Group : SOUTH AFRICA
Benny
Nugraha (20208245)
Fadlillah
Firdaus (20208470)
Haris
Umarsyah ( 20208569)
Toni
Jatmiko ( 21208239)
Wahyudi
Pratama (21208276 )
4EB01
INTERNATIONAL ACCOUNTING:
INTERNATIONAL ACCOUNTING:
HARMONIZATION
VERSUS STANDARDIZATION
A. BACKGROUND
A survey conducted by Deloitte Touche Tohmatsu International in 1992 to 400 medium-sized
companies
in twenty countries
the advanced show, that their reasons for doing business
in the market international growth is due to chance
(84%), for reduce reliance on the domestic economy
(39%), meet market demand (34%) and cheaper
operating costs (24%) (Iqbal, Melcher, Elmallah,
1997: 5). The survey shows one of the fact that there tendency of many companies to do business globally and International Accounting: Harmonization Versus Standardization
(Arja Sadhiarta) not only in business in the
country of origin. Sold in domestic market considered
to no longer provide the expected benefits, while the market so open to overseas expansion.
Increasing trend of globalization in the economy increasingly look the existence of agreements
between
countries in a particular region,
such as the European Union (EU), North American Free Trade
Agreement (NAFTA), Asia-Pacific Economic Cooperation (APEC). Indonesia itself
is one of the
eighteen APEC member countries.
eighteen APEC member countries.
The globalization of the economy also appeared with the advent of the crisis phenomena
exchange
rates in some countries in Asia, including Indonesia, which began in Of 1997.
Industry which relies strongly on imported raw materials is affected with this condition. Value of imported raw materials in domestic
currency - in this case These dollars - rose
sharply. Industries that depend strongly on the raw materials and domestic resources experienced the opposite. Sales of goods
outside country to be very profitable if valued in
domestic currency. New sale pricing in the domestic
and overseas markets become
as simple as before the crisis.
as simple as before the crisis.
Subsequent developments in Indonesia also showed the phenomenon interesting. Appreciation of
the
rupiah against foreign currencies, although not re- on the
exchange rate before the crisis, making the exporters began complained that its earnings fell when assessed in the domestic
currency. The opposite occurs for the importers.
Strengthening of the domestic currency - say
dollars - and the weakening of foreign currencies - say, the dollar United States - make importers pay liabilities denominated in
to foreign manufacturers in foreign countries judged to be
less expensive than the currency
domestic.
domestic.
Accounting as a provider of information for decision making economy is also influenced by the
business
environment of continuous
changed because of globalization, both good growing
business environment, in a state of stagnation and
depression. The existence of transactions between the state and accounting principles which differ between countries resulting
in the appearance the need for harmonization of
accounting standards around the world.
2. DISCUSSION
Understanding the International Accounting Iqbal, Melcher and Elmallah (1997:18) defines the
international
accounting as the accounting for transactions between countries, the
benchmarking principles accounting in different
countries and harmonization of accounting standards in around the world.
A company became involved with the international accounting is on now get the chance to export
or
import transactions. Export
defined as sales to overseas firms and begins when the
seller obtain purchase orders from domestic
companies to foreign buyers. Kesulitankesulitan begin
to arise when the domestic firm to conduct an investigation the feasibility of foreign acquirers. If the buyers are
requested to provide financial information relating
to the company, there is the possibility that
financial information is not easily interpreted, given
the assumptions of accounting and accounting procedures are not prevalent in the seller company. Most companies are just
starting out in business may request international
assistance to the bank or accounting firm with international
expertise to analyze and interpret information The
financially.
Another thing that must be anticipated if the buyer is paying in the eye foreign currency. For
example,
a company in Indonesia to export the results products to
companies in the United States, and the buyer pays in United States dollar. Domestic companies should anticipate a
loss or the potential benefit that may arise due to
changes in exchange rates between recorded as a
purchase order by the time the payment is received.
Implementation of such exports involve many delivery companies, insurance, customs and other
supporting
documents required
widespread throughout the world. In this case of course
also necessary to anticipate the any costs which
generally involve the use of different currencies.
For imports, the above conditions will be met by the company otherwise foreign sellers.
Conditions
that must be considered by the buyer firm domestic exchange rate is the
domestic currency against foreign currency agreed
as a denomination of payment. Included is payments
to the forwarders and shipping companies if imports do provided free on board.
Involvement in the international accounting firm can not avoided when the company opened its
overseas
operations, both of which only
a production license to a company owned by another party
outside country as well as the establishment of
subsidiaries abroad. In the case of license, the
company needs to develop an accounting system that allows the licensor to exercise supervision over the implementation of
the agreement, royalty payments and technical
assistance as well as recording revenue from outside country in relation to the tax to be paid by the company.
Accounting for subsidiaries operating in foreign countries must comply with rules set by
government
authorities and institutions
country concerned, which is different from the rules in
the parent country company. Furthermore it should
be made also for the management of information systems monitor, supervise and evaluate the operation of subsidiaries as
well as making system to consolidate the results of
parent company and subsidiary operations.
International accounting has become increasingly important with the number of multinational
companies
(multinational corporation) or MNC operating in various
countries in the areas of production, product development, marketing and
distribution. Besides the capital market is also growing
rapidly, supported by advances in communications
technology and information to enable the transaction in international capital markets take place in real time basis.
Factors Affecting the Accounting System
Like the business world in general, and its accounting practices disclosure of financial
information on companies in different
countries are affected
by various factors. Radebaugh and Gray (1997:47) mentions
at least fourteen factors that affect the company's
accounting system. Factors such is the nature of
corporate ownership, business activities, sources of funding and capital markets, tax system, the existence and importance of
the accounting profession, accounting education and
research, political systems, social climate, the growth rate and economic development, inflation, regulatory systems, and
accounting rules.
More details, Radebaugh and Gray describes the relationship between these factors
mentioned above with the following corporate accounting system.
a.
Nature of corporate ownership
The need for disclosure and accountability to found in the larger public companies are owned by the public compared with the family firm.
The need for disclosure and accountability to found in the larger public companies are owned by the public compared with the family firm.
b.
Business activities
The accounting system is influenced by the type of business activity, such as agribusiness are different from manufacturing, or small companies with different multinational companies.
The accounting system is influenced by the type of business activity, such as agribusiness are different from manufacturing, or small companies with different multinational companies.
c.
Sources of funding
The need for disclosure and accountability to found in the larger public companies that have sources of funding from external shareholders as compared to the company with funding from banks or from funds family.
The need for disclosure and accountability to found in the larger public companies that have sources of funding from external shareholders as compared to the company with funding from banks or from funds family.
d.
Tax system
Countries like France and Germany use the financial statements companies as the basis for determining income tax debt, while countries like the United States and Britain to use the report
which has been adapted to the financial rules of taxation as the basis determination of tax debts and submitted separately to the financial statements for shareholders.
Countries like France and Germany use the financial statements companies as the basis for determining income tax debt, while countries like the United States and Britain to use the report
which has been adapted to the financial rules of taxation as the basis determination of tax debts and submitted separately to the financial statements for shareholders.
e.
The existence and importance of
accounting profession
Accounting profession that is more advanced in developed countries also make the system accounting used by more advanced than in countries that still implement a centralized accounting system and uniform.
Accounting profession that is more advanced in developed countries also make the system accounting used by more advanced than in countries that still implement a centralized accounting system and uniform.
f.
Accounting education and research
Accounting education and research are both less run in countries is growing. Professional development was also influenced by accounting education and research quality.
Accounting education and research are both less run in countries is growing. Professional development was also influenced by accounting education and research quality.
g.
The political system
Political system run by a very influential country in the The accounting system is made to describe the philosophy and political objectives in country, as does the choice of centralized planning (central planning) or privatization (private enterprises).
Political system run by a very influential country in the The accounting system is made to describe the philosophy and political objectives in country, as does the choice of centralized planning (central planning) or privatization (private enterprises).
h.
Social climate
Social climate is defined as the attitude of respect for workers' rights and concern for the environment. Information relating to these things are generally influenced the social system.
Social climate is defined as the attitude of respect for workers' rights and concern for the environment. Information relating to these things are generally influenced the social system.
i.
Rate of economic growth and
development
Changes in economic structure from agriculture to manufacturing will
showing the other side of the accounting system, including the start
accounting for depreciation of machinery. Services industry also gave rise
consideration of the recording of intangible assets such as brands, goodwill and
human resources.
Changes in economic structure from agriculture to manufacturing will
showing the other side of the accounting system, including the start
accounting for depreciation of machinery. Services industry also gave rise
consideration of the recording of intangible assets such as brands, goodwill and
human resources.
j.
The inflation rate
The onset of hyperinflation in some countries in South America
create the thought of using another approach as
alternative to historical cost approach.
The onset of hyperinflation in some countries in South America
create the thought of using another approach as
alternative to historical cost approach.
k.
Regulatory system
In countries such as France and Germany are using the civil codes,
accounting rules are used tends to detailed and comprehensive,
different from the United States and Britain are using the common law.
In countries such as France and Germany are using the civil codes,
accounting rules are used tends to detailed and comprehensive,
different from the United States and Britain are using the common law.
l.
The accounting rules
Accounting standards and rules set out in a particular country is certainly not
completely the same with other countries. Role in determining the accounting profession
accounting standards and rules were more common in countries that
have entered the professional rules in the rules of the company,
as in Britain and the United States.
Accounting standards and rules set out in a particular country is certainly not
completely the same with other countries. Role in determining the accounting profession
accounting standards and rules were more common in countries that
have entered the professional rules in the rules of the company,
as in Britain and the United States.
Meanwhile, Christopher Nobes and Robert Parker (1995:11) describes the seven factors that lead
tosignificant differences in the scale internationally
in the development of accounting systems and practices. Factors these include (1) the legal system, (2) the owner of the funds,
(3) the influence of the system taxation, and (4)
stability of the accounting profession. (5) inflation, (6) accounting theory
and
(7) accidents of history.
(7) accidents of history.
a.
The legal system
Company regulations, including in this case is a system and procedures accounting, much influenced by the legal system in force in a country. Some countries such as France, Italy, Germany, Spain, the Netherlands adopted legal system which is classified in the codified Roman law. Codified in law, rules associated with the basic idea of moral and justice, which tends into a doctrine. Meanwhile, countries like Britain, the United States and British Commonwealth countries adopting a common
law. In common law, the existence of an attempted answer to the cases specific and did not make a general formulation.
Company regulations, including in this case is a system and procedures accounting, much influenced by the legal system in force in a country. Some countries such as France, Italy, Germany, Spain, the Netherlands adopted legal system which is classified in the codified Roman law. Codified in law, rules associated with the basic idea of moral and justice, which tends into a doctrine. Meanwhile, countries like Britain, the United States and British Commonwealth countries adopting a common
law. In common law, the existence of an attempted answer to the cases specific and did not make a general formulation.
b.
Sources of funding
By source of funding, 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). Group The second is a company that gets most of the funds of the bank, state or family funds. Generally, in countries with most company owned by shareholders but the shareholders are not have access to internal information, the more demands on the disclosure (disclosure), examination (audit) and unbiased information (Fair information).
By source of funding, 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). Group The second is a company that gets most of the funds of the bank, state or family funds. Generally, in countries with most company owned by shareholders but the shareholders are not have access to internal information, the more demands on the disclosure (disclosure), examination (audit) and unbiased information (Fair information).
c.
Tax system
The extent to which the tax system may affect the accounting system is to see the extent of tax laws to determine measurements accounting (accounting measurement). In Germany, according to the tax accounting should be similar to commercial accounting. Whereas in many other countries such as Britain, the United States and also includes Indonesia, there aturanaturan different between taxation and commercial companies. Examples are The most obvious of these is depreciation.
The extent to which the tax system may affect the accounting system is to see the extent of tax laws to determine measurements accounting (accounting measurement). In Germany, according to the tax accounting should be similar to commercial accounting. Whereas in many other countries such as Britain, the United States and also includes Indonesia, there aturanaturan different between taxation and commercial companies. Examples are The most obvious of these is depreciation.
d.
Accounting profession
Bodies were formed as a container of different professions in each country, and the results of the rules or standards are affected by the shape, authority and members of such bodies. In some countries found that the separation of the accounting profession, as a tax expert or just as the company accountant. Members of a governing body accounting standards can consist only of the public accountant or involving parties from the business world, industry, government and among educators. The level of education and experience in the practical world as a condition of a person to be a member of the agency will also determine the quality of accounting standards and rules as output produced.
Bodies were formed as a container of different professions in each country, and the results of the rules or standards are affected by the shape, authority and members of such bodies. In some countries found that the separation of the accounting profession, as a tax expert or just as the company accountant. Members of a governing body accounting standards can consist only of the public accountant or involving parties from the business world, industry, government and among educators. The level of education and experience in the practical world as a condition of a person to be a member of the agency will also determine the quality of accounting standards and rules as output produced.
e.
Inflation
In countries with a level inlasi reach hundreds of percent each year, as in South America, the use of general price level adjustment method become irrelevant in light of the need to analyze the reports
finances are more precise than continue to use historical cost.
In countries with a level inlasi reach hundreds of percent each year, as in South America, the use of general price level adjustment method become irrelevant in light of the need to analyze the reports
finances are more precise than continue to use historical cost.
f.
Theory of Accounting
Accounting theory greatly affect the implementation of accounting practices as was the case in the Netherlands. In this country accounting theorists said that users of financial statements will get an appraisal the reasonable performance of a company if the accountants are allowed to use judgment to select and display the numbers particular. In this case suggested the use of replacement cost information. One example of the effect of accounting theory to accounting practice is with the formulation of conceptual framework.
Accounting theory greatly affect the implementation of accounting practices as was the case in the Netherlands. In this country accounting theorists said that users of financial statements will get an appraisal the reasonable performance of a company if the accountants are allowed to use judgment to select and display the numbers particular. In this case suggested the use of replacement cost information. One example of the effect of accounting theory to accounting practice is with the formulation of conceptual framework.
g.
Accidents of History
Accounting systems and practices can not be separated from political and economic conditions in the country concerned. Certain events usually provide an immediate impact in the application of certain methods. Crisis economy in the United States at the end of the 1920s led to a standard accounting which requires the disclosure (disclosure) of data finance. For Indonesia, the exchange rate crisis in mid-1997 led to the emergence of a statement or interpretation relating to the use of foreign currency in financial reporting and treatment of foreign exchange. Colonization also led countries occupied by itself following the accounting systems and practices that countries possess.
Accounting systems and practices can not be separated from political and economic conditions in the country concerned. Certain events usually provide an immediate impact in the application of certain methods. Crisis economy in the United States at the end of the 1920s led to a standard accounting which requires the disclosure (disclosure) of data finance. For Indonesia, the exchange rate crisis in mid-1997 led to the emergence of a statement or interpretation relating to the use of foreign currency in financial reporting and treatment of foreign exchange. Colonization also led countries occupied by itself following the accounting systems and practices that countries possess.
Accounting
Standards Benchmarking example in Indonesia and the United
Union
The above description shows that the preparation of accounting standards including accounting
practices in a country different from the
practices in other countries.
To provide an overview of the different accounting
standards between state, the following is a list of
accounting standards that have been published in Indonesia
and the United States (Table 1 and Table 2). This comparison is only a list of standards according to the number issued in each
state and does not discuss or comment on the contents of
each the standard.
List of Accounting Standards in Indonesia (SAK)
1. Presentation of Financial Statements
2. Statement of Cash Flows
3. Interim Financial Report
4. Consolidated Financial Statements
5. According to Segment Reporting Financial Information
6. Accounting and Reporting for Development Stage Company in
7. Disclosure of Parties Have a Special Relationship
8. Contingencies and Subsequent Events
9. Presentation of Current Assets and Liabilities - has been replaced IAS 1
10. Transactions in Foreign Currencies
11. Financial Statements in Foreign Currencies Regarding Section
List of Accounting Standards in Indonesia (SAK)
1. Presentation of Financial Statements
2. Statement of Cash Flows
3. Interim Financial Report
4. Consolidated Financial Statements
5. According to Segment Reporting Financial Information
6. Accounting and Reporting for Development Stage Company in
7. Disclosure of Parties Have a Special Relationship
8. Contingencies and Subsequent Events
9. Presentation of Current Assets and Liabilities - has been replaced IAS 1
10. Transactions in Foreign Currencies
11. Financial Statements in Foreign Currencies Regarding Section
12. Financial Reporting
Participation in Control Joint Operations and Assets
13. Accounting for Investments
14. Stocks
15. Accounting for Investments in Associates
16. Fixed Assets and Other Assets
17. Accounting for Depreciation
18. Accounting for Pension Funds
19. Intangible Assets
20. Research and Development Costs
21. Accounting for Equity
22. Accounting for Business Combinations
23. Income
24. Accounting for Retirement Benefits Costs
25. Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies
26. Borrowing Costs
27. Accounting for Cooperatives
28. Accounting for Insurance Losses
29. Accounting for Oil and Gas
30. Accounting for Leases
31. Accounting for Banks
32. Accounting for Forestry
33. Accounting General Mining
34. Accounting for Construction Contracts
35. Accounting for Revenue Services Communications
36. Accounting for Life Insurance
37. Accounting Operation of Toll Road
38. Accounting for Restructuring
39. Accounting for Joint Operation
40. Accounting for Changes in Equity of Subsidiaries / Associates
41. Accounting for Warrants
42. Accounting of Securities Companies
43. Accounting for Factoring
44. Accounting for Real Estate Activities
45. Financial Reporting Profit Organizations Nir
46. Accounting for Income Taxes
47. Accounting for Land
48. Impairment of Assets
49. Accounting for Mutual Funds
50. Investments in Securities
51. Accounting for Quasi Reorganization
52. Accounting Reporting Currencies
53. Accounting for Stock-Based Compensation
54. Accounting for Troubled Debt Restructuring and Receivables
55. Accounting for Derivative Instruments and Hedging Activities
Source: IAI, the Financial Accounting Standards 1999, Salemba Four, October 1998
13. Accounting for Investments
14. Stocks
15. Accounting for Investments in Associates
16. Fixed Assets and Other Assets
17. Accounting for Depreciation
18. Accounting for Pension Funds
19. Intangible Assets
20. Research and Development Costs
21. Accounting for Equity
22. Accounting for Business Combinations
23. Income
24. Accounting for Retirement Benefits Costs
25. Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies
26. Borrowing Costs
27. Accounting for Cooperatives
28. Accounting for Insurance Losses
29. Accounting for Oil and Gas
30. Accounting for Leases
31. Accounting for Banks
32. Accounting for Forestry
33. Accounting General Mining
34. Accounting for Construction Contracts
35. Accounting for Revenue Services Communications
36. Accounting for Life Insurance
37. Accounting Operation of Toll Road
38. Accounting for Restructuring
39. Accounting for Joint Operation
40. Accounting for Changes in Equity of Subsidiaries / Associates
41. Accounting for Warrants
42. Accounting of Securities Companies
43. Accounting for Factoring
44. Accounting for Real Estate Activities
45. Financial Reporting Profit Organizations Nir
46. Accounting for Income Taxes
47. Accounting for Land
48. Impairment of Assets
49. Accounting for Mutual Funds
50. Investments in Securities
51. Accounting for Quasi Reorganization
52. Accounting Reporting Currencies
53. Accounting for Stock-Based Compensation
54. Accounting for Troubled Debt Restructuring and Receivables
55. Accounting for Derivative Instruments and Hedging Activities
Source: IAI, the Financial Accounting Standards 1999, Salemba Four, October 1998
List of Accounting Standards in
the United States (FASB Statement)
1. Disclosure of Foreign Currency Translation Information
2. Accounting for Research and Development Costs
3. Reporting Accounting Changes in Interim Financial Statements-an Amendment of APB Opinion No.. 28
4. Reporting Gains and Losses from Extinguishment of Debt-an Amendment of APB Opinion No.. 30
5. Accounting for contingencies
6. Classification of Short-Term Expected to Be Refinanced obligations-an Amendment of ARB No.. 43, Chapter 3A
7. Accounting and Reporting by Development Stage Enterprises
8. Accounting for the Translation of Foreign Currency Transactions and Foreign Currency Financial Statements
9. Accounting for Income Taxes: Oil and Gas Producing Companies-an Amendment of APB Opinions No.. 11 and 23
10. Extension of "Grandfather" Provisions for Business Combinations-an Amendment of APB Opinion No.. 16
11. Accounting for contingencies: Transition Method-an Amendment of FASB Statement No. 5
12. Accounting for Certain Marketable Securities
13. Accounting for Leases
14. Financial Reporting for segments of a Business Enterprise
15. Accounting by Debtors and Creditors for Troubled Debt Restructurings
16. Prior Period Adjustments
17. Accounting for Leases: Initial Direct Costs-an Amendment of FASB Statement No. 13
18 Financial Reporting for segments of a Business Enterprise: Interim Financial Statements-an Amendment of FASB Statement No. 14
19. Financial Accounting and Reporting by Oil and Gas Producing Companies
20. Accounting for Forward Exchange Contracts-an Amendment of FASB Statement No. 8
21. Suspension of the Reporting of Earnings per Share and Segment Information by Nonpublic Enterprises-an Amendment of APB Opinion No.. 15 and FASB Statement No. 14
22. Changes in the Provisions of Lease Agreements Resulting from Refundings of Tax-Exempt Debt-an Amendment of FASB Statement No. 13
23. Inception of the Lease-an Amendment of FASB Statement No. 13
24. Reporting Segment Information in Financial Statements That Are Presented in Another Enterprise's Financial Report-an Amendment of FASB Statement No. 14
25. Suspension of Certain Accounting Requirements for Oil and Gas Producing Companies-an Amendment of FASB Statement No. 19
26. Profit Recognition on Sales-Type Leases of Real Estate-an Amendment of FASB Statement No. 13
27. Classification of Renewals or Extensions of Existing Sales-Type or Direct Financing Leases-an Amendment of FASB Statement No. 13
28. Accounting for Sales with Leasebacks-an Amendment of FASB Statement No. 13
29. Determining Contingent Rentals-an Amendment of FASB Statement No. 13
30. Disclosure of Information about Major Customers-an Amendment of FASB Statement No. 14
31. Accounting for Tax Benefits Related to U.K. Tax Legislation Concerning Stock Relief
32. Specialized Accounting and Reporting Principles and Practices in AICPA Statements of Position and Guides on Accounting and Auditing Matters-an Amendment of APB Opinion No.. 20
33. Financial Reporting and Changing Prices
34. capitalization of Interest Cost
35. Accounting and Reporting by Defined Benefit Pension Plans
36. Disclosure of Pension Information-an Amendment of APB Opinion No.. 8
37. Balance Sheet Classification of Deferred Income Taxes-an Amendment of APB No Opinion. 11
38 Accounting for contingencies Preacquisition of Purchased Enterprises-an Amendment of APB Opinion No.. 16
39. Financial Reporting and Changing Prices: Specialized Assets-Mining and Oil and Gas-a supplement to FASB Statement No. 33
40. Financial Reporting and Changing Prices: Specialized Assets-Timberlands and Growing Timber-a supplement to FASB Statement No. 33
41. Financial Reporting and Changing Prices: Specialized Assets-Income- Producing Real Estate-a supplement to FASB Statement No. 33
42. Determining Materiality for capitalization of Interest Cost-an Amendment of FASB Statement No. 34
43. Accounting for compensated absences
44. Accounting for Intangible Assets of Motor Carriers-an Amendment of Chapter 5 of ARB No. 43 and an interpretation of APB Opinions 17 and 30
45. Accounting for Franchise Fee Revenue
46. Financial Reporting and Changing Prices: Motion Picture Films
47. Disclosure of Long-Term obligations
48. Revenue Recognition When Right of Return Exists
49. Accounting for Product Financing Arrangements
50. Financial Reporting in the Record and Music Industry
51. Financial Reporting by Cable Television Companies
52. Foreign Currency Translation
53. Financial Reporting by Producers and Distributors of Motion Picture Films
54. Financial Reporting and Changing Prices: Investment Companies-an Amendment of FASB Statement No. 33
55. Determining whether a Convertible Security is a Common Stock Equivalentan Amendment of APB Opinion No.. 15
56. Designation of AICPA Guide and Statement of Position (SOP) 81-1 on Contractor Accounting and SOP 81-2 Concerning Hospital-Related Organizations as preferable for Purposes of Applying APB Opinion 20-an Amendment of FASB Statement No. 32
57. Related Party Disclosures
58. capitalization of Interest Cost in Financial Statements That Include Investments accounted for by the Equity Method-an Amendment of FASB Statement No. 34
59. Deferral of the Effective Date of Certain Accounting Requirements for Pension Plans of State and Local Governmental Units-an Amendment of FASB Statement No. 35
60. Accounting and Reporting by Insurance Enterprises
61. Accounting for Title Plant
62. capitalization of Interest Cost in Situations Involving Certain Tax-Exempt Borrowings and Certain Gifts and Grants-an Amendment of FASB Statement No. 34
63. Financial Reporting by Broadcasters
64. Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements-an Amendment of FASB Statement No. 4
65. Accounting for Certain Mortgage Banking Activities
66. Accounting for Sales of Real Estate
67. Accounting for Costs and Initial Rental Operations of Real Estate Projects
68. Research and Development Arrangements
69. Disclosures about Oil and Gas Producing Activities-an Amendment of FASB Statements 19, 25, 33, and 39
70. Financial Reporting and Changing Prices: Foreign Currency Translation-an Amendment of FASB Statement No. 33
71. Accounting for the Effects of Certain Types of Regulation
72. Accounting for Certain Acquisitions of Banking or Thrift Institutions-an Amendment of APB Opinion No.. 17, an interpretation of APB Opinions 16 and 17, and an Amendment of FASB Interpretation No.. 9
73. Reporting a Change in Accounting for Railroad Track Structures-an Amendment of APB Opinion No.. 20
74. Accounting for Special Termination Benefits Paid to Employees
75. Deferral of the Effective Date of Certain Accounting Requirements for Pension Plans of State and Local Governmental Units-an Amendment of FASB Statement No. 35
76. Extinguishment of Debt-an Amendment of APB Opinion No.. 26
77. Reporting by Transferors for Transfers of Receivables with recourse
78. Classification of obligations That Are Callable by the Creditor's Amendment of ARB No.. 43, Chapter 3A
79. Elimination of Certain Disclosures for Business Combinations by Nonpublic Enterprises-an Amendment of APB Opinion No.. 16
80. Accounting for Futures Contracts
81. Disclosure of Postretirement Health Care and Life Insurance Benefits
82. Financial Reporting and Changing Prices: Elimination of Certain Disclosures-an Amendment of FASB Statement No. 33
83. Designation of AICPA Guides and Statement of Position on Accounting by Brokers and Dealers in Securities, by Employee Benefit Plans, and by Banks as preferable for Purposes of Applying APB Opinion 20-an Amendment FASB Statement No. And APB Opinion No. 32. 30 and a rescission of FASB Interpretation No. 10
84. Induced Conversions of Convertible Debt-an Amendment of APB Opinion No.. 26
85. Yield Test for Determining whether a Convertible Security is a Common Stock Equivalent-an Amendment of APB Opinion No.. 15
86. Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise marketed
87. Employers' Accounting for Pensions
88. Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits
89. Financial Reporting and Changing Prices
90. Regulated Enterprises-Accounting for Abandonments and Disallowances of Plant Costs-an Amendment of FASB Statement No. 71
91. Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases-an Amendment of FASB No statements. 13, 60, and 65 and a rescission of FASB Statement No. 17
92. Regulated Enterprises-Accounting for Phase-in Plans-an Amendment of FASB Statement No. 71
93. Recognition of Depreciation by Not-for-Profit Organizations
94. Consolidation of All Majority-owned Subsidiaries-an Amendment of ARB No.. 51, with related Amendments of APB Opinion No.. And ARB No. 18. 43, Chapter 12
95. Statement of Cash Flows
96. Accounting for Income Taxes
97. Accounting and Reporting by Insurance Enterprises for Certain Long- Duration Contracts and for Realized Gains and Losses from the Sale of Investments
98. Accounting for Leases: Sale-Leaseback Transactions Involving Real Estate,
Sales-Type Leases of Real Estate, Definition of the Lease Term, and Initial
Direct Costs of Direct Financing Leases-an Amendment of FASB Statements
No. 13, 66, and 91 and a rescission of FASB Statement No. 26 and Technical Bulletin No. 79-11
99. Deferral of the Effective Date of Recognition of Depreciation by Not-for-Profit Organizations-an Amendment of FASB Statement No. 93
100. Accounting for Income Taxes-Deferral of the Effective Date of FASB Statement No. 96-an Amendment of FASB Statement No. 96
101. Regulated Enterprises-Accounting for the Discontinuation of Application of FASB Statement No. 71
102. Statement of Cash Flows-exemption of Certain Enterprises and Classification of Cash Flows from Certain Securities Acquired for Resale-an Amendment of FASB Statement No. 95
103. Accounting for Income Taxes-Deferral of the Effective Date of FASB Statement No. 96-an Amendment of FASB Statement No. 96
104. Statement of Cash Flows-Net Reporting of Certain Cash Receipts and Cash Payments and Classification of Cash Flows from Hedging Transactions-an Amendment of FASB Statement No. 95
105. Disclosure of Information about Financial Instruments with Off-Balance- Sheet Risk and Financial Instruments with Concentrations of Credit Risk
106. Employers' Accounting for Postretirement Benefits Other Than Pensions
107. Disclosures about Fair Value of Financial Instruments
108. Accounting for Income Taxes-Deferral of the Effective Date of FASB Statement No. 96 - an Amendment of FASB Statement No. 96
109. Accounting for Income Taxes
110. Reporting by Defined Benefit Pension Plans of Investment Contracts-an Amendment of FASB Statement No. 35
111. Rescission of FASB Statement No. 32 and Technical Corrections
112. Employers' Accounting for Postemployment Benefits-an Amendment of FASB No statements. 5 and 43
113. Accounting and Reporting for Reinsurance of Short-Duration and Long- Duration Contracts
114. Accounting by Creditors for Impairment of a Loan-an Amendment of FASB No statements. 5 and 15
115. Accounting for Certain Investments in Debt and Equity Securities
116. Accounting for Contributions Received and Contributions Made
117. Financial Statements of Not-for-Profit Organizations
118. Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures-an Amendment of FASB Statement No. 114
119. Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments
120. Accounting and Reporting by Mutual Life Insurance Enterprises and by Insurance Enterprises for Certain Long-Duration Participating Contracts-an Amendment of FASB Statements 60, 97, and 113 and Interpretation No.. 40
121. Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be disposed Of
122. Accounting for Mortgage Servicing Rights-an Amendment of FASB Statement No. 65
123. Accounting for Stock-Based Compensation
124. Accounting for Certain Investments Held by Not-for-Profit Organizations
125. Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
126. exemption from Certain Required Disclosures about Financial Instruments for Certain Nonpublic Entities-an Amendment to FASB Statement No. 107
127. Deferral of the Effective Date of Certain Provisions of FASB Statement No.
125. - an Amendment to FASB Statement No. 125
128. Earnings per Share
129. Disclosure of Information about Capital Structure
130. Reporting Comprehensive Income
131. Disclosures about segments of an Enterprise and Related Information
132. Employers' Disclosures about Pensions and Other Postretirement Benefits-an a Amendment to FASB Statements No. 87, 88, and 106.
133. Accounting for Derivative Instruments and Hedging Activities
Source: FASB, Statement of Financial Accounting Standards: Summaries and Status,
1. Disclosure of Foreign Currency Translation Information
2. Accounting for Research and Development Costs
3. Reporting Accounting Changes in Interim Financial Statements-an Amendment of APB Opinion No.. 28
4. Reporting Gains and Losses from Extinguishment of Debt-an Amendment of APB Opinion No.. 30
5. Accounting for contingencies
6. Classification of Short-Term Expected to Be Refinanced obligations-an Amendment of ARB No.. 43, Chapter 3A
7. Accounting and Reporting by Development Stage Enterprises
8. Accounting for the Translation of Foreign Currency Transactions and Foreign Currency Financial Statements
9. Accounting for Income Taxes: Oil and Gas Producing Companies-an Amendment of APB Opinions No.. 11 and 23
10. Extension of "Grandfather" Provisions for Business Combinations-an Amendment of APB Opinion No.. 16
11. Accounting for contingencies: Transition Method-an Amendment of FASB Statement No. 5
12. Accounting for Certain Marketable Securities
13. Accounting for Leases
14. Financial Reporting for segments of a Business Enterprise
15. Accounting by Debtors and Creditors for Troubled Debt Restructurings
16. Prior Period Adjustments
17. Accounting for Leases: Initial Direct Costs-an Amendment of FASB Statement No. 13
18 Financial Reporting for segments of a Business Enterprise: Interim Financial Statements-an Amendment of FASB Statement No. 14
19. Financial Accounting and Reporting by Oil and Gas Producing Companies
20. Accounting for Forward Exchange Contracts-an Amendment of FASB Statement No. 8
21. Suspension of the Reporting of Earnings per Share and Segment Information by Nonpublic Enterprises-an Amendment of APB Opinion No.. 15 and FASB Statement No. 14
22. Changes in the Provisions of Lease Agreements Resulting from Refundings of Tax-Exempt Debt-an Amendment of FASB Statement No. 13
23. Inception of the Lease-an Amendment of FASB Statement No. 13
24. Reporting Segment Information in Financial Statements That Are Presented in Another Enterprise's Financial Report-an Amendment of FASB Statement No. 14
25. Suspension of Certain Accounting Requirements for Oil and Gas Producing Companies-an Amendment of FASB Statement No. 19
26. Profit Recognition on Sales-Type Leases of Real Estate-an Amendment of FASB Statement No. 13
27. Classification of Renewals or Extensions of Existing Sales-Type or Direct Financing Leases-an Amendment of FASB Statement No. 13
28. Accounting for Sales with Leasebacks-an Amendment of FASB Statement No. 13
29. Determining Contingent Rentals-an Amendment of FASB Statement No. 13
30. Disclosure of Information about Major Customers-an Amendment of FASB Statement No. 14
31. Accounting for Tax Benefits Related to U.K. Tax Legislation Concerning Stock Relief
32. Specialized Accounting and Reporting Principles and Practices in AICPA Statements of Position and Guides on Accounting and Auditing Matters-an Amendment of APB Opinion No.. 20
33. Financial Reporting and Changing Prices
34. capitalization of Interest Cost
35. Accounting and Reporting by Defined Benefit Pension Plans
36. Disclosure of Pension Information-an Amendment of APB Opinion No.. 8
37. Balance Sheet Classification of Deferred Income Taxes-an Amendment of APB No Opinion. 11
38 Accounting for contingencies Preacquisition of Purchased Enterprises-an Amendment of APB Opinion No.. 16
39. Financial Reporting and Changing Prices: Specialized Assets-Mining and Oil and Gas-a supplement to FASB Statement No. 33
40. Financial Reporting and Changing Prices: Specialized Assets-Timberlands and Growing Timber-a supplement to FASB Statement No. 33
41. Financial Reporting and Changing Prices: Specialized Assets-Income- Producing Real Estate-a supplement to FASB Statement No. 33
42. Determining Materiality for capitalization of Interest Cost-an Amendment of FASB Statement No. 34
43. Accounting for compensated absences
44. Accounting for Intangible Assets of Motor Carriers-an Amendment of Chapter 5 of ARB No. 43 and an interpretation of APB Opinions 17 and 30
45. Accounting for Franchise Fee Revenue
46. Financial Reporting and Changing Prices: Motion Picture Films
47. Disclosure of Long-Term obligations
48. Revenue Recognition When Right of Return Exists
49. Accounting for Product Financing Arrangements
50. Financial Reporting in the Record and Music Industry
51. Financial Reporting by Cable Television Companies
52. Foreign Currency Translation
53. Financial Reporting by Producers and Distributors of Motion Picture Films
54. Financial Reporting and Changing Prices: Investment Companies-an Amendment of FASB Statement No. 33
55. Determining whether a Convertible Security is a Common Stock Equivalentan Amendment of APB Opinion No.. 15
56. Designation of AICPA Guide and Statement of Position (SOP) 81-1 on Contractor Accounting and SOP 81-2 Concerning Hospital-Related Organizations as preferable for Purposes of Applying APB Opinion 20-an Amendment of FASB Statement No. 32
57. Related Party Disclosures
58. capitalization of Interest Cost in Financial Statements That Include Investments accounted for by the Equity Method-an Amendment of FASB Statement No. 34
59. Deferral of the Effective Date of Certain Accounting Requirements for Pension Plans of State and Local Governmental Units-an Amendment of FASB Statement No. 35
60. Accounting and Reporting by Insurance Enterprises
61. Accounting for Title Plant
62. capitalization of Interest Cost in Situations Involving Certain Tax-Exempt Borrowings and Certain Gifts and Grants-an Amendment of FASB Statement No. 34
63. Financial Reporting by Broadcasters
64. Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements-an Amendment of FASB Statement No. 4
65. Accounting for Certain Mortgage Banking Activities
66. Accounting for Sales of Real Estate
67. Accounting for Costs and Initial Rental Operations of Real Estate Projects
68. Research and Development Arrangements
69. Disclosures about Oil and Gas Producing Activities-an Amendment of FASB Statements 19, 25, 33, and 39
70. Financial Reporting and Changing Prices: Foreign Currency Translation-an Amendment of FASB Statement No. 33
71. Accounting for the Effects of Certain Types of Regulation
72. Accounting for Certain Acquisitions of Banking or Thrift Institutions-an Amendment of APB Opinion No.. 17, an interpretation of APB Opinions 16 and 17, and an Amendment of FASB Interpretation No.. 9
73. Reporting a Change in Accounting for Railroad Track Structures-an Amendment of APB Opinion No.. 20
74. Accounting for Special Termination Benefits Paid to Employees
75. Deferral of the Effective Date of Certain Accounting Requirements for Pension Plans of State and Local Governmental Units-an Amendment of FASB Statement No. 35
76. Extinguishment of Debt-an Amendment of APB Opinion No.. 26
77. Reporting by Transferors for Transfers of Receivables with recourse
78. Classification of obligations That Are Callable by the Creditor's Amendment of ARB No.. 43, Chapter 3A
79. Elimination of Certain Disclosures for Business Combinations by Nonpublic Enterprises-an Amendment of APB Opinion No.. 16
80. Accounting for Futures Contracts
81. Disclosure of Postretirement Health Care and Life Insurance Benefits
82. Financial Reporting and Changing Prices: Elimination of Certain Disclosures-an Amendment of FASB Statement No. 33
83. Designation of AICPA Guides and Statement of Position on Accounting by Brokers and Dealers in Securities, by Employee Benefit Plans, and by Banks as preferable for Purposes of Applying APB Opinion 20-an Amendment FASB Statement No. And APB Opinion No. 32. 30 and a rescission of FASB Interpretation No. 10
84. Induced Conversions of Convertible Debt-an Amendment of APB Opinion No.. 26
85. Yield Test for Determining whether a Convertible Security is a Common Stock Equivalent-an Amendment of APB Opinion No.. 15
86. Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise marketed
87. Employers' Accounting for Pensions
88. Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits
89. Financial Reporting and Changing Prices
90. Regulated Enterprises-Accounting for Abandonments and Disallowances of Plant Costs-an Amendment of FASB Statement No. 71
91. Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases-an Amendment of FASB No statements. 13, 60, and 65 and a rescission of FASB Statement No. 17
92. Regulated Enterprises-Accounting for Phase-in Plans-an Amendment of FASB Statement No. 71
93. Recognition of Depreciation by Not-for-Profit Organizations
94. Consolidation of All Majority-owned Subsidiaries-an Amendment of ARB No.. 51, with related Amendments of APB Opinion No.. And ARB No. 18. 43, Chapter 12
95. Statement of Cash Flows
96. Accounting for Income Taxes
97. Accounting and Reporting by Insurance Enterprises for Certain Long- Duration Contracts and for Realized Gains and Losses from the Sale of Investments
98. Accounting for Leases: Sale-Leaseback Transactions Involving Real Estate,
Sales-Type Leases of Real Estate, Definition of the Lease Term, and Initial
Direct Costs of Direct Financing Leases-an Amendment of FASB Statements
No. 13, 66, and 91 and a rescission of FASB Statement No. 26 and Technical Bulletin No. 79-11
99. Deferral of the Effective Date of Recognition of Depreciation by Not-for-Profit Organizations-an Amendment of FASB Statement No. 93
100. Accounting for Income Taxes-Deferral of the Effective Date of FASB Statement No. 96-an Amendment of FASB Statement No. 96
101. Regulated Enterprises-Accounting for the Discontinuation of Application of FASB Statement No. 71
102. Statement of Cash Flows-exemption of Certain Enterprises and Classification of Cash Flows from Certain Securities Acquired for Resale-an Amendment of FASB Statement No. 95
103. Accounting for Income Taxes-Deferral of the Effective Date of FASB Statement No. 96-an Amendment of FASB Statement No. 96
104. Statement of Cash Flows-Net Reporting of Certain Cash Receipts and Cash Payments and Classification of Cash Flows from Hedging Transactions-an Amendment of FASB Statement No. 95
105. Disclosure of Information about Financial Instruments with Off-Balance- Sheet Risk and Financial Instruments with Concentrations of Credit Risk
106. Employers' Accounting for Postretirement Benefits Other Than Pensions
107. Disclosures about Fair Value of Financial Instruments
108. Accounting for Income Taxes-Deferral of the Effective Date of FASB Statement No. 96 - an Amendment of FASB Statement No. 96
109. Accounting for Income Taxes
110. Reporting by Defined Benefit Pension Plans of Investment Contracts-an Amendment of FASB Statement No. 35
111. Rescission of FASB Statement No. 32 and Technical Corrections
112. Employers' Accounting for Postemployment Benefits-an Amendment of FASB No statements. 5 and 43
113. Accounting and Reporting for Reinsurance of Short-Duration and Long- Duration Contracts
114. Accounting by Creditors for Impairment of a Loan-an Amendment of FASB No statements. 5 and 15
115. Accounting for Certain Investments in Debt and Equity Securities
116. Accounting for Contributions Received and Contributions Made
117. Financial Statements of Not-for-Profit Organizations
118. Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures-an Amendment of FASB Statement No. 114
119. Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments
120. Accounting and Reporting by Mutual Life Insurance Enterprises and by Insurance Enterprises for Certain Long-Duration Participating Contracts-an Amendment of FASB Statements 60, 97, and 113 and Interpretation No.. 40
121. Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be disposed Of
122. Accounting for Mortgage Servicing Rights-an Amendment of FASB Statement No. 65
123. Accounting for Stock-Based Compensation
124. Accounting for Certain Investments Held by Not-for-Profit Organizations
125. Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
126. exemption from Certain Required Disclosures about Financial Instruments for Certain Nonpublic Entities-an Amendment to FASB Statement No. 107
127. Deferral of the Effective Date of Certain Provisions of FASB Statement No.
125. - an Amendment to FASB Statement No. 125
128. Earnings per Share
129. Disclosure of Information about Capital Structure
130. Reporting Comprehensive Income
131. Disclosures about segments of an Enterprise and Related Information
132. Employers' Disclosures about Pensions and Other Postretirement Benefits-an a Amendment to FASB Statements No. 87, 88, and 106.
133. Accounting for Derivative Instruments and Hedging Activities
Source: FASB, Statement of Financial Accounting Standards: Summaries and Status,
From the data in advance, it
appears that the standards have relied heavily the
conditions of each country, although seen from the title by default, standards have some similarities. Quite a few are also standard
on accounting The United States in the form of an
amendment (Amendment) and the recall (Rescission)
standards have been published previously.
Harmonization
versus Standardization
Globalization also carries the implication that things that were once considered the authority and
responsibility of each country is no longer
possible influenced by the international community. Similarly, the
reporting financial and accounting standards.
One of the qualitative characteristics of accounting information is able to compared
(comparability),
including accounting information also international should also be
compared as it is important in world trade and
international investment. In the event wanted to obtain full broad comparability internationally applicable, required
standardization international accounting standards.
On the other hand, the existence of certain factors in a country, create a continuing need national
accounting standards applicable in the country them. It
can be seen in the comparison view of accounting standards finance in Indonesia and the United States in advance. In
Accounting Standards Indonesia's Financial
Accounting for Cooperatives which are not necessarily needed in the United States. Based on this, the less likely and
less feasible to make a full international
accounting standards and comprehensive.
Concept is more popular than the standardization for bridge the wide variety of accounting
standards
in various countries is the concept
harmonization. Harmonization of accounting standards is
defined as minimizing of differences in accounting
standards in various countries (Iqbal, 1997:35). Harmonization
can also be interpreted as a group of countries that agree an accounting standard that is similar, but requires the
implementation that do not follow the standard
should be disclosed and reconciled with the standard agreed. Institutions that are active in harmonization efforts
accounting standards, these include the IASC
(International Accounting Standard Committee), the
United Nations and the OECD (Organization for Economic Cooperation and Development). Some of those who benefited from
the presence of This harmonization is the
multinational corporations, accounting firms international
trade organizations, as well as the IOSCO (International Organization of
Securities Commissions).
IASC was founded in 1973 and consists of members of professional organizations accountants
from ten countries. In 1999, IASC membership
consists of 134
accounting profession organizations from 104 countries,
including Indonesia. IASC goals are (1) formulate
and publish accounting standards with respect to financial
reporting and promote it to be widely accepted in around
the world, and (2) work for the development and harmonization of standards and
accounting procedures with respect to financial reporting.
Some countries such as Singapore, Zimbabwe and
Kuwait instead adopt International Accounting
Standards as the accounting standards of their country.
IASC has IASC consultative group
called the Consultative Group
consisting of those who
represent
the users of financial statements,
financial statement maker, standards-making bodies, and
observers from inter-governmental organizations.
This group meets regularly to discuss the policies,
principles and matters relating to the role of the IASC.
International accounting standards have been issued IASC can be seen in
List of International Accounting Standards (IAS)
1. Presentation of Financial Statements
2. Inventories
3. superseded by IAS 27 and IAS 28
4. Depreciation Accounting
5. Information to be Disclosed in Financial Statements - superseded by IAS 1
6. superseded by IAS 15
7. Cash Flow Statements
8. Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies
9. Research and Development Costs - superseded by IAS 38
10. contingencies occurring and Events After the Balance Sheet Date
11. Construction Contracts
12. Accounting for Taxes on Income
13. Presentation of Current Assets and Current Liabilities - superseded by IAS 1
14. Reporting Financial Information by Segment
15. Information Reflecting the Effects of Changing Prices
16. Property, Plant and Equipment
17. Accounting for Leases
18. Revenue
19. Retirement Benefit Costs
20. Accounting for Government Grants and Disclosure Government Assistance
21. The Effect of Changes in Foreign Exchange Rates
22. Business Combination
23. Borrowing Costs
24. Related Party Disclosures
25. Accounting for Investments
26. Accounting and Reporting by Retirement Benefit Plans
27. Consolidated Financial Statements and Accounting for Investments in Subsidiaries
28. Accounting for Investments in Associates
29. Financial Reporting in hyperinflationary Economics
30. Disclosures in the Financial Statements of Banks and Similar Financial Institutions
31. Financial Reporting of Interests in Joint Ventures
32. Financial Instruments: Disclosure and Presentation
33. Earnings Per Share
34. Interim Financial Reporting
35. Discontinuing Operations
36. Impairment of Assets
37. Provisions, Contingent Liabilities and Contingent Assets
38. Intangible Assets
39. Financial Instruments: Recognition and Measurement
Source: IASC, IASC Standard List, www.iasc.org.uk/frame/cen2_1.htm, September 1999
FASB (Financial Accounting
Standards Board), in its report that titled International
Accounting
Standard
Setting: A Vision for the Future,
believes that the need for a set of accounting standards
that are used throughout world both for financial
reporting in the country and across countries. Without
mention that the method is performed to obtain a standard equal to the whole world as standardization, the FASB also did not state explicitly that this effort is the harmonization effort. FASB view that an international accounting standard should be (a) has a high quality by providing useful information to investors, creditors, and the maker other decisions in similar decisions about resource allocation power in the economy, and (b) make different accounting standards in various state becomes convergent or as closely as possible. FASB wants On the one hand the standardization of accounting standards but does not deny that the process toward standardization through the process of harmonization should be more targeted towards standardization.
mention that the method is performed to obtain a standard equal to the whole world as standardization, the FASB also did not state explicitly that this effort is the harmonization effort. FASB view that an international accounting standard should be (a) has a high quality by providing useful information to investors, creditors, and the maker other decisions in similar decisions about resource allocation power in the economy, and (b) make different accounting standards in various state becomes convergent or as closely as possible. FASB wants On the one hand the standardization of accounting standards but does not deny that the process toward standardization through the process of harmonization should be more targeted towards standardization.
Accounting standards which have
high quality (high-quality) is a
accounting standards that are
not
biased, and results in a relevant information credible
and useful for decision making by investors, creditors
and other parties who take a similar decision. The standard is should be:
a.
Consistent with the underlying
conceptual framework
b.
Avoid or minimize the existence
of alternative accounting procedures, both implicitly or explicitly by
considering the factor of comparability and consistency.
c.
Clear and comprehensive, so that
standards can be understood by
maker of financial statements, auditors examine the
financial statements based on these standards, by
the parties authorized to require use these
standards as well as users of information produced based
on these standards. FASB established three
organizations saw the need for which will determine the system international accounting in the future, namely:
1.
International Standard Setter
(ISS)
These organizations define, develop and promulgate international accounting standards. ISS is an
These organizations define, develop and promulgate international accounting standards. ISS is an
independent organization that has eight
functions: (1) leadership (2) innovation, (3) relevance, (4) responsiveness, (5) Objectivity, (6) acceptability and
credibility, (7) understandability and (8) accountability.
ISS is an important characteristic
a. independent in decision making
b. run a fairly standard-setting process with the associated
with outside parties who will use the standard
c. have sufficient staff
d. have independent funding
e. monitored independently
a. independent in decision making
b. run a fairly standard-setting process with the associated
with outside parties who will use the standard
c. have sufficient staff
d. have independent funding
e. monitored independently
2.
International Interpretation Committee (IIC)
It was created to express an
opinion on the application of standard international accounting in
order to obtain a consistent interpretation and application. IIC will guide the basic user and if necessary issue a sort of guide book as a complement to existing published
standards.
3.
International Professional Group
(IPG)
This organization consists of professional accountants from various organizations professionals in
This organization consists of professional accountants from various organizations professionals in
various
countries. IPG is the main activity is easier application
of standards by ensuring adherence (compliance) to
standards, a fairly standard deployment to the national level and educate users about the application of standards appropriate international accounting. How does the existence of an already existing IASC if it These are actually implemented. FASB assume that somehow a
international accounting standard-setting organization was
formed, the structure of the organization it should
be possible eighth above functions work well. Structure organizations also need to enter the top five characteristics in
order to developing international accounting
standards are of high quality. Based on this
thinking, an alternative that can be used in the future are (a) IASC could still exist with the structure as suggested revamping
the FASB, or (b) formed a new organization with new
structures such as the FASB recommended, will
continue their stuff has been done by the IASC, or
(c) modify the FASB to be more widely accepted around the world. The third alternative is based on the belief that the FASB has a
role as a global leader in accounting standard
setting.
3. CONCLUSION
Accounting standards can not be separated from environmental influences and conditions of
legal,
social and economic one particular country. Those things are lead to an
accounting standard in a country different from country other. Globalization appears among others from trading
activities between countries and the emergence of
multinational firms resulted in the emergence of the need an accounting standard that would apply broadly across the
world.
Formation is one of the IASC standards harmonization efforts accounting is to make the
differences
between accounting standards in
many countries are becoming increasingly smaller. This
harmonization should not eliminate accounting
standards applicable in each country and also does not cover the possibility that international accounting standards
developed by the IASC adopted into a country's national
accounting standards.
FASB has the view that it should have one standard accounting international laws around the
world.
For organizations that need to be established international
accounting standard-setter with specific structures and processes. According to FASB, IASC could be modified to form the
organization or
The new organization or modify the FASB itself.
The new organization or modify the FASB itself.
REFERENCES
Financial Accounting Standards Board (1999), Summaries and Status of all FASB Statements,
www.rutgers.edu
/ Accounting / raw / FASB / public / index.html, September Of 1999.
______ (1999), International Accounting Standard Setting: A Vision for the Future- Report of the FASB,
www.rutgers.edu
/ Accounting / raw / FASB, September 1999
International Accounting Standards Committee (1999), List of Current IASC Standards,
Iqbal, M. Zafar, Trini U. Melcher and Amin E. Elmallah (1997), International Accounting: A Global
Perspective,
Cincinnati, Ohio: South-Western College Publishing
Nobes, Christopher and Robert Parker (1995), Comparative International Accounting, The fourth edition,
London:
Prentice Hall International (UK) Limited
Radebaugh, Lee H., and Sidney J. Gray (1997), International Accounting and Multinational Enterprises,
Fourth
Edition, Toronto, Canada: John Wiley & Sons, Inc..
Journal
of Accounting & Finance Vol. 1, 2, November 1999: 144-161
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