Development of Professional AccountingDevelopment of Professional Accountants in IndonesiaThe development of accounting profession in Indonesia according to Olson can be divided into two periods, namely:1. Colonial Period
During the period of Dutch colonial rule who are members of accounting profession
is a Dutch accountants and some accountants Indonesia. At that time
existing education for indigenous people is education provided bookkeeping
The formal upper secondary schools are non-formal education while accounting
given on bookkeeping courses to obtain a diploma.2. Period After Independence
Discussion of development after independence in accounting for all the
six periods, namely:a. Period I [before 1954]
In the period I had no job accounting services that benefit society
the business. This is caused by the increasingly difficult economic relations, sharpening
competition, and rising taxes to the employers so that more strongly felt
the need for lighting and expert advice to achieve improvements in
system of corporate administration. Of course they want to use those services
people who are experts in the field of accounting. The need for more assistance accountant
it's a great excuse for a general audience who are not knowledgeable and
experience in the accounting field to work as an accountant.
In fact, knowledge of accountants should be equal to those terms
set by the government and also they have to follow the lessons in college
high country with good results. Therefore, the government sets the rules
with legislation to protect the accountant diploma to employers and agencies
others are not fooled by the use of the title "accountant" is not valid.b. Period II [year 1954 - 1973]
After the Law No. 34 year 1954 about the use of his accountant,
was the development of professional accountants and auditors in Indonesia was slow
Indonesia's economy at the moment because it is less profitable but
rapid economic development began at the time of nationalization
Dutch-owned company. Given the limited staff accountant accountant and adjunct
the auditor at that time, the State Directorate Accountant for help
public accounting firm to conduct an audit on behalf of the State Directorate Accountant.
Expansion of the market public accounting profession that is growing as the government
Law issued a Foreign Investment (PMA) and the Investment
Domestic Capital (PMND) in 1967/1968. Although at that time the
financier "carry" his own public accountants from overseas demand for services
public accountants in the country remains.
Public accounting profession experienced significant development since the early 70s
with the expansion of bank credits to the company. These banks are
requires that customers will receive credits in a specific amount for
submit periodic financial statements, audited public accountant.
In general, private companies need new services in Indonesia
public accountant if the lender requires that they submit financial statements
has been examined by public accountants.c. Period III [year 1973 - 1979]
M. Sutojo at the National Convention in Surabaya Accounting I December 1989
present research results on: Development of Professional Supervision
Public Accountant in Indonesia, that the public accounting profession was signed by one
achieved great progress Indonesia Institute of Accountants with the publication of books
Indonesian Accounting Principles (PAI) and Norma Accountant Examination (NPA) in
Indonesian Institute of Accountants congress in Jakarta on November 30 to December 2
1973. Given these principles and norms, the public accounting profession has advanced
one step further because it has a standard work in analyzing financial statements
enterprises in Indonesia. The congress also adopted the Code of Conduct
Accountants Indonesia so that complete public accounting profession has a levying
as a profession. With the completeness of this device, the government hoped the profession
public accountant akanmenjadi support institutions that are reliable and trustworthy for
capital market and money market in Indonesia. At the end of 1976 the President of the Republic
Indonesia in his decision letter number 52/1976, which sets the capital market
first time since entering the New Order. With the capital markets in
Indonesia, the need for greatly increased public accounting profession. This decision, if
viewed in terms of economics it is intended for the collection of capital from the public,
but this action also showed the government's attention so much to
public accounting profession. According Katjep in "The Perception of Accountants and
Accounting Profession in Indonesia "who defended in 1982 at Texas A & M
University stated that the public accounting profession is required to audit and
give an opinion without notes (unqualified opinion) on financial statements
go public or trading its shares on the market modal.Untuk more
effective oversight of public accountants, on May 1, 1978
Section was formed Public Accountants (IAI-SAP) who take shelter under the IAI. To
now sexy in IAI, besides sexy public accountant, is a sexy accountant
management and sexy accountant educators. Sophar Lumban Toruan in 1989
said that the accretion umlah practicing accountants continue to rise
so that the Directorate General of Taxation Ministry of Finance with IAI made
joint statement governing the following matters:
1) Agreement for the use of PAI and the NPA as an objective basis thataccepted by all parties.
2) To the corporate taxpayers are encouraged to advance the financial statements examined by public accountants prior to submission to the Office of Tax Inspection (now the Tax Office). The report will be used as the basis for tax assessment.
3) If there are deviations of professional ethics (professional conduct) by a certified public accountant, will be reported by the Director-General of Taxation to the IAI to be investigated that are useful in deciding on the imposition of sanctions.The deal was later confirmed by Presidential Instruction No.. 6 years 1979 and Minister of Finance Decree. 108/1979 dated March 27, 1979 which outlined that the financial statements should be based on a public accountant examination and follow the PAI. Instructions and letters of intent is to stimulate the decision to use taxpayer's financial statements, audited by public accountants, to provide tax relief company and get better service in the field of taxation. This decision is known as the March 27, 1979. This is an important decision in the history of the public accounting profession as well as a touchstone of public accountants and public users.d. Period IV [year 1979 - 1983]
This period is a bleak period for the public accounting profession in the implementation
March 27 package. Three years after the convenience provided by the government is still there
CPAs do not take advantage of the government's good intentions. Some
Public accountants perform a very adverse malpractice in tax revenue that is
by working with management companies do
tax evasion. There is also a public accountant who did not examine the report
submitted by the finance company or accountant's opinion is not included in the
financial statement submitted to the tax inspection office.e. Period V [year 1983 - 1989]
This period can be seen as a period that contains the accounting profession consolidation efforts
including public accountant. 1973 PAI perfected in 1985, followed by
improvement of NPA in 1985, and completion code of ethics in Congress
to V in 1986.
After passing through bleak times, the government needs to provide protection
against public accountants and public service users to support growth
the profession. In 1986 the government issued a Decree of the Minister
No financial. 763/KMK.001/1986 of Public Accountants. This decree regulates
field of public accounting work, procedures and requirements for obtaining permits
practice of public accounting and public accounting firms and the establishment of sanctions
can be imposed on public kauntan practices that violate the requirements of accountants
the public.
By decision of Minister of Finance is also demonstrated once again the commitment
government that is consistent to the development of the public accounting profession that is by
hear the opinion of the Association of the profession at the VI congress of the IAI, among others:
work experience need to be held before practice; imperative public accountant
fultimer (except teaching); permit valid indefinitely; reporting obligations
periodic (annual) of practical activities to licensors; opening of a branch
must meet certain requirements; permission is given to individuals rather than to the office;
revocation of licenses needed to hear the opinion of the board of IAI honor; applicant must
IAI members; closer scrutiny to foreign accountants.
In 1988 Implementation guidance published decision of the Minister of Finance through
Decision of the Director General of Monetary No. Kep.2894/M/1988 dated March 21, 1988.
One thing that is fundamental for the decision is the formation of accountants
public purpose:1) Assist the development of the public accounting profession in Indonesia2) Provide inputs to IAI or sexy public accountant regarding the coverage
desired the Ministry of Finance in the education program3) Implement the upgrading with IAI or IAI-section of the public accountant
things that are considered public needs to know (KAP), including the
KAP management.4) Ensuring that staff who had been foreign KAP in Indonesia for
provide refresher courses for other KAP through IAI or IAI-Sexy Accountant
Public and assist the implementation5) Monitor the annual activity reports periodically KAP
Before the published decision of the Director General of the Monetary, in 1987
public accounting profession has gained a place of honor and strategic
government that is by the issuance of Decree of the Minister of Finance of the Republic
Indonesia No. 859/KMK.01/1987 about through Exchange Underwriters have
determines that:1) To perform issuance, the issuer must meet the requirements, among others:
have financial statements audited by public accountant / accountant
country for the last two fiscal years in a row with a statement
opinion "unconditional reasonable" for the last year.2) the issuer's financial statements for the last two years must be arranged
in accordance with GAAP in Indonesia accompanied by a public accountant /
state accountant.3) The period between the financial statement and the date of permit issuance
should not exceed 180 days. (M. Sutojo, 1989: 10)f. Period VI [1990 - present]
In this period the public accounting profession continues to evolve in line with
development of business and capital markets in Indonesia. Nevertheless, it is still
a lot of criticism as those made by entrepreneurs and academics.
However, the existence of accounting profession is still recognized by the government as a
public confidence in the profession. In addition to the support from the government,
development of the public accounting profession is also determined determined by
economic development and public awareness of the benefits of public accounting services.
Several factors are considered much encourage the development of the profession are:1) The growth of capital markets2) The rapid growth of financial institutions, both banks and non-
the bank.3) The IAI cooperation with the Directorate General of Taxation in order to affirm the role of
public accountant in the implementation of the taxation laws of Indonesia4) The development of foreign investment and globalization activities
economy
In early 1992 the public accounting profession again been entrusted by the government
(IRS) to verify payment of VAT and VAT BM
carried out by taxable employers. In line with the development of the business world
these, Olson in 1979 in the Journal Accountanty present four
development that must be considered by the accounting profession, namely:1) The number of types and amount of information available to the public2) The good transportation and communication.3) The more he realized the need for a better quality of life4) The growth of multinational companies as a result of the phenomenon
The first and second.
The consequences of these developments will have an impact on
development of accounting and cause:1) The need for efforts to broaden the role of accountants, the scope of work
the wider public accountant so that not only covers the examination
accountants and financial statements.2) The need for labor specialization in the profession, the magnitude of responsibility
responsibility and scope of activities of the client, requiring public accountants to
always add to knowledge.3) The need for higher standards of technical and complicated, with
development of information technology, financial statements will become increasingly
diverse and complicated.
Opinions expressed Olson mentioned above is quite appropriate and relevant to
accounting functions that are essentially related to the accounting information system.
Of exposure that have been advanced, professional accountants are expected to
anticipate the circumstances for the development of accounting profession in the foreseeable
come.
During the period of Dutch colonial rule who are members of accounting profession
is a Dutch accountants and some accountants Indonesia. At that time
existing education for indigenous people is education provided bookkeeping
The formal upper secondary schools are non-formal education while accounting
given on bookkeeping courses to obtain a diploma.2. Period After Independence
Discussion of development after independence in accounting for all the
six periods, namely:a. Period I [before 1954]
In the period I had no job accounting services that benefit society
the business. This is caused by the increasingly difficult economic relations, sharpening
competition, and rising taxes to the employers so that more strongly felt
the need for lighting and expert advice to achieve improvements in
system of corporate administration. Of course they want to use those services
people who are experts in the field of accounting. The need for more assistance accountant
it's a great excuse for a general audience who are not knowledgeable and
experience in the accounting field to work as an accountant.
In fact, knowledge of accountants should be equal to those terms
set by the government and also they have to follow the lessons in college
high country with good results. Therefore, the government sets the rules
with legislation to protect the accountant diploma to employers and agencies
others are not fooled by the use of the title "accountant" is not valid.b. Period II [year 1954 - 1973]
After the Law No. 34 year 1954 about the use of his accountant,
was the development of professional accountants and auditors in Indonesia was slow
Indonesia's economy at the moment because it is less profitable but
rapid economic development began at the time of nationalization
Dutch-owned company. Given the limited staff accountant accountant and adjunct
the auditor at that time, the State Directorate Accountant for help
public accounting firm to conduct an audit on behalf of the State Directorate Accountant.
Expansion of the market public accounting profession that is growing as the government
Law issued a Foreign Investment (PMA) and the Investment
Domestic Capital (PMND) in 1967/1968. Although at that time the
financier "carry" his own public accountants from overseas demand for services
public accountants in the country remains.
Public accounting profession experienced significant development since the early 70s
with the expansion of bank credits to the company. These banks are
requires that customers will receive credits in a specific amount for
submit periodic financial statements, audited public accountant.
In general, private companies need new services in Indonesia
public accountant if the lender requires that they submit financial statements
has been examined by public accountants.c. Period III [year 1973 - 1979]
M. Sutojo at the National Convention in Surabaya Accounting I December 1989
present research results on: Development of Professional Supervision
Public Accountant in Indonesia, that the public accounting profession was signed by one
achieved great progress Indonesia Institute of Accountants with the publication of books
Indonesian Accounting Principles (PAI) and Norma Accountant Examination (NPA) in
Indonesian Institute of Accountants congress in Jakarta on November 30 to December 2
1973. Given these principles and norms, the public accounting profession has advanced
one step further because it has a standard work in analyzing financial statements
enterprises in Indonesia. The congress also adopted the Code of Conduct
Accountants Indonesia so that complete public accounting profession has a levying
as a profession. With the completeness of this device, the government hoped the profession
public accountant akanmenjadi support institutions that are reliable and trustworthy for
capital market and money market in Indonesia. At the end of 1976 the President of the Republic
Indonesia in his decision letter number 52/1976, which sets the capital market
first time since entering the New Order. With the capital markets in
Indonesia, the need for greatly increased public accounting profession. This decision, if
viewed in terms of economics it is intended for the collection of capital from the public,
but this action also showed the government's attention so much to
public accounting profession. According Katjep in "The Perception of Accountants and
Accounting Profession in Indonesia "who defended in 1982 at Texas A & M
University stated that the public accounting profession is required to audit and
give an opinion without notes (unqualified opinion) on financial statements
go public or trading its shares on the market modal.Untuk more
effective oversight of public accountants, on May 1, 1978
Section was formed Public Accountants (IAI-SAP) who take shelter under the IAI. To
now sexy in IAI, besides sexy public accountant, is a sexy accountant
management and sexy accountant educators. Sophar Lumban Toruan in 1989
said that the accretion umlah practicing accountants continue to rise
so that the Directorate General of Taxation Ministry of Finance with IAI made
joint statement governing the following matters:
1) Agreement for the use of PAI and the NPA as an objective basis thataccepted by all parties.
2) To the corporate taxpayers are encouraged to advance the financial statements examined by public accountants prior to submission to the Office of Tax Inspection (now the Tax Office). The report will be used as the basis for tax assessment.
3) If there are deviations of professional ethics (professional conduct) by a certified public accountant, will be reported by the Director-General of Taxation to the IAI to be investigated that are useful in deciding on the imposition of sanctions.The deal was later confirmed by Presidential Instruction No.. 6 years 1979 and Minister of Finance Decree. 108/1979 dated March 27, 1979 which outlined that the financial statements should be based on a public accountant examination and follow the PAI. Instructions and letters of intent is to stimulate the decision to use taxpayer's financial statements, audited by public accountants, to provide tax relief company and get better service in the field of taxation. This decision is known as the March 27, 1979. This is an important decision in the history of the public accounting profession as well as a touchstone of public accountants and public users.d. Period IV [year 1979 - 1983]
This period is a bleak period for the public accounting profession in the implementation
March 27 package. Three years after the convenience provided by the government is still there
CPAs do not take advantage of the government's good intentions. Some
Public accountants perform a very adverse malpractice in tax revenue that is
by working with management companies do
tax evasion. There is also a public accountant who did not examine the report
submitted by the finance company or accountant's opinion is not included in the
financial statement submitted to the tax inspection office.e. Period V [year 1983 - 1989]
This period can be seen as a period that contains the accounting profession consolidation efforts
including public accountant. 1973 PAI perfected in 1985, followed by
improvement of NPA in 1985, and completion code of ethics in Congress
to V in 1986.
After passing through bleak times, the government needs to provide protection
against public accountants and public service users to support growth
the profession. In 1986 the government issued a Decree of the Minister
No financial. 763/KMK.001/1986 of Public Accountants. This decree regulates
field of public accounting work, procedures and requirements for obtaining permits
practice of public accounting and public accounting firms and the establishment of sanctions
can be imposed on public kauntan practices that violate the requirements of accountants
the public.
By decision of Minister of Finance is also demonstrated once again the commitment
government that is consistent to the development of the public accounting profession that is by
hear the opinion of the Association of the profession at the VI congress of the IAI, among others:
work experience need to be held before practice; imperative public accountant
fultimer (except teaching); permit valid indefinitely; reporting obligations
periodic (annual) of practical activities to licensors; opening of a branch
must meet certain requirements; permission is given to individuals rather than to the office;
revocation of licenses needed to hear the opinion of the board of IAI honor; applicant must
IAI members; closer scrutiny to foreign accountants.
In 1988 Implementation guidance published decision of the Minister of Finance through
Decision of the Director General of Monetary No. Kep.2894/M/1988 dated March 21, 1988.
One thing that is fundamental for the decision is the formation of accountants
public purpose:1) Assist the development of the public accounting profession in Indonesia2) Provide inputs to IAI or sexy public accountant regarding the coverage
desired the Ministry of Finance in the education program3) Implement the upgrading with IAI or IAI-section of the public accountant
things that are considered public needs to know (KAP), including the
KAP management.4) Ensuring that staff who had been foreign KAP in Indonesia for
provide refresher courses for other KAP through IAI or IAI-Sexy Accountant
Public and assist the implementation5) Monitor the annual activity reports periodically KAP
Before the published decision of the Director General of the Monetary, in 1987
public accounting profession has gained a place of honor and strategic
government that is by the issuance of Decree of the Minister of Finance of the Republic
Indonesia No. 859/KMK.01/1987 about through Exchange Underwriters have
determines that:1) To perform issuance, the issuer must meet the requirements, among others:
have financial statements audited by public accountant / accountant
country for the last two fiscal years in a row with a statement
opinion "unconditional reasonable" for the last year.2) the issuer's financial statements for the last two years must be arranged
in accordance with GAAP in Indonesia accompanied by a public accountant /
state accountant.3) The period between the financial statement and the date of permit issuance
should not exceed 180 days. (M. Sutojo, 1989: 10)f. Period VI [1990 - present]
In this period the public accounting profession continues to evolve in line with
development of business and capital markets in Indonesia. Nevertheless, it is still
a lot of criticism as those made by entrepreneurs and academics.
However, the existence of accounting profession is still recognized by the government as a
public confidence in the profession. In addition to the support from the government,
development of the public accounting profession is also determined determined by
economic development and public awareness of the benefits of public accounting services.
Several factors are considered much encourage the development of the profession are:1) The growth of capital markets2) The rapid growth of financial institutions, both banks and non-
the bank.3) The IAI cooperation with the Directorate General of Taxation in order to affirm the role of
public accountant in the implementation of the taxation laws of Indonesia4) The development of foreign investment and globalization activities
economy
In early 1992 the public accounting profession again been entrusted by the government
(IRS) to verify payment of VAT and VAT BM
carried out by taxable employers. In line with the development of the business world
these, Olson in 1979 in the Journal Accountanty present four
development that must be considered by the accounting profession, namely:1) The number of types and amount of information available to the public2) The good transportation and communication.3) The more he realized the need for a better quality of life4) The growth of multinational companies as a result of the phenomenon
The first and second.
The consequences of these developments will have an impact on
development of accounting and cause:1) The need for efforts to broaden the role of accountants, the scope of work
the wider public accountant so that not only covers the examination
accountants and financial statements.2) The need for labor specialization in the profession, the magnitude of responsibility
responsibility and scope of activities of the client, requiring public accountants to
always add to knowledge.3) The need for higher standards of technical and complicated, with
development of information technology, financial statements will become increasingly
diverse and complicated.
Opinions expressed Olson mentioned above is quite appropriate and relevant to
accounting functions that are essentially related to the accounting information system.
Of exposure that have been advanced, professional accountants are expected to
anticipate the circumstances for the development of accounting profession in the foreseeable
come.
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