Financial Reports
The financial report is a report about the position and the ability of the company’s financial performance and other information required by the users of accounting information.
The function of financial statements, among others:
* Provide information concerning the financial position (assets, liabilities and equity.
* Providing information on performance and changes in financial position of an enterprise that is useful for users of accounting information in decision making.
Financial Statements and trade services company consisting of:
1. Income Statement, consisting of income and expense accounts of business both within and outside the business.
2. Statement of Changes in Equity Capital, consisting of initial capital accounts, profit / loss acquired during a particular period, Prive and capital at the end.
3. Consolidated Balance Sheet, consists of an account:
* Assets of both current assets and noncurrent assets,
* Due both short-and long-term debt
* Capital at end of period
4. Statement of Changes of Cash Flows, sources of data can be obtained from:
* Comparison of balance during the second period
* Journal of cash receipts and cash disbursements.
5. Additional reports required
Elements that directly attributable to the measurement of financial position are assets, liabilities, and equity. While the elements associated with the measurement kinereja in the income statement are income and expenses. Consolidated financial position usually reflects the various elements of the consolidated income and changes in various elements of the balance sheet.
You should be able to distinguish between the understanding of financial reporting (UK: financial reporting) and financial statements (UK: financial reports). Financial reporting encompasses all aspects relating to the provision and peyampaian financial information.
These aspects include the institutions involved (eg the preparation of standards, the regulatory body of the government or the capital markets, professional organizations, and the reporting entity), current regulations including GAAP (generally acceptable accounting principles, or Generally Accepted Accounting Principles / GAAP).
Financial reports are just one medium of information delivery. Even should also be distinguished between the statements (UK: Statement) of the report (UK: report)
Users of Financial Statements include:
* Investors
* Employees
* Lender
* Suppliers and other business creditors
* Customer
* Government
* Community
According to the Financial Accounting Standards issued by the Indonesian Institute of Accountants and financial reporting purposes is Our Mission Giving information concerning the financial position, performance, and changes in financial position of a company that would benefit a large number of users in decision making.
The financial statements are prepared for this purpose meet the common needs of most users. However, this report does not provide all the information that the user may be required in taking economic decisions, because in general indicates the financial impact and events of the past, and are not required to provide non-financial information.
The financial report also shows what has been done by management or management responsibility for the resources entrusted to him. Users who want to see what they have done or accountability of management do so to enable them to make economic decisions.
These decisions include, for example, the decision to hold or sell their investments in the company or the decision to lift the back or replace management.
Qualitative characteristics are characteristics that make information useful to the users of financial statements. There are four principal qualitative characteristics are:
* Can Be Understood
* Relevant
* Reliability
* It can be compared
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