International Accounting Harmonization

International Accounting Harmonization
(Harmonisasi Akuntansi International)

Harmonizing is a process to increase compatibility ( concordance ) accounting practice by determining the limits how big practices the diverse.

Harmonizing accounting includes harmonizing :

1. Accountancy standards ( pertaining to measurement and state disclosure )

2. Disclosure made by companies public related to offer securities and recording on a stock exchange

3. audit standart survey harmonizing international

THE DIFFERENCE BETWEEN HARMONIZATION AND STANDARIZATION

Globalization also bringing implication that things formerly considered is the authority and responsibility of each state not not affected by the international community . So is pelapoan financial and accounting standard . One of qualitative of information accounting is diperbandingkan given the importance of this in the world trade and investment international . In this obtained full comparability prevailing broad internationally , standardization necessary international accountancy . At the other side the factor-faktor certain special in a state making each akuntantansi required standards applicable national in that country . It can be seen in view comparator the accounting standard in indonesia and united states the face . In a common the accounting standard in Indonesia there are accounting cooperative who are not necessarily needed in the united states . Based on international accountancy standards complete and comprehensive .

The concept that was more popular than standarization to bridge various kinds of accounting standard in evry country country is the concept of harmony . Harmonizing accounting standard siartikan as to minimize absence of difference many countries accounting standard . Harmonizing can also defined as a group of nations agree on the accounting standard a similar but i think the implementation of not adhering to a standard to be expressed and recommended by agreed standard together .

Harmonizing

- Processes to increase kompabilitas ( kesesuian ) accounting practice by determining the limits of how big the practices can be varied

- not using approach one measure for all

- but accommodate some of the covenant and has experienced a tremendous progress in the past year in an international manner

- harmonization far more flexible and open

Standardization

- determination of a group ostentation and narrow

- application of one standard or rule single in all situation Standardization - does not apply differences interstate

- more difficult to diimpelemntasikan internationally

CRITISM OF INTERNATIONAL STANDARDS

Some authorities said that international accountancy standards penentusn is a solution to be too simple for all the trouble complicated . Furthermore , it might be feared that the adoption of international standards will cause "standard exaggeratedly" . A company must arrangement of national, responding to pressure politics, a social, and whose economy is getting memorize and was made to comply with the requirements auxiliary international being intricate and berbiaya big.

JOIN RECONCILIATION AND RECOGNITION

Reconciliation and mutual recognition two approaches put forward as possible solution used to solve the problems related to the contents of the financial report of cross-border :

1 . Reconciliation

Through reconciliation , foreign companies can construct financial report by using accounting standard country of origin , but should provide reconciliation between measurements accounting important ( as net profit and equity a shareholder ) in the country of origin and in the country where financial report reported.

2 . Mutual recognition ( which also called the "had balik" / were )

Mutual recognition happen if the regulator outside native country receives financial report foreign companies based upon the principles country of origin .

MAJOR INTERNATIONAL ORGANIZATION PROMOTING HARMONIZATION OF ACCOUNTING

Glimpse of the main international organization that propels harmonizing accounting Six organization has become a key player in the determination of the international accountancy standards and in promoting harmonizing international accountancy:

1. International accounting standard boards( iasb )

2. comission of the european union ( eu )

3. International organization of the capital market comission ( iosco )

4. International federate accountant ( ifac )

5. The united nations antarpemerintah a working group on international accounting standards and reporting , part of the united nations conference on trade and development

6. A working group on accountancy standards organization of cooperation and economic development .