5.

Explain the different between adoption and adaption

Answer :
Adopt means to bring something new into something that is already there, or, make something
your own.
Example : Countries adopt new laws and put them with their other laws.
Parents can adopt a child from other parents and raise it as their own son or daughter.
Adapt means to change something so it will fit in a new place.
Example : You can adapt a book and make it into a movie.
You have to adapt your life when you move to another country

4. Explain effect of taxation in the accounting development in Indonesia

Answer :

Accounting provides information about the circumstances occurring during a certain

period for management or other interested parties with a view to assessing the condition and
performance of the company. While in taxation using the term bookkeeping / recording, rather
than using the term accounting. Bookkeeping / recording itself has a narrower scope than the
accounting.

Based on PSAK NO.46 about Tax accounting , is part of accounting arising from
specialist elements that require expertise in a particular field. Tax accounting is created because
of a basic principle set forth in the tax law and its formation is affected by the taxation function
in implementing it as government policy. The purpose of tax accounting is to determine the
amount of tax payable based on financial statements prepared by the company. Tax accounting is
used to record transactions related to taxation. Commercial Accounting is prepared and presented
under SAK. But for the purposes of taxation, commercial accounting must be adjusted with the
rules of taxation in force in Indonesia. Therefore, if there is a difference between the accounting
provisions and the tax provisions for the purposes of reporting and payment of taxes, the tax law
has priority to be complied with in order not to cause material harm to the taxpayer concerned.

The purpose of financial reporting Taxation is to provide information as a material to

calculate Taxable Income, especially in the self assessment system as a report of responsibility
for the trust calculate the tax payable for each Taxpayer. Simply put, tax accounting is in charge
of handling, recording, calculating and analyzing and creating tax strategies related to the events
/ economic transactions of the company. The Tax Accounting Report is prepared and presented
based on the applicable tax regulation although there is a mismatch between the tax accounting
rules and the financial statement guidelines.

3. Which one from Accounting Value that fit in Indonesia

Answer :

Gray (1988) proposed the identification of four accounting value, derived from a review of
accounting literature and practice, as follow :
 a. Professionalism versus Statutory Control
This value reflects a preference for the exercise of individual professional judgment and
maintenance of professional self-regulation as opposed to compliance with prescriptive
legal requirements and statutory control. But in Indonesia the professional accountants
role has been concerned with the implementation of relatively prescriptive and detailed
legal requirements, or their activity based on the accounting standard PSAK or statutory
Control.
b. Uniformity versus Flexibility
This value reflects a preference for the enforcement of uniform accounting practices
between companies and for the consistent use of such practice over time, as opposed to
flexibility in accordance with the perceived circumstances of individual companies. In
Indonesia also use the uniformity for their accounting report. All company financial
report must based on PSAK . Attitude about uniformity, consistency or comparability are
a fundamental feature of accounting principle in Worldwide especially in Indonesia.
c. Conservatism versus Optimism
This value reflects a preference for cautious approach to measurement the enables one to
cope with the uncertainty of future events as opposed to a more optimistic. Laissez-fair,
risk taking approach. Conservatism or prudence in asset measurement and the reporting
of profits is seen as a fundamental attitude of accountant the world over including
Indonesia.
d. Secrecy versus Transparency
This value reflects a preference for confidentiality and the disclosure of information
about the business only to those who are most closely involved with its management and
financing In Indonesia fit with secrecy, this is a significant accounting value dimension
that stems as much from management as it does from accountant because of the influence
of management on the quality and quantity of information disclose to outsiders.

2. Give your opinion, do the political and legal system in Indonesia support or hinder the
establishment of MNEs and why and give example
Answer :

In my opinion the legal and political system in Indonesia not support but not also hinder
the establishment of Multinational Enterprises, because they have their positive and also
negative impact for Indonesia. For advantage, MNEs will improving the balance of
payments, providing employment Source of tax revenue , technology transfer because
multinationals will bring with them technology and production methods that are probably
new to the host country and a lot can therefore be learnt from these techniques. And for
disadvantage like environmental impact, uncertainty because they can move and change
at very short notice and often will, this creates uncertainty for the host country, increased
competition, influence and political pressure, low-skilled employment, Health and safety
 and export of profits because large multinational are likely to repatriate profits back to
their 'home country', leaving little financial benefits for the host country also cultural and
social impact .

Because of that advantages and disadvantages there are regulation that regulate
establishment of MNEs in Indonesia, For the legal system there are Undang Undang
Nomor 40 Tahun 2007 Tentang Perseroan Terbatas and Undang Undang Nomor 1 Tahun
1967 Tentang Penanaman Modal Asing and for the political system charges tariff or
quota. This regulation will set limitation on the establishment of multinational enterprise
in Indonesia, both on company form and taxes that must be paid as well as other rules
that will not only benefit the company but also for Indonesian People.

For example Dunkin Donut that have been established in Indonesia since 1985, in
accordance with the law, at least they have to employ Indonesian people so it will
decrease unemployment, also must pay taxes, this MNEs will encourage Indonesian
people to compete by making donuts which is more unique.

1. Example of culture and political that effect accounting development in Indonesia and how it
affect the accounting development in Indonesia?

Answer :

Making accounting standards can not be separated from the political process. In the preparation
of a standard, related to many parties with different backgrounds, motivations, and have
different interests either from the government, private, or accounting profession itself against
the making of accounting standards. That way the political element can play a role in the
preparation of a stanadar

In accounting standards the political process is identified as an attempt to include self-interest in

the preparation of accounting standards (Zeff, 2002) or in an attempt to maximize the transfer
of wealth (Watt, 1997). This political process is carried out in the scale of lobbying
contituents. These constituencies are divided into various parties, for example McLeay et al
(2000) research in Germany divides into 3 categories: industrial, auditor, and academic.