Senin, 21 Maret 2016

ANALYSIS COMPARATIVE OF IFRS and FRANCE ACCOUNTING STANDARD

           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: 
Choi, Frrederick,D.,S.,Meek.,Gary.2010. International Accounting.Edisi Keenam.Jakarta: Salemba Empat

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