Financial accounting is part of the accounting related
to the preparation of financial
statements for external parties, such as shareholders, creditors, suppliers, and
government. The main principle used in financial accounting is the accounting equation
(assets = liabilities + equity). Financial accounting
problems associated with recording transactions for a company or
organization and preparation
of periodic reports on the results of the
recording. This report is prepared for general interest and is
typically used to assess the
achievement of the company owner or manager
used as a manager
of financial accountability to
shareholders. The important thing is the presence of financial
accounting Financial Accounting Standards (IFRS) which are the
rules that should be used in the measurement and presentation
of financial statements for external
stakeholders. Therefore, the expected
users and compilers of the financial statements can communicate
through the financial
statements, because they use the same reference, namely IFRS.
