Well come to….

1. Well come to…. A leading IT-based higher education institution…… • Coloring Global Future Universitas Gunadarma (http://www.gunadarma.ac.id)

2. First Lecture A BRIEF HISTORY OF ACCOUNTING Dr. Dharma TintriEdiraras, SE., Ak., MBA Auditorium D340 Margonda Campus Monday, 11thJuly 2010

3. Agendas of this morning… • Overview of economics • Learn more about accounting • Accounting Carriers

4. Who I am……

5. Yesterday Now Future...

6. Name: Dharma TintriEdiraras No Register Akuntan : D835 Education: (1) Padjadjaran University, Indonesia (2) Asean Institute of Technology, Thailand (3) Padjadjaran University, Indonesia Positions: (1) Head of Undergraduate Program in Accounting Gunadarma University (2) Senior Lecturer & Advisory at Gunadarma University: Faculty of Economics, Master of Management, Master of Information Sistem, Doctorate Program in Economics (3) Research Section of Accounting Educator Compartemen, Institute of Accountants Indonesia (4) Assesor of National Accreditation Body at Directorate of Higher Education, National Eduation Department of RI Others: (1) Junior Accountant at PT KimiaPharma, 1985-1987 (2) Senior Accountant at KLM Airleines Indonesia, 1989 (3) Manajer, Athur Andersen certified Accounting Office, Bandung Branch, 1989 - 1990 (4) TemporerCounsultant at Internal Auditor Institute of Indonesia Chapter., 1994 - 1999

7. Activities Research Leader Model of strategic Planning Information System For SMEs (DP2M DIKTI, Diknas), 2006/7 Model of Letter Of Credit Document Management Via Intenet Technology, 2008 Model of ICT Based Political marketing for Major Election (Pilkada) In DKI Jakarta, 2011/13 Project Leader STAR SDP Project (Diknas-UG, Bappenas & ADB), 2006-2008 Education Program Coordinator Advanced IT Banking SystemTraining Program, 1998/9 Atraining project forauditors within Bank of Indonesia ETC. http://staffsite.gunadarma.ac.id/dharmate email: dharmate@staff.gunadarma.c.id , dharmate@yahoo.com twitter.com/dte

8. What is economics? • The science of how scarce resources are allocated. • The study of how individuals and societies use limited resources to satisfy unlimited wants.

9. Fundamental economic problem: scarcity People always want more The question: Why can’t we have everything we want? The answer: Because our wantsexceedour resources! Do you agree with that answer?

10. Basic economic questions…. WHAT to produce We never have enough time to do everything we want to and there are no enough resources in the economy to produce all the goods and services societies desires. So, we have to decide WHAT we want most, sacrificing less desired activities and goods. HOW to produce There are numerous ways of teaching a course. Once or twice a week? In the morning, at noon, in the afternoon, or in the evening? At an auditorium, a class, or a laboratory? The key is HOW to find an optimal way of teaching. FORWHOM to produce After having made a cake, we have to slice it. The question is should everyone get an equal size? So, it deals with distribution

11. Market……. A traditional or basic definition: any place where goods are bought and sold. Participants: individual consumers (more than 200 millions); business firms; government agencies; and foreigners.

12. Market…….interactions FOREIGNERS PRODUCT MARKET Goods & services are supplied Goods & services are demanded CONSU MERS BUSINESS FIRMS GOVERNMENTS Factors of production are supplied Factors of production are demanded FACTOR MARKET FOREIGNERS

13. Market transactions… demand and supply • The willingness and ability to buy a range of quantities of a good at a range of prices, during a given time period. Ceteris paribus. • Demand is one half of the market exchange process; the other is supply. • This demand side of the market draws inspiration from the unlimited wants and needs dimension of the scarcity problem. • People desire the goods and services that satisfy their wants and needs. This is the ultimate source of demand. Demand

14. Demand • Determinants of demand • price of its own • income • tastes • number and price of substitute goods • number and price of complementary goods • income • distribution of income • expectations • Movements along and shifts in the demand curve

15. An increase in demand D1 P Price D0 O Q0 Q1 Quantity

16. Supply • The willingness and ability to sell a range of quantities of a good at a range of prices, during a given time period. • Supply is one half of the market exchange process; the other is demand. • This supply side of the market is directly connected to the limited resources dimension of the scarcity problem. • Folks who have ownership and control over resources (labor, capital, land, and entrepreneurship) use them to produce the goods and services that satisfy other's wants and needs. • Ownership and control of resources is the ultimate source of supply.

17. Supply • Relationship between supply and price • as price rises, firms supply more • it is worth incurring the extra unit costs • they switch from less profitable goods • in the long run, new firms will be encouraged to enter the market • The supply curve

18. Supply • Determinants of supply • price • costs of production • profitability of alternative products • profitability of goods in joint supply • nature and other random shocks • aims of producers • expectations of producers • Movements along and shifts in the supply curve

19. Shifts in the supply curve S2 P S0 S1 Decrease Increase O Q

20. ACCOUNTING HISTORYDiawali dengan pengetahuan tata buku Bonzaken (Bon A/B) yang dibawa Belanda (Dipelopori oleh Unpad & Undip), sebagai suatu “persamaan pembukuan berpasangan, debet = credit”, kontribusi dari Luca Pacioli* (1494, Summa de Arithmetica Geometrica, Proportioni et Proportionalita),sekaligus sahabat dari Leornardo Da Vinci yang membuatkan ilustrasi buku tersebut, “Da Vinci Code”. * Rahib & Misi ke China menggunakan Abacus

21. ACCOUNTING HISTORYKemudian masuk pengetahuan akuntansi dari Amerika hingga sekarang (Dipelopori oleh Barkeley Univ Mafia UI, UGM). Hakekat akuntansi dapat digambarkan dalam berbagai definisi seni penyajian laporan keuangan, ideology untuk melegitimasi aturan-aturan social, ekonomi dan politik yang berlaku saat ini, bahasa bisnis untuk media komunikasi antar stakeholder, sistem informasi, komoditas, mitos dan perumpamaan maupun alasan logis, serta sebagai eksperimen dan distorsi ( Wolk, Francis & Tearney, 1992).

22. ACCOUNTING EDUACTION Pra 2000Lulusan UI, Unpad, UGM, Undip, Unair & Usu memiliki gelar SE., Ak.(Diknas & Depkeu) Lulusan selain diatas (PTN maupun PTS) bergelar SE, selanjutnya harus melalui ujian negara akuntansi (UNA) Dasar & Lanjut di PPA PTN untuk mendapat gelar Ak. Tahun 2000 dst Semua lulusan dari PT mendapat gelar SE, selanjutnya harus mengikuti PPAK suatu PT atau di IAI untuk mendapatkan gelar “BAP” bersertifikat akuntan publik.

23. Accounting is a body of Knowledge • Atap: Users • Dinding: 5 lapis Harta/aktiva, Hutang Modal, Pendapatan Beban • Pondasi: 12 Prinsip / Standar / Asas Akuntansi

24. IlutrationGoing Concern & Business Entity Principles Accounting Equation (Lucca Facioli) Assets = Capital Assets = Liabilities + Owner Equities Harta = Utang + Modal pemilik Business Interuption / Mismanagement Bancrupt (Legal) H – U = M (True) H – M = U (False)

25. IlutrationGoing Concern & Business Entity Principles Accounting Equation (Lucca Facioli) Assets = Capital Assets = Liabilities + Owner Equities Harta = Utang + Modal pemilik Business Interuption / Mismanagement Bancrupt (Legal) H – U = M (True) H – M = U (False)

26. Accounting Fields

27. Accounting Scope  Double Entry • Micro - Commercial Accounting (Business entity) - Profitary entity (Private sectors) - Fund Accounting / Not to Profit entity - Government Acc (Government & Public sectors) - Fiduciary Acc (organisasi nirlaba) - Syahriah acc (Islamic Acc) • Macro - Socio Economic Accounting - Balance of Payment • Cross Border  International Accounting

28. Accounting is a Business language for Business entity & Stake holders Top Middle Lower Others Management Creditors Creditors Business Entity Suppliers/ Vendors Buyers/ Customers Government

32. Rekonsiliasi Penyusunan Laporan Keuangan Fiskal

33. PERUSAHAAN PERSEROAN (PERSERO)PT ANEKA TAMBANG Tbk DAN ANAK PERUSAHAANLAPORAN LABA RUGI KONSOLIDASIANTahun yang Berakhir pada Tanggal31 Desember 2007Dengan Angka Perbandingan untuk Tahun 2006(Disajikan dalam ribuan rupiah, kecuali laba bersih per saham)

34. PERUSAHAAN PERSEROAN (PERSERO)PT ANEKA TAMBANG Tbk DAN ANAK PERUSAHAANLAPORAN LABA RUGI KONSOLIDASIANTahun yang Berakhir pada Tanggal31 Desember 2007Dengan Angka Perbandingan untuk Tahun 2006(Disajikan dalam ribuan rupiah, kecuali laba bersih per saham)

37. Economic Era & New Business Models • Economic Era: - Stone  Barter Exchange - Classic  Traditional - Modern  Merchants & Banking (Plastic money, card, debit) - Digital  Virtual market (Amazon.com, ect) • Business • Retail & trading • Manufacturing • Service industry • Media

38. Computer Aided Manufacturing New [smart?] Devices

39. E-commerce

40. ACCOUNTING CARIERS

41. Profesi • AkuntanPublik • AnalistSistemInformasiAkuntansi • AkuntanManajemen • AkuntanPemerintahan (Pajak) • AkuntanPendidik • ManajerKeuangan • Auditor Forensik • Corporate Secretary • Wirausaha Di berbagaibidangindustri/usahadanjenisorganisasi

42. Pasar Kerja I. Lokal (DalamNegeri) • Kantor AkuntanPublik (KAP) - DKI Jakarta : 241 KAP & 164 KAP di BEJ - Diluar DKI Jakarta : 441 KAP - Rata-rata dibutuhkan 1000 Akuntan / Tahun. • AkuntanManajemen dan Controllership - Rata-rata dibutuhkan 1000 Akuntan / Tahun • AkuntanPemerintahan (Pajak) / Comptoller - Depkeu : BadanPemeriksaKeuangandan Pembangunan (BPKP) danBadanPemeriksaKeuangan (BPK), Bawasda ditiap-tiapprovinsidi Indonesia - KPK dan BI, etc

43. Pasar Kerja - BI dan Dep. Lainnya - Rata-rata dibutuhkan > 2.000 / Tahun • AkuntanPendidik - Di PTN maupundi PTS • ManajerKeuangan - Rata-rata dibutuhkan > 2.000 / Tahun • Corporate Secretary - Rata-rata dibutuhkan 100 / Tahun • Analist SIA - Rata-rata dibutuhkan 2.000 analist / Tahun (Sumber: IAI, Depkeu, Depnaker & Deperindag; 2008)

44. Pasar Kerja II. Internasional (LuarNegeri) - Arab Saudi & Timur Tengah, Rata-rata 2000 / tahun - Singapore, Rata-rata 2000 / tahun - UniEropa, Rata-rata 5000 / tahun - USA, Rata-rata 10.000 / tahun - Jepang, Hongkong, dll. Rata-rata 5000 / tahun (Sumber: World Bank, Ford Foundation, JICA, EU; 2008)

47. BIG FIVE Accountant Office in the world http://www.kpmg.com “K” stands for Klynveld. Piet Klynveld was the founder of the Dutch accounting firm Klynveld Kraayenhof & Co., now KPMG in the Netherlands which was founded in 1917. In 1979 Klynveld joined forces with Deutsche Treuhand-Gesellschaft and the international professional firm McLintock Main Lafrentz to form Klynveld Main Goerdeler (KMG). “P” is for Peat. William Barclay Peat founded the accounting firm William Barclay Peat & Co. in London in 1870. “M” stands for Marwick. James Marwick founded the accounting firm Marwick Mitchell & Co. with Roger Mitchell in New York City in 1897. In 1911 William Barclay Peat & Co. and Marwick Mitchell & Co. joined forces to form Peat Marwick Mitchell & Co. later to become Peat Marwick International (PMI). “G” is for Goerdeler. Dr. Reinhard Goerdeler was for many years chairman of Deutsche Treuhand-Gesellschaft and later chairman of KMG. He is credited with laying much of the groundwork for the KPMG merger. In 1987 PMI and KMG embarked upon the accounting profession's first mega-merger and formed KPMG.

48. BIG FIVE Accountant Office in the world http://www.ey.com Two people. One vision. It has taken the bold leadership and countless contributions of people around the world to form the leading global organization Ernst & Young is today. Our roots go back to the 19th century and our founders Arthur Young (1863-1948) and Alwin C Ernst (1881-1948). Arthur Young was born in Glasgow, Scotland. He graduated in law, but became interested in banking and investment. In 1890, he moved to the US to pursue his career in accounting. In 1906, he formed an accounting firm, Arthur Young & Company, with his brother Stanley. Alwin C Ernst was born in Cleveland, USA. After leaving school he worked as a bookkeeper. Then, in 1903, he and his brother Theodore started Ernst & Ernst, a small public accounting firm. Both Arthur Young and AC Ernst were innovators and appreciated the importance of quality in their work. Ernst pioneered the idea that accounting information could be used to make business decisions and make a difference to clients’ organizations. He inspired his people to deliver better service to clients. Young also positioned himself as a business advisor as much as an accountant. In 1920, Ernst & Ernst’s operating philosophy stated: “The success of Ernst & Ernst depends wholly upon the character, ability and industry of the men and women who make up the organization.” Young supported the development of professionals. In the 1920s he originated a staff school and, in the 1930s, the firm was the first to recruit from university campuses, also quick to enter the global marketplace. As early as 1924, they allied with prominent British firms: Young with Broads Paterson & Co and Ernst with Whinney Smith & Whinney. These alliances were the first of many for both firms, which opened offices around the world to service their international clients. AC Ernst and Arthur Young never met in life, but died within days of each other in 1948. However their philosophies lived on and, in 1989, were brought together when the firms they started combined to create Ernst & Young. The new organization quickly positioned itself on the leading edge of rapid globalization, new business technologies and continuous business change. AC Ernst and Arthur Young would surely be proud of the result — a global organization of 130,000 people sharing their ideals and passion to help clients improve their businesses around the globe.

49. BIG FIVE Accountant Office in the world htt/www.deloitte.com Deloitte, Touch & Tohmatsu History of Deloitte It has been more than 150 years since William Welch Deloitte opened his own accountancy office across the street from Bankruptcy Court on Basinghall Street in London. Learn all about the history of Deloitte from the timeline below:1800 –  1833   At the age of 15, William Welch Deloitte becomes an assistant to the Official Assignee at the Bankruptcy Court in the City of London. This was the ideal apprenticeship at that time for a young man with an interest in the rapidly developing field of public accounting. 1845   Deloitte opens his own accountancy office opposite the Bankruptcy Court on Basinghall Street, London. 1849   In connection with the accounts of the Great Western Railway, W.W. Deloitte becomes the first person ever appointed as an independent auditor. Deloitte makes his reputation in particular through his work in the railroad industry — the "Web" of its day. During the 1850s and 1860s, he develops the system for keeping railway accounts, subsequently adopted as the industry standard, that protected investors from mismanagement of funds. He also develops a system of account-keeping for hotels that was universally adopted by large hotels in Great Britain and overseas. 1854   Royal Charter is granted to the Society of Accountants in Edinburgh, the first organized body of public accountants in the world. Among its founders was Alexander Thomas Niven, under whose tutelage George A. Touche would qualify as an accountant in Edinburgh 29 years later, before setting off for London to practice his profession. 1857   Deloitte accepts his first partner, Thomas Greenwood, who contributed £800 in capital. The firm becomes known as Deloitte & Greenwood. 1867   The Railway Companies Act lays down the auditor's duties and responsibilities. A statutory form of railway accounts was prescribed in 1868, and it is believed that Deloitte played a major part in designing the form and contents of such accounts — probably the first prescribed form of accounts in the modern sense. 1869   Admission to the partnership (at age 24) of John George Griffith, who exercised a major influence on the growth of the firm until his retirement in 1902. For this entire period, the firm is known as Deloitte, Dever, Griffiths & Co. 1880   Royal Charter issued incorporating the Institute of Chartered Accountants in England and Wales, with W.W. Deloitte, Henry Dever, and John Griffiths among the founding members. Philip S. Ross co-founds North America's first accounting society. 1880   First overseas Deloitte office opens in New York. Branches of this New York outpost are subsequently established in Cincinnati (1905), Chicago and Montreal (1912), Boston (1930), and Los Angeles (1945). 1893   Charles Waldo Haskins and Elijah Watt Sells meet in Washington, D.C. while working for the Dockery Commission of the U.S. Congress, which was undertaking the first comprehensive revision of the federal government's accounting practices since the time of George Washington. Two years later, they form a partnership — Haskins & Sells — based in New York City. 1897   Retirement of William Welch Deloitte. 1898   George Touche establishes his own firm in London.

50. 1900George Touche and John Ballantine Niven form Touche, Niven & Co. in New York. At that time, there were fewer than 500 certified public accountants in the U.S. Staff complement of Deloitte reaches 80 persons. Fees that year total £41,193. 1901   Haskins & Sells opens first regional office in Chicago and first overseas office in London. 1902   For the first time, a "lady typist" (sic) is engaged by the London office of Deloitte. 1905   Deloitte, Dever, Griffiths & Co. becomes Deloitte, Plender, Griffiths & Company. In the Hughes insurance investigation, which rocked the financial world and led to comprehensive revisions in the accounting methods of life insurance companies, Deloitte's New York office collaborates for the first time with the firm of Haskins & Sells. 1911   Firm of George A. Touche & Co. is established in Canada. 1917   George Touche is knighted by George V. Three years later, he is made a baronet of the United Kingdom. 1925   Two of our U.K. and U.S. predecessor practices form a co-partnership in several countries under the name Deloitte, Plender, Haskins & Sells. 1933   Congressional testimony by Haskins & Sells Managing Partner Arthur Hazleton Carter is instrumental in promoting the establishment of the SEC, as well as the requirement that public accountants audit the financial statements of all publicly traded companies. 1947   George Bailey & Co. is formed. Merges with Allen R. Smart & Co. and Touche, Niven & Co. to become Touche, Niven, Bailey & Smart. The first partners' meeting, held in Highland Park, Illinois, is attended by the firm's 33 partners. Net service revenues for the first year are US$3.6 million. 1952Nobuzo Tohmatsu qualifies as a certified public accountant in Japan and becomes a partner in a foreign-affiliated accounting firm. 1952   Agreement reached to merge the businesses of Deloitte, Plender, Griffiths & Company and Haskins & Sells in the U.S., under the name Deloitte Haskins & Sells. 1960   Touche, Niven, Bailey & Smart merges with George Touche & Co. (Britain) and Ross, Touche & Co. (Canada) to form Touche, Ross, Bailey & Smart. 1961   Issuance of American Depositary Receipts in New York by Sony and Toshiba — the first Japanese companies to sell their securities in the U.S. 1965   Fraudulent bankruptcy of the Sanyo Special Steel Company leads to changes in Japan's Certified Public Accountant Law to provide for the formation of audit corporations similar to accounting partnerships in the U.S. and elsewhere. 1968   Under the leadership of Nobuzo Tohmatsu, Founding Partner, Tohmatsu Awoki & Co. (later Tohmatsu & Co.) starts operations with 10 partners and staff in Tokyo and smaller, loosely affiliated practices in four other Japanese cities. By 1989, the firm has 800 people in its Tokyo office alone, and a network of other offices throughout Japan, as well as Japanese professionals on assignment in Touche Ross offices around the world. 1969   Adoption of the name Touche Ross & Co., at the conclusion of a decade during which mergers were completed with more than 50 other firms in the U.S. and formal associations created with national firms in 55 countries. 1972   Touche Ross Chairman Robert Trueblood chairs a committee that leads to the establishment of the Financial Accounting Standards Board — the FASB. 1975   Formal agreement is signed by which Tohmatsu Awoki & Co. become part of the Touche Ross International network. 1978   The name Deloitte Haskins & Sells is adopted. 1985   Creation of the Office of the Chairman Program (now the Global Strategic Clients Program). 1990   Merger that creates Deloitte & Touche. 1993   International firm is named Deloitte Touche Tohmatsu. 1996   Deloitte & Touche Eastern Europe divided into two organizations — Deloitte & Touche Central Europe and Deloitte & Touche CIS. 1997   Deloitte & Touche Central America is established.2000   Deloitte Touche Tohmatsu became a founding member of the United Nations Global Compact, which seeks to promote responsible global citizenship by advancing universal values in business operations around the world.