Four main things that set the accounting standards
International accounting standardsBroadly speaking there are four main things that set the accounting standards. The first relates to the definition of the elements of financial statements or other related information. Definitions used in the accounting standards for determining whether a particular transaction should be recorded and grouped into assets, liabilities, equity, income and expenses. The second is the measurement and assessment. These guidelines are used to determine the value of an element of financial statements both at the time of the financial transactions and present financial statements (balance sheet date). The third thing is the recognition contained in the standards, the criteria used to recognize the elements of financial statements so that the element may be presented in the financial statements. The latter is the presentation and disclosures of financial statementsA financial statement should reflect true and fair view of the business of an organization. Because these reports are used by the various parties, the report should describe the actual view of the financial situation of an organization going.
The most important innovation in the form of capital markets is the idea of accounting principles generally accepted and internationally accepted. Financial information that is relevant and trustworthy is very necessary for the capital markets to survive. Currently there are two accounting standards used in each country is U.S. GAAP and IFRS (International Financial Accounting Report), published by the International Accounting Standards Board (IACB) based in london.Countries that already use IFRS amounted to 90 countries and the European Union now requires companies listed on the stock market around 7000 companies.IFRS convergence objective is to make the financial statements under GAAP does not require reconciliation with the financial statements under IFRS and even if there is only relatively little effort and eventually the auditor's report called conformity with IFRS, thus expected to increase investment activities globally, reduce the cost of capital (cost of capital ) and further improve corporate transparency in the financial statements.There are three considerations in determining the FASB standards that improve financial reporting, simplifying the accounting literature, the standard-setting process, and international convergence.International Financial Reporting Standards are basic standards, Definition and Framework adopted by the International Accounting Standards Board (International Accounting Standards Board). A number of standards established as part of IFRS are known by the name of the former International Accounting Standards (IAS). IAS issued between 1973 and 2001 by the International Accounting Standards Committee (Accounting Standards Committee (IASC)). On 1 April 2001, the new IASB took over responsibility for preparing gunan of IASC International Accounting Standards. During the first meeting, the new Board of IAS and SIC adapting existing ones. IASB continues to develop standards and naming the new standards as IFRS.IFRS is considered as a set of standard "basic principles" which then sets the rules also dictate the application of agency-specific implementation.International Financial Reporting Standards include:
Regulations International Financial Reporting Standards.
· Rules of International Accounting Standards.· Interpretations from International Financial Reporting Interpretations Committee.· Framework for the Preparation and Presentation of Financial Statements.
Benefits of IFRS are:1. Ease of understanding in reading financial statements using IFRSs internationally known.2. Increasing global investment flows.3. Menurubkan cost of capital through capital markets globally.4. Creating efficiencies shrinkage financial statements.
So the instances cited in chapter 1 is about akuntanssi standards that will be accepted the world, the new IFRS or GAAP exit that has been accepted by the world. how to facilitate the understanding of the financial statements and how firms choose accounting standards that can facilitate them in financial reporting.
International accounting standardsBroadly speaking there are four main things that set the accounting standards. The first relates to the definition of the elements of financial statements or other related information. Definitions used in the accounting standards for determining whether a particular transaction should be recorded and grouped into assets, liabilities, equity, income and expenses. The second is the measurement and assessment. These guidelines are used to determine the value of an element of financial statements both at the time of the financial transactions and present financial statements (balance sheet date). The third thing is the recognition contained in the standards, the criteria used to recognize the elements of financial statements so that the element may be presented in the financial statements. The latter is the presentation and disclosures of financial statementsA financial statement should reflect true and fair view of the business of an organization. Because these reports are used by the various parties, the report should describe the actual view of the financial situation of an organization going.
The most important innovation in the form of capital markets is the idea of accounting principles generally accepted and internationally accepted. Financial information that is relevant and trustworthy is very necessary for the capital markets to survive. Currently there are two accounting standards used in each country is U.S. GAAP and IFRS (International Financial Accounting Report), published by the International Accounting Standards Board (IACB) based in london.Countries that already use IFRS amounted to 90 countries and the European Union now requires companies listed on the stock market around 7000 companies.IFRS convergence objective is to make the financial statements under GAAP does not require reconciliation with the financial statements under IFRS and even if there is only relatively little effort and eventually the auditor's report called conformity with IFRS, thus expected to increase investment activities globally, reduce the cost of capital (cost of capital ) and further improve corporate transparency in the financial statements.There are three considerations in determining the FASB standards that improve financial reporting, simplifying the accounting literature, the standard-setting process, and international convergence.International Financial Reporting Standards are basic standards, Definition and Framework adopted by the International Accounting Standards Board (International Accounting Standards Board). A number of standards established as part of IFRS are known by the name of the former International Accounting Standards (IAS). IAS issued between 1973 and 2001 by the International Accounting Standards Committee (Accounting Standards Committee (IASC)). On 1 April 2001, the new IASB took over responsibility for preparing gunan of IASC International Accounting Standards. During the first meeting, the new Board of IAS and SIC adapting existing ones. IASB continues to develop standards and naming the new standards as IFRS.IFRS is considered as a set of standard "basic principles" which then sets the rules also dictate the application of agency-specific implementation.International Financial Reporting Standards include:
Regulations International Financial Reporting Standards.
· Rules of International Accounting Standards.· Interpretations from International Financial Reporting Interpretations Committee.· Framework for the Preparation and Presentation of Financial Statements.
Benefits of IFRS are:1. Ease of understanding in reading financial statements using IFRSs internationally known.2. Increasing global investment flows.3. Menurubkan cost of capital through capital markets globally.4. Creating efficiencies shrinkage financial statements.
So the instances cited in chapter 1 is about akuntanssi standards that will be accepted the world, the new IFRS or GAAP exit that has been accepted by the world. how to facilitate the understanding of the financial statements and how firms choose accounting standards that can facilitate them in financial reporting.
Tidak ada komentar:
Posting Komentar