Accounting has a very important role in making a decision, not least in financial accounting which has its own role in making decisions. On this occasion here will review the complete financial accounting ,. Therefore, let us consider the reviews below.
Understanding Financial Accounting According to Experts:
Financial Accounting According to Warren Reeve Fess (2008: 15)
In the book "Introduction to Accounting Accounting", Warren Reeve Feves explains:
"Financial accounting is primarily concerned with the recording and reporting of economic data and activities for a business. Although such reports provide useful information for managers, they are the primary reports for owners, creditors, governmental agencies, and the public. "(2008: 1)
Meaning: Financial accounting is the recording and reporting of data and economic activities of the company. Although the report produces information that is useful for managers, but it is the main report for the owner (owner), creditors, government agencies and the general public. "(2008: 15)
Financial Accounting according to Donald E. Kieso, et al (2008: 2)
In his book "Intermediate Accounting"
Financial accounting is a process that ends in making financial statements concerning the company as a whole for use by both internal parties and external parties. "(2008: 2)
The Meaning of Financial Accounting According to Martani (2012: 8)
Financial accounting is oriented towards reporting external parties. The diversity of external parties with specific objectives for each party makes the compiler of the financial statements using the principles and assumptions in preparing financial statements.
For this reason, accounting standards are needed that serve as guidelines both by the author and by readers of financial statements. Reports produced from financial accounting in the form of financial statements for general purposes (general purpose financial statement).
Definition of Financial Accounting Standards (SAK)
Financial Accounting Standards (SAK) is a framework in the procedure of making financial reports so that uniformity occurs in the presentation of financial statements (Augustyas, 2011).
Financial Accounting Function
In order to know and calculate the profit or loss that has been obtained by the company.
In order to provide information that can be useful for company management.
In order to help determine the rights for each party that has an interest in a company, both internal and external parties.
To supervise and control various kinds of activities that occur in the company.
to help a company achieve its predetermined targets.
Can provide information that can be useful for company management.
Knowing and calculating the profit or loss that has been obtained by the company. To assist a company in achieving its predetermined targets.
Helps to establish the rights for each party that has an interest in a company, both internal and external parties.
To supervise and control various kinds of activities that occur in the company.
The Purpose of Financial Accounting
To provide reliable information about a change in a company's net economic resources arising from an activity in order to make a profit.
Aims to provide a reliable information about assets, liabilities and finally capital.
Aims to help users in estimating a company's potential to generate a profit.
Aims to provide other important information regarding a change in economic resources & obligations such as information about shopping activities.
Aims to disclose other information relating to a financial statement that is relevant to a user's financial statement needs.