounting standard
setting involve a combination of private sector group that
includesthe accounting profession, users and compilers of
financial statements, the employeesand the public which
includes agencies such as the tax authorities, ministries in
charge of commercial law and capital market commission. Stock
exchanges are private orpublic 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
andto 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 accountingstandards around
the world.
accounting systems in developed countries.
accounting systems in developed countries.
C. ACCOUNTING
SYSTEM IN DEVELOPED COUNTRIES
Accounting standards are rules regulations (including laws and statutes as
well) that govern the preparation of financial statements. Standard
setting is the process of formulating or formulation of
accounting standards. Accounting standards can be
saidis the result of standard setting, although not in
accordance with standard practice.
RUSSIA
RUSSIA
Although
the economic situation in Russia has increased, the country is different
fromother transition countries. First, the new company's
shares are still small compared to the others. Secondly, the
number of units of the old soviet-style prodeksi mesih function
even in a loss. Ability to grow this country from its
natural resources, such as oil andgas, they are further dominated by monopolies that
do not change the length.
In
the Russian Federation, the government has sole control over its
accounting. As aresult of the background of a socialist
state. Russian accounting standards formulated to track
the input and output. That's why standards reflect a
bit about the value andprofit. Russian companies are
more inclined to change the income to avoid incometaxes and change in
order to look more favorable for investors.
Russia's finance minister generally make accounting provisions. However,
the CBRF is responsible for making accounting and auditing standards for banks and creditinstitutions. In
addition to their monitoring and meneapkan CBRF minimum
capital requirements.
In
2002 Russia's prime minister announced that the Russian
companies and bankshave to prepare financial statements in
accordance with IFRS in aawal 2004. morespecifically, any statement by
the company and bank statements should be prepared with IFRS. Individual bank financial
statements should also be prepared with IFRS butfor individual companies have continued using Russian GAAP.
D. SIMILARITIES
AND DIFFERENCES IN ACCOUNTING SYSTEM DEVELOPED COUNTRIES
Rules
and accounting systems in the country - these countries have a system of
difference equations and also, where in each standat that is in use by these
countries have advantages and disadvantages of each - one in the application of
accounting systems in the country. Accounting standards and rules set out
in certain countries is certainly not entirely the same as other countries. Role
in determining standards of professional accountants and accounting rules were
more common in those countries wherewith to enter the professional rules in the
rules of the company, such as in Britain and the United States.
Meanwhile,
Christopher Nobes and Robert Parker (1995:11) explains the presence of seven
factors that lead to important differences in the development of international
accounting systems and practices. Such factors include the
(1) the legal system,
(2) the owner of the funds,
(3) the influence of the tax system
(4) stability of the accounting profession.
(5) inflation,
(6) accounting theory
(7) accidents of history.
(1) the legal system,
(2) the owner of the funds,
(3) the influence of the tax system
(4) stability of the accounting profession.
(5) inflation,
(6) accounting theory
(7) accidents of history.
Regulation
of the legal system of the company, including in this case is the accounting
systems and procedures, much influenced by the legal system in force in a
country.Some countries such as France, Italy, Germany, Spain, the Netherlands
adhere to the legal system that is classified in the codified Roman law.
Codified
in law, the rules associated with the basic idea of moral and justice, which
tends to be a doctrine. Meanwhile, countries like Britain, the United
States and British Commonwealth countries adopted the common law. In
common law, the existence of an attempted answer to specific cases and not make
a general formulation. Based on the funding source of funding sources, the
company can be grouped into two. The first group is a company that gets
most of the funds of the shareholders in the capital market (shareholders). The
second group is a company that gets most of the funds of the bank, state or
family funds. Generally, in countries with a majority of companies owned
by shareholders but the shareholders do not have access to internal
information, the more demands on the disclosure (disclosure), examination
(audit) and get an unbiased (fair information).
The
extent to which the tax system tax system may affect the accounting system is
to look at tax laws determine the extent to which accounting measurement
(accounting measurement). In Germany, books must be equal to the tax
according to commercial accounting. Whereas in many other countries such
as Britain, the United States and also includes Indonesia, there are rules -
rules that differ between taxation and commercial companies. The most
obvious example of this is depreciation. Accounting profession and the
organizations established as a forum for the profession it is different in
every country, and results in the form of rules or standards are affected by
the shape, authority and members of such bodies. In some countries it was
found that the separation of the accounting profession, as a tax expert or just
as a corporate accountant. Members of a governing body of accounting
standards may consist only of the public accountant or involve parties from
business groups, industry, government and educators. The level of
education and experience in the practical world as a condition of a person to
become a member agency will also determine the quality of accounting standards
and rules as the output produced. International Financial Reporting
Standards (IFRS) is a standard framework and to interpretation adopted by the
Accounting Standards Board (IASB). Many of the standards forming part of
IFRS are known in advance, namely International Accounting Standards (IAS)
issued between 1973 and 2001 by the International Accounting Standards
Committee (IASC).
And
on 1 April 2001 his responsibilities were taken over by the IASB to establish
the International Accounting Standards. The later IASB continues to
develop new standards called IFRS standards. IFRS are considered as
"principles based" broad rule consists of:
1.Standar International Financial Reporting (IFRS) - standards issued after 2001.
2.Standar International Accounting (IAS) - standards issued before 2001. 3.Interpretasi derived from the interpretation of International Financial Reporting Committee (IFRIC) - issued after 2001.
4.Berdiri Interpretation Committee (SIC) - which was published prior to 2001.
5.Kerangka Presentation and Preparation of Financial Statements.
1.Standar International Financial Reporting (IFRS) - standards issued after 2001.
2.Standar International Accounting (IAS) - standards issued before 2001. 3.Interpretasi derived from the interpretation of International Financial Reporting Committee (IFRIC) - issued after 2001.
4.Berdiri Interpretation Committee (SIC) - which was published prior to 2001.
5.Kerangka Presentation and Preparation of Financial Statements.
IFRS
are used in many parts of the world, including the European Union, Hong Kong,
Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore,
and Turkey. Since August 27, 2008, more than 113 countries around the
world, including throughout Europe, currently require or permit IFRS reporting
is based. About 85 countries require IFRS reporting for all, domestic
companies are listed. While in Indonesia itself will be adopted starting
in 2012.
And
the adoption of IFRS in full, the financial statements prepared under GAAP does
not require a significant reconciliation with the financial statements under
IFRS.However, such changes would have an effect on many fields, especially in
terms of education and business. One is, many use fair value accounting in
education and in business will lead to income smoothing becomes increasingly
difficult with the use of balance sheet and fair value approach. Therefore,
the group we will discuss about "Pros Cons of Fair Value, Good and
ugliness Fair Value Measurement as the Basis of Assets". International
Financial Reporting Standards (IFRS) in Various Countries IFRS is a set
procedure for how the company's financial statements.
Techniques
for preparing the financial statements required standard. Accounting
Standards which became the world's two great strengths:
1.Amerika = FASB and U.S. GAAP]
2.Internasional = European = IASC was formed which later changed IFRS IFRS In America, there are standards which are divided into three era:
1. Specified standard / prepared by management, as determined Standards / prepared by the management because the need is the management.
2.Standar determined / by profession, set standards / prepared by the profession because the profession is responsible for preparing and auditing financial statements.
3.Financial Accounting Standard World (FASW), born after the judge FASW creditors too dominant in setting accounting standards.
IFRS in the EU:
1.1982 = IFAC mengendors IASC as the Global Accounting Standard.
2.1989 = mengendors IASC European Accounting Federation.
3.1994 = IASC Advisory Council Approved as oversight and finance.
4.1995 = IASC and IOSCO signed an agreement that the state - European Union countries should follow the IASS.
5.1996 = U.S. SEC endors IASC to initiate the dev of global accounting standards.
SIC = 6.1997 IASC Standing Interpretation Committee Forms, Forms SWP (Strategy Working Party).
7.1998 = IFAC / IASC kenggotaan expand to 140 bodies in 101 countries.
8.1999 = G7 Finance Ministers and IMF Support IASS Strengthen International Financial Structure.
9.2000 = IASB chairman Sir David Tweedie new appointed.
10. 2001 = IASB IASC was born as a replacement.
1.Amerika = FASB and U.S. GAAP]
2.Internasional = European = IASC was formed which later changed IFRS IFRS In America, there are standards which are divided into three era:
1. Specified standard / prepared by management, as determined Standards / prepared by the management because the need is the management.
2.Standar determined / by profession, set standards / prepared by the profession because the profession is responsible for preparing and auditing financial statements.
3.Financial Accounting Standard World (FASW), born after the judge FASW creditors too dominant in setting accounting standards.
IFRS in the EU:
1.1982 = IFAC mengendors IASC as the Global Accounting Standard.
2.1989 = mengendors IASC European Accounting Federation.
3.1994 = IASC Advisory Council Approved as oversight and finance.
4.1995 = IASC and IOSCO signed an agreement that the state - European Union countries should follow the IASS.
5.1996 = U.S. SEC endors IASC to initiate the dev of global accounting standards.
SIC = 6.1997 IASC Standing Interpretation Committee Forms, Forms SWP (Strategy Working Party).
7.1998 = IFAC / IASC kenggotaan expand to 140 bodies in 101 countries.
8.1999 = G7 Finance Ministers and IMF Support IASS Strengthen International Financial Structure.
9.2000 = IASB chairman Sir David Tweedie new appointed.
10. 2001 = IASB IASC was born as a replacement.
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 Rules
Accounting Regulations and Enforcement Rules
The
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 Reporting
Financial Reporting
Company
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
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 Measurement
Accounting Measurement
Commercial
law requires large companies to prepare consolidated reports. In addition,
shares of listed companies must prepare consolidated financial statements in
accordance with the SEL.
Most
of the previously described accounting prakrik implemented in recent years as a
result of the Great Changes in Accounting as mentioned earlier.
Changes
- changes in the past include:
(1) requires companies that list their stocks to make a statement of cash flows;
(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 equity method based on significant influence, and not a percentage of ownership;
(4) rate of investment in securities market prices rather than historical cost;
(5) the full provision for deferred liabilities, and
(6) full accrual for pension and other retirement obligations. Accountancy in Japan being reshaped to fit the IFRS.
(1) requires companies that list their stocks to make a statement of cash flows;
(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 equity method based on significant influence, and not a percentage of ownership;
(4) rate of investment in securities market prices rather than historical cost;
(5) the full provision for deferred liabilities, 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 rules
Regulali and enforcement of accounting rules
Accounting
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.
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.
NETHERLANDS
ACCOUNTING SYSTEM
Netherlands
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)
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)
ACCOUNTING SYSTEM FRENCH
France
is a major supporter of national uniformity in the accounting world. Ministry
of National Economy approved the General Plan Comptale (national accounting
code) is the first official in September 1947. In the Year 1986, renana
expanded to implement the provisions in the EU Seventh Directive on
consolidated financial statements and further revised in 1999. Comptable
General Plan contains:
a. purposes and principles of accounting financial reporting seta
b. definition of assets, liabilities, shareholders equity, revenues and expenses
c. recognition and valuation rules
d. standard chart of accounts, provision for its use, and provisions of other books
e. examples of presentation of financial statements and rules
a. purposes and principles of accounting financial reporting seta
b. definition of assets, liabilities, shareholders equity, revenues and expenses
c. recognition and valuation rules
d. standard chart of accounts, provision for its use, and provisions of other books
e. examples of presentation of financial statements and rules
The
special feature is the presence of accounting in France dichotomy between the
separate financial statements of companies with the financial statements are
consolidated business group. Although the accounts of the separate
companies must meet the mandatory reporting provisions, the law allows French
companies to follow International Financial Reporting Standards.
Accounting Regulations and Enforcement Rules
Accounting Regulations and Enforcement Rules
Five
major organizations involved in standard-setting process in France is:
1.Counseil National de la Comptabilite ATAC CNC (National Accounting Board)
2.Comite de la Reglemetation Comptable or CRC (Akntansi Regulatory Committee)
3.Autorite des Marches financiers or AMF (Financial Markets Authority)
4.Ordre des Experts-Comtable or OEC (Association of Public Accountancy)
5.Compagnie Nationale des Comptes Commisaires aix or CNCC (Association of National Compliance Auditor)
1.Counseil National de la Comptabilite ATAC CNC (National Accounting Board)
2.Comite de la Reglemetation Comptable or CRC (Akntansi Regulatory Committee)
3.Autorite des Marches financiers or AMF (Financial Markets Authority)
4.Ordre des Experts-Comtable or OEC (Association of Public Accountancy)
5.Compagnie Nationale des Comptes Commisaires aix or CNCC (Association of National Compliance Auditor)
In
France the profession of accounting and auditing have been separated long
ago.Accountants and auditors France was represented by two agencies, the OEC
and CNCC, although there are a number of people who belong to both. Indeed,
80% of qualified accountants in France have both these classifications. Two
professional organizations have close ties and work together for the common
good. Both are involved in the development of accounting standards through
the CNC and CRC and keduannya represent France at the IASB
Financial Reporting
Financial Reporting
French
companies have to report the following:
1.Neraca
2.Laporan income
3.Catatan to the financial statements
4.Laporan director
5.Laporan auditor
1.Neraca
2.Laporan income
3.Catatan to the financial statements
4.Laporan director
5.Laporan auditor
Perseroaan
company financial statements and other companies with limited liabilities that
exceed a certain size must be audited. Large companies also have menyiapka
documents related to the prevention of insolvency and corporate social
reporting, which are both only available in French.
The
main feature of reporting in France are the regulations on the disclosure of
extensive footnotes and details that include the following:
§ A description of the measurement rules in force
§ The accounting treatment for items in foreign currency
§ Report changes in fixed assets and depreciation
§ Fees Detail
§ Detail revaluation undertaken
§ Analysis of receivables and debts according to the maturity
§ List of subsidiary companies and shareholdings
§ The number of pension commitments and other post-employment benefits
§ Detail the tax effects on the financial statements
§ The average number of employees in group
§ Analysis of revenue by activity and geographic
Accounting measurement
§ A description of the measurement rules in force
§ The accounting treatment for items in foreign currency
§ Report changes in fixed assets and depreciation
§ Fees Detail
§ Detail revaluation undertaken
§ Analysis of receivables and debts according to the maturity
§ List of subsidiary companies and shareholdings
§ The number of pension commitments and other post-employment benefits
§ Detail the tax effects on the financial statements
§ The average number of employees in group
§ Analysis of revenue by activity and geographic
Accounting measurement
Accountancy
in France has a double characteristic: The company must comply with the
separate paraturan fixed, while the consolidation of business groups have
greater flexibility. Accounting for individual firm legal basis for share
dividends and compute taxable income.
Payment
method (purchase method) is generally used to account for business
combinations, yet pooling of interest method (pooling method) can be used in
some circumstances. Goodwill (goodwill) generally capitalized and
amortized to earnings, but not determined how long the maximum amortization
period. Goodwill does not need to be tested for impairment. Use
proportionate consolidation for joint ventures and equity method is used to record
investments in companies that are not consolidated, which can be affected
significantly. Foreign currency translation practices with IAS 21. Assets
and liabilities of subsidiaries with stand-alone translated menggunakam closing
rate method (late) and inserted into the translation differences in equity.
ACCOUNTING SYSTEM OF
GERMANY
In
the early 1970s, the European Union (EU) began to issue a harmonization
directive, which must be adopted by member states into national law. EU
directive fourth, seventh, eighth entirely into German law through the
Comprehensive Accounting Act which came into force on December 19, 1985.
The
third fundamental characteristic of Accountancy in Germany is its dependence on
the statutes and court decisions. Besides those two things that have no
binding status or authority. To understand accounting in Germany, one must
mmerhatikan HGB and legal frameworks related cases.
Accounting Regulations and Enforcement Rules
Accounting Regulations and Enforcement Rules
Prior
to 1998, the Germans did not have the financial accounting standard-setting
functions as understood in English-speaking countries. Law on control and
transparency in 1998 introduced the requirement to recognize a private entity
that sets national standards to meet the following objectives:
Ø Develop a recommendation on the application of accounting standards in the consolidated financial statements
Ø Provide advice to the Ministry of Justice for a new accounting legislation
Ø Representing Germany in an international accounting organization, as the IASB
System implementation of new accounting standards in Germany largely similar to existing systems in the United Kingdom and the United States. But to note that the standard of GaSb is a mandatory recommendation applies only u / lapoaran financial statements.
Financial Reporting
Ø Develop a recommendation on the application of accounting standards in the consolidated financial statements
Ø Provide advice to the Ministry of Justice for a new accounting legislation
Ø Representing Germany in an international accounting organization, as the IASB
System implementation of new accounting standards in Germany largely similar to existing systems in the United Kingdom and the United States. But to note that the standard of GaSb is a mandatory recommendation applies only u / lapoaran financial statements.
Financial Reporting
Law
- Accounting Act in 1985 specifically determine the content and form of
financial statements that include:
1.Neraca
2.Laporan income
3.Catatan to the financial statements
4.Laporan management
5.Laporan auditor
1.Neraca
2.Laporan income
3.Catatan to the financial statements
4.Laporan management
5.Laporan auditor
The
main feature of the financial reporting system in Germany is a personal
statement by the auditor to the company's management board and supervisory
board of the company, for the purpose of consolidation, all firms in the group
must use the accounting and valuation principles are the same.
Accounting Measurement
Accounting Measurement
GAS
is more stringent when compared to HGB in the consolidated financial
statements, Menurt GAS 4, revaluation methods should be used, while the assets
and liabilities acquired in business combination must be revalued to fair value
and the remaining excess was allocated to goodwill. Goodwill is amortized
over a period no more than 20 years and tested for impairment annually.
As
mentioned earlier, the company - the German company can now choose to prepare
consolidated financial statements in accordance with the rules of German, as
described above, the international accounting standards or U.S. GAAP. The
third option can be found in practice and the readers of German financial
statements must be careful to find out which accounting standards are used.
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