Table of contents :
Definition of Financial Accounting
Financial Accounting According to Experts:
According to Kieso & Weygant [Intermediate Accounting, 2000: 6]
According to Sugiarto [Introduction to Accounting: 2002]
According to Warren Reeve Fess (2008: 15)
According to Donald E. Kieso, et al (2008: 2)
According to Martani (2012: 8)
According to Jogianto, 1997: 54
Definition of Financial Accounting Standards (SAK)
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Definition of Financial Accounting
Financial accounting is a knowledge of accounting that deals with how companies report to economic actors, both internally and externally, which usually reports in the form of cash flows, changes in capital, profit and loss and balance sheets.
External parties, for example, investors, shareholders, creditors. The better the financial reporting will have an effect on the good credibility of a company.
Financial accounting has a very important and major role in presenting reports on the latest conditions of the company as a benchmark in decision making by company leaders.
Financial Accounting According to Experts:
Definition of Financial Accounting According to Experts and their Years
According to Kieso & Weygant [Intermediate Accounting, 2000: 6]
Financial accounting is a series of processes that culminate in the preparation of financial reports relating to the company as a whole for use by users of financial reports, both internal and external to the company.
According to Sugiarto [Introduction to Accounting: 2002]
Financial Accounting is a field in accounting that focuses on the preparation of financial statements in a company which is carried out in stages. This report is also a form of management’s accountability to shareholders or investors. The accounting equation used is Assets equal to Equity plus Liabilities based on Financial Accounting Standards (SAK).
According to Warren Reeve Fess (2008: 15)
In the book “Introduction to Accounting”, Warren Reeve Feves explains:
“Financial accounting is primarily concerned with the recording and reporting of economic data and activites 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)
The point: Financial accounting is the recording and reporting of data and economic activities of a company. Although the report produces useful information for managers, it is the main report for owners, creditors, government agencies and the general public. “(2008: 15)
According to Donald E. Kieso, et al (2008: 2)
In his book “Intermediate Accounting”
Financial accounting is a process that leads to the preparation of financial reports relating to the company as a whole for use by both internal and external parties. ” (2008: 2)
According to Martani (2012: 8)
Financial accounting is oriented towards external party reporting. The various external parties with detailed objectives for each party make the financial reporting party use the principles and assumptions in preparing the financial statements.
For this reason, an accounting standard is needed that can be used as a reference for both compilers and recipients of financial reports. Reports that are presented from financial accounting are financial statements for general purpose in other languages general purpose financial statements.
According to Jogianto, 1997: 54
Financial accounting is the provision of relevant information in the form of periodic reports, such as income statements, balance sheets, retained earnings, reports of changes in capital that are used by both internal and external parties as a matter of consideration in management making decisions.
Definition of Financial Accounting Standards (SAK)
Financial Accounting Standards (SAK) are a framework in the procedures for preparing financial reports so that there is uniformity in the delivery of financial reports (Augustyas, 2011).
