This document discusses accounting standards and financial reporting. It is divided into financial accounting, which requires auditing and follows standards like US GAAP or IFRS, and management accounting for internal use. Financial accounting includes a balance sheet showing assets and sources of funds, as well as a profit/loss statement and cash flow report. Audit reports can provide unqualified, qualified, adverse, or disclaimer opinions on whether financial statements fairly represent a company's position. Management accounting uses accounting data for strategic planning, cost analysis, profitability analysis, and tax management to make business decisions.
This document discusses accounting standards and financial reporting. It is divided into financial accounting, which requires auditing and follows standards like US GAAP or IFRS, and management accounting for internal use. Financial accounting includes a balance sheet showing assets and sources of funds, as well as a profit/loss statement and cash flow report. Audit reports can provide unqualified, qualified, adverse, or disclaimer opinions on whether financial statements fairly represent a company's position. Management accounting uses accounting data for strategic planning, cost analysis, profitability analysis, and tax management to make business decisions.
This document discusses accounting standards and financial reporting. It is divided into financial accounting, which requires auditing and follows standards like US GAAP or IFRS, and management accounting for internal use. Financial accounting includes a balance sheet showing assets and sources of funds, as well as a profit/loss statement and cash flow report. Audit reports can provide unqualified, qualified, adverse, or disclaimer opinions on whether financial statements fairly represent a company's position. Management accounting uses accounting data for strategic planning, cost analysis, profitability analysis, and tax management to make business decisions.
This document discusses accounting standards and financial reporting. It is divided into financial accounting, which requires auditing and follows standards like US GAAP or IFRS, and management accounting for internal use. Financial accounting includes a balance sheet showing assets and sources of funds, as well as a profit/loss statement and cash flow report. Audit reports can provide unqualified, qualified, adverse, or disclaimer opinions on whether financial statements fairly represent a company's position. Management accounting uses accounting data for strategic planning, cost analysis, profitability analysis, and tax management to make business decisions.
Financial accounting is for the public In a periode of time should be audited regularly. It has its own standard in making financial accouting unlike management accounting bcs it depends on the company data. But financial accounting needs to be compared to the standard. There are 3 standard there are mainly used in creating financial accounting. US GAP (General Accepted Accounting Principle). International standard : IFRS (international financial reporting standard). Indonesia accounting standard. The choosing of the standard is depend on where is your company located and operated. Additional thing I need to learned A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task Audit report : they will be giving 4 opinion regarding the financial accounting report (please do more research) - Unqualified (WTP, wajar tanpa pengecualian) Statement fairly present to the company’s position or results. All company’s transactions follow the accounting standard without any exception - Qualified opinion (WDP, wajar dengan pengecualian) Statements unfairly present the company’s position or results. Only minor item … ?? search lagi - Adverse opinion Statements unfairly prsent the company’s position or results. - Disclaimer or opinion Auditor is unable to state an opinion. Why? Maybe bcs the transaction is not valid and it’s not really accountable. Ex: if someone purchase a land, first thing need to be asked is the land certificate (sertif kepemilikan) and the transfer receipt, etc (AJP, dll). All things mentioned are needed for auditor to state an opinion whether it is accountable or not by doing comparison to the standard. Financial report: - Balance sheet (neraca) –> showing the company’s position (harta/aset: cash, property). A = L + E. Why L and E needed? L and E is source of fund. o If u have asset there is several things need to be considered/questioned: how much is your asset, how is the scheme of the funding, how do u monetize. Next is what kind of funding do u have planned for ur asset? Example for car buying ( yang dijelasin di kelas). o Kalau PT (limited company), punya hutang 500 jt dan aset udh dilikuditas jadi cash for example 400, we don’t have to pay for the rest 100 jt bcs it’s a limitied company. o If u have company the first thing need to be askqed is do u have asset? Karena bank butuh jaminan which is asset. Asset must be a productive asset not idle asset (aset ga kepake, karena gabisa di monetize into revenue). The higher retained earning the better is the company. o Where is cash flow position in the business transaction flow? Cash is a part of asset, and it has its own ‘journey/flow’. Ket: A : aset (harta) , L : lialibility (kewajiban bayar/all transaction that have been delivered but has not paid), e : equity (modal). - P/L (profit n loss) - C/F (cash flow) - EQ st (equity statemernt)
Management accounting is for internal purposes
-> why they need accounting data? To do strategic business (procurement), cost accounting (to see labor cost whether its low or high cost needed) - to know the profit from each subsidiary company. How to measure productivity? More profit is more productive, to analyze or determined the cimpany penalty reward. - tax management. There will be a ppn so we have to calculate the tax, corporate tax (and other taxes that should be researched more). - and to finally make a decision or strategy how to overcome problems found or maybe next step to develop the company from accounting data.