Name : Abdul Qodir (02)

Class : 3-H / Management Accounting

Subject : Public Sector Accounting

The Results of The Conclusion of Group 2 Material

1. Non-profit entities transaction accounts

a. Balance Sheet Statement Accounts

 Assets
 Cash and cash equivalents;
If any cash or other asset is restricted by the contributor, it shall be
presented separately from cash or other assets that are not bound by its
use.
 Receivables (e.g. receivables of patients, students, members, and other
recipients of services);
 Supplies;
 Rent, insurance, and other services paid in advance;
 Securities/securities and long-term investments;
 Land, buildings, equipment, and other fixed assets used to produce
goods and services, etc.
 Liabilities
 Trade debt;
 Income received upfront;
 Long-term debt, and others
In its presentation, liabilities remain sorted by their maturity.
b. Income Statement Accounts
 Income
 Donations;
 Service services;
 Investment income.
All of these incomes are presented on a gross basis. However, specific
to investment income can be presented on a net basis provided that
related expenses, such as custody expenses and investment advisor
expenses, are disclosed in the notes on financial statements.
 Expense
 Burdens related to service delivery programs. Activities related to this
type of burden include activities to provide goods and services to
beneficiaries, customers, or members in order to achieve the goals or
missions of the organization. (IAI, 2018)
  Expenses related to supporting activities (covering all activities other
than service delivery programs). Generally, supporting activities
include:
1) Management and general activities, including supervision,
business management, bookkeeping, budgeting, funding,
and other administrative activities.
2) Fund search activities, including publications and fund
search campaigns; procurement of a list of contributor
addresses; the implementation of special events for the
search for funds; manufacture and deployment of manuals,
instructions, and other materials; and the implementation of
other activities in the framework of the search for funds
from individuals, foundations, governments and others.
3) Member development activities include finding new
members and collecting member dues, relationships and
similar activities.

c. Cash Flow Statement Accounts

Cash Flow Statement Accounts consist of cash flows from operating

activities, investment activities and funding activities. The method of preparing
cash flow statements can also use direct methods (direct methods) and indirect
methods ( indirect methods ). Cash flow from operating activities generally comes
from service income, donations, and from changes in current assets and current
liabilities that impact cash. Meanwhile, cash flow from investment activities
usually records the impact of changes in fixed assets on cash, for example due to
equipment purchases, land sales, etc. Furthermore, cash flow from funding
activities comes from cash receipts from contributors whose use is limited for the
long term; cash receipts from donations and investment income whose use is
limited to the acquisition, construction and maintenance of fixed assets, or
increases in endowments, or from investment proceeds that are limited in their use
for the long term. Meanwhile, there are times when non-profit organizations make
transactions that result in changes to the financial position component, but these
changes do not result in cash. For example, the purchase of operational vehicles
with debt, donations in the form of buildings or other investment assets.
Transactions of this kind (which do not result in any cash changes) must be
disclosed on the record of the financial statements.(Noerdiawan, 2017)

d. Notes to Financial Statements

Notes on financial statements are an integral part of the above report. Aim
to provide additional information about the estimated estimates stated in the
financial statements. Records on these financial statements are in the form of
 details of an estimate presented such as fixed assets. Records on financial
statements provide details of asset names, liabilities, net assets. For example, for
fixed assets on the record of the financial statements will be described for ISSN
2657-1080 ISSN 1858-3687 Accounting and Management Vol.15, No.2, 2020
126 calculating depreciation of fixed assets, as well as other accounting policies
used by such entities.(IAI, 2018)

2. Net assets with restrictions - without restrictions (recognition, measurement,

presentation).

In commercial financial statements, net assets are known as capital. The financial
position statement presents the amount of each group of net assets based on the or
absence of restrictions by resource providers who do not expect repayment. Net assets
based on the conditions attached to resources into two classifications of net assets are:

 Net Assets Without Restrictions. Net assets without restrictions are net assets
that have no restrictions on the asset, such as donations made by the donor,
where the donor does not clearly list the period of the donation just to make a
donation to the entity so that income and expenses related to the entity can use
it for the needs of the entity. (IAI, 2018)
 Net Assets With Restrictions. Net assets with restrictions, combining the
classification of permanently bound net assets and temporary bound net assets
into net assets with restrictions will reduce complexity. Net assets with
restrictions are net assets related to resources in the form of certain operating
activities, investments for a certain period of time, and net assets that are used
forever, such as land and buildings given for a specific purpose, so that their
income and expenses are outside the entity such as orphan cash, poor fakir
cash and others.
There are 2 (two) formats of the Financial Position Statement presented:

 Format A presents other comprehensive income postal information

separately as part of a net asset without restrictions from the
resource giver. However, if other comprehensive income comes
from ISSN 2657-1080 ISSN 1858-3687 Accounting and
Management Vol.15 assets, No.2, 2020 122 net with restrictions,
then the entity presents such comprehensive income information in
accordance with its net asset class.
 Format B does not present other comprehensive income postal
information on its own.
3. The Contents of ISAK 35

ISAK 35 regulates the presentation of the financial statements of non profit-

oriented entities.  ISAK 35 published by DSAK IAI is an interpretation of PSAK 1:
Presentation of Financial Statements paragraph 05 which provides an example of how a
non-profit oriented entity makes good adjustments: (i) adjustments to descriptions used
for certain posts in financial statements; and (ii) adjustments to descriptions used for
financial statements themselves. ISAK 35 comes with illustrative examples and
conclusion bases that are not part of ISAK 35.(IAI, 2018)

Scope of ISAK Object 35:

 Non-Profit oriented entities regardless of any legal form;
 Applied also by entias who apply SAK ETAP;
 ISAK 35 only regulates the presentation of financial statements, so that other
accounting provisions carried out by the nonlaba entity refer to the relevant
respective SAK or SAKETAP.

Freedom to make adjustments to several things in accordance with the conditions of the
Non-Profit entity, including:

 Description adjustments used for some posts in financial statements;

 Adjustment of description used for the financial statements themselves

There are no specific set transitional provisions set on ISAK 35. ISAK 35 has
been effective since January 1, 2020. With the enactment of ISAK 35, PSAK 45 has been
revoked and no longer applies.
Bibliography
IAI. (2018). Financial Accounting Standards (No. 35). Jakarta: Indonesian Accountants
Association.
Noerdiawan, D. (2017). Government Accounting. Jakarta : Salemba Four.