International Accounting part 3

The Term of Accounting Standards

Accounting standards are the rules (including the legal and budgetary basis) governing the preparation of financial statements. The standard-setting process is the formulation of accounting standards or formulations. The standards are the result of determination of the standard. However, the practice is actually different than the specified standard. It caused 4 things: in most countries the penalty for non-compliance with the provisions of the official accounting tend to be weak and ineffective; should companies voluntarily reported information more than required; some States allow corporations to ignore accounting standards if by doing so the operation and financial position of the company will be seen in better results; and in some countries the standard only applies to its own corporate financial reports, and not to the consolidated report.

Accounting standards setting involves a combination of private sector groups which include the profession of accounting, financial statements, users and constituents, employees and public groups that include agencies such as the tax authorities, the Ministry responsible for commercial law and capital markets Commission. The stock exchange is a private or public sector (depending on country) also affect the process. In common law countries, the private sector is more influential and auditing professions tend to can set itself and to further considerations on the atestasi can perform against the reasonable presentation of financial reports. In countries where the law code, the public sector and more influential accounting professionals tend to be regulated by the State. This is the cause why accounting standards vary around the world.

Accounting Systems in Developed Countries.
Accounting system is the method and procedures for recording and reporting of financial information provided to the company or a business organization. The accounting system consists of documentary evidence of transactions, recording tools, reports and procedures that companies use to record transactions and report the results. Here I will discuss six (6) accounting system in developed countries, consisting of:
accounting system the United States
Accounting in the United States governed by the Private Sector (Badab GAAP / FASB), until 2002 the American Institute for Certified Public Accountants.

Accounting Regulations and Enforcement Rules

Accounting principles generally accepted (GAAP) consists of all standards, rules and financial regulations that must be considered when preparing financial statements, financial statements should present fairly the financial position and results of operations of an enterprise in accordance with accounting principles accepted secar public.
Accounting Measurement

Accounting measurement rules in the United States assumes that a business entity will continue to carry out its business. Accrual basis of measurements with a very broad and the recognition of transactions and events are highly dependent on the concept penanding.
Dutch accounting system
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.
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)
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 present value for intangible assets such as inventory and assets are depreciated.

German
Environmental accounting in Germany undergoing continuous change and the result is remarkable since the end of world war i. Commercial Law on specifically demanded the presence of a variety of bookkeeping principles are regularly and independently audited hardly left after the war was over. Law firms in 1965 changed the reporting system keunagan Germany with lead to the ideas of the American United Kingdom but applies only to large companies. In the early 1970s, the EU began issuing the harmonization directive, which must be adopted by Member States into national law. The EU directive and the fourth, seventh, and eighth in total into the law of Germany through Comprehensive Accounting legislation enacted on 19 December 1985. Two new laws came into force in 1998, first add a new paragraph in the third book Commercial Law allowing Germany the company that issued the stock/debt on a capital market organized for using internationally accepted accounting in consolidated financial statements he made. Second, allow the establishment of private-sector organizations to set accounting standards for financial statement consolidation. Tax law outline specifying the commercial accounting. The principle of determination (Massgeblichkeitsprinzip) specifies that taxable income is determined by what is recorded in the financial records of the company.
The law on control and transparency in 1998 introduced a must for the Ministry of Justice to admit the private agency which sets the national standard to meet the following objectives:
1. develop recommendations for the application of accounting standards in the consolidated financial statements
2. provide advice to the Ministry of Justice over new accounting legislation
3. Represents Germany in international accounting organizations such as IASB
Accounting legislation in 1985 specifically to determine the provisions of accounting, auditing, and financial reporting is different according to the size of the company, not according to form orgasisasi. The accounting Act 1985 specifically determine the content and form of the financial statements include the balance sheet, income statement, notes to the financial statements, the management report and the auditor's report.
Based on commercial law (HGB), a method of purchase/acquisition is the main method of consolidation, although the unification of ownership can also be applied in conditions of limited. Two forms of the method the purchase allowed is the book value method and method of revaluation. HGB does not control the translation of foreign currency and companies in Germany using a number of methods. Translation differences treated in some way, as a result of special attention should be given to the financial statements, note where the method of translation of foreign currency should be described.

Japan
Accounting and financial reporting in Japan reflects the combined influence of various domestic and international. To understand accounting in Japan, one must understand the culture, the practice of business, and the history of Japan. Japan is a traditional society with cultural and religious roots. Japan firms have mutual equity shares to each other, and often jointly owns another company. This interlocked investments generate industrial conglomeration meraksasa referred to as the Keiretsu. Venture capital Keiretsu is currently in refomasi structural changes along with Japan to resolve do economic stagnation that began in the 1990s.
The national Government still has the most significant influence on accounting in Japan. Regulatory accounting is based on three laws, namely the law, commercial law, capital markets law and tax firm. Commercial law is regulated by the Ministry of Justice (MOJ). The law is the core of accounting regulations in Japan and most have great influence. The company belongs to the public must meet further provisions in the shrimp capital markets (Securities and Exchange Law-CELL) which is administered by the Ministry of finance. The main purpose of the cell is to provide information for making investment decisions.
Companies which established according to law the commercial are required to report the mandatory menyususn should get the approval of the annual meeting of shareholders that contains necara, income statements, reports, proposals for the use of enterprises (appropriation) profit was arrested, supporting schedule. Companies listed its shares should also compile financial statements in accordance with the laws of the capital markets generally require the same basic financial statements with commercial law ditamabha with a cash flow statement.
The law requires that commercial companies-large companies to draw up the consolidated reports. Subsidiary companies consolidated if parent company directly and indirectly controls the financial policy and operational. Goodwill is measured according to the basic value of the acquired net assets is reasonable and amortized over a maximum of 20 years. The inventory can be assessed on the basis of the cost of acquisition which is lower cost or market price of between, however the most widely used.

Compare Accounting Systems in Developed Countries.



Countries that take a different approach to restructure the economy each takes a different approach to restructure the system respectively. Czech Republic and People's Republic of China (China) having resturukturisasi from centrally planned economy into an economy that is more oriented towards the market. However the range of market reforms undertaken by the two countries are different. Czech Republic moving towards market economy intact, while China take the Middle Road with moving towards a socialist market economy, i.e. centralized economy with adaptation to the market.Repubik Chinese (Taiwan), and Mexico is the state capitalist, but traditionally has the intervention of a strong central Government and government ownership of key industries. The Financial System of the country is growing both in terms of standard-setting, conditions, and practices when compared with the Czech Republic and China. Of course, the evolution in accounting is also going on in Taiwan and Mexico, but not as fast as with what happened in the Czech Republic and China.

China is the most populated country in the world. Companies from around the world are eager to meakukan business with China and the development of accounting is an important part of the structural changes happening in the Chinese economy. The Czech Republic is a State representative of the countries of the former Soviet bloc members and development of the akuntansinya is representative of what is in the country of the former Soviet bloc. Taiwan's gross domestic product growth is experiencing rapid daam in recent years, driven by the growth of export industry results. Mexico experienced a market reform in the 1990s, which included the removal of protectionist barriers that are impir, received both against foreign investment and privatise State-owned companies.

Although the Chinese GDP superior to third countries, but the number of import and export of Chinese dibandingka with GDPnya show how tertutupnya Chinese economy now. Taiwan is in the opposite position. Economy and stock market outperformed the Taiwan economy and stock market 3 other countries. Chinese company and Mexico even more menyukasi New York Stock Exchange compared to the London Stock Exchange, while companies from Czech Republic and Taiwan showed the contrast.Mexico-oriented accounting systems, not the reasonableness of legal certainty. In the Czech republic, the influence of political and economic ties are more expectations to the future rather than historical fact. The Czech Republic is now being formed the accounting accordance with IAS/IFRS (International Accounting Standards/International Financial Reporting Standards). China basing on new akuntansinya standard IAS/IFRS because China hopes to be better communicated to the foreign investors are very important for its economic development plan.