Financial Accounting
Talk about financial accounting, then we need to understand basic accounting notion first, namely:
1.
Art in the recording, classification, pengikhtisaran, danpengkomunikasian interpretation in a certain way and in the size of the monetary, transaction and occurrence – the economic incidence of a legal or social etintas. (AICPA)
2.
Business language that provides information about the condition of a company or organization and results of operations or activities at a particular time or period, as the accountability and management response to pengambikan business decisions.
Accounting divided into three types, namely:
*
Management Accounting
*
Taxation Accounting
*
Financial Accounting, which was divided into two types, namely:
1.
Commercial accounting, usually used by the company.
2.
Accounting for Non-Profit, usually used by the Government, Hospitals, Educational institutions and other Non-Profit Organizations (NGOs, Political Parties, LPZ, etc.)
It is understood that financial accounting is part of the accounting related to the preparation of financial statements for external parties, such as shareholders, creditors, suppliers, and government.
The main principles used in financial accounting is the accounting equation (Assets = Liabilities + Capital). Assets are assets owned company, is used for company operations in an effort to create revenue. Meanwhile, here is the capital paid-up capital by the owner of the company. Capital could also say the difference between assets minus debt. While the debt is owned by the company’s liability, is an element of funding for the provision of working capital for company operations.
Financial accounting in relation to any transaction records for a company or organization and preparation of periodic reports from the results listing.
This report was prepared for the public interest and is typically used to assess the achievement of company owners or managers use as a manager of financial accountability to shareholders.
It is equally important is the existence of the Financial Accounting Standards (GAAP), which are the rules that must be used in the measurement and presentation of financial statements for external purposes. Thus, the expected financial statement users and authors can communicate through these financial statements, because they use the same reference that is GAAP.
SAK was implemented in Indonesia in 1994, replacing the Indonesian Accounting Principles 1984. Preparation and presentation of financial statements based on GAAP is set by the Financial Accounting Standards Board-IAI.
At present, outlined the Financial Accounting Standards SFAS 59 contains its Framework of Preparation and Presentation of Financial Statements and the fourth underlying IPSAK. GAAP is defined by the IAI is the result of adaptation of the International Accounting Standards.
Adoption of International Accounting Standards Board into the SAK by SAK-Indonesian Institute of Accountants as an effort to harmonize and dynamic international financial accounting practices in an effort to address challenges in the era of globalization.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment