International
Accounting Standard (IAC) or International Financial Reporting Standard (IFRS)
is a standard financial accounting report oriented on revaluation of transparancy
for disclosures on economic transaction. IFRS was arranged by :
1.
International Accounting Standard Board
(IASB)
2.
Commision of the European communities (EC)
3.
International of Securities Commissions
(IOSOC)
4.
International Federation of Accountants
(IFAC)
IFRS
is a single set of accounting standards, developed and maintained by IASB. IFRS
is International Standard for the preparation of public company. There are IFRS
set mandatory rules:
1.
Balance Sheet
2.
Statement of Comprehensive Income
3.
Statement of Retained Income
4.
Statement of Cash Flow
France
is the main proponent of the world for similiarity national accounting.
Ministery of national economy approved Plan Comptable General for the first
formal on September 1947. The main basis of French Accounting regulation is Undang-Undang Akuntansi in 1983 and Dekrit Akuntansi in 1983 that makes Plan
Comptable General is an obligation for all company. Both of them input in Code de
Commerce. Code de Commerce has accounting rules and comprehensive report. Accounting report legally give the evidence
and verification which is considered as resources for making decision. IFRS
apply in France adopted by EU and has required application for consolidation
financial statement. Originality accounting in France, there is dichotomy
between financial statement company individually and group report that has been
consolidation. Every company must have manual accounting. Legal systems in
France is code law. Legal system in France allow company in France to follow
International Financial Reporting Standards. Because France have many
multinational company that record their stock in many other country. There are
five big companies that involved for preparation standard in France:
1. Counseil National de la Comptabilite or
CNC (Badan Akuntansi Nasional); have a
big responsible to follow the rules, consult accounting problem that need
regulation.
2. Comite
de la Reglementation Comptable or CRC (Komite
Regulasi Akuntansi); change the rules and give recommendation. CNC recommendation
into binding regulations
3. Autorite
des Marches Financiers or AMF (Otoritas
Pasar Keuangan); supervise new market problems and capital market operations
regional and national.
4. Ordre
des Experts-Comptables or OEC (Institut
Akuntan Publik)
5. Compagnie Nationale des Commissaires aux
Comptes or CNCC (Institut Nasional
Undang-undang Auditor); as an accountant and auditor. CNCC is participating in development accounting
standards.
France
Financial Statements consists of:
1.
Balance Sheet
2. Income
Statement
3. Notes
of Financial Statements
4. Director
Statement
5.
Auditor Statement
There
are some company category application IFRS in France. First, registered company
in practically already follow IFRS. Second, Not registered company have a
choice can follow it or not. But basically all of company must be follow
permanent regulation from provisions on each company, to share dividend and
count income taxpayer.
In
France use equity method, inventory valuation LIFO isn’t allowed, and possibility
of loss compatible with IFRS. Goodwill in France use Capitalization and
amortization, in IFRS use capitalization and impairment test. Valuation asset
in France use historical cost, in IFRS use historical cost and market cost.
Depreciation expense in France use tax base, in IFRS use economic base. In IFRS,
loan fund capitalized but France isn’t capitalized. Deffered tax in IFRS recognized
but in France wasn’t recognized. In IFRS use deposit for profit manipulation but
in France doesn’t use it.
Bibliography:
Bibliography:
Choi, Frrederick,D.,S.,Meek.,Gary.2010. International Accounting.Edisi Keenam.Jakarta: Salemba Empat
