CHAPTER 8
INTERNATIONAL FINANCIAL
ANALYSIS
ANALYSIS OF INTERNATIONAL
BUSINESS STRATEGIES
Analysis of business strategy is an important first step in the
analysis of financial statements. This analysis provides a qualitative
understanding of the company and its competitors related to the economic
environment. By identifying the drivers of profit and risk factor is the main
business, business strategy or business analysis will help the analyst to make
a realistic prediction.
The difficulties of analysis of international business strategy:
1.
Availability of
information
Analysis of business strategy particularly difficult in some countries due to lack andalnya information about macroeconomic developments. Obtain information about the industry is also very difficult in many countries and the number and quality of information companies are very different. Availability of specific information about the company is very low in developing countries. Lately, many large companies that keep records and raise capital in foreign markets and have expanded their disclosure voluntarily switch to accounting principles that are recognized globally as an international financial reporting standards
Analysis of business strategy particularly difficult in some countries due to lack andalnya information about macroeconomic developments. Obtain information about the industry is also very difficult in many countries and the number and quality of information companies are very different. Availability of specific information about the company is very low in developing countries. Lately, many large companies that keep records and raise capital in foreign markets and have expanded their disclosure voluntarily switch to accounting principles that are recognized globally as an international financial reporting standards
2. Recommendations for
analysis
Data limitations make the effort to analyze the business strategy by using traditional research methods to be difficult. Often frequent trips to study the local business climate and real bagaimanan industry and company operations, particularly in emerging market countries.
Data limitations make the effort to analyze the business strategy by using traditional research methods to be difficult. Often frequent trips to study the local business climate and real bagaimanan industry and company operations, particularly in emerging market countries.
Basic Strategy The basic strategy adopted
in order to improve data and information services include:
1. One of the doors of data; One of data meant that the Department
of Agriculture just published a range of numbers for variables, indicators and
time. A door that is data and agricultural information has been agreed by the
echelon I units concerned before published outside through the Center for
Agricultural Data and Information. Policy of the data and carried out by one
door while the concept of centralizing the collection, processing, and presentation
of data implemented in a distributed system by implementing an integrated
information network.
2. Centralized concept; in order to avoid duplication and do not
tertanganinya statistical development activities and information systems, by
dividing out all activities required in accordance with the functional tasks of
each unit of data and statistics in the Department of Agriculture. By applying
this strategy, expected to be achieved effectiveness and efficiency of use of
available resources.
3.
internal
consolidation by building infrastructure that support the execution of work,
building a culture of work and service to all levels in the organization
4. On the external side to
coordinate with partners to establish cooperation in agriculture perstatistikan
and information systems with the goal of mutual support, and complete support.
Steps ANALYSIS OF
ACCOUNTING
The purpose of accounting analysis is to analyze the extent to
which the company reported results reflect the economic reality. Analysts need
to evaluate kebujakan and accounting estimates, and analyze the nature and
flexibility lungkup accounting of a company. The managers of the company is
allowed to make a lot of considerations related to the accounting, because they
know more about the financial condition and operations of their companies.
Reported earnings is often used as a basis for evaluating the performance of
their management.
Step-langah in doing evalusai accounting quality of a company:
1. Identify the main accounting policies
2. Analyze the flexibility of accounting
3. Evaluate the accounting strategy
4. Evaluate the quality of disclosure
5. Indentifikasikanlah potential problems
6. Make adjustments for accounting distortions
EFFECT OF ACCOUNTING
ANALYST ACCOUNTING BETWEEN STATE
Analysts need to evaluate policies and accounting estimates, and
analyze the nature and scope of a company's accounting flexibility. Effect on
the measurement of quality of accounting, and auditing are very dramatic.
DIFFICULTIES IN OBTAINING
INTERNATIONAL AKUNTNASI
In obtaining the data of International Accounting, there are
several difficulties, among others:
a.
Depreciation
adjustment
Depreciation will affect profits, it is necessary to consider
the age of the functions that must be decided manajemen.b assets. LIFO to FIFO
inventory adjustment
Inventories should be converted in FIFOc method. Reserve
Reserves are the company's ability to pay or cover expenses for removing beban.d. Reformulation of Financial Statements
Inventories should be converted in FIFOc method. Reserve
Reserves are the company's ability to pay or cover expenses for removing beban.d. Reformulation of Financial Statements
Adjustment of some of the changes after a few calculations on
the points above TSB.
MECHANISM TO RESOLVE
DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES OF STATE
Several approaches can be done, namely: - Some analysts present
foreign accounting resize according to a group of internationally recognized
principles or according to other, more general basis. - Some others develop a
complete understanding of accounting practices in a particular group of
countries and limited their analysis to firms located in these countries.
DIFFICULTIES AND WEAKNESS
IN THE INTERNATIONAL FINANCIAL ANALYSIS
a. Information access Information on thousands of companies from
around the world have been widely available in recent years. Sources of
information in countless numbers up through the World Wide Web (WWW). Companies
in the world today have a website and annual report are available for free of
charge from various other sources.
b. Timeliness of information timeliness of financial reports,
annual reports, reports to regulators vary in each country.
c. Barriers of language and terminology.
d. Foreign currency issues. e. Differences in the type and format
of financial statements.
Use of the Website or the WWW (world wibe web)
To Obtain Information Research Company Many companies do not make optimum use of disclosure of corporate information via the website, both for financial and corporate sustainability. Another finding in this study is that many companies can not provide information for investors, most of the information presented in the company's website is about products or services produced and the many companies that do not update the information presented.
To Obtain Information Research Company Many companies do not make optimum use of disclosure of corporate information via the website, both for financial and corporate sustainability. Another finding in this study is that many companies can not provide information for investors, most of the information presented in the company's website is about products or services produced and the many companies that do not update the information presented.
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