INTERNATIONAL ACCOUNTING

COMPARATIVE ACCOUNTING PART II: UNITED

STATES AND ASIA
 Amerika Serikat

Accounting in the United States was regulated by the Private

Sector Agency (Financial Accounting Standards Agency /
FASB), until 2002 the American Institute for Certified Public
Accountants.

Regulation and Enforcement of Accounting Rules

Generally accepted accounting principles (GAAP) consist of all

financial standards, rules and regulations that must be considered
when preparing financial statements, financial statements should
fairly present the financial position of a company and its results of
operations in accordance with accepted accounting principles. in
general.
 Amerika Serikat
. Consolidated financial statements are mandatory
Finance report
and published US financial statements usually do
not contain just the parent company report. The
The supposed annual reports of a large US company
consolidation rules require that all controlled
include: Management reports Independent auditor's
subsidiaries (that is, with ownership in excess of 50
report Main financial statements (income statement,
percent of the voting shares) must be fully
cash flow, comprehensive income, shareholder equity)
consolidated, even if the operations of the
Management discussion and analysis of results of
subsidiary are not homogeneous. Interim
operations and financial condition Disclosure of
(quarterly) financial reports are required for
accounting policies with the most important influence
companies whose shares are listed on the main
on financial statements Notes to financial statements
stock exchange. These reports usually contain only
Comparison of specific financial data for five or ten
brief, unaudited financial statements and brief
years of selected quarterly data
management comments.
 Accounting Measurements
Accounting measurement rules in the United
States assume that a business entity will continue
to do business. Accrual basis measurement is very
broad and the recognition of transactions and
events is very dependent on the concept of a
counterpart.

After understanding the several accounting systems

that apply in several developed countries as
described, it can be concluded that there are
similarities and differences between them.

This is due to historical factors and the needs and

conditions under which accounting grows and
develops.
 MEXICO

Financial reporting, where the reports are prepared based on:

1 Balance sheet

2
Income statement

3 Laporan perubahan ekuitas pemegang saham

4 Laporan perubahan posisi keuangan

5 Catatan
Accounting Measurement

The equity method is Joint ventures can be

used when there is proportionately
influence but not consolidated or accounted
control, which for using the equity
generally means the method.
amount of ownership
ranges from 10 to 50
percent.

Mexico has adopted international accounting

standard no.21 regarding foreign currency
translation.
 C. Jepang
Accounting and financial reporting in Japan
reflects the combination of various
domestic and international influences, to
understand Japanese accounting one must
understand Japanese culture, business
practices and history. Japanese companies
own each other's shares, and often jointly
own other companies. These interlinked
investments resulted in giant industrial
conglomerations - known as keiretsu
This keiretsu venture capital is
undergoing a change in line with the
structural reforms undertaken by Japan
to overcome economic stagnation that
began in the 1990s. The financial crisis
that followed the bursting of the
Japanese bubble economy also
prompted a comprehensive evaluation of
Japanese financial reporting standards.
Regulation and Enforcement of Accounting Rules

The national government still has the most significant influence on

accounting in Japan. Accounting regulations are based on three laws:
Commercial law, capital market laws and corporate income tax laws.
Commercial law is regulated by the Ministry of Justice (MOJ), it is at the
core of accounting regulations in Japan and has the greatest influence.

Public companies must comply with further provisions in capital market

laws governed by the Ministry of Finance created under the US capital
market laws and enforced against Japan by the United States during the
US occupation period after World War II The main purpose of the SEL is
to provide information on retrieval decision.
 Finance report
Companies established under
Commercial Law are required to prepare
mandatory reports that must be
approved at the annual meeting of
shareholders, which contain the
following: Balance Sheet, Income
Statement, Business Report, Proposal for
Appropriation of Retained Earnings,
Supporting Schedule.
Companies that list their shares
must also prepare financial
statements in accordance with
capital market laws which
generally require the same basic
financial statements as
commercial law plus a cash flow
statement.
CINA
Regulation and enforcement of accounting rules
Specifically the responsibilities of the ministry:
Formulate and
enforce policies
related to economy,
tax and other finance.

Prepare state budget

and annual fiscal
reports.

Manage state income

and expenditure

Develop financial
management and tax
systems
Finance report 
The accounting period must be the same as the calendar year which consists of:
1. Balance sheet
2. Income statement
3. Cash flow statement
4. Notes to financial statements
5. Description of financial condition

Accounting measurement 
Historical cost is the basis for valuing tangible assets and
relevance is not permitted. Tangible assets are expressed over
their expected useful lives, generally on the straight-line method.
Expedited depreciation method and reports are allowed. FIFO,
average, and LIFO are methods of determining allowable costs
and reducing inventory values ​due to lower prices and finances.
 INDIA

After independence, India adopted a socialist

economic system. But starting from the 1991
economic crisis, India began to open up its market to
the international community.

Accounting Regulation and Development 

The main sources of Financial Accounting standards in India are
corporate laws and the accounting profession. In 1949 the
Institute of Chartered Accountants of India was formed, which
was responsible for developing Indian financial accounting
standards. In 2006, the government announced to introduce a
new regulation, namely IFRS, and accounting institutions
responded to this possibility by studying the full application of
IFRS in India.
 Regulator :
• The Institute of Chartered
Accountants of India,
• Accounting Standards Board,
Laporan Keuangan :
two-year balance sheet, income statement, cash flow
Auditing and Assurance Standards
statement and accounting policies and notes.
Board,
Unregistered companies only need to prepare a core
• Securities and Exchange Board of
report. Registered companies must prepare joint
India
reports and core reports, quarterly financial reports
and provide management discussion and analysis on all
topics such as industry structure and its development,
Regulasi : opportunities and threats faced by the company,
The 1857 Act and the first law internal controls and risks affecting business or product
dealing with the maintenance and performance.
examination of 1866 accounting
records, Indian Accounting Standards
(US) and Auditing Assurance
Standards (AAS)
EQUATION AND DIFFERENCES OF ACCOUNTING SYSTEMS IN ADVANCED COUNTRIES

On April 1, 2001, the IASB

took over the responsibility
for establishing
International Accounting International International Accounting
Standards. Then the IASB Financial Reporting Standards (IAS) -
continued to develop Standards (IFRS) - standards published
standards called the new standards issued before 2001.
IFRS standards. IFRS is after 2001.
considered a "principles
based" broad rule
consisting of: Standing Financial Statements Interpretation from the
Interpretation Presentation and International Financial
Committee (SIC) - Preparation Framework Reporting Committee (IFRIC)
published before interpretation - published
2001. after 2001.
Accounting Standards which are the two great powers of the world:
1. Amerika = FASB dan US GAAP
2. Internasional = Eropa = dibentuk IASC yang kemudian berubah IFRS

IFRS In America, there are standards that are divided into three eras:
3. Standards are determined / prepared by management, standards are
determined / prepared by management because what is needed is
management.
4. Standards are determined / prepared by the profession, standards are
determined / prepared by the profession because the profession is in charge of
compiling and auditing financial reports.
5. Financial Accounting Standard World (FASW), FASW was born after people
considered creditors to be too dominant in formulating financial accounting
standards.
Thank you!