International Accounting

INTRODUCTION ABOUT INTERNATIONAL ACCOUNTING

>> THE DIFFERENCES BETWEEN INTERNATIONAL ACCOUNTING WITH OTHERS ACCOUNTING
In the world of business, accounting is an accounting tool information, which provides accurate information for decision making. An international accounting has a role similar to the larger context, where the scope of pelaporannya is for multinational companies with cross border operations and transactions of State or corporation with the obligation of reporting to the users of the report to another country.

International accounting process was no different and with certain reporting standards qualification is set by international and local in certain countries. But it's important to know about the international dimension of the process of accounting in each country are different. Where the difference is included, the difference business culture, practices, political structure, legal system, the value of the currency, inflation rate local, business risk, and as well as statutory rules affect how multinational companies conducting operational activities and provide a robust set of reports.

The different between international accounting with others accounting :
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.


INTERNATIONAL ACCOUNTING IS DIVIDED INTO THREE AREAS

In the international accounting is divided into three areas, accounting includes several extensive proceedings were, among others:

1. Measurement
Can provide in-depth feedback regarding the probability of a company operating and financial positions of power. The process of identifying, categorizing and calculating aktivtias and transactions, provide in-depth feedback regarding profitability and operations.

2. Disclosure
The process by which the measurement accounting communicated to the users of the financial statements and is used in the decision making process or communicate it to the user.

3. Auditing
The process by which the special accounting professional circles (the auditor) do atestasi (testing) with respect to the reliability of the measurement process and communication.

HISTORY OF INTERNATIONAL ACCOUNTING
International accounting standards (IASB) had been preceded by the Board of the international accounting standards Committee (IASC), which operated from 1973 to 2001. IASC was established in June 1973 as a result of an agreement by the agency accounting in Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom and Ireland and the United States, and these countries are the Board of IASC in that time. Professional activities of international accounting bodies under the Federation of Accountants (IFAC) International in 1977. In 1981, IFAC and IASC agreed that IASC will have full and complete autonomy in setting international accounting standards and the issuance of document discussions on international accounting issues. At the same time, all members of the IFAC became a member of IASC. This Link (membership discontinued) may 2000 when IASC Constitution has been amended as part of the reorganization of IASC.
2005
* Trainers published the IASC Foundation Constitution was modified.
* The Pembina member and Chairman designate dissolved SAC.
' Roadmap ' * European Commissioner supports developed by staff of the US SEC on the elimination by 2008 of the requirement for companies to reconcile from IFRS to US GAAP as listings in United States.
* The first Co-ordinator IFRIC appointed.
* The IFRIC's tentative decision to start ' agenda ' publication.
* The IASB publishes discussion paper two, written by the staff of partner-a standard setter.

2004
* by publishing four SAK, two revised IASs and amendment financial instruments standards at the end of March brings to completion of the IASB ' stable ' standard platform to be used by companies adopting the standard as of January 2005.
* Later in the year the IASB issues IFRS and other standard changes in employment.
* The first issue of the IASB IFRIC five interpretations.
* The IASB concluded an agreement with the Board of accounting standards convergence of Japan.
* The IASB and FASB agreed to start a project conceptual framework * SAC compiled a Charter draft terms of reference and operating procedures * Trainers published the consultation document invites public comment on their conclusions on a study of the IASC Foundation's Constitution.
* The IASB publishes discussion paper on the first (in SMEs)


2003
* Release Builder study of the IASC Foundation Constitution.
* The IASB issues IFRS 1 first-time adoption in the SAK * The IASB completed projects are generally Improved by publishing the revised IASs 1, and the second revised version of the standard on financial instruments.
* The IASB publishes exposure draft of new standards.
* The Builder appoints a Director of education for the head of the educational initiatives Foundation.
* The IASB began broadcasting meetings over the Internet.
* The IFRIC published interpretation of the first draft.

2002
* The IFRIC met for the first time.
* The IASB issues international financial Reporting Standards Introduction and First Amendment-an urgent statement for technical Employee benefits – IAS 19 The Asset Ceiling * after extensive consultation with the SAC, national accounting standards-setters, regulators and other parties concerned, IASB announce new program of technical projects.
* The IASB publishes exposure draft of the three new standards and changes to existing standard 16 * The IASB meet U.S. Financial Accounting Standards Board (FASB). They concluded the Treaty of Norwalk, a memorandum of understanding that committed the boards to work together to remove the differences between US GAAP and SAK and to coordinate their future work programmes.
* The IASB to host first annual meeting world standards makers.

2001
* Pembina Announces members of the Board of the international accounting standards.
* Coach appoints members of the Standards Advisory Council (SAC), which met for the first time.
* The European Commission presenting legislation to require the use of IASC standards for all companies listed at the latest in 2005.
* The Builder brought the new structure applies to 1 April 2001-IASB is responsible for setting accounting standards, international financial Reporting Standards designated (SAK).
IASC Foundation acquired the lease ** Office at 30 Cannon Street, and moving to a new IASB.
* After consulting with IASB SAC program earlier than nine announced projects, including technical improvement projects for twelve IASs and two IASs on financial instruments.
* IASB reopened the comment period on the G4 1 discussion paper concerning the share-based payment, and published a draft Introductory exposure SAK.
* Coach appoints a member of the International Financial Reporting Interpretations Committee (IFRIC) to succeed SIC.
* The coach announced the members of the Board of Trustees of the international accounting standards * looking for members of the Advisory Council Announces IAS * the European Commission presenting legislation to require the use of IASC standards for all public company no later than 2005 * new structure applies to the Builder carry-1 April 2001 the IASB is responsible for setting accounting standards, international financial Reporting Standards designated

2000
* SIC meeting open to the public
* Basel Committee observations expressed support to IASs and efforts to harmonize international accounting
* SEC concept release concerning the use of international accounting standards in the United States
* as part of the restructuring of the IASC Board approved, a new Constitution
* IOSCO recommends that its members allow multinational issuers to use IASC standards in supply of 30 cross-border and list the Nomination Committee of Trustees announced
* IASC approved the IASC restructuring restructured the Agency members of the IASC and IASC's new Constitution
* The European Commission announced plans to request the IASC standards for all of its listed companies from the European Union at the latest 2005
* Sir David Tweedie named as first Chairman of the IASC Board of Trustees announces search for restructured
* Board members recently over 200 applications were received by the Board approved changes to the IASC
* limited to IAS 12, IAS 16 and IAS 39 (and related Standards)
* Staff publish Implementation guidelines of the IASC IAS 39
* IAS 41 Agriculture approved at the last meeting Of IASC

THE ROLE OF ACCOUNTING IN THE FIELDS OF BUSINESS AND GLOBAL CAPITAL MARKETS

Other factors that also contributed to the importance of international accounting is the phenomenon of global competition. Determination of reference (benchmarking), an act to compare the performance of one party with an adequate standard is nothing new, but the standard of comparison that is used is now beyond national boundaries is something new.
According to the regulations in the United States, to be listed on the NYSE Market issuers need to do the things as follows.
1. registration process
2. submit the financial report. They can use US GAAP, IAS or GAAP respective countries but each have additional requirements include:
a. fill out Form 20-7 for the annual report
b. reconciling the net earning and equity to conform with US GAAP
c. Provide disclosure according to U.S. GAAP
d. Submit unnecessary quarter report on audit
Known as the capital markets watchdog that aims to protect public shareholders particularly individual investors (individual investors). While Private Placement or Institutional Investor market is usually considered to have the ability to examine the feasibility of an investment relocated need not specifically the protection of the Government.