scholarly journals Functions and Meaning of “Materiality” in the Formation of Information in Financial Statements

Economics ◽  
2021 ◽  
Vol 104 (10-12) ◽  
pp. 52-60
Author(s):  
Nana Sreseli Nana Sreseli
Keyword(s):  
Key Management ◽  
Financial Statements ◽  
Financial Economic ◽  
Net Income ◽  
Financial Reports ◽  
Rating Agencies ◽  
Managerial Decisions ◽  
Management Personnel ◽  
Decision Making Processes ◽  
Segment Disclosures

The problem of materiality of information is related not only to audit, but also to financial, economic and managerial activities, including organization and maintenance of accounting, financial reports, analysis of an entity. The level of materiality of the information, including the materiality of deviations of the actual values of indicators from the specified parameters, predetermines the risk of uncertainty in making managerial decisions and decision-making processes as a whole. “Materiality” is unique for each entity or Group of Companies that generates IFRS reporting. That is why IFRS does not provide specific quantitative thresholds or clear rules for their determination. However, provides the qualitative factors that should be considered when assessing materiality: • Whether the misstatements allow demonstrating the compliance of the company's activities with financial forecasts - own, market, made by rating agencies or other independent analysts; • Whether the misstatements enable it to demonstrate compliance with regulations, debt or credit covenants, or other contractual requirements; • Whether misstatements convert net loss to net income or vice versa; • Whether misstatements affect key ratios or other disclosures in the financial statements to which users pay special attention; • Whether misstatements affect the size of bonuses for key management personnel; • Whether or not the segment disclosures are misstated; • Whether misstatements affect the disclosure of transactions with related parties. If a misstatement is intentional to achieve a particular disclosure option, then the misstatement is considered material, regardless of the amount. This is because the entity expected such misstatement to influence the decisions made by users of the financial statements. Keywords: Materiality; Financial statements; IFRS; Interim financial statements; Qualitative and quantitative indicators.

The Role of accounting creativity in Encouraging Foreign Investment and Achieving Sustainable Development : An applied study on a sample of Iraqi banks listed in the Iraq Stock

2021 ◽  
Vol 11 (1) ◽  
pp. 215-228
Author(s):  
Moj Abbas Jassim ◽  
Amjad Karim Ghadd ◽  
Abbas Hadi Kate
Keyword(s):  
Sustainable Development ◽  
Foreign Investment ◽  
Active Role ◽  
Financial Statements ◽  
Net Income ◽  
Financial Reports ◽  
Applied Study ◽  
Creative Accounting ◽  
International Laws

The research aims to identify the role that creative accounting plays in improving the image of the financial statements in a way that helps to attract foreign investment, which leads to increasing capital and achieving sustainable development. For the purpose of achieving this, the research is applied on a sample of Iraqi banks in the money market for the financial years (2013- 2018) by analyzing the amount of accounting innovations and knowing the growth of the invested capital during the same period. Through that, the research objectives have been achieved and the hypothesis tested. The most important finding of the research is that the creative accounting plays an active role in changing the perception of external users on the financial reports submitted by Iraqi banks. In addition, it helps to improve the procedures that the accountant takes by changing the accounting policies in a way that changes the business result and net income in a way that changes the view of investors Outsiders. The most important recommendation is the need to improve the ideal display of financial elements according to the method that encourages foreign investment. This is reflected in achieving sustainable development, as well as providing appropriate financial methods that allow the accountant to amend accounting procedures in line with international laws and standards in a way that attracts external investors.

scholarly journals The Effectiveness between Emoticons and Traditional Figures on Presenting Accounting Information

2018 ◽  
Vol 7 (3.30) ◽  
pp. 348
Author(s):  
Lita Kusumasari ◽  
Kusumasari Wahyu Anggoro ◽  
Miswanto .
Keyword(s):  
Accounting Information ◽  
Financial Statements ◽  
Average Score ◽  
Net Income ◽  
Alternative Communication ◽  
Economic Activities ◽  
Financial Reports ◽  
Grammatical Rule ◽  
Result Show ◽  
Management Students

Accounting is business language. A language has two components that are symbol and grammatical rule. Accounting information usually presented as the set of procedures for creating financial reports. Based on framework for the preparation and presentation of financial statements, information provided in financial statements are useful to users if it has qualitative characteristics. One of the characteristics is understandability. For this purpose, users are assumed to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence. Accounting information usually presents as numbers and conventional graph. Previous studies suggest that schematic faces is used as alternative communication for accounting information. Existing application of schematic faces is found by Chernoff. In the modern age, people is get used to know emoticon as symbol for communicate easily, so this paper employs emoticon not the Chernoff faces. This research is aimed to know the impacts on the effectiveness between emoticon and traditional figure on presenting accounting information.  The analysis of company net income, current ratio, liquidity ratio, return on asset and earning per share are presented in traditional figures and emoticons. Respondent has to find out which company is better performance compare to the other. Method of analysis are descriptive statistic and differential t-test. Respondents are accounting and management students which are taken by purposive random sampling. The result show that respondents have better average score on choosing the better company using emoticon (88.18) compares to traditional figure (82.72). The effectiveness of financial information is also significantly evidenced in emoticons compare to traditional figure.   

scholarly journals Pendampingan Penyusunan Laporan Keuangan Pada KPRI Karya Praja Bakorwil I Madiun

2020 ◽  
Vol 5 (1) ◽  
pp. 19-21
Author(s):  
Siti Suharni ◽  
Fatchur Rochman
Keyword(s):  
Community Service ◽  
Credit Rating ◽  
Business Management ◽  
Accounting Standards ◽  
Financial Statements ◽  
General Purpose ◽  
Financial Accounting ◽  
Public Accountability ◽  
Financial Reports ◽  
Rating Agencies

Entity Financial Accounting Standards Without Public Accountability (SAK ETAP) that are used for entities without public accountability. SAK ETAP is an entity that does not have significant public accountability and publishes general purpose financial statements for external users such as owners who are not directly involved in business management, creditors, and credit rating agencies. For this reason, KPRI Karya Praja needs to understand and compile financial reports according to these regulations. The purpose of this community service is to assist the KPRI Karya Praja management in preparing financial reports in accordance with SAK ETAP and the Cooperative Law, namely by providing assistance. The benefit of this assistance is that the KPRI Karya Praja management is expected to understand the presentation and preparation of the correct financial statements in accordance with SAK ETAP and the Cooperative Act. The method used by the socialization of SAK ETAP and the Cooperative Act was continued with assistance in preparing financial statements. The results of this activity provide knowledge and understanding to the administrative, bookkeeping and treasurer sections on the basics of bookkeeping, code adjustments and account classification based on Financial Accounting Standards ETAP and Cooperative Law and provide assistance in the preparation of correct financial statements in accordance with ETAP Financial Statements and Laws. - About Cooperatives. Keywords—: Assistance; Preparation of Financial Statements.

B. PENGGUNAAN ANALISA RASIO KEUANGAN GUNA MENILAI KINERJA KEUANGAN UMKM JAPASRAH

2019 ◽  
Vol 2 (2) ◽  
pp. 18
Author(s):  
Mila Hamidah ◽  
Dian Prastita ◽  
Devi Sagita Indah Puspitasari ◽  
Sri Wahyuni ◽  
Mochammad Umroni ◽  
...  
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Net Income ◽  
Current Ratio ◽  
Financial Reports ◽  
Analysis Technique ◽  
Asset Turnover ◽  
Inventory Turnover

ABSTRAK Dalam pencatatan laporan keuangan, UMKM Japasrah belum memilikinya sehingga dengan adanya pendampingan kewirausahaan diharapkan mampu untuk melakukan pembukuan sehingga menghasilkan laporan keuangan.Laporan keuangan tersebut kemudian digunakan untuk menganalisa guna menilai kinerja keuangan UMKM.Metode yang dipakai dalam riset iniyaitu dengan metode kuantitatif deskriptif.Teknik analisis data yang telah digunakan yaitu observasi terkait data keuangan Japasrah untuk kemudian dianalisa menggunakan rasio aritmatika yang bisa digunakan untuk menilai kapasitas keuangan perusahaan periode September sampai November 2019. Berdasarkan hasil pengukuran tersebut, dapat dilihat perusahaan mampu untuk menjamin dan melunasi kewajiban kepada kreditur yang telah dihitung menggunakan rasio likuiditas pada bulan September yaitucurrent ratio 445%, cash ratio 317%,quick ratio 317%.Namun, dalam rasio profitabilitas UMKM Japasrah mengalami penurunan prosentase pada ROI  sebesar 19% pada bulan November dan ROEsebesar 2% pada bulan Oktober dan 19% pada bulan November sehingga kinerja keuangan dalam memperoleh laba bersih kurang baik.Pada rasio aktivitas UMKM Japasrah, perputaran persediaan cukup baik yaitu kenaikan pada bulan Oktober sebesar 1,54 kali dan November 2,14 kali, namun dalam perputaran asset mengalami penurunan.   Kata kunci: Laporan keuangan, analisa,rasio, kinerja.   ABSTRACT In recording financial statements, Japasrah SMEs don't have it, so that with the assistance of entrepreneurship is expected to be able to do bookkeeping to produce financial reports. The financial statements are then used to analyze to assess the financial performance of Japasrah SMEs. The method used in this research is a descriptive quantitative method. The data analysis technique used is observation related to Japasrah financial data and then analyzed using arithmetic ratios that can be used to assess the company's financial capacity in the period from September to November 2019. Based on the results of these measurements, it can be seen that the company can guarantee and pay off obligations to creditors, which have been calculated using the liquidity ratio in September, namely the current ratio of 445%, cash ratio of 317%, a quick ratio of 317%. However, Japasrah's MSME profitability ratio decreased by a percentage of ROI by 19% in November and ROE by 2% in October and 19% in November so that financial performance in obtaining net income was not good. In the Japasrah MSME activity ratio, inventory turnover is quite good, namely an increase in October of 1.54 times and November 2.14 times, but asset turnover decreased.   Keywords: Financial Statements, ratio analysis, performance

scholarly journals Analisis Likuiditas Laporan Keuangan Perusahaan Dagang Dalam Zahir Accounting Versi 5.1

2020 ◽  
Vol 7 (1) ◽  
pp. 98-104
Author(s):  
M.L.Dian Ela Revita ◽  
Indah Ariyati
Keyword(s):  
Decision Making ◽  
Financial Statements ◽  
Financial Reports ◽  
Financial Decisions ◽  
Trading Company ◽  
Financial Condition ◽  
Managerial Decisions ◽  
Corporate Profits ◽  
A Company ◽  
Program Version

Abstack  Decision making is the most important thing in managing a company. Errors in decision making can result in losses, which in turn the company will suffer losses. Loss prevention is to conduct an analysis of financial statements in accordance with accounting principles. By analyzing the financial statements, management is expected to be able to assess the company's financial condition, so that it is easy to understand, so that the financial decisions made can be in accordance with the company's financial weaknesses and strengths. In microeconomics, one of the goals of a company is maximizing corporate profits. The use of Zahir Accounting Program version 5.1 can help the management of the Salsabila Mart Bekasi trading company in analyzing financial statements as a benchmark for decision making. The liquidity analysis obtained from the Zahir Accounting application calculation shows that Salsabila Mart Bekasi in June 2019 was able to settle short-term debt from current assets owned by the company. From all aspects of calculated liquidity, this shows that Salsabila Mart Bekasi is a highly liquid company, with an average liquidity yield Current Ratio: 36,639.41%; Qucik Ratio: 23,351.44% and Cash Ratio: 22,551.44%. Current assets are still far more than current liabilities that must be fulfilled during June. In this research the Zahir Accounting Version 5.1 application can help the company's internal and external parties obtain financial reports and analysis of financial statements as information used in making managerial decisions. Keywords: Liquidity Analysis, Financial Statements, Zahir Accounting 

scholarly journals PENGARUH PEMBIAYAAN IJARAH DAN PEMBIAYAAN QARDH TERHADAP TINGKAT LABA BERSIH DI BANK BRI SYARIAH

2021 ◽  
Vol 1 (1) ◽  
pp. 46
Author(s):  
Eneng Elyana ◽  
Jalaluddin Jalaluddin ◽  
Nuraeni Nuraeni
Keyword(s):  
Data Collection ◽  
Significant Influence ◽  
Secondary Data ◽  
Financial Statements ◽  
Net Income ◽  
Data Types ◽  
Literature Study ◽  
Financial Reports ◽  
Net Profit ◽  
Period Data

ABSTRAKBerdasarkan hasil observasi bahwa yang melatarbelakangi penelitian ini yaitu terjadinya fluktuatif pada laporan keuangan pembiayaan ijarah dan qardh yang akan berdampak terhadap laba bersih Bank BRI Syariah. Penelitian ini bertujuan untuk mengetahui bagaimana pengaruh pembiayaan ijarah dan pembiayaan qardh terhadap laba bersih baik secara parsial maupun simultan. Objek penelitian yaitu menggunakan laporan keuangan Bank BRI Syariah. Jenis penelitian yaitu kuantitatif asosiatif dengan jenis data sekunder. Adapun populasi dan sampel yaitu laporan keuangan triwulanan tentang pembiayaan ijarah dan pembiayaan qardh periode 2015-2019. Teknik pengumpulan data berupa observasi, wawancara, studi pustaka, dan dokumentasi. Hasil Penelitian menunjukan bahwa tidak terdapat pengaruh signifikan antara pembiayaan ijarah terhadap laba bersih dimana sebesar -0,1482 <  sebesar 2.109, tidak terdapat pengaruh signifikan antara pembiayaan qardh terhadap laba bersih dimana nilai   sebesar -0,991 <  2.109,  serta tidak berpengaruh signifikan pembiayaan ijarah dan qardh secara simultan terhadap laba bersih dimana nilai Fhitung 0,474  <  Ftabel 3,59. ABSTRACTBased on the results of the observation that the background of this research is the fluctuation in the financial statements of ijarah and qardh financing which will have an impact on the net profit of BRI Syariah Bank. This study aims to determine how the effect of ijarah financing and qardh financing on net income either partially or simultaneously. The object of research is to use the financial statements of Bank BRI Syariah. This type of research is associative quantitative with secondary data types. The population and sample are quarterly financial reports on ijarah financing and qardh financing for the 2015-2019 period. Data collection techniques in the form of observation, interviews, literature study, and documentation. The results showed that there was no significant influence between ijarah financing on net income where tcount was -0.1482 <ttable was 2.109, there was no significant effect between qardh financing on net income where the tcount value was -0.991 <ttable was 2.109, and had no effect. significant ijarah and qardh financing simultaneously on net income where the value of Fcount 0.474 <Ftable 3.59.

scholarly journals Analisis Hubungan Biaya Pengembangan Dengan Laba Bersih di PT Industri Telekomunikasi Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 125-136
Author(s):  
Kosasih
Keyword(s):  
Empirical Evidence ◽  
Research Methods ◽  
Negative Relationship ◽  
Secondary Data ◽  
Financial Statements ◽  
Net Income ◽  
Financial Reports ◽  
Verification Method ◽  
Development Costs ◽  
Library Studies

The purpose of this research was to obtain the empirical evidence on the correlation of development costs on net income at PT Telekomunikasi Indonesia Indonesia. The research methods used in this research is descriptive and verification method with a quantitative approach. The data used are secondary data from financial statements from 2010-2016 obtained through annual financial reports, observation, internet browsing, library studies, and interviews. The results showed that there is correlation between development costs on net income at PT Telekomunikasi Indonesia Indonesia. The correlation between development costs and net income has a negative relationship. This means when rising development costs then net income down, otherwise when development costs down then net income rises, so the research hypothesis is accepted.

scholarly journals ANALISA PENERAPAN PERHITUNGAN REKONSILIASI FISKAL TERHADAP LAPORAN KEUANGAN KOMERSIAL PT XYZ PADA WILAYAH KERJA KANTOR PELAYANAN PAJAK PULO GADUNG

account ◽  
2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Deddy Dariansyah
Keyword(s):  
Income Tax ◽  
Financial Statements ◽  
Corporate Income Tax ◽  
Net Income ◽  
Financial Reports ◽  
Income Statement ◽  
Net Profit ◽  
Qualitative Descriptive ◽  
Descriptive Approach ◽  
Commercial Accounting

ABSTRACTThis research was conducted to determine the application of fiscal reconciliation calculations tocommercial financial reports at PT XYZ, because there are differences in calculations, especially profit with commercial accounting and taxable profit (fiscal). To bridge the differences in commercial financial reports and more efficient fiscal financial reports, fiscal financial reports are prepared together with commercial financial reports, which means that even though commercial or business financial reports are prepared based on business accounting principles, taxation provisions are dominant in the reporting process. financial statements. This research method uses a Qualitative Descriptive approach, which describes making a fiscal reconciliation report on PT XYZ's commercial financial reports, as well as collecting a number of other supporting data to get a clear picture of the facts about the state of the 2019 Financial Statements at PT XYZ. The results of this study are the calculation of the Reconciliation Report in the framework of calculating the Corporate Income Tax from the tax profit / loss statement for December 31, 2019 with the net profit before tax based on the calculation in the December 31 commercial income statement obtained by PT amounting to Rp. After calculating the fiscal reconciliation of the commercial income statement, PT XYZ's net income before tax is Rp. 10,315,000,000. Keywords : Fiscal Reconciliation, Commercial Financial Reports, Corporate Income Tax ABSTRAKPenelitian ini dilaksanakan untuk mengetahui penerapan perthitungan rekonsilasi fiskal terhadap laporan keuangan komersial pada PT XYZ, karena adanya  perbedaan perhitungan, terutama laba akuntansi komersial dengan laba kena pajak (fiskal). untuk menjembatani adanya perbedaan dalam laporan  keuangan  komersial  dan  laporan  keuangan  fiskal  yang  lebih  efisien,  maka  LaporanKeuangan fiskal disusun bersama dengan laporan keuangan komersial, yang berarti bahwa meskipun laporan keuangan komersial atau bisnis disusun berdasarkan prinsip akuntansi bisnis, tetapi ketentuan perpajakan dominan dalam proses pelaporan penyusunan laporan keuangan. Metode penelitian ini menggunakan pendekatan Deskriptif Kualitatif, yaitu mendeskripsikan tentang membuat laporan rekonsiliasi fiskal atas laporan keuangan komersial PT XYZ, serta mengumpulkan sejumlah data data pendukung lainnya untuk mendapatkan gambaran fakta-fakta yang jelas tentang hal keadaan Laporan Keuangan Tahun 2019 pada PT XYZ tersebut. Hasil penelitian ini perhitungan Laporan Rekonsiliasi dalam rangka perhitungan Pajak Penghasilan Badan dari laporan Laba/Rugi fiskal untuk 31 Desember 2019 dengan Laba bersih sebelum pajak berdasarkan perhitungan dalam laporan laba-rugi komersial 31 Desember yang diperoleh PT sebesar Rp 11.317.000.000,-. setelah dilakukan perhitungan rekonsilasi fiskal atas laporan laba rugi komersial, laba bersih sebelum pajak menurut fiskal yang dimiliki PT XYZ adalah sebesar Rp. 10.315.000.000 . Kata kunci: Rekonsiliasi Fiskal, Laporan Keuangan komersial Pajak penghasilan Badan

Pengaruh Jumlah Dewan Komisaris, Leverage, Profitabilitas, Intensitas Modal, Cash Flow, Dan Ukuran Perusahaan Terhadap Konservatisme (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2012-2017)

2019 ◽  
Vol 8 (1) ◽  
pp. 17-24
Author(s):  
Siti Suharni ◽  
Arini Wildaniyati ◽  
Dea Andreana
Keyword(s):  
Cash Flow ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Capital Intensity ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Company Size ◽  
Manufacturing Companies ◽  
Financial Reports

This study is aimed at examining the effects of the Number of Board of Commissioners, Leverage, Profitability, Capital Intensity, Cash Flow, and Company Size toward Conservatism in the manufacturing companies listed on the Indonesian Stock Exchange (IDX). The population used in this study is the yearly financial statements on firm of manufacturing listed at BEI period 2012-2017, using purposive sampling method. The type of data used is secondary data obtained from yerly financial reports published and downloaded through the official BEI website. Data analyzed with Descriptive statistics, test of classic assumption and exmination of hypothesis with multiple linier regression method. The result of hypothesis research shows variable Profitability and Cash Flow have a significant effect on the ability of Conservatism, while the Number of Board of Commissioners, Leverage, Capital Intensity, and Company Size has no effect on the ability of Conservatism.

Analyzing the accuracy of bank reliability assessment based on official reporting

2020 ◽  
Vol 26 (2) ◽  
pp. 327-348
Author(s):  
O.I. Razumova
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Systems Approach ◽  
Reliability Assessment ◽  
Financial Statements ◽  
Rating Agencies ◽  
Short Term Forecasting ◽  
One Year ◽  
Key Indicators ◽  
Correct Forecast

Subject. The article considers ratings of banks' reliability. Objectives. The aim is to evaluate the accuracy of existing methodology for bank reliability assessment based on official reporting, to identify patterns between indicators and factors that can affect the financial sustainability of a bank. Methods. The study draws on the comparative analysis of key indicators of bank's financial statements one year prior to the introduction of provisional administration, and evaluates the results of existing methods for analyzing the financial standing of banks. Results. The findings show that those methods that use only official reporting to assess the reliability of banks are not sufficient for short-term forecasting of financial stability. Ratings of the majority of agencies that rest on official reporting have a high percentage of erroneous results, therefore, rating agencies are not able to predict the regulator's decisions regarding a credit institution. Conclusions. Currently, there are no universal methods to determine reliability, which would provide a correct forecast of deteriorated financial position of the bank. It is important to use a systems approach, where financial reporting is not a key component.

Sign in / Sign up

Export Citation Format

Share Document