INTRODUCTION
1. International accounting differences with other accounting
International accounting differences bring a number of problems from the standpoint of financial analysis.
· First, in an effort to assess foreign companies, there is a tendency to look at revenues and other financial data from the standpoint of their home country, and because of the danger of ignoring the effects of accounting differences. Unless significant difference was taken into account, possibly with some involvement of a restatement, it may have very serious consequences.
· Second, awareness of international differences suggest the need to become familiar with generally accepted accounting principles as a destination for foreign countries to know better income data in the context of measurement.
· Third, the issue of comparable properties and the harmonization of accounting is reviewed in the context of alternative investment opportunities.
Differences that arise due to:
1. economic growth,
2. inflation,
3. political system,
4. education,
5. accounting profession,
6. tax laws,
7. money market, and
8. capital.
1. economic growth,
2. inflation,
3. political system,
4. education,
5. accounting profession,
6. tax laws,
7. money market, and
8. capital.
2. International accounting is divided into three broad areas
In the international accounting is divided into three broad areas, Accounting includes several extensive process include :
1. Measurement
Can provide in-depth feedback on the probability of a company's operations and financial position of strength. The process of identifying, classifying and counting activity and transactions, to provide input regarding the profitability and operating depth.
In the international accounting is divided into three broad areas, Accounting includes several extensive process include :
1. Measurement
Can provide in-depth feedback on the probability of a company's operations and financial position of strength. The process of identifying, classifying and counting activity and transactions, to provide input regarding the profitability and operating depth.
2. Misclosure
The process by which accounting measurement is communicated to the users of financial statements and used in decision making or process of communicating to the user.
3. Auditing
The process by which the special accounting professionals (auditors) perform attestation (testing) on reliability of measurement and communication processes.
The process by which accounting measurement is communicated to the users of financial statements and used in decision making or process of communicating to the user.
3. Auditing
The process by which the special accounting professionals (auditors) perform attestation (testing) on reliability of measurement and communication processes.
3. International accounting history and trends of the international financial sector policy
In the beginning, starting with the accounting system of double-entry (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting. Modern accounting started in double entry accounting was found and used in business activity, namely the multiple listing system (double entry bookkeeping) Luca Pacioli introduced by (year 1447).
In the beginning, starting with the accounting system of double-entry (double entry bookkeeping) in Italy in the 14th century and 15. Double entry bookkeeping (double entry bookkeeping), considered the beginning of the creation of accounting. Modern accounting started in double entry accounting was found and used in business activity, namely the multiple listing system (double entry bookkeeping) Luca Pacioli introduced by (year 1447).
Luca Pacioli was born in Italy in 1447, he was not an accountant but the priest who is an expert mathematician, and lecturer at several universities in Italy. Luca is the person who first published the basic principles of double accounting system in his book: the Arithmetica geometria proportioni Summa et proportionalita in the year 1494. Many historians argue that the basic principles of double accounting system is not a pure idea Luca, but he only summarizes the accounting practices that took place at the time and publish it. It is admitted by Luca (Radebaugh, 1998).
Business practices with the reference method venetian Luca wrote the book has become the method adopted not only in Italy but in almost all European countries like Germany, Holland, England.
Luca introduced the 3 (three) important notes that must be done:
a. Memorandum book, the book records of all business transaction information.
b. Journals, where the transaction whose information has been stored in a memorandum book and then recorded in the journal.
c. Great book, is a book that summarizes the above journals. General ledger is the center of the accounting system (Raddebaugh, 1996).
Luca introduced the 3 (three) important notes that must be done:
a. Memorandum book, the book records of all business transaction information.
b. Journals, where the transaction whose information has been stored in a memorandum book and then recorded in the journal.
c. Great book, is a book that summarizes the above journals. General ledger is the center of the accounting system (Raddebaugh, 1996).
Dutch accounting in the accounting model export to Indonesia, among others, the accounting system in the French Polynesian and African territories under French rule. Reporting framework of the German system is influential in Japan, Sweden, and Russian empires. Half of the 20th century, as growing economic power of the United States, the complexity of accounting issues arise simultaneously. Then accounting is recognized as a separate academic discipline. After World War II, the accounting impact increasingly felt in the western world. Accounting is supported by the development of education (the emergence of business schools), as times change and the development of international relations, the hassle of getting into accounting.
4. The role of accounting in the areas of business and global capital markets
Other factors also contributed the growing importance of international accounting is the phenomenon of global competition. Determination of reference (benchmarking), to compare the performance of an act of the parties with a reasonable standard is nothing new, but the standard of comparison used is now beyond national borders is nothing new.
Other factors also contributed the growing importance of international accounting is the phenomenon of global competition. Determination of reference (benchmarking), to compare the performance of an act of the parties with a reasonable standard is nothing new, but the standard of comparison used is now beyond national borders is nothing new.
According to the regulations in the United States, to be listed on the NYSE Market issuers need to do the following.
1. The registration process
2. Submit financial statements. They can use U.S. GAAP, IAS or GAAP of each country but each have additional requirements include:
1. The registration process
2. Submit financial statements. They can use U.S. GAAP, IAS or GAAP of each country but each have additional requirements include:
a) Fill out Form 20-7 for the annual report
b) To reconcile net earnings and equity to conform with U.S. GAAP
c) Provide disclosure in accordance U.S. GAAP
d) Submit quarterly reports that are not necessary in the audit
As we know that the capital market watchdog aims to protect public shareholders, especially individual investors (individual investors). While the Private Placement or Institutional Investor market is usually considered to have the ability to examine the feasibility of an investment in order to that not need to specifically get government protection.
In global capital markets transactions known QIB (Qualified Institutional Buyers). This grouping is intended to limit the institutional market participants. This group must be at least invested of U.S. $ 250 quadrillion. For this investor group typically does not require much disclosure (disclosure) the financial statements.
In addition known as ADR or American Depositary Receipts. This method is intended to convert the shares into the domestic market from outside the United States making it more compatible with economic conditions and investors. For example, the stock value of $ 10,000 can be broken down to be worth U.S. $ 100 per share or U.S. $ 0.10 can be made to be U.S. $ 100.00 per share. In addition there is another ADR GDR (Global Depository Receipts) that the nature and meaning as to facilitate the investors to invest in a variety of markets, companies or countries.
This situation is all the trigger and accelerate the process towards a global market and global accounting standards.
This situation is all the trigger and accelerate the process towards a global market and global accounting standards.
Summary:
International accounting differences bring a number of problems from the standpoint of financial analysis. In the international accounting is divided into three broad areas, namely the measurement, disclosure, and auditing. History of international accounting in the beginning, starting with the accounting system of double-entry (double entry bookkeeping) and then export the model in the Dutch accounting, among others, to Indonesia, the accounting system in Polynesia French and African territories under French rule. Other factors also contributed the growing importance of international accounting is the phenomenon of global competition, global capital market transactions known to QIB (Qualified Institutional Buyers). This grouping is intended to limit the institutional market participants.
International accounting differences bring a number of problems from the standpoint of financial analysis. In the international accounting is divided into three broad areas, namely the measurement, disclosure, and auditing. History of international accounting in the beginning, starting with the accounting system of double-entry (double entry bookkeeping) and then export the model in the Dutch accounting, among others, to Indonesia, the accounting system in Polynesia French and African territories under French rule. Other factors also contributed the growing importance of international accounting is the phenomenon of global competition, global capital market transactions known to QIB (Qualified Institutional Buyers). This grouping is intended to limit the institutional market participants.
DEVELOPMENT AND INTERNATIONAL ACCOUNTING CLASSIFICATION
1. Factors affecting the development of the world of accounting
There have been many who claim that accounting is influenced by its environment and vice versa accounting also affects the environment.
Choi et. al (1998: 36) describes a number of environmental factors are believed to have a direct impact on the development of accounting, among others:
There have been many who claim that accounting is influenced by its environment and vice versa accounting also affects the environment.
Choi et. al (1998: 36) describes a number of environmental factors are believed to have a direct impact on the development of accounting, among others:
· Legal System
Codification of standards and accounting procedures seemed natural and appropriate in countries that adhere to code law. In contrast, the formation of a non-legalistic accounting policies by the professional organizations which work in the private sector more in line with the prevailing system in common law countries (common law). In the law of war or other emergency national situations, all aspects of accounting functions may be regulated by a court or government agency. An example is the period of Nazi Germany, when preparations for war intensified and then during World War II the national accounting system requires a very uniform to control all activities of the national economy in total.
· Political system
The existing political system in a country also coloring the accounting, because the political system is "importing" and "export" standards and practices of accounting. For example, the existing UK accounting during the turn of the 20th Century, "exported" to the Commonwealth countries. The Netherlands did the same to the Philippines and Indonesia, France to countries in Asia and Africa colonies. The Germans used to influence the political sympathies like accounting in Japan and Sweden.
The existing political system in a country also coloring the accounting, because the political system is "importing" and "export" standards and practices of accounting. For example, the existing UK accounting during the turn of the 20th Century, "exported" to the Commonwealth countries. The Netherlands did the same to the Philippines and Indonesia, France to countries in Asia and Africa colonies. The Germans used to influence the political sympathies like accounting in Japan and Sweden.
· The nature of Business Ownership
Public ownership of the shares of the company implies the principles of financial accounting reporting and disclosure are different from companies whose ownership is dominated by the family or the bank. For example, a very high public ownership on the shares in U.S. corporations has resulted in the so-called Sunshine accounting standards of wide open disclosure, while the absence of public participation in the ownership of shares in French companies have limited financial communication is effective only to the channels of communication "insider" only. Bank ownership is high in Germany also produces a different response of accounting. In the U.S., AICPA make specific recommendations for a standards and certain financial accounting practices used by a smaller non-public companies.
Public ownership of the shares of the company implies the principles of financial accounting reporting and disclosure are different from companies whose ownership is dominated by the family or the bank. For example, a very high public ownership on the shares in U.S. corporations has resulted in the so-called Sunshine accounting standards of wide open disclosure, while the absence of public participation in the ownership of shares in French companies have limited financial communication is effective only to the channels of communication "insider" only. Bank ownership is high in Germany also produces a different response of accounting. In the U.S., AICPA make specific recommendations for a standards and certain financial accounting practices used by a smaller non-public companies.
· Differences in magnitude and complexity of Business Companies
Dichotomy between large and small companies are being continues, begins from insurance, up to all the parent-child hierarchy, including the problem of complexity. Large conglomerate that operates in a very diverse line of business requires a different financial reporting techniques from small firms that produce a single product. Multinational companies are also requiring different accounting systems to accounting systems of domestic firms.
Dichotomy between large and small companies are being continues, begins from insurance, up to all the parent-child hierarchy, including the problem of complexity. Large conglomerate that operates in a very diverse line of business requires a different financial reporting techniques from small firms that produce a single product. Multinational companies are also requiring different accounting systems to accounting systems of domestic firms.
· Social climate
Social climate also contribute to the development of accounting in different parts of the world. In France, leading to social responsibility reporting, whereas in Switzerland is still very conservative so large Swiss companies report their financial condition is relatively compact. The Italian is still very much oriented to the tax, even in some parts of East and South America, together with the bookkeeping and accounting is not considered socially appropriate.
Social climate also contribute to the development of accounting in different parts of the world. In France, leading to social responsibility reporting, whereas in Switzerland is still very conservative so large Swiss companies report their financial condition is relatively compact. The Italian is still very much oriented to the tax, even in some parts of East and South America, together with the bookkeeping and accounting is not considered socially appropriate.
· Competency levels of Business Management and Finance Community
Competence or ability of the user business management and accounting output will largely determine the development of accounting. Because the output is as sophisticated and as powerful as any accounting, business management, and if users can not read, interpret, and understand it will not do any good.
Competence or ability of the user business management and accounting output will largely determine the development of accounting. Because the output is as sophisticated and as powerful as any accounting, business management, and if users can not read, interpret, and understand it will not do any good.
· Interference with a Business degree Legislature
Regulation of taxation may require certain accounting principles. As in Sweden, where certain tax concessions should be recorded in accounting before it can be claimed for tax purposes; this is also the situation for the LIFO method of inventory valuation in the U.S.. Social protection laws also affect the various accounting standards. An example is the obligation to pay severance at several South American countries.
Regulation of taxation may require certain accounting principles. As in Sweden, where certain tax concessions should be recorded in accounting before it can be claimed for tax purposes; this is also the situation for the LIFO method of inventory valuation in the U.S.. Social protection laws also affect the various accounting standards. An example is the obligation to pay severance at several South American countries.
· There are certain Accounting Legislation
In some cases, there are specific legislative regulations for the rules and certain accounting techniques. In the U.S., the SEC determines standards of disclosure and accounting for large companies, with reference to the FASB.
In some cases, there are specific legislative regulations for the rules and certain accounting techniques. In the U.S., the SEC determines standards of disclosure and accounting for large companies, with reference to the FASB.
· Speed Business Innovation
Initially, merger and acquisition activity is not taken into account in accounting, but due to the incorporation of a business that is so popular in accounting in eropa force also developed to meet the needs of those concerned.
Initially, merger and acquisition activity is not taken into account in accounting, but due to the incorporation of a business that is so popular in accounting in eropa force also developed to meet the needs of those concerned.
· Economic development stage
Countries still rely on the agricultural economy requiring accounting principles that are different from the advanced industrial countries. In agricultural countries, the level of dependence on credit and long-term business contracts may still be small. So sophisticated accrual accounting is not useful and what is needed is a simple cash accounting.
Countries still rely on the agricultural economy requiring accounting principles that are different from the advanced industrial countries. In agricultural countries, the level of dependence on credit and long-term business contracts may still be small. So sophisticated accrual accounting is not useful and what is needed is a simple cash accounting.
· Economic growth patterns
Stable economic conditions encourage greater competition for existing markets that require a stable pattern of accounting and will be much different in countries where conditions are experiencing a prolonged war.
Stable economic conditions encourage greater competition for existing markets that require a stable pattern of accounting and will be much different in countries where conditions are experiencing a prolonged war.
· Status of Education and Professional Organizations
In the absence of an organized professional accounting and accounting source of local authorities of a country, the standards of another area or another country may be used to fill the vacancy. Adaptation of the factors accounting from the UK is a significant environmental impact in the accounting world until the end of World War II. Since then, international adaptation process to switch to U.S. sources. Development of accounting, both from the state itself or adapted from other countries, will not succeed unless the environmental conditions such as those listed above are fully considered.
In the absence of an organized professional accounting and accounting source of local authorities of a country, the standards of another area or another country may be used to fill the vacancy. Adaptation of the factors accounting from the UK is a significant environmental impact in the accounting world until the end of World War II. Since then, international adaptation process to switch to U.S. sources. Development of accounting, both from the state itself or adapted from other countries, will not succeed unless the environmental conditions such as those listed above are fully considered.
2. Approach to the development of accounting in a market-oriented economy
Initial classification was proposed by Mueller mid-1960s. He identified four approaches to the development of accounting in Western countries with market-oriented economic system.
Initial classification was proposed by Mueller mid-1960s. He identified four approaches to the development of accounting in Western countries with market-oriented economic system.
(1) Based on the macroeconomic approach,
Obtained accounting practices and are designed to improve the national macroeconomic objectives. General corporate purposes and not to follow the lead of national policy, because business firms to coordinate their activities with national policy. Thus, for example, a national policy of employment to avoid changes a steady cycle of business great in accounting practices that generate income leveling. Or, to encourage the development of certain industries, a state may permit rapid removal of capital expenditure on some of the industry. Accounting in Sweden developed and macroeconomic approaches.
Obtained accounting practices and are designed to improve the national macroeconomic objectives. General corporate purposes and not to follow the lead of national policy, because business firms to coordinate their activities with national policy. Thus, for example, a national policy of employment to avoid changes a steady cycle of business great in accounting practices that generate income leveling. Or, to encourage the development of certain industries, a state may permit rapid removal of capital expenditure on some of the industry. Accounting in Sweden developed and macroeconomic approaches.
(2) Based on microeconomic approach.
Accounting evolved from the principles of microeconomics. The focus is on individual companies that have the purpose to survive. To achieve this goal, the company must be defend its physical capital. It is equally important that the company is clearly separate capital from profits to evaluate and control the business activity. Accounting measurements are based on replacement cost is supported as best suited to this approach. Accounting in the Netherlands grew from micro ekonorni.
Accounting evolved from the principles of microeconomics. The focus is on individual companies that have the purpose to survive. To achieve this goal, the company must be defend its physical capital. It is equally important that the company is clearly separate capital from profits to evaluate and control the business activity. Accounting measurements are based on replacement cost is supported as best suited to this approach. Accounting in the Netherlands grew from micro ekonorni.
(3) Based on an independent approach.
Derived accounting and business practices and develop an ad hoc basis, with the base slowly and consideration, tried and error. Accounting services is seen as a function of the concepts and principles in the grab and run business processes, taken from the branches of science such as economics. Businesses face the real world complexity and uncertainty that always happens through experience, practice, and intuition. Accounting develops the same way. For example, profit is simply the most rewarding things in practice and the disclosure in a pragmatic answer the needs of its users. Independently developed accounting in Britain and the United States.
Derived accounting and business practices and develop an ad hoc basis, with the base slowly and consideration, tried and error. Accounting services is seen as a function of the concepts and principles in the grab and run business processes, taken from the branches of science such as economics. Businesses face the real world complexity and uncertainty that always happens through experience, practice, and intuition. Accounting develops the same way. For example, profit is simply the most rewarding things in practice and the disclosure in a pragmatic answer the needs of its users. Independently developed accounting in Britain and the United States.
(4) Based on a uniform approach
Standardized accounting and is used as a tool to control by the central government administration. Variability in the measurement, disclosure, and will facilitate the presentation of the designer of government, tax authorities and even managers to use accounting information in controlling all types of businesses. In general, uniform approach is used in countries with greater government involvement in economic planning in which the accounting is used among others for measuring performance, allocating resources, collect taxes and control prices. France, with a uniform chart of national accounting, is a major supporter uniform approaches. Legal system: the General Accounting Law and the Law Code.
Standardized accounting and is used as a tool to control by the central government administration. Variability in the measurement, disclosure, and will facilitate the presentation of the designer of government, tax authorities and even managers to use accounting information in controlling all types of businesses. In general, uniform approach is used in countries with greater government involvement in economic planning in which the accounting is used among others for measuring performance, allocating resources, collect taxes and control prices. France, with a uniform chart of national accounting, is a major supporter uniform approaches. Legal system: the General Accounting Law and the Law Code.
3. The dominant state in the accounting practices
Some countries are dominant on the development of accounting include:
a. French
b. Japan
c. United States
Some countries are dominant on the development of accounting include:
a. French
b. Japan
c. United States
In the progress the countries France and Japan are less dominant than the United States. It can be seen from the development of Japanese accounting in its development is currently based on IFRS (International Financial Reporting Standarts) existing and Japan continue to renew the existing accounting in Japan to match the United States.
4. The basis of international accounting classification by traditional accounting
International accounting classification can be done in two ways: By considerations and empirically. Classification with consideration depends on the knowledge, intuition and experience. Classification empirically using statistical methods to collect data accounting principles and practices worldwide.
Traditional accounting information system is based on what is usually called the accounting cycle and based on the accounting equation. Although the ideas documented by Pacioli has changed over the years, the core of the original proposal remains intact. At the heart of the concept of Pacioli is a classification scheme known as the chart of accounts. Chart of accounts used to classify and summarize the organization's measurement of financial assets, liabilities, and equity.
1. may help to know how far the system has similarities and differences.
2. forms of development of the accounting system of a country compared to another, and likely to change.
3. Pension costs accrued at the time generated by the employee (fair presentation) paid or charged on the basis of the time you stop working (legal compliance).
5. The difference between fair presentation and compliance with laws and where the dominant state in its application
Differences fair presentation and compliance with law through many problem. This concerns the adjustments made to the application of IFRS as the basic for the presentation. Some problems include:
Differences fair presentation and compliance with law through many problem. This concerns the adjustments made to the application of IFRS as the basic for the presentation. Some problems include:
(1) Depreciation, where the load is determined based on the reduction in the usefulness of an asset during times of economic benefits.
(2) A lease which is substantially the purchase of fixed assets (property) treated as such (fair presentation) or treated as operating leases are common (legal compliance).
(3) Pension costs accrued at the time generated by the employee (fair presentation) paid or charged on the basis of the time you stop working (legal compliance).
(2) A lease which is substantially the purchase of fixed assets (property) treated as such (fair presentation) or treated as operating leases are common (legal compliance).
(3) Pension costs accrued at the time generated by the employee (fair presentation) paid or charged on the basis of the time you stop working (legal compliance).
6. An important issue between fair presentation and compliance with laws
Important issues that occur now is about the application of IFRS as the basic for the presentation. So that the countries that have not made adjustments to the fair presentation put through his report.
Important issues that occur now is about the application of IFRS as the basic for the presentation. So that the countries that have not made adjustments to the fair presentation put through his report.
The difference between fair presentation and conformity of law pose a major influence. The difference between fair presentation and conformity of law pose a major influence on many accounting issues. Accounting for common law oriented to the needs of decision-making by outside investors. Compliance with accounting laws are designed to comply with government imposed such as the calculation of taxable income or comply with the national government's economic plan. After 2005, all listed shares of European companies will use fair presentation of accounting in consolidated statements because they will be using IFRS.
ACCOUNTING COMPARATIVE
1. Identifying terms of accounting standards and standard setting.
Accounting standards are the regulations or rules (including the laws and statutes) that regulate the preparation of financial statements. While benchmarking is the process of formulation or the formulation of accounting standards. Accounting standards is the result of benchmarking.
According to Prof. Haim Falk explained that there are four advantages to using international accounting standards:
a. With regard to the reconciliation of special interests of the manager responsible for financial reporting and the needs of users of financial information.
b. Limited capacity of receiving financial information manifestation appropriately.
c. The overall credibility of the financial reporting process and the accounting profession that supports it.
d. Because of the comparative financial information explained is an argument relating to the point above.
a. With regard to the reconciliation of special interests of the manager responsible for financial reporting and the needs of users of financial information.
b. Limited capacity of receiving financial information manifestation appropriately.
c. The overall credibility of the financial reporting process and the accounting profession that supports it.
d. Because of the comparative financial information explained is an argument relating to the point above.
2. Understanding why accounting practices was different with the standards specified.
In facts the practice was different from what is already determined by existing standards. Here are four reasons why the practice is not according with the standards, namely:
In facts the practice was different from what is already determined by existing standards. Here are four reasons why the practice is not according with the standards, namely:
1. In most countries the penalty for noncompliance with the official accounting tend to be weak and ineffective
2. The company may voluntarily report more information than that required
3. Some states allow companies to ignore the accounting standards if by doing that operations and financial position would be better served
2. The company may voluntarily report more information than that required
3. Some states allow companies to ignore the accounting standards if by doing that operations and financial position would be better served
4. In some countries accounting standards only apply to the separate financial statements and not to the consolidated report.
3. Knowing the accounting systems in developed countries.
Japanese Accounting System
Japanese companies have a capital stock of each other, and together often have other companies. Investments are interlocked so as to produce enlarged industrial conglomerate that is usually referred to as keiretsu. Keiretsu venture capital is in line with changes in the structural reforms undertaken by the Japanese. In practice, a lot of accounting to hide how bad the Japanese companies.
Japanese Accounting System
Japanese companies have a capital stock of each other, and together often have other companies. Investments are interlocked so as to produce enlarged industrial conglomerate that is usually referred to as keiretsu. Keiretsu venture capital is in line with changes in the structural reforms undertaken by the Japanese. In practice, a lot of accounting to hide how bad the Japanese companies.
A change in the accounting field in the announce in late 1990 to create the economic health of the Japanese companies become more transparent so as to bring Japan closer to international standards.
Financial Reporting:
1. Balance
2. The income statement
3. business reports
4. Proposal for the determination of the use (appropriation) retained earnings
5. Supporting schedules
1. Balance
2. The income statement
3. business reports
4. Proposal for the determination of the use (appropriation) retained earnings
5. Supporting schedules
England Accounting System
England was the first country in the world that develop the accounting profession, which until now we know. The concept for the presentation of results and financial position of the fair is also from England.
England was the first country in the world that develop the accounting profession, which until now we know. The concept for the presentation of results and financial position of the fair is also from England.
Financial Reporting:
1. Report of directors
2. Income statement and balance sheet
3. Statement of cash flows
4. Report of total recognized gains and losses
5. Accounting policy statements
6. References in the notes to the financial statements
7. Auditor's report
1. Report of directors
2. Income statement and balance sheet
3. Statement of cash flows
4. Report of total recognized gains and losses
5. Accounting policy statements
6. References in the notes to the financial statements
7. Auditor's report
Netherlands Accounting System
The Netherlands has the provision of accounting and financial reporting are relatively permissive, but the professional practice standards are very high. Financial reporting and tax accounting are two separate activities, the orientation of fairness growth without the influence of the stock market.
The Netherlands has the provision of accounting and financial reporting are relatively permissive, but the professional practice standards are very high. Financial reporting and tax accounting are two separate activities, the orientation of fairness growth without the influence of the stock market.
The Netherlands is one of the first supporters of the international standards for accounting and accepted practice. The Netherlands also became home to some of the world's largest multinational companies, like Philips, Royal Dutch / Shell and Unilever.
Financial Reporting:
1. Balance
2. The income statement
3. Records
4. Report of directors
5. Other information recommended
1. Balance
2. The income statement
3. Records
4. Report of directors
5. Other information recommended
4. Identify similarities and differences in accounting systems in those countries
Accounting systems in developed countries basically have similarities and differences, where each system used by the state has the advantages or disadvantages of each in the implementation of accounting systems in the country. Accounting standards have been established in certain countries is certainly not entirely same as other countries. Role in determining the accounting profession of accounting standards were more commonly found in countries that have entered the corporate standard, as in England.
Accounting systems in developed countries basically have similarities and differences, where each system used by the state has the advantages or disadvantages of each in the implementation of accounting systems in the country. Accounting standards have been established in certain countries is certainly not entirely same as other countries. Role in determining the accounting profession of accounting standards were more commonly found in countries that have entered the corporate standard, as in England.
Meanwhile, Christopher Nobes and Robert Parker (1995: 11) explains that there are seven factors that lead to important differences in the international accounting systems and practices. These factors include:
a. The legal system
b. Owner of the funds
c. Effect of tax system
d. Stability of the accounting profession
e. Inflation
f. Accounting theory
g. Accidents of history
b. Owner of the funds
c. Effect of tax system
d. Stability of the accounting profession
e. Inflation
f. Accounting theory
g. Accidents of history
sources:
Book on accounting theory, Sofyan Syafri Harahap, Revised Edition.
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