Welcome to

INTERNATIONAL ACCOUNTING

Abdullah Taman, S.E., M.Si., Akuntan Prodi Akuntansi, FISE Universitas Negeri Yogyakarta

Terminology:

International Accounting (IA)

is accounting for (1) international transactions, (2) comparisons of accounting priciples in different countries, (3) harmonization of diverse accounting standards worldwide, and (4) accounting information for the management and control of global operation.

Importance International Acc

Alasan utama untuk mempelajari IA adalah untuk mengembangkan kompetensi dalam pengumpulan dan pemrosesan data dari aktivitas dan kejadian ekonomis, dan penyiapan laporan keuangan sehingga informasi itu berguna untuk dikomunikasikan kpd

decision makers.

Informasi yang paling berkualitas di mata mereka adalah

relevant

dan

reliable. (What are they?)

Importance..... (cont’d)

Since the environments in which an economic entity operates are dynamic, the accounting profession must be current to remain useful. Only then can it satisfy the information needs of decision makers in ever-changing business environments

Era Ekonomi Global

Bebrapa contoh “blok” perdagangan: NAFTA, EU, WTO, AFTA etc. Peningkatan perdag int’l, pergerakan barang dan jasa, dan

financial resource worldwide,

meningkatkan efisiensi alokasi dan penggunaan

resources

tsb. tiap-tiap negara

specialize in producing the products that it can generate efficiently, and it exchanges what it produces for the products that are produced more efficiently in other countries.

Era Ekonomi Global (cont’d)

1.

2.

International Business Bisnis dan perdagangan int’l telah melebihi batas-batas negara. Pertumbhn-nya sangat cepat Accelerating Factors Standarisasi produk dan proses, kemajuan tekn, pembangunan infrastruktur, reformasi ek., dan

privatization of public sector enterprises

Era Ekonomi Global (cont’d)

3. Dependencies on International Trade 80% penjualan

Coca-Cola Gillette

dan 70% berasal dari int’l trade (hal yang sama terjadi pada

Renault, Bayer

, dan

ICI

)

1.

2.

3.

Reasons for Going International

Theory of Comparative Advantage Country should produce only those products that it can produce efficiently.

Product Cycle Theory Exporting is typically the entry point in international trade for most firms Imperfect Market Theory Imperfect market faktor produksi

immobile.

Because market for the various resources used in production are “imperfect”, firms capitalize on a foreign countries resources.

Reasons for Going International

4. Technology Transfers A company may be willing to share advanced technology with companies or governments in other parts of the world to gain access to their markets.

5. Preserving Strategic Position Buying companies in other countries is increasingly becoming preferred tactic employed to maintain strategic position.

1.

Types of Int’l Involvement

Int’l Companies – Exporters Perusahaan yang mengexport produknya ke luar negeri diklasifikasikan sbg perusahaan internasional 2. Strategic Alliances Perusahaan berkolaborasi dengan perusahaan di luar negeri to share rights and responsibilities as well as revenue and expense 3. Multinational Corporation Perusahaan menjadi multinasional karena visi globalnya. A company that considers the globe as a single marketplace is a multinational corporation (MNC)

IA – Conceptual and Operational Issues 1.

2.

3.

4.

5.

Challenge Facing Int’l Acc Cultural Dimension Understanding the Cross-Functional Linkages Financial Analysis and Comparability Global Information System Development

• •

Challenge Facing Int’l Acc

Operasional MNC secara global sudah sangat luas, termasuk pengembangan produk (McD, KFC dengan nasi), manufacturing, marketing, and distribution.

Global capital market memberikan kesempatan untuk investors dan borrowers to engage in financing activities worldwide. Technology advancements and deregulation now enable investors and borrowers to engage in financial transaction on a real time basis in int’l capital market.

Cultural Dimension • An understanding of different cultures, cultural sensitivity, and appreciation of cultural diversity is now required to be a successful professional including accountants.

• Understanding the Cross-Functional Linkages It is no longer enough to be proficient merely in accounting technique, procedure, and application of standard. The real value of accounting is in providing information that deals with how various courses of actions affect all parts of a business that are interdependent and increasingly in different parts of the world. This is beyond the traditional role of accountants and involves many “soft” areas where judgment has as much of a role to play as the numbers

Financial Analysis and Comparability

• • • Ada tiga problem yang muncul: Accounting transactions are measured and reported differently in different countries Business culture and business practices vary from country to country Terminology is a problem for accounting throughout the world.

Global Information System Development

• Operasi worldwide menuntut sistem informasi global. Sistem itu harus memenuhi kebutuhan manajer di bidang strategic planning, short-term planning, organizing, controlling, decision making, and financial reporting. Perhaps the most difficult of all factors is the varying level of uncertainty across the globe.