TUGAS I AKUNTANSI INTERNASIONAL CHAPTER 3

AKUNTANSI KOMPARATIF

PUTRI AYU PUSPA RENGGANIS

20208970

4EB11

• IDENTIFICATION AND DETERMINATION OF THE TERM STANDAR OF ACCOUNTING STANDARS

The Financial Accounting Standards Board (FASB) is a private, not-for profit organization whose sole purpose is to develop generally accepted accounting principles (GAAP) in the United States in the public interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the United States was created in 1973, replacing the Committee on Accounting Procedure (CAP) and Accounting Principles Board (APB) of the American Institute of Accountants Certified Public (AICPA). FASB's mission is "to establish and improve standards of accounting and financial reporting guidance and education to the public, including issuers, auditors, and users of financial information." One to achieve this, the FASB has five goals one ":

Increase the benefits of financial reporting by focusing on the main characteristics of relevance and reliability, and on the comparative quality and consistency. Keep standards current to reflect changes in methods of doing business and the economy. Consider promptly any significant areas of deficiency in financial reporting that might be enhanced through the establishment of standards.

Promote the international convergence of accounting standards concurrent with improving the quality of financial reporting. Improve public understanding of the nature and purpose of the information in the financial statements.

Description

FASB is not a government agency. The SEC has the legal authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the policy of the Commission has relied on the private sector for this function if the private sector demonstrates the ability to fulfill responsibilities in the public interest.

FASB is an independent part of the structure of all businesses and professional organizations. Before the present structure was created, financial accounting and reporting standards was first established by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants (1936-1959) and then by the Accounting Principles Board, also part of the AICPA (1959 -73). Statement of its predecessor bodies remain in effect unless amended or superseded by the FASB.

FASB subject to supervision by the Financial Accounting Foundation (FAF), FASB members who voted and the Governmental Accounting Standards Board and funds both organizations. FAF Board of Trustees, in turn, partly elected by a group of organizations including:

• American Institute of Accountants
• American Institute of Certified Public Accountants
• CFA Institute
• Financial Executives International
• The Government Finance Officers Association
• Institute of Management Accountants
• National Association of State Auditors, Comptrollers and Treasurers
• Securities Industry Association

FASB structure is very different from its predecessor in many ways. Council consists of seven full members. The members are required to sever all ties with companies and institutions that previously they may have served prior to joining the FASB .. This is to ensure the impartiality and independence of the FASB. They are appointed for a term of five years and are eligible for one additional term of five years. The current members (with the end of this time period stated date):

· Robert H. Herz, Chairman (2012)

· Thomas J. Linsmeier (2011)

· Leslie F. Seidman (2011)

· Marc A. Siegel (2013)

· Lawrence W. Smith (2012)

In addition to full-time members, there are about 68 members of staff. This staff is, "professionals drawn from public accounting, industry, academia, and government, plus support personnel" This group was formed in order to provide quick response to their financial problems arise. This group includes 15 people from both public and private sectors coupled with the representatives of the FASB and the SEC observer. As problems arise, the task force considers them and tries to reach consensus on what action to take. If a consensus can be achieved, they EITF issues and FASB are not involved. EITF considered as a legitimate issue as FASB statements and are included in GAAP.

Creation of Codification

On July 1, 2009, FASB announced the launch of the Accounting Standards Codification, stating that a "single source of authoritative nongovernmental U.S. generally accepted accounting principles." The Codification regulates many statements which are U.S. GAAP to be sought, consistent format. Codification is not to be confused with the FASB Conceptual Framework, a project initiated in 1973 to develop a sound theoretical basis for the development of accounting standards in the United States.

Norwalk Agreement

FASB is pursuing convergence project with the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS). On 18 September 2002, in Norwalk, Connecticut, FASB and IASB met and issued a Memorandum of Understanding. [4] This document describes a plan to converge IFRS and U.S. GAAP into a single set of high quality and compatible standards. As part of the project, the FASB has begun to move from the principle of historical cost to fair value.

The independence

In June 2009, the FASB has been criticized by investor advisory panel after making the change-to-market accounting as a sign of a response to political pressure. Lobbyists have obtained permission for banks to apply a special accounting treatment for toxic assets. [5]

FASB statement In order to establish accounting principles, FASB issue public statements, each of which address problems or special general accounting. This statement is:

• Statement of Financial Accounting Standards
• Statement of Financial Accounting Concepts
• FASB Interpretation
• FASB Technical Bulletins
• EITF Abstracts

• DIFFERENT FROM THE STANDARD ACCOUNTING PRACTICES PRESCRIBED

Harmonization is a process to improve the compatibility (suitability) accounting practices by setting limits on how large these practices may vary. Harmonization of standards will be free of conflicts of logic and can improve the comparability (comparability) of financial information from different countries. Efforts to harmonize accounting standards have been started long before the establishment of the International Accounting Standards Committee in 1973. More recently, a number of companies seeking to raise capital in markets outside the country of origin and the investors who seek to diversify their investments internationally face increasing problems as a result of national differences in terms of accounting, disclosure, and audit. Comparability of financial information is a concept that is clearer than harmonize. The information generated from the system of accounting, disclosure and audit different or comparable if it has a similarity in the way in which users can compare the financial statements without the need to familiarize themselves with more than one system. Include the harmonization of accounting harmonization:

1. Accounting standards (which relates to the measurement and disclosure

2. Disclosures made by public companies associated with the securities offering and listing on the stock exchange, and

3. Auditing standard

Advantage of international harmonization

Language, those who use English as their mother may feel fortunate that English be the language that is widely used around the world. Harmonization of taxation's social security system, advantage. Businesses will experience great benefits in planning, systems and training costs, and so of harmonization.

Loss of international harmonization

Taxation and social security systems have a strong influence on economic efficiency. Different systems have different effects. The ability to compare how the different approaches in different countries led to the countries capable of increasing their respective systems. Countries competing and competition forced them to adopt an efficient system through the operation of such market power. Approval of the tax system would be like establishing a cartel and would eliminate the potential benefits of interstate competition.

A recent paper also supports the existence of a harmonized global GAAP. The benefits: Into global capital markets and investment capital can move across the world without description means. High-quality financial reporting standards that are used consistently throughout the world will improve the efficiency of capital allocation.

Investors can make better investment decisions, be more diverse portfolio and reduced financial risk companies can improve decision making strategies in the areas of mergers and acquisitions the best ideas arising from the creation of standards activities can be deployed in developing high-quality global standard. To prevent problems caused by the differences in accounting standards used by different countries, the Council of the International Accounting Standards Committee (Board of IASC) was established in 1973 issued international accounting standards (IAS). IAS exit was followed by some interpretations of IAS in the form of SIC (Standing Committee Interpretation).

The next development is established IASC Foundation. Through the IASC Foundation is the development of accounting standards and reporting standards entered a new phase. New stage in the development of accounting and reporting standards are the establishment of several entities that exist under the IASC Foundation. Some bodies are formed by the IASC Foundation

• IASB (International Accounting Standard Board)

• IFRIC (International Financial Reporting Committee)

• SAC (Standard Advisory Committee)

IASB publishes a role in the new accounting standards with input from the SAC to look after. Contribute to the IFRIC interpretation standards issued by the IASB. IASB step in addition to issuing the new standards is to revise and replace the old standards that have been there before. Standards issued by the IASB are then given the name of IFRS (international calls Financial Reporting Standard). IFRS may contain standard that replaces the previous standard or standards that are truly new.

These standards, IFRS and IAS, the reference or adopted directly by the standard setter in each country who want to revise their standards to conform with internationally accepted standards. Standards have been made by the standard setter, which may have been referring to IFRS and IAS, and then used as guidance in the accounting records for companies that are in the enactment of these standards. In relation to international standards, there are several kinds of steps taken by many countries in relation to differences in the standards they previously made. Outline the steps that can be taken can be divided into the harmonization and convergence.

Harmonization is a process to improve the comparability (compliance) with the accounting practices to determine the limits on how large these practices may vary. In simple terms the harmonization of accounting standards may mean that a country does not fully follow the internationally accepted standards. Only make the country accounting standards that they have no conflict with international accounting standards.

Harmonization is very flexible and open so that there may be differences between the standards followed by the country with international standards. It's just a difference in the standard sought is not a distinction that is contradictory. During the differences were not opposing these standards continues to be used by the country concerned.

Convergence in accounting standards and international standards in the context of future intended means there will be only one standard. One then applies that standard to replace the standard that had been made and used by the state itself. Before there was convergence of standards is usually the difference between the standards that were developed and used in the country by international standards. Convergence of standards would remove the differences slowly and gradually so that later there will be no difference between the state standards with internationally accepted standards.

• ACCOUNTING SYSTEMS IN DEVELOPED

ACCOUNTING SYSTEM IN GERMANY

In the early 1970s, the European Union (EU) began to issue a harmonization directive, which must be adopted by member states into national law. EU directive fourth, seventh, eighth entirely into German law through the Comprehensive Accounting Act which came into force on December 19, 1985 The third fundamental characteristic of Accountancy in Germany is its dependence on the statutes and court decisions. Besides those two things that have no binding status or authority. To understand accounting in Germany, one must notice HGB and legal frameworks related cases.

Accounting Regulations and Enforcement Rules

Prior to 1998, the Germans did not have the financial accounting standard-setting functions as understood in English-speaking countries. Law on control and transparency in 1998 introduced the requirement to recognize a private entity that sets national standards to meet the following objectives:

• Develop recommendations on the application of accounting standards in the consolidated financial statements
• Provide advice to the Ministry of Justice for a new accounting legislation
• Representing Germany in an international accounting organization, as the IASB

System implementation of new accounting standards in Germany largely similar to existing systems in the United Kingdom and the United States. But to note that the standard of GaSb is a mandatory recommendation applies only u / financial report statements.

Financial Reporting

Law - Accounting Act in 1985 specifically determine the content and form of financial statements that include:

· Balance

· The income statement

· Notes to the financial statements

· Management reports

· Auditor's report

Accounting Measurement

GAS is more stringent when compared to HGB in the consolidated financial statements, by GAS 4, revaluation methods should be used, while the assets and liabilities acquired in business combination must be revalued to fair value and the remaining excess was allocated to goodwill. Goodwill is amortized over a period no more than 20 years and tested for impairment annually. As mentioned earlier, the company - the German company can now choose to prepare consolidated financial statements in accordance with the rules of German, as described above, the international accounting standards or U.S. GAAP. The third option can be found in practice and the readers of German financial statements must be careful to find out which accounting standards are used.

ACCOUNTING SYSTEM IN ISRAEL

Accounting in Israel is similar to accounting in Europe and the United States in many aspects. Nevertheless, due to a variety of reasons, in some aspects accounting in Israel differs from accounting both in Europe and in the United States. The field of accounting, often referred to as "the language of business", encompasses a broad range of subspecialties and disciplines. Accounting includes disciplines such as bookkeeping and financial accounting, auditing, financial statement analysis, managerial, cost and tax accounting etc. Accounting related functions are varied, depending on the type of firm or organization in which these functions operate in and their different needs. The main purpose of accounting is to record, measure, interpret and communicate financial data.

Over the years many key global economic processes and recent events have confirmed that accounting is a key factor in global economic growth and development. Investors, companies, governments and other key global economic players rely on financial accounting and independent auditing to assure the reliability and accuracy of financial statements on which they base their decisions and economic activity. There can be no doubt that at the heart of all financial accounting should be a proper, reliable and accurate system of bookkeeping which will assure that proper financial statements are produced. While financial accounting is used by those outside of a company or organization, managerial accounting is concerned with the use of financial information by those inside a company or organization. Managers on different levels use managerial accounting in their decision making process which is usually an internal one.

Auditing constitutes one of the main components of accounting in Israel. Accounting in the United States emphasizes the bookkeeping aspects of an accountants' function. Whilst still being considered a component of the accounting field, auditing in the United States is well distinguished from other financial accounting disciplines in a number of ways, of which independence should be considered the most important one.

In the United States accounting is mainly associated with the responsibility for processing and recording companies' financial transactions and presenting financial statements. Auditing, on the other hand, consolidates the actions which are taken by an independent auditor towards obtaining reasonable assurance as to whether those financial statements are free of material misstatement. An accountant who focuses on the auditing aspects of his function considers a company and its financial statements as a whole, as opposed to a certain part of the company's financial statements.

The other substantial difference between auditing and financial accounting is in fields of focus and interest. An auditor is concerned with many aspects of a company's activities as well as its potential activity, while an accountant / bookkeeper focuses on maintaining a company's proper day to day routine transactions recording. In the United States auditors are usually part of an audit team, which is independent and therefore is not connected to the company's accounting staff.

Accounting in Israel, however, has taken part in both of these important tasks, being involved (under certain limitations derived from rules of independence), not only in auditing, but also in bookkeeping and financial accounting for their private clients and, until recently, assisting in preparing and editing financial statements for their public clients.

Taking into consideration several clarifications published by the Israel Securities Authority regarding its position in respect of the external auditor's involvement in preparing and editing clients' financial statements, we shall expect a significant decrease in such involvement in the near future as a response to those clarifications. These functions, if not performed internally by the companies, will probably be transferred to the external accountants who do not constitute a part of the audit team and will play the role of an external advisor in the accounting field.

This recent development opens new horizons for accounting in Israel , giving an opportunity for small and medium accounting firms to improve their professional level in the financial accounting field and to be involved in providing additional services for large public companies which were until now provided almost exclusively by the external auditors of those public companies.

ACCOUNTING SYSTEM IN BRAZIL

As in France and Italy, the tradition in Brazil provides a choice of accounting information is needed by the tax man and creditors. Although the interests of investors from within and outside the country who has entered into a rising stock market. There was little significant to the same extent to the accounting and disclosure attitude that counts. As in other Latin countries, the influence of government, corporate regulation and tax policy in terms of basic accounting is very important. In Brazil the Portuguese cultural heritage are the factors that influence. Although the basic trade rules have been established in 1850, the law firm in 1976 contains the basic requirements of financial reporting and the preparation of orders disclosure for public companies.

In addition Commission de Val ores Mobilizations (CVM), the SEC, issued accounting standards for listed companies in the capital market. Brazilian capital markets, although small compared with Britain and America. Prime market is one of Latin America and its growth is very important. Accounting profession in Brazil is not so developed as in the Anglo-Saxon countries, but the institute for accountants Brazil (IBRACON) and the Federal Accounting Board has issued accounting standards as generally accepted accounting principles is aimed at developing accounting in this country.

ACCOUNTING SYSTEM IN ARGENTINA

Historically, Argentina accounting focuses on meeting the needs of creditors and tax collectors. Financial policies in Argentina require annual financial reporting and public company must also issue a statement every quarter (4 months). Argentina has a unique accounting system in Latin America. Their accounting standards set by the FACPCE, but FACPCE structure different from other Latin countries. FACPCE consists of 24 separate councils are coming together to create a technical resolution (TR), which relates to the accounting norms in a particular subject. Each board member represents a different jurisdiction in Argentina. After TR is formed by FCAPCE, the board members decided to remedy agree to amend TR or for specific sections. As a result of harmonization across the country could be achieved if all standards can be adopted without any changes.

Argentina also showed confusion between who is able to apply the law rather than accounting standards. Taking into account that the inflation rate in Argentina a few years ago high, the concept of the general price level (GPL / General Price Level) has also been formulated to be considered for the accounting standards. More specifically, the accounting GPL allow Argentina to set the amount of cash on their financial statements to reflect the ability to buy them. But the Argentine government decided to issue the regulation of Argentina's decision to an institution such as the CNV and the Central Bank not to accept the GPL.

ACCOUNTING SYSTEM IN NETHERLAND

Accounting in the Netherlands has some interesting paradox. The Netherlands has the provision of accounting and financial reporting are relatively permissive, but the standards for professionalism is very high. The Netherlands is the country code of law, but accounting-oriented fair presentation. Financial reporting and tax accounting are two separate activities. Dutch accounting is willing to consider ideas from outside. The Netherlands is one of the first supporters of the international standards for accounting and financial reporting, and the IASB statement received great attention in determining acceptable practice.

Accounting Regulations and Enforcement Rules

Regulation in the Netherlands remained so in 1970 when liberal laws enacted Annual Financial Report, the 1970 Act introduced a mandatory audit. The law also encourages the formation of Accounting Studies Three Parties (Tripaartif) (which was replaced by the Council's Annual Report on the Year 1981) Annual reporting of the Council issued guidance on acceptable accounting principles (not accepted) in general, the Council has members from three different groups:

1. The preparation of financial statements (the company)

2. Users of financial statements (union representatives and financial analysts)

3. Auditors of financial statements (the Dutch institute or NivRA Registered Accounting)

Financial Reporting

Quality of the Netherlands is very uniform financial reporting, financial statements shall be drawn up in Dutch, but in English, French, and German can be accepted. Financial reports should contain the following:

1. Balance

2. Statement of Income

3. Records

4. Report of the Board of Directors

5. Other information recommended

Accounting Measurement

The method used is the purchase method; goodwill is the difference between acquisition cost and fair value of purchased assets and liabilities. Dutch flexibility in accounting measurements can be seen with the permissibility of the use of value now for tangible assets such as inventory and assets are depreciated. Because the company - a Dutch company has flexibility in applying the rules of measurement, can be presumed that there is a chance to perform smoothing earnings. Certain items can ignore the statements of income and adjusted directly against reserves in shareholders' equity. It includes:

• Catastrophic losses are not possible or is not common for the uninsured
• Similar losses due to nationalization or other confiscation
• Consequent due to financial restructuring

SIMILARITIES AND DIFFERENCES IN ACCOUNTING SYSTEMS IN DEVELOPED COUNTRIES

Rules and accounting systems in the country - these countries have a system of difference equations and also, where in each stand at that is in use by these countries have advantages and disadvantages of each - one in the application of accounting systems in the country. Accounting standards and rules set out in certain countries is certainly not entirely the same as other countries. Role in determining standards of professional accountants and accounting rules were more common in those countries wherewith to enter the professional rules in the rules of the company, such as in Britain and the United States.

Meanwhile, Christopher Nobles and Robert Parker (1995:11) explains the presence of seven factors that lead to important differences in the development of international accounting systems and practices. Such factors include the

(1) The legal system

(2) The owner of the funds

(3) The influence of the tax system

(4) Stability of the accounting profession

(5) Inflation

(6) Accounting theory

(7) Accidents of history

Regulation of the legal system of the company, including in this case is the accounting systems and procedures, much influenced by the legal system in force in a country. Some countries such as France, Italy, Germany, Spain, the Netherlands adhere to the legal system that is classified in the codified Roman law. Codified in law, the rules associated with the basic idea of moral and justice, which tends to be a doctrine. Meanwhile, countries like Britain, the United States and British Commonwealth countries adopted the common law. In common law, the existence of an attempted answer to specific cases and not make a general formulation. Based on the funding source of funding sources, the company can be grouped into two.

The first group is a company that gets most of the funds of the shareholders in the capital market (shareholders). The second group is a company that gets most of the funds of the bank, state or family funds. Generally, in countries with a majority of companies owned by shareholders but the shareholders do not have access to internal information, the more demands on the disclosure (disclosure), examination (audit) and get an unbiased (fair information). The extent to which the tax system tax system may affect the accounting system is to look at tax laws determine the extent to which accounting measurement (accounting measurement). In Germany, books must be equal to the tax according to commercial accounting.

Whereas in many other countries such as Britain, the United States and also includes Indonesia, there are rules - rules that differ between taxation and commercial companies. The most obvious example of this is depreciation. Accounting profession and the organizations established as a forum for the profession it is different in every country, and results in the form of rules or standards are affected by the shape, authority and members of such bodies. In some countries it was found that the separation of the accounting profession, as a tax expert or just as a corporate accountant. Members of a governing body of accounting standards may consist only of the public accountant or involve parties from business groups, industry, government and educators. The level of education and experience in the practical world as a condition of a person to become a member agency will also determine the quality of accounting standards and rules as the output produced.

International Financial Reporting Standards (IFRS) is a standard framework and to interpretation adopted by the Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known in advance, namely International Accounting Standards (IAS) issued between 1973 and 2001 by the International Accounting Standards Committee (IASC). And on 1 April 2001 his responsibilities were taken over by the IASB to establish the International Accounting Standards. The later IASB continues to develop new standards called IFRS standards. IFRS are considered as "principles based" broad rule consists of:

1. Standard International Financial Reporting (IFRS) - standards issued after 2001.

2. Standard International Accounting (IAS) - standards issued before 2001.

3. Interpretation derived from the interpretation of International Financial Reporting Committee (IFRIC) - issued after 2001.

4. Stand Interpretation Committee (SIC) - which was published prior to 2001.

5. Framework Presentation and Preparation of Financial Statements.

IFRS are used in many parts of the world, including the European Union, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore, and Turkey. Since August 27, 2008, more than 113 countries around the world, including throughout Europe, currently require or permit IFRS reporting is based. About 85 countries require IFRS reporting for all, domestic companies are listed. While in Indonesia it will be adopted starting in 2012. And the adoption of IFRS in full, the financial statements prepared under GAAP does not require a significant reconciliation with the financial statements under IFRS.

However, such changes would have an effect on many fields, especially in terms of education and business. One is, many use fair value accounting in education and in business will lead to income smoothing becomes increasingly difficult with the use of balance sheet and fair value approach. Therefore, the group we will discuss about "Pros Cons of Fair Value, Good and ugliness Fair Value Measurement as the Basis of Assets". International Financial Reporting Standards (IFRS) in Various Countries IFRS is a set procedure for how the company's financial statements. Techniques for preparing the financial statements required standard. Accounting Standards which became the world's two great strengths:

1. America = FASB and U.S. GAAP]

2. International = European = IASC was formed which later changed IFRS IFRS In America

There are standards which are divided into three era:

1. Specified standard / prepared by management, as determined Standards / prepared by the management because the need is the management.

2. Standard determined / by profession, set standards / prepared by the profession because the profession is responsible for preparing and auditing financial statements.

3. Financial Accounting Standard World (FASW), born after the judge FASW creditors too dominant in setting accounting standards.

IFRS in the EU:

1.1982 = IFAC change IASC as the Global Accounting Standard.

2.1989 = change IASC European Accounting Federation.

3.1994 = IASC Advisory Council Approved as oversight and finance.

4.1995 = IASC and IOSCO signed an agreement that the state - European Union countries should follow the IASS.

5.1996 = U.S. SEC change IASC to initiate the dev of global accounting standards.

6.1997 IASC Standing Interpretation Committee Forms, Forms SWP (Strategy Working Party).

7.1998 = IFAC / IASC membership expand to 140 bodies in 101 countries.

8.1999 = G7 Finance Ministers and IMF Support IASS Strengthen International Financial Structure.

9.2000 = IASB chairman Sir David Tweedier new appointed.

10. 2001 = IASB IASC was born as a replacement.