Types of Financial Statements
20. According to Jumingan (2006: 4) The definition of financial statements is "Financial statements are the result of the act of making a summary of the company's financial data. These financial statements are prepared and interpreted for the benefit of management and other parties concerned or have an interest in the company's financial data. "
21. According to Rodoni (2010: 13) Financial statements are a report issued by the company to its shareholders. This report contains a basic financial report and also a management analysis of the operations of the past year and opinions on the company's future prospects
22. Meanwhile, according to Sutrisno (2005: 11) that the financial statements are the final results of the accounting process which includes two main reports namely the balance sheet and income statement.
23. According to Bambang Riyanto (2012: 327), Financial Statements (Financial Statements), provide an overview of the financial condition of a company, where the Balance Sheets reflect the value of assets, debt and own capital at a certain time, and the statement of Loss and Profit (Income Statement) reflects the results achieved during a certain period, usually covering a period of one year.
Types of Financial Statements
In accounting, there are four types of financial statements that are usually made by companies. The four types of financial statements are as follows:
a. Income statement
Report all the results and costs to get the results and profit (loss) of the company during a certain period. In this report there is concise information about the total costs incurred for the operations of a company and the profits earned during the company's operations.
b. Statement of Changes in Equity
Is a report arising from transactions with owners which also includes the amount of investment, dividend calculation and other distributions to the owner of equity during a period.
c. Balance
A balance sheet is a financial section that displays information about the financial position of a company or entity in a period, usually within one year.
d. Cash flow statement
The statement of cash flows is a description of the company's cash turnover, regarding the amount of cash in (cash receipts) and the amount of cash out (cash out) in a certain period.
The Purpose of Financial Statements According to Experts
Based on the types of financial statements above, then there is the main purpose of financial statements. According to experts, the purpose of financial statements can vary according to their respective opinions. Next Liputan6.com review the purpose of financial statements according to experts that can be understood so that it helps learn more about financial statements, Wednesday (1/16/2019).
According to Financial Accounting Standards (Indonesian Accountants Association 2002: 4) the objectives of the financial statements are as follows:
Provides information regarding the financial position, performance, and changes in the financial position of a company that is beneficial to a large number of users in making economic decisions.
Financial statements prepared for this purpose meet the common needs of most users. However, financial statements do not provide all the information that users may need in making economic decisions because they generally describe financial effects and events in the past.
The financial statements also show what management has done (stewardship) or management's accountability for the resources entrusted to it.