Financial Statement
The financial statements are a part of the financial reporting process. Complete financial statements usually include: balance sheet, income statement, statement of changes in equity (which can be presented in various ways such as cash flows or funds flow statement), and the notes to the financial statements.
The financial report is recording and summarizing transactions and reporting that can provide information to the user. As we know that information is data that has been processed so that it is useful to take a decision. Appropriate information will be very useful in taking various decisions.
Contents of financial statements consist of:
Balance
Balance inform the financial position at a given time, which is reflected in the number of properties owned, total liabilities, and capital of the company.
According harahap (2007: 107) argues that:
"The report lists the balance sheet or statement of financial position is also called the company. This report describes the position of assets, liabilities, and capital at any given moment. This report was prepared at all times and is hospitalized financial situation at the time. "
In the presentation of the balance sheet can be divided into 3 categories, according to Harahap (2002: 75) that is commonly used form of the balance sheet are as follows:
a. Balance Shape Staffel (Refort Form)
The balance sheet reported a bertikal page. Beside the above listed total assets and liabilities posts are presented below and post capital.
b. Shape Skontro Balance (Account Form)
Here assets presented on the left and liabilities and issued to the right so that the presentation side.
c. Present form of Financial Position (Financial Position Form)
In this form of financial position as reported in the previous form based on the accounting equation. In this form the first listed current assets less current liabilities and working capital reduction is known. Working capital plus fixed assets and other assets then reduced long-term debt, then the owner of the model will be obtained.
Calculations of profit and loss
The income statement is a report on revenues and expenses of a company for a certain period. The income statement is also a main goal to measure the profitability of the company in a given period. The end result of an income statement is the net gain or loss. Then if the company does not divide the dividend, then all the final results into retained earnings. But when a company divides the dividend, then the end result is first reduced by the dividend to obtain the value of retained earnings.
3 Statement of Cash Flows
Cash flow statement informing you of changes in financial position as a result of the operations, expenditures, and investments during the period. According to Harahap (2002: 93) argues that:
"Statement of cash flows is considered by many to provide information about the company's ability to earn profits and liquidity in the future. Statement of cash flows is to provide relevant information about the cash receipts and disbursements of a firm at a given period, by classifying the transaction based on the operating activities, financing and investment. "
4 Statement of Changes in Equity
According to Rival, Veithzal and Idroes (2007: 619) argues that:
"Statements of changes in equity are statements which describe changes in equity account balance as paid in capital, additional paid-in capital, retained earnings and other equity accounts."
The financial statements presented are expected to be feasible, clear, and complete, which reveals the economic realities of the existence and operation of the company. In preparing the financial statements, accounting irregularities are faced with the possibility of danger (bias), misinterpretation and inaccuracy. To minimize this danger, the accounting profession has attempted to develop a theory of the body of this item. Every accounting or enterprise must conform to accounting and reporting practices of any particular company.
