Seven Benefits of Application of International Finance Reporting Standard

Seven Benefits of Application of International Finance Reporting Standard
IFRS Implementation Team Leader-Institute of Accountants (IAI) Dudi M Kurniawan said, by adopting IFRS, will get seven benefits as well.
First, improve the quality of financial accounting standards (GAAP).
Second, reduce the cost of SAK.
Third, enhance the credibility and usefulness of financial statements.
Fourth, improve the comparability of financial reporting.
Fifth, improve financial transparency.
Sixth, lowering capital costs by enabling the accumulation of funds through the capital market.
Seventh, improve the efficiency of the financial statements.
"The experience in Europe, there are some problems that arise in the implementation of IFRS, including planning a less mature and lack of support from top management," he said.
Head of Accounting Standards and Disclosure of Capital Market Supervisory Agency and Financial Institution Etty Retno Wulandari said, need to adopt IFRS as most countries in the world have adopted accounting standards.
Thus, IFRS could increase protection to capital market investors. "Bapepam requires issuers and public companies submit financial reports to Bapepam and make it available to the public. The report should be presented with a high-quality accounting standards, "he said.
Recomended Training: International Financial Reporting Standard (IFRS): discuss Concept, implementaion and Adjustment / Comparative IFRS with GAAP

The application of IFRS Efisienkan Preparation of Financial Statements

The application of IFRS Efisienkan Preparation of Financial Statements
Medan (ANTARA News) - The Director of Technical Accounting Association Ersa Tri Wahyuni ​​rate, the application of international accounting standards or IFRS reporting in the statement of financial accounting standards create efficiencies beneficial financial statements.
"There are several benefits to be gained from the convergence of IFRS (International Financial Reporting Standard) into the SFAS (Statement of Financial Accounting Standards), which creates efficiencies in the preparation of financial statements," he said in Medan on Wednesday.
Ersa declare it a national seminar titled Developments in Accounting Standards and Their Impact on Business, held after appointment of administrators Institute of Accountants (IAI) North Sumatra period 2011-2015 led Gus Irawan.
Another benefit of the convergence of IFRS into the FRS, which facilitates an understanding of the financial statements by the use of financial accounting standard known internationally.
Besides, he added, the application of IFRS to GAAP is also effective in lowering the cost of capital to open a "fund raising" through capital markets globally.
If the later is fully adopt IFRS, he estimates the quality of financial reporting information in this country will increase, including the quality of the financial statements of State-Owned Enterprises (SOEs).
Mentioned, the Financial Accounting Standards Board Accounting Association (DSAK-IAI) has started the process of convergence since 2009 and is expected to be completed early in 2012.
IFRS convergence by 2012 target was revised FRS that are materially in accordance with the IFRS version of January 1, 2009, effective January 1, 2012.
"IFRS is not just changing the way companies create financial statements, but also change how the company does business," he explained.
To menyahuti demands into GAAP IFRS convergence is absolutely necessary readiness of practitioners, including management accountants, public accountants, accountants, academics and preparedness amongst regulators and other support professionals, such as appraisers and actuaries.
According to him, the application of GAAP-based IFRS will impact the business world, especially in the corporate decision-making based on accounting data.
In addition to the impact on accounting and financial reporting of the company, he said, konvegensi IFRS also affects the company's information technology systems, human resources involved in the company and the impact on the company's organizational system.
To expedite the process of adoption of SFAS, continued Ersa, the success of the transition is the key.
Associated with changes in financial accounting standards, he said, effective measures need to be firm during the transition period is to establish the convergence of IFRS adhoc team is responsible for the initial preparation and organizing resources.
"The success of the application of international accounting standards in the country, irrespective of the capital market, taxation and other regulatory authorities," said Ersa.
ikatakan, now widely adopted IFRS GAAP number of countries to respond to the demand of institutional investors and other users of financial statements.
Accounting Association on December 23, 2008 has declared plans to converge IFRS into GAAP. (ANT197/M034/K004)

Some differences Keuanngan Accounting Standards and International Finance Reporting Standard

Some differences Keuanngan Accounting Standards and International Finance Reporting Standard
GAAP combined basis of principles and the rule base while the principles-based IFRS only;
If the historical value lower then stated at historical cost, whereas IFRS historical value still used;
IFRS presentation tendency value assets and liabilities at fair value;
IFRS presents a comparison of the fair value of the historical;
In IFRS there is a change of terms and components of the financial statements;
Judgment professional use.
Editor: B Kunto Wibisono
reference: Thursday, July 21, 2011 1:40 pm | 3113 Views
 oriented decided to International Financial Reporting Standards or IFRS.
The deadline set for all business and government entities to use IFRS is January 1, 2012.
"All the preparations to be done that way because it will begin on January 1, 2012. Try seen the impact on costs due to the transfer standard will cause additional costs, "said Finance Minister Sri Mulyani Indrawati in Jakarta, Wednesday (5/5), as a keynote speaker in a seminar on" IFRS Implementation and taxation aspects. "
She said the convergence of accounting to IFRS should be supported in order to get maximum recognition from the international community has long embraced this standard.
"If the standard is needed and will improve as the country's position in the world who could be trusted with the governance and accountability to the people with better and consistent, of course it needs to be done," he said.
In addition to IFRS, polar applicable accounting standards in the world today is the United States General Accepted Accounting Principles (U.S. GAAP).
Countries that joined the European Union, including the UK, using International Accounting Standards (IAS) and International Accounting Standard Board (IASB).
Once oriented to the Netherlands, the latter using the Statement of Financial Accounting Standards (SFAS) prepared by the Institute of Accountants (IAI). First SFAS IAI oriented to the United States and later from 2012 to switch to IFRS.

International Accounting Standards, International Finance Reporting Standard

International Accounting Standards, International Finance Reporting Standard

 International Accounting Standards (International Accounting Standards / IAS) developed by four organizations in the world, namely the International Accounting Standards Board (IASB), Commission of the European Communities (EC), the International Capital Market (IOSOC), and the Federation of Accounting Internasioanal (IFAC).
International Accounting Standards Board (IASB), which was formerly International Accounting Standards Committee (AISC), is an independent agency to develop accounting standards. This organization has a goal to develop and encourage the use of global accounting standards are of high quality, understandable and comparable.
In 2012, financial records will be based on the International Finance Reporting Standard (IFRS). IFRS is a standard recording and reporting of internationally accepted accounting issued by the International Accounting Standards Boards (IASB), an international organization that aims to develop a high standard of accounting, can be understood, applied, and was accepted internationally.
This was conveyed by Rudy Suryanto, SE, M.Acc, Akt as a lecturer in Accounting course Universitas Muhammadiyah Yogyakarta (UMY) in a roundtable discussion related to IFRS implementation plan in place in an integrated campus UMY, Thursday (22/4).
According to Rudy purposes of the application of IFRS in the financial records is to facilitate an understanding of the financial statements with the usage of Financial Accounting Standards (IFRSs) are known internationally. In addition, IFRS also aims to increase global investment flows through transparency and create efficiencies preparation of financial statements. "Based on these benefits Institute of Accountants (IAI), the Capital Market Supervisory Agency (Bapepam) and other parties related agreed to adopt IFRS into Keuanngan Accounting Standards (SFAS)" he said.
Currently, IFRS has been used more than 100 countries, applicable to all countries in the European Union in 2005. Brazil, Canada and India have announced an obligation to use the IFRS for companies located in the country. In the year 2011 is estimated to all the major countries have adopted IFRS with its variations, China and Japan will substantially menyesuaiakan with IFRS and the company went public in the United States will have the choice whether to use IFRS or U.S. GAAP.
"Actually, the application of IFRS in has started gradually since 2007, but will be fully implemented in 2012," said Rudi. As for the financial listing standards that are not regulated in IFRS as Islamic accounting, accounting for SMEs and accounting for non-profit organizations will be developed by IAI.
On the other hand, Rudi saw the implementation of IFRS in 2012 will also have an impact on learning in a course in Accounting. Rudi saw a lot of things to prepare for. One is preparing textbooks that support. Because many books have financial records in accordance with IFRS. In addition, the application of IFRS is also an impact on the course material change in accounting Prodi. One is the change in course. Matter of international accounting courses usually compare accounting practices in different countries have been transformed into discussing the IFRS, as well as up to date SFAS change from time to time. "Because of the growing number of countries that adopt IFRS, the difference will be more limited" he said. reference: Friday, April 23, 2010 By: PR

Why must comply with international accounting standards

Why must comply with international accounting standards
The world economy and international accounting standards, compliance with accounting standards used by all countries benefit from great. Historically, the industrialized world was a model for international accounting standards in four games. They are the United States, the United Kingdom, continental Europe, Latin America and the standards. International Accounting Standards Committee (IASC), the United States, Canada, and the United Kingdom began in 1973 with the convergence. To achieve Recently, the International Accounting Standards Board (IASB) has more harmonization and convergence of accounting standards. All EU companies to International Financial Reporting Standards (IFRS) financial statements in accordance with the fundamental requested. New Zealand, Hong Kong, Australia and many other non-EU countries such as Israel, for those who have taken the necessary steps to start the harmonization of accounting standards with IFRS.
To facilitate the international exchange of information and minimize costs recovery in financial markets world-wide economic policies, standardize and harmonize accounting standards which helps to improve government accountability. Harmonized with international standards makes it less risky investment and financial decisions at the international level for administrators. Foreign companies listed on stock exchanges in the United States if the same applications with the United States, most of the time because you can use, can be very difficult. If all countries, a global "justice." Auditors and regulators would receive the same accounting standards and the evaluation of companies look at the same information. These are difficult if you do not have the same set of rules and regulations to follow their accounts from different countries to compare companies' financial information. In some cases, companies are required to prepare financial statements in a variety of accounts, it takes time and financial resources of the company. Free trade is not harmonized between countries, national tariffs and quotas will include a more accurate and less risky for commercial ones.

Compliance with reporting requirements for the standardization of the national regulatory authorities should start with the annual financial statements. Organization of Securities Commissions (IOSCO), the United States housemate 'SEC member, a leader in the development of the accounting method for the preparation of securities regulator. When reporting on the results of the operational and capital costs roommate IOSCO has built a policy of limiting the amount of alternative communication, a company can use. In 2002, the IASB and FASB, Norwalk has an agreement formalizes the commitment to start the convergence of accounting standards. Important steps have been taken since the Treaty, the FASB and the IASB met on a regular basis. These purchase accounting, revenue recognition, leasing and business sectors benefit obligation practice, work together to try to develop common standards. With significant improvements in long-term project to make the conceptual framework of accounting standards has been established. In this context, two basic assumption is that an accrual basis, and the "continuity" basis. Accounting Accounting in the State to comply with all the companies must be harmonized across the world.
In less developed countries, as well as a regional association of accounting and accounting education through the establishment of training programs to promote the harmonization of accounting standards are trying to bring. The International Monetary Fund has contributed to this effort by providing support to governments. Developing countries to adopt international accounting standards for the preparation of national accounting standards and will contribute to the costs later. With the rest of the Third World countries with high inflation rates harmonization of standards may be able to reduce bad accounting.
Harmonised standards for all the world to accounting rules, the United States recognizes, must begin with international standards and to follow them. U.S. model is not an ideal model, and the Internal Revenue Service has been suggested that the rules are very complex. Many authors, the adoption of international standards in the United States without some of the countries within the framework of the foreign companies and the winning is not enough to argue that a strong system of rules

Why must comply with international accounting standards

Why must comply with international accounting standards
The world economy and international accounting standards, compliance with accounting standards used by all countries benefit from great. Historically, the industrialized world was a model for international accounting standards in four games. They are the United States, the United Kingdom, continental Europe, Latin America and the standards. International Accounting Standards Committee (IASC), the United States, Canada, and the United Kingdom began in 1973 with the convergence. To achieve Recently, the International Accounting Standards Board (IASB) has more harmonization and convergence of accounting standards. All EU companies to International Financial Reporting Standards (IFRS) financial statements in accordance with the fundamental requested. New Zealand, Hong Kong, Australia and many other non-EU countries such as Israel, for those who have taken the necessary steps to start the harmonization of accounting standards with IFRS.
To facilitate the international exchange of information and minimize costs recovery in financial markets world-wide economic policies, standardize and harmonize accounting standards which helps to improve government accountability. Harmonized with international standards makes it less risky investment and financial decisions at the international level for administrators. Foreign companies listed on stock exchanges in the United States if the same applications with the United States, most of the time because you can use, can be very difficult. If all countries, a global "justice." Auditors and regulators would receive the same accounting standards and the evaluation of companies look at the same information. These are difficult if you do not have the same set of rules and regulations to follow their accounts from different countries to compare companies' financial information. In some cases, companies are required to prepare financial statements in a variety of accounts, it takes time and financial resources of the company. Free trade is not harmonized between countries, national tariffs and quotas will include a more accurate and less risky for commercial ones.

Compliance with reporting requirements for the standardization of the national regulatory authorities should start with the annual financial statements. Organization of Securities Commissions (IOSCO), the United States housemate 'SEC member, a leader in the development of the accounting method for the preparation of securities regulator. When reporting on the results of the operational and capital costs roommate IOSCO has built a policy of limiting the amount of alternative communication, a company can use. In 2002, the IASB and FASB, Norwalk has an agreement formalizes the commitment to start the convergence of accounting standards. Important steps have been taken since the Treaty, the FASB and the IASB met on a regular basis. These purchase accounting, revenue recognition, leasing and business sectors benefit obligation practice, work together to try to develop common standards. With significant improvements in long-term project to make the conceptual framework of accounting standards has been established. In this context, two basic assumption is that an accrual basis, and the "continuity" basis. Accounting Accounting in the State to comply with all the companies must be harmonized across the world.
In less developed countries, as well as a regional association of accounting and accounting education through the establishment of training programs to promote the harmonization of accounting standards are trying to bring. The International Monetary Fund has contributed to this effort by providing support to governments. Developing countries to adopt international accounting standards for the preparation of national accounting standards and will contribute to the costs later. With the rest of the Third World countries with high inflation rates harmonization of standards may be able to reduce bad accounting.
Harmonised standards for all the world to accounting rules, the United States recognizes, must begin with international standards and to follow them. U.S. model is not an ideal model, and the Internal Revenue Service has been suggested that the rules are very complex. Many authors, the adoption of international standards in the United States without some of the countries within the framework of the foreign companies and the winning is not enough to argue that a strong system of rules.

Four main things that set the accounting standards

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 standards

International standards IAS is fully compatible with U.S. "generally accepted accounting principles" (GAAP). In a variety of issues, GAAP contains more detailed methodology of the calculation. IAS and GAAP standards are based on the same principles of accounting and financial reporting. For various reasons, which are influenced by the international standards of accounting practices in the United States. There are currently more than 30 accounting standards relating to various aspects of accounting.

Determinants of use of international financial reporting standards is a desire to improve the company's ability to attract significant foreign funding, the establishment of a long-term trade relations with foreign customers, attract foreign investment, joint ventures, and the issuance of securities in the international market.

IAS establish requirements for financial statements, as a form, time recording, content, etc.. They are intended to improve and harmonize legislation, there is a standard system of accounting and financial reporting procedures. Application of IAS accounting system is also useful for characterizing the performance of the company in the form of a simpler and more realistic, to compare the company's financial situation with a foreign company's financial situation.

IAS Principles

Accrual concept in IAS (income and expenditure). Transaction revenues and expenses are recognized when their appearance (not the time of payment or receipt of money), recorded in the accounting records and recognized in the financial statements in the period they relate to. The financial statements are prepared in accordance with the principle of accrual inform users not only of past transactions involving the payment and receipt of funds, but also the obligation to pay in the future and resources as funds are received in the future.

Guidelines for the preparation of financial statements in IAS:

1. Diligence. Aiming to ensure assets and income do not exceed and liabilities or expenses are not overlooked. According to this principle IAS, one must be ready to repel potential losses and damages and refrain from declaring income and actual income before acceptance.

2. Substance over form. It is necessary that the information regarding the operation would first match point and economic realities, not merely the legal form established.

3. Completeness of the information. According to IAS, the information must be complete. But one must take into account the importance and value.

4. Comparability. IAS users should be able to compare the financial statements of the company, made at different times, to identify common trends, as well as the financial statements of different companies. Accounting policies not implemented arbitrarily.

International standards are developed and approved by the international financial reporting standards. This committee was formed on June 29, 1973 as a result of the adoption of the agreement by accountancy bodies in Austria, Canada, France, Germany, Japan, Mexico, Netherlands, Ireland, the United Kingdom and the United States.