Jumat, 23 Maret 2012

Reporting and Disclosure International Accounting ( CHAPTER 4 )

Reporting and Disclosure International Accounting ( CHAPTER 4 )
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 differences 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 banks, 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 manjer in record economic transactions in ways that do not represent the best interests of shareholders. Disclosure rules establish provisions to ensure that shareholders receive timely, complete and accurate.
MANDATORY DISCLOSURE PROVISIONS
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
1.      Disclosure rules are very different around the world in some ways like the statement of cash flows and changes in equity, related party transactions, segment reporting, the fair value of financial assets and liabilities and earnings per share. In this section attention is focused on:
Disclosure of information to see the future "information look to the future" that includes:
a.      the forecast revenue, profit and loss, profit and loss per share (EPS), capital expenditures, and other financial post
b.      information regarding the performance or prospective future economic position that is not too sure when compared with the projected post, fiscal period, and the projected number of
c.       statements of management plans and objectives of future operations.
Most companies in each country presents a disclosure of information about plans and goals manjemen. 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.      Cash flow statement and fund flow
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 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 goups 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.      Specific disclosures for non-domestic users of financial statements and the accounting principles used.
Financial statements may contain specific disclosures to accommodate the users of financial statements nondomestik such disclosure is:
1.      "Re representation for comfort" to the financial information in currencies nondomestik
2.      Repeated presentation of the results and financial position is limited by the two accounting standards keompok
3.      A complete set of financial statements prepared in accordance with accounting standards kesua 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 gorup of standard accounting principles.

CORPORATE GOVERNANCE DISCLOSURES
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 governance practices has gained the attention of regulators, inventors and analysts.

DISCLOSURE AND REPORTING ON INTERNAL BUSINESS
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 REPORTS ANNUAL MARKET IN DEVELOPING 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 pendanaa 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.

IMPLICATIONS FOR USERS AND FINANCIAL MANAGERS
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 that has a strict disclosure policy.

MANAGEMENT AND DISCLOSURE ISSUES DECISION BASIC CONCEPT MANAGEMENT DECISION
 Management needs the information as a basis for their decision making. Information systems have an important role in providing inf for all levels of management. Tiap2 activities and different management decisions require different information. By it's kana interchangeable remedy which provides information relevant and useful to management, the information system developers hrs understand first activities undertaken by management and the type of decision.

A.  TYPE OF MANAGEMENT
Management activities associated with its level in the organization is divided into 3 sections:
1.      Strategic planning: 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 the top-level management to evaluate hrs clever, collapsible hrs kesempatan2 reacting an eye given by the external environment, eg 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 igin 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: the system to assure that the organization has followed a strategy which has been established to effectively and efficiently. This is a tactical level (tactical level), that is how middle management tactic to execute strategic planning can be done successfully. Run tactics which are usually short term ± 1 yr.
Management control process consists of: the creation of the work program, budget preparation, execution and measurement, reporting and analysis.
3.      Control of operations: The system to assure that each particular task has been carried out effectively and efficiently. This is an application program specified in manajemen.Pengendalian control operations carried out under the management control process guidelines and focused on the lower level tasks.

B.   TYPE MANAGEMENT DECISION
Decision-making (Decision making): is the selection of alternative management actions to achieve the target.
Decision is divided into 3 types :
1.      Decision programmed / structured decisions: decisions which berulang2 and routine, so that DAPT programmed. Structured decision happens and is done mainly pd manjemen below TKT. Co :/ decision ordering products, making collection of accounts receivable, etc..
2.      Decision half programmed / semi-structured: the decision which partially interchangeable programmable, most repetitive and routine and some ill-structured. These decisions often are complex and require detailed reply perhitungan2 and analysis. Co :/ decision to buy a computer that is more sophisticated systems, the promotion fund allocation decisions.
3.      Decisions are not programmed / unstructured: a decision which does not happen again and again and not always the case. This decision occurred on the upper level management. Information for decision making morbidly ill structured and easy to get ill easily available and usually come from the outside environment. Experience Manager is a very important thing in ill-structured decision-making. The decision to merge with another company is an example of ill-structured decision-spasmodic

C.     TYPE OF INFORMATION
Role of information systems now ill just as the collection of data and process them into information such as financial laporan2, but who have a more important role in providing information for management to fungsi2 planning, alokasi2 resources, measurement and control. Laporan2 of information systems to provide information to management about permasalahan2 is happening within the organization to be the proof is useful in determining which action is taken. Information system provides three different types of information:
1.      Information data collection (Scorekeeping information): information in the form of accumulation or collection of data to answer questions. Useful for the manager to evaluate the performance of personnel, personnel.
2.      Information Briefing attention (attention directing information): helps management focus on the problems of deviant, irregularities. This information is helpful to look at middle management penyimpangan2 happened.
3.      Troubleshooting information (Problem Solving information): information to help managers make decisions to solve the problems it faces. Problem solving is usually associated with a decision which is not repeated and the situations which require analysis committed by upper management.

D.        CHARACTERISTICS OF INFORMATION
To support the decision to be made by management, then management needs information is useful. To tiap2 levels of management with which different activities, different information needs also vary, the characteristics of this information include:
1.            Information density: for the lower levels of management, characteristics of the information is detailed (detail) and less dense, krn mainly used to control the operation. While for the higher management levels, have characteristics which the filtered information (filtered), more compact and dense.
2.            Area of ​​Information: the characteristics of the iterative inf. Is focused on a specific problem, because below which is used by managers who have a special duty. For high-level managers, who increasingly widespread inf characteristics, because the top management which relate to the problem area.
3.            Frequency information: Management of lower-level inf frequency which are received regularly, krn used by the manager who has the task of which is structured with a pattern that has berulang2 from time to time. Manajem high level, frequency information is not routine or ad hoc (sudden), krn top management-related ill-structured decision-making which patterns and wooly time.
4.            Time Information: Management of lower levels, inf if it needs is a historical, krn used by managers under the control of the operations in which a routine check-me tugas2 happen. For high-level management, more time into the future inf inf a Because the prediction is used for strategic decision-making which involves the future.
5.            Information Access: Level below which requires inf berulang2 period, so it can be provided by the system which gives inf in the form of periodic reports. Thus inf can not access on line, but can be off line. In contrast to high-level lebib, inf period required inarticulate, so manajer2 top level necessary to provide access on line to pick up whenever they need inf.
6.            Source of Information: Due to the lower level of management focus more on the company's internal control pd, then the lower level manajer2 need more inf with the data which comes 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, SHG requires inf of data with external companies who sourced pd.

E.        THE ROLE OF MANAGEMENT by Henry Mintzberg
1.      Interpersonal roles: the role of personal relationships may consist of: = figure head (figure head): the manager represents the organization
for kegiatan2 outside the organization.
= Leader (leader): manager coordinating, controlling, motivating, and supporting subordinate – subodinate.
 =Link ( liaison) : connect manager personal at all levels of management.
2.       Informational roles: the role of managers as the central nerve (nerve center) organizations to receive the most current information and as a propagator (disseminator) to all personal information in the organization. Other information is the manager role as a spokesperson (Spokesman) to answer Question2 information about who owns.
3.      Decisional role: conducted by the manager is as entreprenuer, as people who deal with problems, as people who allocate sumber2 dayaorganisasi, and as a negotiator in the event of a conflict within the organization.

F.      DECISION PHASE
Simon (1960) introduced the four activities in the decision making process:
1.      Intelligence: Gathering information to identify the problem.
2.      Design: Phase alternatif2 design solutions in terms of problem solving
3.      Choice: Stage alternatif2 choose from the solution of which is provided.
4.      Implementation: Phase implement the decision and report the results.

Accounting Disclosure purposes in Equity Markets.
In a competitive economy, the disclosure is a means to channel koorperasi koorperasi accountability to capital providers (investors) and to mepermudah allocation of resources to their most productive use.Koorperasi a need to attract capital in a very large amount to finance the production and distribution activities are extensive. Therefore internal pembiyaan is highly dependent on external capital invested by the investor on a koorperasi, In return, an investor requires disclosure (tansparansi koorperasi) in which investors can assess the quality of their stock to cultivate. Conceptual link between disclosure and cost of capital meingkat of the theory of investment behavior under conditions of uncertainly 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.

GENERAL OF PURPOSE EQUITY MARKET ORIENTED TO INVENTORS.
Purpose of investor protection investor information obtained through the protected material and supervision and enforcement rules in particular:
1.      Material information to investors.
2.      Supervising and estabilishing rules of the market.
3.         Over coming the cheat in public offering of trade and voting securities offerings.
4.         Trying to find information appeal power financial and non financial investors to allow companies to compare different from and area.

Principle :
1.      Cost Effectiveness, Cost  setting should market.
2.      Dab freedom market flexibility, setting IT.
3.      Financial reportingand transparent PE.
4.      Equivalent treatment between the company.

Characteristic Market :
Fair market , regulary, efficient, and misuse and error-free.
1.      Promote equal acces to information and trade opportunities do.
2.      Liquiditqs increase and transactions cut costs ( market efficiency )
3.      Give donations through the form of freedom of supervision and enforcement missue rules.
4.      Growing trust investor
5.      Facilitate the establishment of the market.
6.      Where to find the condition of consumer prices reflect the perception of value , not without basis or not invent ata ( amrket order )

Earned's worth competition and may inhibit dak evolusi market. Disclosure the full and complete.and domestic. Disclosure of information to see future.disclosure to see the future be very relevant to the whole world equity markets, the fourth eu directive declare that the financial report should include indications possible future development company.
regulation sk sec requires companies to raise this information is material to the influential liquidity capital resources and future operating results. Tokio tse stock exchange management request to record companies to provide the forecast sales, profit and dividend announcement in annual and carried.




Report, information see the future :
1.      forecast of income, earnings (loss) per share (eps), danpos financial capital expenditure.
2.      perspective information and economic performance or future position is not too sure if the position than pos, pereode fiscal, and projected total.
3.      purpose of report and operations management plan future. next appearance in table indicates that after 200 of public companies of their respective 40 french, german, and the united states of expressing future information, future management objectives rencanadan
number of companies that do pengungkanpan future annual report 93/94.

Fundamental differences in corporate financial disclosure practices in various aspects.

REPORTING AND DISCLOSURE PRACTICES
Disclosure rules are very different around the world in some ways like the statement of cash flows and changes in equity, related party transactions, segment reporting, the fair value of financial assets and liabilities and earnings per share. In this section attention is focused on:
1.      Disclosure of information to see the future "The information look to the future" that includes:
a.       the forecast revenue, profit and loss, profit and loss per share (EPS), capital     expenditures, and other financial post
b.      information regarding the performance or prospective future economic position that is not too sure when compared with the projected post, fiscal period, and the projected number of
c.        statements of management plans and objectives of future operations. Most companies in each country presents a disclosure of information about plans and goals manjemen. 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.      Cash flow statement and fund flow
 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 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.      Specific disclosures for non-domestic users of financial statements and the accounting principles used.
Financial statements may contain specific disclosures to accommodate the users of financial statements nondomestik. Such disclosure is:
a)      "Re representation for comfort" to the financial information in currencies nondomestic
b)      Repeated presentation of the results and financial position is limited by the two accounting standards keompok
c)      A complete set of financial statements prepared in accordance with accounting standards kesua 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.

CORPORATE GOVERNANCE DISCLOSURES
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 governance practices has gained the attention of regulators, investors and analysts.

DISCLOSURE AND REPORTING BUSINESS THROUGH 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 REPORTS ANNUAL MARKET IN DEVELOPING 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 pendanaa 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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