DIVERSITY OF

FINANCIAL
ACCOUNTING
PRACTICES
Dhea Nanda Christalia
Contemporary Financial Accounting
 WELCOME!
Contemporary Financial Accounting

Diversity of Financial Accounting Practices

GOODWILL
INCOME SMOOTHING
ASSET VALUATION

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Diversity of Financial Accounting Practices

The Definition

• Measurement of
Assets and Liabilities

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Diversity of Financial Accounting Practices

 The Impact of Accounting

Diversity

 The Efforts to Face Accounting

Diversity

 Alignment constraints in
Accounting Diversity

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GOODWILL
Contemporary Financial Accounting
 GOODWILL
OBTAINING
GOODWILL
Goodwill will arise as a result of AMORTIZATION OF
the company's activities that want GOODWILL
to buy another company, where
the price paid is greater than the Amortization is another word for
price or net worth of the company the term depreciation. If in fixed
to be purchased. But when finally assets there is the term
agreed is a price lower than the
net worth of the company being depreciation, then in intangible
purchased, then what appears is assets such as goodwill.
negative goodwill.

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 GOODWILL
The Example of Goodwill
AB company wants to buy a CD company to expand its business. CD Company has total
assets of Rp.1,000, total liabilities of Rp.350 and total equity of Rp.650.
In this situation, CD companies sell high to AB companies, this is done because CD
companies know that their position is strategic for AB companies. After going through a
long price negotiation, finally the CD company was willing to let go of the company for
AB company at Rp.850.
As we all know, that previously the total net assets of the CD company were Rp.650
which was then bought by AB company at a price of Rp.850, from this we all know that
there is a difference of Rp.200. So, this is Goodwill. Those who think that this is a loss
for AB companies, because they buy CD companies with quite expensive prices. But the
position of the CD company is very strategic for the growth and development of AB
companies. Even by purchasing a CD company AB companies will get even greater
benefits for the next few years.
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INCOME SMOOTHING
Contemporary Financial Accounting
Smoothing

Real Income Smoothing

Artificial
Smoothing Income
ASSET VALUATION
Contemporary Financial Accounting
 ASSET VALUATION

OUTPUT VALUE INPUT VALUE

The value of output is based on the amount of The input value can indicate the maximum
cash or other (non-cash) awards received by a value of the company or the company's
business unit if an asset / service potential products do not have market prices so it is not
eventually exits the business unit because of possible to obtain an output value.
an exchange.The Power of PowerPoint - thepopp.com
 Case

Long before the issuance of IFRS, the issue of Big GAAP and Little GAAP had
emerged. IFRS standards are intended for large companies, not small and
medium enterprises (SMEs, or small and medium enterprises, SMEs). For
SMEs, the application of these standards is too expensive, inefficient and also
ineffective. The costs are large, so is the time they spend preparing financial
statements. Therefore, special standards for SMEs are needed.

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Thank You! 
Any Questions?