due to use IFRS

due to use IFRSWhy is Enron, one of the U.S. energy giant, can achieve phenomenal growth in a short time, then went bankrupt in a short time anyway? "Science" is used by Jeff Skilling, the genius Harvard Business School graduate and former McKinsey consultant leading firms to achieve all that? He replied: accounting. Who is who "protect" and to approve Enron's accounting practices prior to unfold? None other than public accountants Arthur Andersen.
Accounting is the only major business language in the capital markets. Without a good accounting standards, capital market will never work well anyway because of the financial statements are the main products in the capital market mechanism. Effectiveness and timeliness of financial information transparency that can be compared and required by all relevant stakeholders (employees, suppliers, customers, institutional credit providers, even government). Stakeholders are not simply want to know financial information of one company alone, but from many companies (if you can, perhaps of all companies) from all over the world to be compared with each other.
The question is, how these needs can be met only if the companies are still using forms and financial reporting principles different? International Accounting Standards, better known as International Financial Reporting Standards (IFRS), a single standard of high quality accounting reporting and accounting framework based on principles that include strong professional assessment with a clear and transparent disclosures regarding the economic substance of transactions, the explanation until you reach a certain conclusion , and the related accounting transactions. Thus, users of financial statements can easily compare the entity's financial information between countries in different parts of the world.
The implication, adopting IFRS means adopting a global financial reporting language that would make a firm can be understood by the global market. A company will have greater competitiveness when adopting IFRS in its financial statements. Not surprisingly, many companies that have adopted IFRS have significant progress when entering the global capital markets.
Internationally, IFRS has been adopted by many countries, including European Union countries, Africa, Asia, Latin America and Australia. In Asia, Hong Kong, Philippines and Singapore have also adopted it. Since 2008, an estimated 80 countries require companies who have been enrolled in the global stock exchanges to apply IFRS in preparing and presenting its financial statements.
In the context of Indonesia, the convergence of IFRS with the guidelines of Financial Accounting Standards (SFAS) is very important to ensure national competitiveness. Changes in procedures for financial reporting of Generally Accepted Accounting Principles (GAAP), GAAP, to IFRS or any other very large impact. IFRS will become mandatory â € œkompetensi-Barua €?? for a public accountant, appraiser (Appraiser), management accountants, regulators and accountants educators. Can the workers facing accounting changes constantly be made to meet the needs of global markets to the financial information? How does this preparation Indonesia to IFRS?
Since 2004, the accounting profession in Indonesia has been doing a harmony between the IAS / IFRS and Indonesian GAAP. Convergence of IFRS is expected to be achieved in 2012. Although IFRS is still not fully implemented at this time, preparation and readiness to welcome him to give competitive edge to its own business entities in Indonesia.
With the adoption of IFRS readiness as a single global accounting standards, corporate Indonesia will be ready and able to trade, including mergers and acquisitions (M & A), lintasnegara. Lintasnegara recorded a number of acquisitions have occurred in Indonesia, for example, Philip Morris's acquisition of Sampoerna (May 2005), Khazanah's acquisition of Bank Lippo Bank and Bank of Commerce (August 2005), or UOB against Buana (July 2005). As Thomas Friedman says, "The World is Flat", M & A activity lintasnegara it is not uncommon. Because IFRS is intended as a single global accounting standards, accounting industry Indonesia's readiness to adopt IFRS will be competitive at the global level. This is the advantage of adopting IFRS.