ACCOUNTING TERMS AND DETERMINATION OF ACCOUNTING
International Financial Reporting Standards / Iternational Standarts Financial Reporting (IFRS). Inetrnasional accounting standards are used as a result of: 1) international treaties or political, 2) voluntary compliance, 3) the decision by the national accounting standards-making body.
The purpose of this standard is to ensure that the company’s internal financial statements for the period – the period referred to in the annual financial statements, which created the first time by the NII IFRS contains information berkualitastinggi for pengguana transparent and comparable throughout all periods presented, provides adequate initial titk for accounting based on IFRS and can be produced at a cost not to exceed the benefits to the users.
Some of the history of the international accounting standard setting
A. Kmite in 1973 the International Accounting Standards (International Accounting Standard Comunite = IASC)
2. In 1977 the Organization for economic cooperation and development (Organization for economic coorporation and development = OECD) issued a declaration of multinational investment in the company ‘that contains
3. In 1977 the International Federation of Accountants (International Federation of Accountant = IFAC) was founded in the same pre experts appointed by the board of United Nations economic and social mangeluarkan reports comprising four parts of the international standards of accounting and reporting for international companies
4. European Commission issued a directive four people as a first step towards European accounting harmonisai
5. Year 1987Organisasi Interantional Capital market Committee (IOSCO) said in its annual conference to encourage the use of common standards in accounting and auditing practices
6. IASC and IOSCO approved a settlement plan that kerj then issued IAS which form a core group of a comprehensive standard
7. In 1996, U.S. Capital Markets Commission (SEC) announced that it “supports the purpose of IASC to develop as quickly as possible, stadar accounting can be used to feed the financial statements that can be used in cross-border securities offerings’.
8. IASB replaced the IASC in 2001 and took to take responsibility as of 1 April 2001. IASB standards referred to international financial Reporting Standards (IFRS) and includes IASC issued IAS
9. In 2002 the European Parliament approved the European Commission proposal that clearly listed EU companies must mengikutistandar IASB shares later – later than 2005 in the consolidated financial statements
o ACCOUNTING SYSTEM IN DEVELOPED COUNTRIES
Accounting Systems in Some Developed Countries
Accounting standards are rules regulations (including laws and statutes as well) that govern the preparation of financial statements. Standard setting is the process of formulating or formulation of accounting standards. Accounting standards can be said is the result of standard setting, although not in accordance with standard practice.
Four (4) The reason why the practice is not in accordance with the standards, namely:
A. In most countries the penalty for noncompliance with the official accounting tend to be weak and ineffective
2. The company may voluntarily report more information than that required
3. Some states allow companies to ignore the accounting standards if by doing operations and financial position will be better tersajikan
4. In some countries accounting standards only apply to the separate financial statements and not to the consolidated report.
Auditing profession tends to regulate itself in countries that adhere to fair presentation (specifically British-influenced) and more auditors to conduct an objective consideration of the audit was to attest to the fair presentation of financial statements. Whereas in countries with a legal code, the accounting profession tend to be regulated by the state because the primary purpose of the audit is to ensure that the records and financial statements in accordance with the provisions of the law.
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