accounting disclosure practices are influenced by differences in corporate financial governance in a country.
Disclosure rules are very different around the world in some ways like the statement of cash flows and changes in equity, related party transactions, segment reporting, the fair value of financial assets and liabilities and earnings per share. In this section attention is focused on:
A. Disclosure of information to see the future “information look to the future” that includes:
(A) the forecast revenue, profit and loss, profit and loss per share (EPS), capital expenditures, and other financial post. (B) information regarding the performance or prospective future economic position that is not too sure when compared with the projected post, fiscal period, and the projected amount. (C) statements of management plans and objectives of future operations.
Most companies in each country presents a disclosure of information about plans and goals manjemen. Conversely fewer companies that disclose prophecy, from the lowest two companies in Japan and the highest 31 companies in the United States. Most forecasts in the U.S. and Germany regarding capital expenditure, not profits and sales.
2. Disclosure of segment
3. Cash flow statement and fund flow
4. Disclosure of social responsibility
5. Specific disclosures for users of financial statements and the non domestic use prinsipakuntansi

issues – issues that affect management’s decision to make the disclosure decision.
Decision-making (desicion making) is to assess and impose pilihan.Keputusan was taken after some calculations and considerations alternatif.Sebelum option was dropped, there are several steps that may be traversed by the decision maker. These stages may include identification of major problems, menyusn alternative will be selected and arrive at the best decision.

purpose of accounting disclosure in the equity markets.
In a competitive economy, the disclosure is a means to channel koorperasi koorperasi accountability to capital providers (investors) and to mepermudah allocation of resources to their most productive use of a koorperasi need to attract capital in a very large amount to finance the production and distribution activities are extensive. Therefore internal pembiyaan is highly dependent on external capital invested by the investor on a koorperasi, In return, an investor requires disclosure (tansparansi koorperasi) in which investors can assess the quality of their stock to cultivate.

fundamental differences in corporate financial disclosure practices in various aspects.
Disclosure rules are very different around the world in some ways like the statement of cash flows and changes in equity, related party transactions, segment reporting, the fair value of financial assets and liabilities and earnings per share. In this section attention is focused on: Disclosure of information to see the future “information look to the future” that includes: Forecast revenue, profit and loss, profit and loss per share (EPS), capital expenditures, and other financial post.

translation and conversion between currencies.
Foreign currency translation The process is repeated presentation of financial information from one currency to another currency. While foreign currency conversion between the exchange of one currency to another currency physically. The difference is, the translation is simply a change of monetary units, for example, on a balance sheet that is expressed in British pounds are presented back to the U.S. dollar equivalent value. There is no physical exchange that occurred, and no relevant transaction occurs. While the conversion, allowing the physical exchanges that occur and there is a related transaction occurring.
Understanding the terms – in terms of foreign currency translation.
Conversion, an exchange of one currency into another currency.
Exchange rate now, the exchange rate prevailing on the date of the relevant financial laporang.
Net asset position at risk, the excess assets are measured or denominated in foreign currency and in translasikan at the exchange rate of duty is now measured or denominated in foreign currencies and translated at the exchange rate now.
Exchange forward contracts, an agreement to exchange currencies of different countries by using a specific rate (forward rate) at a given date in the future.
Functional currency, is the main currency used by a company in the conduct of business activities. Usually such currency is the currency of the State where the company is located.
Historical exchange rate, the exchange value of foreign currency that is used when an asset or liability denominated in foreign currencies bought or going.
Reporting currency, the currency used in preparing the company financial statements.
Spot exchange rate, the exchange rate for currency exchange in the time immediately.
Translation adjustments, the adjustments arising from the translation of financial statements of a company’s functional currency into the reporting currency.

different advantages and disadvantages of foreign currency translation.
If the point of view of local currency to be used (local companies viewpoint), the entry of the translation adjustment in current earnings do not need to be done. Enter translation gains and losses in earnings will distort the real financial relationships and can mislead the users of such information. Translation gains or losses should be treated from the standpoint of local currency as an adjustment to equity owners. If the parent company’s reporting currency is the unit of measurement of the financial statements are translated (the parent company’s point of view), it is advisable to recognize gain or loss on translation of profit as soon as possible. Point of view of the parent company saw overseas subsidiaries as an extension of its parent company. Translation gains and losses reflect the increase or decrease in equity of foreign investment in domestic currency and should be recognized.

Calculate gains and losses of foreign currency translation.
Changes in the value of domestic currency equivalent of the net assets of foreign subsidiaries are not realized and no effect on the local currency cash flows generated from foreign entities. Translation adjustment should be accumulated separately as part of consolidated equity.
Pengangguhan and Amortization
Suspension of translation gains or losses and to amortize it over the useful adjustment items related to the balance sheet, primarily related to debt ditangguha = kandan will be amortized over the related fixed assets, which is charged against earnings in the same way with the burden of depreciation or deferred and amortized during the remainder of the loan as an adjustment to interest expense.
Partial Suspension
Translation gains and losses is to recognize the losses as soon as possible after it happens, but admitted only after the profits realized, this is simply because it is an advantage, it ignores the changes in exchange rates.
Not suspended
Recognize translation gains and losses in the income statement as soon as possible. However, inserting translation gains and losses in the current year’s profit will introduce a random element in the profits that may result in significant fluctuations in earnings in case of exchange rate changes. Translation gains and losses reflect the increase or decrease in equity investments in domestic currency and should be recognized.

Understanding the effect of using various methods of foreign currency translation of financial statements.
Although most of the technical issues in accounting tends to resolve itself over time, foreign currency translation terrnyata is an exception. That this trend will continue to be supported by such developments as the collapse of the dominance of the dollar, the currency rate movements are approved by the government, and the globalization of world capital markets, which have increased the importance of reporting and financial disclosure.

Understanding the relationship between the translations of foreign currency with inflation.
The use of the exchange rate is now to translate the cost of non-monetary assets are located in berinflasi environment will ultimately lead to an equivalent value in domestic currency is much lower than the initial baseline measurement. At the same time, earnings will be much larger translated with respect to load depresisasi which is also lower. The translation as it can be more easily mislead readers as to give information to the reader. Assessment of the lower dollar typically lower earnings power akutal of foreign assets which are supported by local inflation and the ratio of return on investment that affected inflation in a foreign operation may create false expectations on future profits.
FASB rejected before the inflation adjustment process of translation, because the adjustment is not inconsistent with the historical cost basis of the assessment framework used in the basic financial statements in the U.S.. As a solution FAS No. 52 requires the use of the U.S. dollar as the functional currency for those residing overseas operations with hyperinflation environment. This procedure will maintain a constant value of the dollar equivalent of foreign currency assets, because these assets will be translated according to the historical rate. The imposition of losses on fixed assets in the translation of foreign currency to equity shareholders will cause a significant effect on financial ratios. Foreign currency translation problem can not be separated from the problem of accounting for foreign inflation.

Understand why the financial report has the potential to mislead during the period of price changes.
This measurement inaccuracies distort the financial projections based on historical time series of data, the budget is the basis of performance measurement, performance data can not isolate the effect of inflation that can not be controlled. While earnings are valued more in turn will lead to: Increase the proportion of tax, demand more dividends than shareholders, salaries and demand higher wages than workers, and adverse actions of the host country (such as taxation of very large gains ).
Knowing the term – inflation accounting terms and understand the effect of price adjustments to financial statements.
To understand the notion of price changes (changing prices), the following terms in use:
A general price changes occur when the average price of all goods and services in an economy subject to change. Price increases are collectively known as inflation (inflation), while the price declines known as deflation (deflation).
Specific price changes refers to changes in the price of goods or services which are caused by changes in demand and supply. A stable price level becomes a national priority for many countries around the world. Although the price changes occur throughout the world, the influence of business and financial reporting varies from one country to another.
Determine differences in current cost accounting model and the conventional.
In general, the conventional accounting, financial statements are presented based on the historical value that assumes that hargaharga (monetary unit) is stable. Conventional accounting does not recognize the changes in general price levels or changes in the level of rates. As a consequence, if there is a change in purchasing power as inflation period, the historical financial statements is economically irrelevant. In this period generally scored higher revenues while fixed assets valued lower. Actually, there are several methods of accounting on the effect of price changes, such as accounting fixed price, current value accounting, and general price level accounting. General price level accounting restatement will hold the components of financial statements into dollars at the same level of purchasing power, but did not change the accounting principles used in accounting based on the value historis.Pada practice, the controversy concerning the relevance of the use of price level accounting public still continues to this day. Some of the arguments that support or reject the application of the general price level accounting will be presented in this article. Similarly, the results of two studies on the effects of application of the general price level accounting on the financial statements will be compared to see whether the accounting adjustments based on the general price level is required.
Explain the differences of inflation accounting in the U.S., Britain, and Brazil.
In the U.S., the advantages and disadvantages of monetary items are determined by me restate, in constant dollars, from the beginning and ending balances, or transactions in, all assets and liabilities (including long-term debt). The results are intended to provide a useful basis for assessing the performance of companies in maintaining the general purchasing power of investors (FAS No. 89, paragraphs 65-66). Gains or losses are not included in profit but are disclosed in a separate stand-alone item. This treatment implies that the FASB looked at the advantages and disadvantages in the IEM-monetary item is different in nature with other spiders.
In the UK, gains and losses on monetary items are separated into monetary working capital adjustment and geraing. The second number is associated with the following changes in the price level is given (SSAP NO. 16 paragraphs 11-13) / when sales on credit, working capital tied sebebnarnya company (in a sense, corporate finance financial changes in the replacement cost of inventory) to accounts receivable associated billed. Conversely, when stocks and other supplies purchased on credit, the specific price changes related to these items are basically financed by the supplier during the crediting period. So that the working capital of the buyers are free to use for other purposes. Because these phenomena are the same and is seen as an extension of adjusting the running costs of sales to generate operating profit has been adjusted.
In Brazil, do not adjust the current assets and current liabilities are explicitly because the amounts are expressed in the running. Adjustments arising from calculating the net value of assets and capital that have been permanently adjusted to price levels represent a gain or loss in the general purchasing power of working capital financing with debt or equity. Adjustment of permanent assets in excess of capital adjustment to reflect the portion of assets financed with debt permanently, resulting in a gain purchasing power. Instead, the adjustment of capital assets is greater than the permanent adjustment shows the portion of working capital financed by capital. For the capital portion is recognized the loss of purchasing power during inflationary periods.
Understanding of financial reporting in hyperinflation economy.
This statement does not set at a certain level of inflation is considered hyperinflation. Consideration is required in determining when restatement of financial statements need to be done in accordance with this statement. Characteristics of the economic environment of a country which is an indication that the country is experiencing hyperinflation, among others: (a) inhabitants prefer to store their wealth in the form of non-monetary assets or in a foreign currency is relatively stable. Amount of local currency held immediately invested to maintain purchasing power; (b) the population consider the monetary amount is not in the local currency but in foreign currencies are relatively stable. The prices may dikuotasikan in foreign currency; (c) the prevailing price in the sales and purchases on credit is determined by inserting a factor expected loss of purchasing power during the credit period, even if the short loan period, (d) interest rates, wages and prices associated with the price index, and (e) the cumulative inflation rate over three years approaches or exceeds 100%. All entities that prepare financial statements in the currency of the same hyper-inflation economies are encouraged to apply this statement from the same date. However, this statement is applied to the financial statements of each entity since the beginning of the reporting period when the entity identifies the existence of hyperinflation in the country whose currency is used by such entities to prepare financial statements.
Knowing whether a constant dollar or current cost is better to measure the effects of inflation.
Proponents of historical cost model of constant purchasing power of the opinion that the cost model now violates the basic framework of the historical cost because it is based on the initial acquisition cost, the model is also based on a hypothetical cost estimates and therefore too subjective and difficult to put into practice. Ignoring changes in general purchasing power of money led to comparisons between periods is also not difficult to interpret and weigh the advantages and disadvantages of the ownership of monetary items such as debt. In the present model of adjustment costs, the business is not affected by inflation umu, but more influenced by the rising costs of special operations and fixed asset expenditures. Model of constant purchasing power of combining the characteristics of the current cost model of constant purchasing power historical cost and current cost models. The basic framework of this mixture increases recognize the present value of assets as the advantages of wealth, and thus allow for comparison between present income and earnings in the previous period. Companies considered it would be better only if the asset increases greater than inflation. Monetary gains or losses, are largely ignored in current cost models, is part of the measurement.
Definition of a double dip (double dip) and explains how to handle.
In Hall’s point of view, resembles a double-dip recession is punctuated by sustained periods of growth, followed by a long decline in the economy.

About Yohanes Novrianto Simangunsong

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