Minggu, 04 Maret 2012

ACCOUNTING INTERNASIONAL ( CHAPTER 1 )


INTERNATIONAL ACCOUNTING
CHAPTER 1 INTRODUCTION
1.1 Distinguishing local and international accounting

DIFFERENT INTERNATIONAL ACCOUNTING ACCOUNTING WITH OTHER

In the sense, the international accounting is accounting for international transactions, accounting comparisons between different countries and harmonization of accounting standards in the field of tax authorities, auditing and other accounting areas. Accounting must evolve in order to provide the information required in decision-making in the company in any business environment changes.

Accounting plays a crucial role in society. The purpose of accounting is to provide information that can be used by decision-making to make economic decisions.
In the corporate world of accounting is an information tool, which provide accurate accounting for decision making. Intenasional accounting has a role similar to the larger context, where the scope of reporting is for multinational companies with cross-border transactions and operations of the State or companies with reporting obligations to users in other countries report.
The process was no different accounting and reporting standards specific to the qualifications set out internationally and locally in certain countries.

But the important thing to know about the international dimension of accounting processes in different countries. Where the difference is included, the difference budayam business practices, political structures, legal systems, currencies, local inflation rate, business risk, as well as rules and regulations affect how multinational companies conduct their operations and deliver its financial statements.

There are some things that the international accounting different from the others, the study of international accounting differences are in:

A. Reporting for MNC / MNE (Multi National Corporation)
2. Border
3. Reporting to the other parties in different countries
4. International Taxation
5. International Transactions

1.2 Explaining and understanding international accounting is divided into 3 parts

In the international accounting is divided into three broad areas, Accounting includes several extensive process include:

1. Measurement
Can provide in-depth feedback on the probability of a company's operations and financial position of strength. The process of identifying, classifying and counting aktivtias and transactions, to provide input regarding the profitability and operating depth.
2. Disclosure
The process by which accounting measurement is communicated to the users of financial statements and used in decision making or process of communicating to the user.

3. Auditing
The process by which the special accounting professionals (auditors) perform attestation (testing) on
​​reliability of measurement and communication processes.

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

Initially, the Accounting begins with double-entry system (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting. Modern accounting double entry accounting began to find and use in the business activities of multiple listing system (double entry bookkeeping) Luca Pacioli introduced by (yr 1447).

Luca Pacioli was born in Italy in 1447, he was not an accountant but the priest who is an expert mathematician, and lecturer at several universities in Italy. Lucalah person who first published the basic principles of double accounting system in his book: the Arithmetica geometria proportioni Summa et proportionalita in the year 1494. Many historians argue that the basic principles of double accounting system is not a pure idea Luca, but he only summarizes the accounting practices that took place at the time and publish it. It is admitted by Luca (Radebaugh, 1998) "Pacioli did not claim That his ideas were original, just that he was the one WHO was Trying to organize and publish them. He objective was to publish a popular book That Could be used by all, following the influence of the venetian businessmen rather than bankers ". Business practices with the reference method venetian Luca wrote the book has become the method adopted not only in Italy but in almost all European countries like Germany, the Netherlands, Inggris.

Luca introduced the 3 (three) important notes that must be done:
1. Memorandum book, the book records of all business transaction information.
2. Journals, where the transaction whose information has been stored in a memorandum book and then recorded in the journal.
3. Great book, is a book that summarizes the above journals. General ledger is the center of the accounting system (Raddebaugh, 1996).

Development of accounting systems is driven by the growth of international trade in Northern Italy during the late Middle Ages and the government's desire to find ways to impose taxes on commercial transactions.
"Bookkeeping Italian style" and then move on to Germany to help day traders and groups Hanseatik Fugger. At the same time the Dutch philosopher sharpen business income to calculate periodic and French governments to implement the whole system of government in planning and accountability.

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

For many countries, accounting is a national problem with national standards and practices that become embedded in national law and professional rules.

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

GROWTH AND SPREAD OF MULTINATIONAL OPERATIONS
International business has traditionally been associated with foreign trade. This activity is rooted in the past, will continue.
The main accounting issues related to export and import activities are accounting for foreign currency transactions. International business are increasingly associated with foreign direct investment, which include the establishment manufacturing or distribution system from abroad by establishing a wholly owned affiliates, joint ventures or strategic alliances.
Operations are carried out outside the country makes financial managers and accountants face the risk of all kinds of problems they face when the operation is not implemented in the company of the country.

The principle of national financial reporting may differ significantly from one country to another because of the accounting principles established by the different socio-economic environment. In addition there is a choice of the exchange rate used to convert foreign accounts into a single reporting currency.

Financial managers and accountants must also understand the complexity of the environmental impact of accounting measurement of a multinational company, understand the effect of exchange rate changes and inflation is essential, knowledge of tax law and currency values
​​for the businesses that operate in more of the country.

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

Examples of relevant questions "if I add much value to me compared to their customers located in other countries".

MERGERS AND ACQUISITIONS TRANSBOUNDARY
Mergers are generally summarized by the term operating synergies or economies of scale, accounting plays an important role in this mega consolidation because the numbers generated fundamental accounting firms in the assessment process. National measurement differences can complicate the process of appraisal firms.

For example, the company penialaian often based on a factor - factor-based pricing (price), such as price earnings ratio (P / E). The approach here is to reduce the average - average factor P / E for comparable companies in the industry and the application of this factor on earnings reported by companies that are rated to produce an adequate bid price.

The main concern that the company will make acquisitions when the target is to offer a foreign acquisition is the extent to which factor E (earnings - earnings) in the size of the P / E is a reflection of precisely the variable being measured, when compared with results from differences in accounting measurement.

FINANCIAL INNOVATION
Manejemen risk has become a popular term in the corporate environment and management. With the deregulation of financial markets and capital controls continue to be made, vollatilitas in commodity prices, foreign currency loans and equity become commonplace today. Berdasaran today's world financial managers need to be aware of the risks they face, decide which risks need to be protected and evaluate risk management strategies are executed. Although advances in technology allow the shifting of financial risk to others, but to measure the burden of risk between the parties are not transferable and are now on the part of a large group of market participants in other countries.

Internationalism CAPITAL MARKET
That many factors contribute more attention to international accounting among corporate executives, investors, market regulators, accounting standard makers and science educators is the internationalization of capital markets businesses around the world.

Federation of World Capital Markets (World Federation of Exchanges) reports that domestic companies listed its shares rising in some markets and decreases in some other markets during periods of decades now, which is partly due to mergers and acquisitions, which also resulted in the delisting of shares (delisting) conducted several related companies.

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


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


* ROLE IN THE AREA OF ACCOUNTING AND CAPITAL MARKETS GLOBAL


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

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

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

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

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

This situation is all the trigger and accelerate the process towards a global market and global accounting standards.

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