feny wulandari: Tugas Akuntansi Internasional

INTERNATIONAL ACCOUNTING HARMONIZATION

Harmonization and standardization of the difference in the Applicable Accounting Standards

Harmonization

o Process to improve the compatibility (suitability) accounting practices by setting limits on how large these practices may vary

o Do not use a one size fits all

o Be some agreement, but accommodating and has experienced great progress internationally in recent years

o Harmonization much more flexible and open

Standardization

o Determination of a group of rigid rules and narrow

o Implementation of a single standard or rule in any situation

o Standardization does not accommodate the differences between countries

o More difficult to implement internationally

Explaining the Pros And Cons International Harmonization of Accounting Standards

Until the present time, western countries are still heavily promoting the need for harmonization of international accounting standards. The main purpose of these efforts is to improve the comparability (comparability) of financial reporting, especially for multinational companies operating in various parts of the world. Not surprisingly, the western side to form a body called the International Accounting Standards Committee (IASC), which has now changed its name to International Accounting Standard Board (IASB). The agency is in charge of producing international accounting standards (International Financial Reporting Standards-IFRS).

The main reason the presentation of financial statements that meet the standards for the survival of the company itself in the future, both in terms of internal users and external users. Public recognition will comprehensiveness and transparency of financial statements of a publicly-listed companies increase the pressure of the business sector to provide financial statements in accordance with the standards.

Another reason to make it easier for investors who want to conduct its investment activities in other countries, requiring international standards of financial reporting in order to know the state of the company.

Joint Reconciliation and Recognition (Reciprocity) The Accounting Standards Difference

Two approaches are proposed as a possible solution is used to overcome the problems associated with cross-border financial report:

1. Reconciliation

Through reconciliation, a foreign firm can prepare financial statements using accounting standards country of origin, but must provide a reconciliation between the accounting measures (such as net income and shareholders' equity) in the country of origin and in countries where financial statements are reported.

2. Mutual recognition (which is also referred to as "reciprocity" / reciprocity)

Mutual recognition occurs when the regulator outside the country of origin to receive the financial statements of foreign companies which are based on the principles of country of origin.

The Organization to Promote Harmonization And Have Important Role in the Determination of the International Accounting Standards

Six organizations have become a major player in the determination of the international accounting standards and in promoting international harmonization of accounting:

1. International Accounting Standards Board (IASB)

2. Komini European Union (EU)

3. International Organization of the Capital Market Commission (IOSCO)

4. International Federation of Accountants (IFAC)

5. Intergovernmental Working Group of Experts on the United Nations International Standards of Accounting and Reporting, part of the United Nations Conference on trade and Development

6. Accounting Standards working group within the Organization of Economic cooperation and Development. International Forum on Accountancy Development (IFAD) held its first meeting in 1999. Its main goal is to build the capacity of accounting and auditing in developing countries.

Also important is the International Federation of Stock Exchanges (FIBV), a trade organization for securities and derivatives markets are organized around the world. FIBV encourage professional development of financial markets business. FIBV goal is to establish standards for the harmonization of business processes (including financial reporting and disclosure) in cross-border securities trading, including cross-border public offerings.

New approach to the European Union and Mengaitkannnya The European Financial Market Integration

Commission announced that the EU needs to move precisely in order to provide a clear signal that companies are trying to do the recording in the United States and other world markets will still be able to survive in the EU accounting framework. EC also stressed that the EU strengthens its commitment to the international standard-setting process, which offers the most efficient and quick solutions to problems faced by companies operating on an international scale.

In 2000, the EC adopted a new financial reporting strategy. The interesting thing about this strategy is the proposed rule that all EU companies listed in regulated markets, including banks, insurance companies and SME (small and medium sized enterprises), prepare consolidated accounts in accordance with IFRS.

INTERNATIONAL FINANCIAL ANALYSIS

Difficulties in International Business Strategy Analysis and Strategies For Collecting Basic Information

a. Availability of information

Analysis of business strategy particularly difficult in some countries because of its lack of reliable information on the macroeconomic developments. Obtain information about the industry is also very difficult in many countries and the number and quality of information companies are very different. Availability of specific information about the company is very low in developing countries. Lately, many large companies that keep records and raise capital in foreign markets and have expanded their disclosure voluntarily switch to accounting principles that are recognized globally as an international financial reporting standards.

b. Recommendations for analysis

Data limitations make the effort to analyze the business strategy by using traditional research methods to be difficult. Often frequent trips to study the local business climate and how the industry and the company actually operates, particularly in emerging market countries.

Measures Analysis of Accounting

The purpose of accounting analysis is to analyze the extent to which the company reported results reflect the economic reality. Analysts need to evaluate policies and accounting estimates, and analyze the nature and scope of company’s accounting flexibility. The managers of the company is allowed to make a lot of considerations related to the accounting, because they know more about the financial condition and operations of their companies. Reported earnings is often used as a basis for evaluating the performance of their management.

The steps in evaluating the qualityof a company,s accounting:

a. Identify the major accounting policies

b. Analyze accounting flexibility

c. Evaluate accounting strategy

d. Evaluate the quality of disclosure

e. identify potential problems

f. Make adjustments for accounting distortions

Effect Of Accounting Accounting Analysis of Inter-State and difficulty in Obtaining Required Information

Analysts need to evaluate policies and accounting estimates, and analyze the nature and scope of a company's accounting flexibility. Effect on the measurement of quality of accounting, and auditing are very dramatic.

In obtaining the data of International Accounting, there are several difficulties, among others:

a. Depreciation adjustment

Depreciation will affect profits, it is necessary to consider the age of the functions that must be decided asset management.

b. LIFO to FIFO inventory adjustment

Inventories should be converted into the FIFO method

c. Reserve
Reserves are the company's ability to pay or cover expenses for removing the load.

d. Reformulation of Financial Statements

Adjustment of some of the changes after a few calculations on the above points.

Mechanisms to Overcome Differences Between State Accounting Principles

Several approaches can be done as follows:

· Some analysts present the foreign accounting resize according to a group of internationally recognized principles or according to other, more general basis.

· Some others develop a complete understanding of accounting practices in a particular group of countries and limited their analysis to firms located in these countries.

Difficulties And Weaknesses In International Financial Statement Analysis

a. access to information

Information about thousands of companies from around the world have been widely available in recent years. Sources of information in countless numbers up through the World Wide Web (WWW). Companies in the world today have a website and annual report are available for free of charge from various other sources.

b. Timeliness of information

Timeliness of financial statements, annual reports, reports to regulators vary in each country.

c. Barriers of language and terminology.

d. Foreign currency issues.

e. Differences in the type and format of financial statements.

Understanding How To Obtain Information Using the World Wide Web Research Company

Many companies do not make optimum use of disclosure of corporate information via the website, both for financial and corporate sustainability. Another finding in this study is that many companies can not provide information for investors, most of the information presented in the company's website is about the products or services produced and the many companies that do not update the information presented.

1. Internet Financial and Sustainability Reporting

Since 1995, there have been developments of empirical research related to Internet Financial Reporting (IFR), which reflects the development of forms of corporate disclosure. Some studies examine the factors that influence disclosure policy in the company's website, such as research conducted by Pirchegger and Wagenhofer (1999) and Saso and Luciana (2008a).

Some studies examine the nature and expansion of financial reporting on the company website as an instrument that relate to the stakeholder. Cheng, Lawrence and Coy (2000) develop an index to measure the quality of disclosure IFR at 40 large companies in New Zaeland. The results Cheng, Lawrence and Coy (2000) showed that 32 (80%) companies have a website and 70% of the samples presented financial information on a company website. And of the 32 companies that have websites shows that only 8 (25%) companies that have a value above 50%. Research related to internet financial reporting in Indonesia conducted by Saso and Luciana (2008), which test the quality of information disclosure on the website of the banking industry that went public on the Stock Exchange. By using an index developed by Cheng, Lawrence and Coy (2000) and 19 samples of the banking industry, Saso and Luciana (2008a) provide evidence that the diversity of information disclosure on the website of the banking industry in Indonesia. Another finding in this study indicate that the banking industry are not many websites that optimize the use of Internet technology as a means of corporate disclosure, and only displays information about banking products only. While research related to sustainability reporting on the company website by Saso and Luciana (2008b), and provide evidence that of 54 samples only 10 samples are present sustainability reporting on the website main menu, and the low quantity and quality of information submitted in connection with information the company corporate sustainability (sustainability reporting). Another study conducted by Luciana and Saso (2008a and 2008b), to test the quality of information disclosure on the website of the banking industry 19 and 35 companies that fall within the LQ-45. This study provides evidence that the banking industry has the quality of information disclosure on the website to the component technology and user support is higher than the companies that entered the category of LQ-45.

2. Corporate Social Responsibility

Understanding and awareness of business entities to maintain good relations with all stakeholders in an effort to minimizing negative impacts and maximizing positive impacts of the operational activities towards sustainable development is now understood as a CSR (Corporate Social Responsibility. Strengthening the sustainable development paradigm and corporate social responsibility initiatives CSR reporting or making social and environmental performance are considered as important as the reporting of economic performance.

The biggest problem is that the quality of non-financial reports are not yet as good as the quality of financial reporting. In addition to far adrift age (> 500 vs. 10-20 years), the gap between them is characterized by a degree of formality, the parties intended, as well as reporting interval. Formalization of the financial statements have been very clear, with the advent of GAAP, IFRS and reporting standards in each country. Almost all are legally binding.

Meanwhile, the most comprehensive non-financial reporting standards of the Global Reporting Initiative (GRI) is voluntary. Companies that do not follow the GRI standards has demonstrated remarkable variety its non-financial reporting format. If the financial report is mainly aimed at investors and institutions that govern the investment in a country, non-financial report is intended for all stakeholders (including investors as well).

Consequently, how the reporting will be very varied in accordance with the intended stakeholders. Finally, the financial report has financial fixed interval is annual and quarterly, while non-financial reports are usually in the form of reports a year or two years, not even fixed.

MANAGEMENT PLANNING AND CONTROL

Four Dimensions In Business Modeling

It includes four main dimensions.

a. identify the major factors relevant to the company's progress in the future.

b. formulate an adequate technique to predict future developments and analyze the company's ability to adapt or take advantage of these developments.

c. develop sources of data to support strategic choices.

d. certain choices translate into a series of actions that specification.

The concept of Cost Differences Between Standard and Kaizen

The Concept of Standard Cost	The Concept of Kaizen Cost
Cost Control	Cost Reduction
Aplied to existing manufacturing conditions	Applied to manufacturing improvements on an angoing basis
Purpose : compliance with performance standards	Purpose : achieve cost reduction targets
Standards are determined each year	Purpose of cost reduction is determined each month
Analysis of variance based on actual vs standard	Analysis of variance based on a constant cost reduction
Investigate if the standard is not met	Investigate if the target is not achieved cost

Estimated Return Overseas Investment

Then, the decision to invest abroad is a very important element in the global strategy of a multinational company. Investment risk, followed by the foreign environment, complex and constantly changing. Formal planning is a must and is generally performed in a capital budgeting framework that compares the benefits and costs of the proposed investment yng. Differences in tax law, accounting system, the rate of inflation, the risk of nationalization, currency framework, market segmentation, restrictions on the transfer of retained earnings, and differences in language and culture adds to the complexity of elements that are rarely found in domestic environments.

The calculation process of Multinational Cost of Capital

If the overseas investments are evaluated using a discounted cash flow models, the appropriate discount rate should be developed. The theory of capital budgeting in particular using cost of capital as the discount rate it and thus a project must generate returns at least equal to the cost of capital in order to be acceptable. Benchmark rate is related to the proportion of debt and equity in the company's financial structure debagai follows:

Ka = the average weighted cost of capital (after tax)

To = cost of equity

Ki = before tax cost of debt

E = the value of corporate equity

D = the value of corporate debt

S = the value of the company's capital structure (E + D)

T = marginal tax rates

A similar problem is also related to the measurement of the debt component of the average cost of capital. In a State, the cost of this debt is an effective interest rate multiplied by (1-t) because the interest is generally a deductible expense against tax.

Implement the Performance Evaluation System Multinationals