The term Standard & Determination of Standard Accounting

The term Standard & Determination of Standard Accounting

Accounting standards are the regulations or rules (including also the laws and statutes) that govern the preparation of financial statements. Standard setting is the process of formulating or formulation of accounting standards. Standards are the result of standard setting. However, actual practice differs from the prescribed standard. That is because the 4 things: in most countries the penalty for noncompliance with the provisions of the official accounting tends to be weak and ineffective voluntary infomasi company may report more than required; some countries allow companies to ignore the accounting standards if by doing operations and financial position will tersajikan better results, and in some countries, the standard only applies to the separate financial statements, and not for the consolidated report.


Accounting standard setting involve a combination of private sector group that includes the accounting profession, users and compilers of financial statements, the employees and the public which includes agencies such as the tax authorities, ministries in charge of commercial law and capital market commission. Stock exchanges are private or public sector (depending on country) also affect the process. In common law countries, the private sector is more influential and auditing profession tends to regulate itself and to better be able to attest to the consideration of the fair presentation of financial statements. In code law countries, public sector and influence over the accounting profession tend to be more regulated by the State. This is why different accounting standards around the world.


FRANCE
Accountancy in France is strongly associated with the code so it is possible to overlook the fact that the legislation of commercial law (Code de Commerce) and the actual tax laws determine many accounting practices and financial reporting in France. The primary basis of accounting rules is the Accounting Law 1983 and Decree 1983 which includes accounting Compatible General Plan shall be used by all companies. Every company should have a manual accounting. The special feature is the presence of accounting in France dichotomy between the separate financial statements of companies with a consolidated group reports. French law allows French companies to follow International Financial Reporting Standards (International Financial Reporting Standards-IFRS). The reason, many multinational companies from France who recorded their shares abroad.
Five major organizations involved in standard-setting process in France:

a. Counseil National de la Comptabilite or CNC (National Accounting Board)
b. Comite de la Reglementation Comptable or CRC (Accounting Regulation Committee)
c. Autorite des Marches financiers or AMF (Financial Markets Authority)
d. Ordre des Experts-Comptables or OEC (Institute of Certified Public Accountants)
e. Compagnie Nationale des Comptes Commisaires aux or CNCC (Association of National Compliance Auditor)

GERMANY
German accounting environment changes continuously and the results are remarkable since the end of World War I. Commercial law specifically calls for the principles of orderly bookkeeping and audit independently barely left after the war. Corporate law in 1965 changed the reporting system led to keunagan German American English ideas, but only for large companies. In the early 1970s, began to issue a directive of the European Union harmonization, which should be adopted by Member States into national law. EU directive fourth, seventh, and eighth all the way into German law through the Comprehensive Accounting Act which came into force on December 19, 1985. Two new laws were enacted in 1998, the first one to add a new paragraph in the third book of the German Commercial Law that allows the company to issue shares / debt on an organized capital market to use the principles of internationally accepted accounting in the consolidated financial statements made . Second, allow the establishment of private sector organizations to establish accounting standards for consolidated financial statements. Tax law largely determines the commercial accounting. The principle of determination (Massgeblichkeitsprinzip) determines that the taxable income is determined by what is recorded in the company's financial records.
Law on control and transparency in 1998 introduced a requirement for the Ministry of Justice to recognize a private entity that sets national standards to meet the following objectives:

A. Develop recommendations regarding the application of accounting standards in the consolidated financial statements
2. Provide advice to the Ministry of Justice for a new accounting legislation
3. Represents Germany in international accounting organizations such as the IASB

Accounting Act in 1985 specifically define the terms of accounting, auditing, and financial reporting varies according to firm size, rather than according to the form orgasisasi. Accounting Act 1985 specifically determine the content and form of financial statements that include balance sheets, income statements, notes to financial statements, management reports and auditor's report.

JAPAN
Accounting and financial reporting in Japan reflects a combination of domestic and international influences. To understand accounting in Japan, one must understand the culture, business practices, and history of Japan. Japan is a traditional community with cultural and religious roots are strong. Japanese companies have equity shares each to each other, and together often have other companies. These investments are interlocked industrial conglomerate that produces meraksasa called keiretsu. Keiretsu venture capital is in line with refomasi structural changes in the Japanese to overcome the economic stagnation that began in the 1990s.
SIMILARITIES AND DIFFERENCES IN ACCOUNTING SYSTEM DEVELOPED COUNTRIES
Convergence of accounting standards is essentially equating the language of business. Each state has a regulatory agency financial reporting standards. Indonesia Indonesian Institute of Accountants has issued Statement of Financial Accounting Standards as the only standard that is accepted as 'business language' companies in Indonesia. United States has a Generally Accepted Accounting Principles (GAAP), which was released by the Financial Accounting Standards Board (FASB). The European Union has the International Accounting Standard (IAS) issued by International Accounting Standard Board (IASB). And so, each country using a standard reporting-reporting standards that are likely to diverge from one another. There is no assurance that the financial statements are presented in different countries can be read with the same language. Difference in the end of this standard will also hamper international business people in business decisions.
By far the leading to the reference standard is the International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board (IASB). IASB standards are the governing body of International Accounting Standards Committee Foundation, an independent international non-profit institutions engaged in financial reporting is based in the UK.
Today, more than 100 countries require or allow the application has IFRS, and is expected to be more and more countries around the world use IFRS. In fact, 10 countries have global capital markets has made convergence to IFRS as Japan, Britain, France, Canada, Germany, Hong Kong, Spain, Switzerland, Australia, including the superpower United States has said it will make the convergence to IFRS. As can be seen on the map, the blue states are the countries that have require or permit the application of IFRS. While the gray are the countries that are in the process of convergence with IFRS.


For Indonesia, as a first step the Financial Accounting Standards Board Indonesia Institute of Accountants (DSAK-IAI) will mengonvergensikan GAAP with IFRS fully through three stages, namely stages of adoption, the final preparation phase and implementation phase. Stages of adoption made in the period 2008-2011 includes activities throughout the IFRS to GAAP adoption, infrastructure preparation, and evaluation of IAS regulations.
Of course not easy to reconcile IAS 62 standard which is owned by owned 37 IFRS standards. There are still considerable gaps between GAAP with IFRS, there are even 20 or 32% IAS standards that can not be compared. When compared with the IFRS, there are still significant differences include financial instruments, investment property, business combination, property, plan and equipment, intangible assets, service concession agreement, the presentation of financial statements, leases, insurance contracts, accounting for banking to be removed , exploration and evaluation of mineral assets, agriculture, and accounting for reporting currencies, and other major differences.
"IFRS convergence targets that have been launched IAI in 2012 is revised IAS that are materially in accordance with IFRS version of January 1, 2009 which became effective in 2011/2012," said the Chairman of IAI Rosita DSAK Uli Sinaga Public Hearing on the exposure draft of IAS 1 (Revised 2009) of the Financial Statements, in Jakarta last Thursday, August 20, 2009. For the twenty-ninth of Financial Accounting Standards (GAAP) included in the IFRS convergence program launched by IAI DSAK 2009 and 2010. The number of standards to be implemented in the convergence program is a tough challenge for the period 2009-2012 DSAK IAI. If the experience of the implementation of SFAS 50 and 55 concerning financial instruments that have been published in 2008, but it gets the strong pressure of the unpreparedness of the financial industry that have delayed its implementation, then you can imagine how powerful enact dozens of standards in such a short time.
In addition to the readiness of the companies, the implementation of this program also requires the readiness of practitioners of management accountants, public accountants, academics, regulators and other support professionals such as actuaries and appraisers. Public accountants are expected to immediately update their knowledge in relation to changes in GAAP, SPAP update and adjust the IFRS-based audit approach. Management Accountant / Company can anticipate immediately formed a team of successful convergence of IFRS Accountant in charge of updating the knowledge of management, conduct gap analysis and prepare road map for IFRS convergence and coordination with other projects for the optimization of resources. Accounting Academics / University are expected to form a successful team of IFRS convergence to update the knowledge of academics, revising the curriculum and syllabus as well as perform a variety of related research and provide input / comments on the ED and the Discussion Papers published by the IASB DSAK well.
Regulators need to make adjustments to regulations related to financial reporting and taxation and make efforts toward professional development and supervision associated with the reporting keuanganseperti appraisers and actuaries. Industry associations are expected to develop Guidelines for Industrial Accounting in accordance with GAAP developments, and create a forum that is intensively discussed various issues with respect to the impact of the application of GAAP and proactively provide input / comments to DSAK IAI.

SOURCE:

http://wenysilvia130706.blogspot.com/2011/03/istilah-standar-akuntansi-penentuan.html

http://pikho-pikocha.blogspot.com/2011/06/persamaan-dan-perbedaan-sistem.html