INTERNATIONAL ACCOUNTING (BAB I)

Ø  INTERNATIONAL ACCOUNTING DIFFERS FROM OTHER ACCOUNTING

In the sense of international accounting, accounting is as international comparison of accounting transactions, between different countries and the harmonization of the various accounting standards in the field of tax authority, auditing and other accounting.

Accounting should develop in order to be able to provide the necessary information in decision making in the company on any changes to the business environment.

Accounting plays a very important role in society. The purpose of accounting is to provide information that can be used by the decision to make economic decisions.

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.

Process accounting owned are 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 culture business 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.

There are some things that the international accounting differs from the other, the difference is on international accounting studies:
1. Reporting to MNC/MNE (Multi National Corporation),
2. Boundary country,
3. Reporting to other parties in different countries,
4. Taxation Internasional5. International Transactions

Ø  INTERNATIONAL ACCOUNTING IS DIVIDED INTO THREE BROAD AREAS

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

1. The measurement 

It can provide in-depth feedback regarding the probability of operation of a company's financial position and 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.

Ø  THE HISTORY OF THE INTERNATIONAL ACCOUNTING

In the beginning, accounting bookkeeping system beginning with (double entry bookkeeping) in Italy in the 14th and 15th centuries. Bookkeeping system (double entry bookkeeping), is considered the beginning of the creation of accounting. Modern accounting started since double entry accounting was invented and used in the business activities viz. multiple recording system (double entry bookkeeping) introduced by luca paciolo (in 1447).

Bookkeeping (double entry bookkeeping) is the standard practice of recording of financial transactions. Bookkeeping process only covers the recording of transactions in a variety of journals and administering the classification code of the estimate of the great book (i.e. raw financial data collection) which became the basis for accounting systems that collect and organize raw data into useful information.

Luca pacioli was born in Italy in 1447, he is not an accountant but a clergyman, mathematician and lecturer at several leading universities in Italy. The first person who publish Luca basic principles of double accounting system in his book titled: the Summa arithmetica proportioni et proportionalita geometria in 1494. However many historians argue that the fundamental principle of double accounting system is not a pure idea, however he simply sums up luca practice accounting which took place at that time and publish it. It is recognized by Lica (Radebaugh, 1998).

Business practices with the reference method venetian Luca wrote the book has been the method adopted not only in Italy but nearly all European countries such as Germany, Netherlands, UK.

Accounting accounting model in Dutch exports to Indonesia, amongst other accounting systems of French Polynesia and the African territories under French rule. The reporting framework of the German system of influential Japanese, Swedish, and Russian Empire. Half of the 20th century, along with the growing economic power of the United States, the complexity of the accounting problems emerged at the same time.

Then accounting is recognized as a separate academic disciplines. After World War II, the influence of accounting is increasingly felt in the Western world. The development of Accounting is supported by the education (School of business), along with the change of era and the development of international relations, accounting is increasingly becoming a hassle.

The contemporary point of view

The existence of a number of additional factors that add to the importance of studying the international accounting. These factors are derived from the significant reduction of trade barriers and constant control of capital nationally and occurred over information technology advancements.

Some of these viewpoints include: 
1. Any attempt to reduce international accounting differences; 
2. National control over capital flows; 
3. Foreign Exchange; 
4. Foreign direct investment:
5. liberalization of transactions; 
6. The privatization of government companies (for reduction of foreign exchange controls and restrictions on cross-border investment) 
7. Advances in information technology;

The concept of comparative international accounting or accounting to international accounting study directing and understanding of national differences in the skuntansi. This includes: 
1. Awareness of the existence of the international diversity in the corporate accounting and reporting practices;
2. literacy principles and accounting practices of the respective countries.;
3. the ability to assess the impact of the various accounting practices in financial reporting.

The emergence of a new paradigm in international accounting framework expands to include thoughts and new ideas of international accounting. As a result, the publication list is very long will the concepts and theories of accounting is made by Amenkhienan to include things as follows: by Amenkhienan to include things as follows:

1. the theory of universal or world; 
2. The theory of multinational; 
3. comparative theory; 
4. International transactions theory;
5. The theory of translation;

Each of the above theories provide a basis for the development of a conceptual framework for international accounting. Although there will be arguments about which theory would be preferred.

Iqbal, Melcher and Elmallah (1997: 18) defines the international accounting as the accounting for transactions between countries, benchmarking of accounting principles in the country – different countries and the harmonization of accounting standards around the world.

If the buyer is asked to provide financial information relating to the company, it is possible that the financial information is not easily interpreted, given the existence of accounting assumptions and procedures that were uncommon in akkuntansi company the seller. Most of the company's new plunge in international business can request the assistance of the bank or the Office of the accountant with international expertise to analyze and interpret financial information.

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

Role of Accounting in the Global Capital Markets

In this era of globalization, the business world and society has become increasingly complex so it requires the development of a variety of disciplines including Accounting. Accounting plays an important role in the economic and social effects of each financial decision should be based on accounting information. This situation makes accounting as a profession that is needed existence within the business organization.

The business world becomes increasingly fast and very varied. The areas that were not in the business sector now imagined as a major sector. The development of the accounting profession to rise noticeably after 1985, Along with the JSE. Bank interest rates are high to encourage people looking for alternatives to meet its capital requirements, competition among companies has increased with accompanied the various problems faced by the company in Indonesia. In the face of all the managers of the company was in dire need of accounting information in the context of decision making.

Accounting has developed very rapidly in line with business growth and development of the securities business in particular shares in the capital market. American Society already know the business since the year 1900 (Belkaoui, 2007). In the transaction, both the investors and prospective investors have used the company's financial information as one of the guidelines in making predictions and to make business decisions, the investment in securities, particularly stocks. These positive developments are happening to the stock business in U.S. capital markets also showed that companies will need to increase capital also in tune with the market developments. This development also shows that capital markets play an important role in the economy of the country, especially the United States in that era. In addition, it also means that the need and role of accounting information has become increasingly important.

Role of Accounting in the Global Business Sector

        Indonesia's economic downturn due to the economic crisis of 1997 changed John Naisbitt predicted that Indonesia would be one of the Asian tigers. In 2000, three years after the crisis, at a time when other countries are also affected by the crisis such as Thailand, South Korea, the Philippines and Malaysia have gained significant economic improvement, the Indonesian economy (PDB) grew only 0.2%.

(Asian Recover Information Center - ADB: May 2000) Mr. Abeng (1999) in Djalil (2000), states that there are six basic root of the problems that led to the slow economic recovery in Indonesia, namely:

1. Apparently the rapid growth of Indonesia before the crisis more driven by investment growth is not due to efficiency and innovation

2. The majority of the market value of companies listed on the JSE was overvalued (90% of the value of publicly traded companies is determined by growth expectation, only 10% of the real ability to make a profit; unlike developed countries, 30% growth expectation, 70% real capacity)

3. Unhealthy corporate financial structure (debt more than 100% compared to its equity, healthy company should have less than 50% of ekuitinya)

4. The existence of mark-up in lending.

5. The concentration of unhealthy economy (economic pyramid, above: there are 200 privately owned conglomerate 50 families, middle: nearly empty.

6. There is no good governance (the lowest according to McKinsey 1999)

On the other hand, Indonesia faced economic challenges of the 21st century is economic globalization. Economic globalization is a process of economic activity and trade, in which countries around the world into a single market forces are increasingly being integrated with territorial borders unimpeded.

Source : http://srikandi-affan.blogspot.com/2012/03/perbedaan-antara-akuntansi.html

                 http://wartawarga.gunadarma.ac.id/2011/05/1-tugas-soft-skill-akuntansi-internasional/