In accounting, it turns out that it is not only about the preparation of financial and tax reports under the rules in Indonesia. But some must be adjusted to accounting rules in other countries, and better known as international accounting. What is international accounting?
Definition of International Accounting
For accountants who work in trading companies and by chance the transactions within the company are related to international trade or buying and selling activities, such as export and import companies and both. Then an accountant will compile various financial reports using applicable international standards. And that’s the term international accounting is.
Basically, the definition of international accounting is accounting for transactions cross-countries and then becomes a comparison tool for various accounting principles adopted or applied by a certain country. So that this accounting then follows the rules on an international scale, which of course will be different from accounting rules in Indonesia.
Benefits of International Accounting
International accounting has numerous of benefits that make International Accounting is applicable :
International accounting is indeed important to learn because one of the main benefits is anticipating the requirements of the global community. The point is that when compiling the report, the results of this report are following the requirements of the global community so that it is not only understood by leaders who are native Indonesians. But it can also be read by foreigners.
The second benefit is to assist accountants in introducing different conditions, more precisely between conditions domestically and abroad. Because with the report, the accountant can explain in detail about the economic conditions in the country where trading activities are carried out.
The development or evolution of a business can be seen from the financial statements made by accountants. So that it can be seen what has changed in the corporation, whether its profits are increasing, stagnant, or even decreasing. So that international accounting becomes a summary to convey this evolution.
International accounting is also useful for discussing various important topics in the field of international trade. This topic is the latest topic or news in a country related to economic conditions.
Through the explanation above, of course, we can draw conclusions about the importance of studying International Accounting. Namely to make it easier for prospective accountants, namely when they become accountants in international trading companies, they have no difficulty in compiling accounting reports according to accounting standards in various (international) countries.
This appropriate arrangement of reports will help company managers to make decisions based on these reports. So that company managers who are familiar with international accounting can immediately understand. Because it is prepared under the provisions of the world of international trade earlier.