Why Finance
The
financial statements are the end of a recording process, which is a
summary of financial transactions that occurred during the year
concerned.
Understanding financial statements according to GAAP:
"The financial statements are part of the financial reporting process. Complete financial report normally includes a balance sheet, statement of changes in financial position (which can be presented in various ways such as for example, as a statement of cash flows, or flows of funds), the record also includes a schedule and additional information relating to these reports, financial information such as segment industry and geographical as well as disclosure of the effect of price changes "
From the above understanding of financial statements prepared as part of the financial reporting process is complete, in order to account for the tasks assigned to management.
The preparation of financial statements prepared starting from the various sources of data, consisting of the invoices, receipts, credit notes, copies of sales invoices, bank statements and so on. The original data is not only used to fill the book estimates, but can also be used to prove the validity of the transaction.
The financial statements consist of:
-Balance, inform the financial position at any given moment, which is reflected in the amount of assets owned, liabilities, and capital.
-The calculation of profit and loss, inform the company's results of operations in a given period.
-Statement of cash flows, to inform changes in financial position resulting from business activities, expenditures, and investments during the period.
-Notes to the financial statements, accounting policies that affect informs the financial position of the company's financial results.
The financial statements are expected to be presented properly, clear, and complete, that reveals the economic realities of the existence and operation of the company. In preparing financial statements, accounting irregularities are faced with the possibility of danger (bias), misrepresentation and inaccuracy. To minimize this danger, the accounting profession has sought to develop a good body of theory. Any accounting or enterprise must adjust to the accounting and reporting practices of any particular company.
Understanding financial statements according to GAAP:
"The financial statements are part of the financial reporting process. Complete financial report normally includes a balance sheet, statement of changes in financial position (which can be presented in various ways such as for example, as a statement of cash flows, or flows of funds), the record also includes a schedule and additional information relating to these reports, financial information such as segment industry and geographical as well as disclosure of the effect of price changes "
From the above understanding of financial statements prepared as part of the financial reporting process is complete, in order to account for the tasks assigned to management.
The preparation of financial statements prepared starting from the various sources of data, consisting of the invoices, receipts, credit notes, copies of sales invoices, bank statements and so on. The original data is not only used to fill the book estimates, but can also be used to prove the validity of the transaction.
The financial statements consist of:
-Balance, inform the financial position at any given moment, which is reflected in the amount of assets owned, liabilities, and capital.
-The calculation of profit and loss, inform the company's results of operations in a given period.
-Statement of cash flows, to inform changes in financial position resulting from business activities, expenditures, and investments during the period.
-Notes to the financial statements, accounting policies that affect informs the financial position of the company's financial results.
The financial statements are expected to be presented properly, clear, and complete, that reveals the economic realities of the existence and operation of the company. In preparing financial statements, accounting irregularities are faced with the possibility of danger (bias), misrepresentation and inaccuracy. To minimize this danger, the accounting profession has sought to develop a good body of theory. Any accounting or enterprise must adjust to the accounting and reporting practices of any particular company.
Source : http://dahlanforum.wordpress.com/2008/04/21/pengertian-laporan-keuangan/
opinion this article : financial statements must be laid out with neat, precise, and require more precision because there should not apply because in the slightest mistake would be fatal to the parties concerned.
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