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Analysis of business strategy is an important first step in the analysis of financial statements. This analysis provides a qualitative understanding of the company and its competitors related to the economic environment. By identifying the drivers of profit and risk factor is the main business, business strategy or business analysis will help the analyst to make a realistic prediction.
The difficulties of analysis of international business strategy:
a. Availability of information
Analysis of business strategy particularly difficult in some countries due to lack andalnya information about macroeconomic developments. Obtain information about the industry is also very difficult in many countries and the number and quality of information companies are very different. Availability of specific information about the company is very low in developing countries. Lately, many large companies that keep records and raise capital in foreign markets and have expanded their disclosure voluntarily switch to accounting principles that are recognized globally as an international financial reporting standards.
b. Recommendations for analysis
Data limitations make the effort to analyze the business strategy by using traditional research methods to be difficult. Often frequent trips to study the local business climate and real bagaimanan industry and company operations, particularly in emerging market countries.
The purpose of accounting analysis is to analyze the extent to which the company reported results reflect the economic reality. Analysts need to evaluate kebujakan and accounting estimates, and analyze the nature and flexibility lungkup accounting of a company. The managers of the company is allowed to make a lot of considerations related to the accounting, because they know more about the financial condition and operations of their companies. Reported earnings is often used as a basis for evaluating the performance of their management.
Step-langah in doing evalusai accounting quality of a company:
a) Identify the main accounting policies
b) Analyze the flexibility of accounting
c) Evaluate the accounting strategy
d) Evaluate the quality of disclosure
e) Indentifikasikanlah potential problems
f) Make adjustments for accounting distortions.
Analysts need to evaluate policies and accounting estimates, and analyze the nature and scope of a company’s accounting flexibility. Effect on the measurement of quality of accounting, and auditing are very dramatic.
In obtaining the data of International Accounting, there are several difficulties, among others:
a. Depreciation adjustment
Depreciation will affect profits, it is necessary to consider the age of the functions that must be decided manajemen.

b assets.

LIFO to FIFO inventory adjustment
Inventories should be converted in FIFO


c method.

Reserves are the company’s ability to pay or cover expenses for removing beban.

d. Reformulation of Financial Statements
Adjustment of some of the changes after a few calculations on the points above TSB.
Several approaches can be done as follows:
– Some analysts present the foreign accounting resize according to a group of internationally recognized principles or according to other, more general basis.
– Some others develop a complete understanding of accounting practices in a particular group of countries and limited their analysis to firms located in these countries.
a. Access to information
Information about thousands of companies from around the world have been widely available in recent years. Sources of information in countless numbers up through the World Wide Web (WWW). Companies in the world today have a website and annual report are available for free of charge from various sources lainnya.b. Timeliness of information
Timeliness of financial statements, annual reports, reports to regulators vary in each Negara.c. Language barriers and terminology.d. Asing.e currency issue. Differences in the type and format of financial statements.
Many companies do not make optimum use of disclosure of corporate information via the website, both for financial and corporate sustainability. Another finding in this study is that many companies can not provide information for investors, most of the information presented in the company’s website is about the products or services produced and the many companies that do not update the information presented.
Internet Financial and Sustainability Reporting
Since 1995, there have been developments of empirical research related to Internet Financial Reporting (IFR), which reflects the development of forms of corporate disclosure. Some studies examine the factors that influence disclosure policy in the company’s website, such as research conducted by Pirchegger and Wagenhofer (1999) and Saso and Luciana (2008a). Some studies examine the nature and expansion of financial reporting on the company website as an instrument that relate to the stakeholder. Cheng, Lawrence and Coy (2000) develop an index to measure the quality of disclosure IFR at 40 large companies in New Zaeland. The results Cheng, Lawrence and Coy (2000) showed that 32 (80%) companies have a website and 70% of the samples presented financial information on a company website. And of the 32 companies that have websites shows that only 8 (25%) companies that have a value above 50%. Related research on the internet financial reporting by Saso Indonesial and Luciana (2008), which test the quality of information disclosure on the website of the banking industry that went public on the Stock Exchange. By using an index developed by Cheng, Lawrence and Coy (2000) and 19 samples of the banking industry, Saso and Luciana (2008a) provide evidence that the diversity of information disclosure on the website of the banking industry in Indonesia. Another finding in this study indicate that the banking industry are not many websites that optimize the use of Internet technology as a means of corporate disclosure, and only displays information about banking products only. While research related to sustainability reporting on the company website by Saso and Luciana (2008b), and provide evidence that of 54 samples only 10 samples are present sustainability reporting on the website main menu, and the low quantity and quality of information submitted in connection with information the company corporate sustainability (sustainability reporting). Another study conducted by Luciana and Saso (2008a and 2008b), to test the quality of information disclosure on the website of the banking industry 19 and 35 companies that fall within the LQ-45. This study provides evidence that the banking industry has the quality of information disclosure on the website to the component technology and user support is higher than the companies that entered the category of LQ-45.
Corporate Social Responsibility
Understanding and awareness of business entities to maintain good relations with all stakeholders in an effort to minimizing negative impacts and maximizing positive impacts of the operational activities of the company towards the development berkelanutan this is now understood as a CSR (Corporate Social Responsibility. Strengthening the sustainable development paradigm and corporate social responsibility initiatives CSR reporting or making social and environmental performance are considered as important as the reporting of economic performance. biggest problem is that the quality of non-financial reports are not yet as good as the quality of financial reporting. In addition to far adrift age (> 500 vs. 10-20 years), the gap between the two is marked by a degree of formality, the destination number and interval report. formalization financial statements have been very clear, with the advent of GAAP, IFRS and reporting standards in each country. Almost all are legally binding. Meanwhile, the non-financial reports komprehensifpun-the standard of the Global Reporting Initiative (GRI)-is still voluntary. Companies that do not follow the GRI standards has demonstrated remarkable variety in the format nonfinansialnya report. If the financial report is mainly aimed at investors and institutions governing a country investments in , nonfinancial report is intended for all stakeholders (including investors as well). Consequently, how the reporting will be very varied in accordance with the intended stakeholders. Finally, the financial report has financial fixed interval is annual and quarterly, while non-financial reports are usually in the form of reports setahunan or two years, not even fixed. Gazdar (2007) states there are four things that make this is why non-financial reporting to be very important:
First, the company’s reputation. The more transparent companies in those aspects that are required by all stakeholders, the higher also the reputation of the company. Of course, if the reported performance is good and valid. Therefore, companies should first improve its performance seriously. Validity is also very important, because stakeholders will never forgive a company that does public deception.
Second, serving the demands of stakeholders. Stakeholders are parties who are affected by and could affect the company in achieving its goals. Of course, those who influenced his life by the company are entitled to know the aspects that come into contact with their lives. Those who could affect the company is very necessary to get the right information, so that their influence can be directed to the appropriate destination.
Third, help the company make decisions. A good performance report would certainly include indicators that will help companies see the strengths and weaknesses of himself. Company can be a little more quiet in the aspect that the indicators show strength. On the other hand, companies need to devote greater resources to those aspects that seem weak. Periodic memilikiLaporan company with a consistent indicator is needed here, so the ups and downs of the performance can be monitored and addressed with appropriate keputusanyang.
Fourth, making investors easily understand the performance of the company. As that are already disclosed above, there is a higher demand from investors to be able to find out the real performance of the company. Long-term investors really want to know whether the embedded capital is safe or not. Companies that have social and environmental performance have a high likelihood that it is better to continue its business, and investors would be more interested to invest in these companies.



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