The financial report is a record that contains information about a company’s financial or business in one accounting period that can be used to describe work in the company. The purpose of the financial statements made in accordance with Financial Accounting Standard is to provide an update regarding the financial position, performance and changes in financial position of an enterprise that will benefit the majority of users in making decisions both internally and externally.
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Judged by the goal used to meet the needs of both internal and external together and most users, so that the financial statements have four qualitative characteristics, namely:
The information provided can be easily understood and symbols used in accordance with the user’s understanding of the state standards.
The information provided in the financial statement can make an impact in the decision of both the external and internal parties so that the contents of the report should be irrelevant.
The information prepared and provided in the financial statements must be clean or free from misconceptions or misleading and recording errors or material error.
Financial statements that will be useful if it can be compared with the financial statements that were made in the previous period.
In making something financial statements there are some things that must be considered, one of which is a component that must be present in the financial statements are:
Statement of financial position of the entity consisting of the assets, liabilities and capital on a given date in the company and are commonly reported or closed at the end of the year.
Report the results of operations of an entity in a given time comparing turnover and costs giving rise to a gain or loss of a company, for example, in one month or one year.
Report provides an overview of changes in owner’s equity in an entity in a given period is affected by the entry and exit of capital.
The report presents the amount of cash coming in and cash out money in a period. Either in the form of cash in hand and cash in the bank.
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