news about international accounting

news about international accounting
Entering the 21st century, the fate of a nation is determined by the forces of global competition. In a world like this, decisions operating, investing and financing funding colored by international implications. With so many decisions derived from accounting data, knowledge of international accounting issues is very important to obtain the proper interpretation and understanding in international business communication. In other words, the current accounting period has grown in maturity stage becomes an integral aspect of global business and finance.
The accounting function is so important in business life and finance, suggests that accounting in the business community / international perform service functions. Accounting must be responsive to the changing needs of society and must reflect the conditions of cultural, economic, legal, social and political environment of the communities in which it operates. Thus accounting should be fixed in a useful position technically and socially.
History of accounting and accountants, showed changes continuously, a process that seems passable accounting consistently. At one time, more like a system of accounting records for certain banking services and for tax collection plan. Then came the double-entry bookkeeping to meet the needs of the trading business. Industrialization and the division of labor allow for analysis of the behavior of costs and the accounting
managerial. Stimulate the emergence of modern enterprise financial reporting and periodic auditing. Some time ago, accounting for its ability to attract the attention of the public through the accounting and human resource measurement, reporting and audit of the social responsibility of various organizations. Currently accounting operates among others in the behavior, public sector and international. Accounting provides information to the capital markets capital markets, both domestically and internationally. Accounting has expanded into the area of ​​management consulting and involving the greater portion of information technology in the systems and procedures. Accounting thereby clearly responsive to environmental stimuli.
According to Choi and Muller (1998: 1) That there are three main driving forces of international accounting into the growing international dimension, namely (1) environmental factors, (2) internationalization of the discipline of accounting, and (3) Internationalization of the accounting profession.
All three of these factors in the course / development accounting plays an important role and determine the direction of accounting theory for years and decades many experts devote energy and mind to develop accounting theory and it has failed and it led to the evolution of "theorizing" to " Conceptualizing ".
This paper will discuss about the development of international accounting standards and to build an international accounting structure where it is greatly influenced by environmental factors, which are intended to help those who want to build a global control system for limiting the activities of multinational corporations.

Financial Accounting Standards

Financial Accounting Standards

Financial Accounting Standards - Accounting whole system in  has major standards that should be used so that the product of accounting financial statements have uniformity in presentation. We know the term Financial Accounting Standards Committee is the result of the formulation of the principal accounting  in 1994 replaces Accounting Principles  in 1984. Accounting Standards is a compilation of the various standards that exist in the world and has been adapted for use in .

Starting this year the application of Financial Accounting Standards taken based on IFRS (International Financial Reporting Standard) it is that the financial statements will be easy, easy for compilers, auditors and users of financial statements. On GAAP-IFRS, SAK ETAP set by the Financial Accounting Standards Board Accounting Association of . SFAS issued by the Council of Sharia Islamic Accounting sedangkanSAP by the Government Accounting Standards Committee.

In this paper I will describe the existing GAAP under IFRS such as:

    GAAP-IFRS

GAAP-IFRS will be implemented in full in the year. While this is still in the process of convergence. This process through the adoption phase in 2008-2010 later this year entering the final stages of preparation before the implementation stage in the year. At SFAS shall apply to entities with public accountability such as issuers, listed companies, banking, insurance, and state. The aim of FRS is to provide relevant information to users of financial statements.

Then why  adopt IFRS?

 to adopt IFRS because  is part of the IFAC which certainly must comply with SMO (Statement Membership Obligation) which makes the accounting standard IFRS. In addition IFRS convergence is agreement between the government of  as members of the G20 Forum. At a meeting of G20 leaders in the Washington, DC, on 15 November 2008 found the results: "Strengthening Transparency and Accountability" which later on 2 April 2009 at the London meeting resulted in an agreement for: Strengthening Financial Supervision and Regulation "to call on the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and Achieve a single set of high-quality global accounting standards. "

    BENEFITS IFRS

The benefits of the application of IFRS as follows:

    Improving the comparability of financial statements
    Providing quality information on the International Capital Market
    International capital flows eliminate bottlenecks by reducing differences in financial reporting requirements
    Reduce the cost of financial reporting costs for multinational corporations and financial analysis for analysts
    Improving the quality of financial reporting towards best practice

So although  had to adjust financial standards with IFRS, but it will make it easier for financial reporting aka tone despite the changes in the financial statements themselves that are menyuluruh.

    Character IFRS

IFRS uses "Base Principles" are:

    More emphasis on interpretation and application of the standard, which should focus on the application of the principle spirit
    The Standard requires an assessment of the substance of the transaction and assess whether the accounting presentation reflects the economic reality
    Requires professional judgment in the application of accounting standards.

IFRS also used in the assessment of fair value, if there is no active market value should make an assessment yourself or use the services of appraisers. In addition IFRS requires disclosure (disclosure) is a much better quantitatively and qualitatively.

That's a little explanation of the Financial Accounting Standards may be useful. Read also set Journal of Accounting I have written before.

Islamic Accounting Field New Study

Islamic Accounting Field New Study

INTRODUCTION
Along with an increased sense of religiosity (religious) Muslim communities run Islamic sharia in social-economic development, more and more institutions that run Islamic business operations and its business based on sharia principles. To manage these Islamic institutions needed pencatata transactions and financial reporting. Accounting and financial reporting with certain characteristics in accordance with sharia. Recording and reporting of financial transactions are applied to the Islamic business institutions is then developed into Islamic accounting. Islamic accounting (accounting shari'a) according to Karim (1990) is a new field in the study of accounting that was developed based on the values, ethics and Islamic law, is therefore also known as accounting Islam (Islamic Accounting).

The development of accounting as one of the branches of the social sciences has undergone a fundamental shift in values ​​and meaning, especially regarding the theoretical framework underlying dituntur keep pace with changes in society. Karim (1990:3) argues that during this construction is used as the basis of accounting theory was born out of the context of culture and ideology.

Such is the case with a conventional construction accounting accounting Islam (shari'a) is born of cultural values ​​and teachings of Islam practiced in the Islamic socio-economic life (Hammed: 1997). Islamic accounting can be seen as a social construction of Islamic society to implement Islamic economics in economic activity. Islamic Finance is a sub-system of the economic system and Islamic finance, is used as an instrument supporting the implementation of Islamic values ​​in the realm of accounting, its main function is as a management tool to provide information to internal and external organizations (Hasyshi: 1986; Baydoun and Willet, 2000 and Harahap, 2001).

Motivation accounting experts and academics, especially from among the Muslims in order to assess and develop Islamic accounting is increasing. After learning some researchers (Gray, 1988; Perera, 1989; Hamid et al., 1993; Baydoun and Willet, 1994) that examined the relationship between culture, religion and accounting, stating that the culture in general and Islam in particular affect the accounting forms . As stated by Gaffikin and Triyuwono (1996) accounting is a reflection of a reality that is ideally constructed and practiced based on the values ​​and ethics. The values ​​and ethics of the Muslims is Islamic, then the best alternative is to use the development of Islamic accounting in accordance with Islamic thought. To understand Islamic accounting sense, can refer to the definition of Islamic accounting proposed by Hameed (2003), namely:

Departure from accounting definitions above, Islamic accounting in the narrow sense can be defined as follows: "Islamic Finance is a process, methods, and techniques of recording, classifying, pengikhtisaran transactions and events that are financial in the form of units of money, to identify, measure, and communicate information an economic entity whose management business based sharia, to be used as a take economic decisions and choose the alternative-action alternative for the users ". The development of accounting as one of the branches of the social sciences has undergone a fundamental shift in values ​​that are required to follow the changes that occur in people's lives. Thurs (1990:3) argues that during this construction is used as the basis of accounting theory was born out of the context of culture and ideology.

Such is the case with a conventional construction accounting accounting Islam (shari'a) is born of cultural values ​​and teachings of Islam practiced in the social-economic life (Hameed, 1997). Therefore Islamic accounting can be seen as a social construction of Islamic society to implement Islamic economic practices in social-economic development.