AKM I.1. Kerangka Konseptual Pelaporan Keuangan

the Sheep

Assalamualaikum warahmatullahi

wabarakatuh peace be upon us

all my greetings and enthusiasm May

we always be in the

protection of God Almighty

meet me Choirunnisa Arifa

in the learning video series for the

Intermediate Financial Accounting 1 course

in this first video we will

start by discussing the

conceptual framework of financial reporting the

main objective of learning

this material is that

later you are expected to be able to

explain the use of the conceptual framework

and the purpose of financial reporting

identify the

qualitative characteristics of accounting information and

elements of financial statements to

Explain the basic assumptions of accounting and

finally Explain the application of

basic accounting principles

what is the conceptual framework

in financial reporting this is a

basic framework or fundamental framework

that contains the concepts

that underlie financial reporting is

indeed a conceptual framework because this

is

fundamental in financial reporting

then the concept of this conceptual framework is

very much needed

yes because in

the preparation of financial statements There needs to be

one concept that is built to

underlie financial reporting and

other things that later the accounting standard makers will

be able to

issue useful and

more consistent statements Sri from time to time

here is a summary or

structure of the conceptual framework of

financial reporting here there are three

levels from the first level

or basic level that contains the

objectives accounting or the

second level of financial reporting objectives bridges the

financial reporting objectives with

how to implement them so that in order to

obtain the appropriate implementation of financial reports, the

financial information must meet the

qualitative characteristics and also the

main elements in

financial reporting and then the

third level, namely the implementation of

financial reporting. Here, companies need

to pay attention to the assumptions that are

built to underlie financial reporting,

the principles in preparing

financial reports and also the constraints or limitations

in preparing financial reports.

We start from the most

basic level or at the first level

here there are basic objectives or the main objectives

of the

company's financial reporting that are important here. The

objective is to provide

financial information for the reporting entity which

of course is expected to be useful for

investors

and potential equity investors,

lenders and other creditors,

especially in making

decisions related to the distribution of resources

later so that investors, potential

lenders, creditors in Sumenep

obtain financial information from the

entity,

the financial report must be

published

in the form of a generally accepted financial report,

meaning this report can be read by the

general public, including

investors, lenders, and creditors.

The assumption is that users need

reasonable knowledge related to business

and financial accounting to understand

the information,

but with generally accepted financial reports,

anyone who

uses this financial report

will get equivalent information,

then at the second level. There are

qualitative characteristics in

financial reporting here, it means that when the

accounting information is

provided or reported by an entity

with the main user, namely capital providers,

both investors and creditors, and

we know that the constraints or limitations

in providing accounting reports or

accounting information are costs,

then the accounting information must be

presented

by

fulfilling qualitative characteristics that

will be useful in

decision making by capital providers

to fulfill these qualitative characteristics, the

basic qualities that must be fulfilled are the

first two, namely relevance

and the second is a

reliable or fitful presentation in

presentation

and from each of these basic qualities

there are quality components that

form each of these basic qualities

and in addition there are

additional qualities that will also form the

qualitative characteristics of the financial statements,

we will discuss one by one, yes, the

qualitative characteristics of

our financial statements starting from relevance,

relevance here means that

accounting information will be able to be

used to assist in

decision making

as long as the accounting information is used

to make decisions, then

we can say that it is relevant information.

Well, what are the basic quality components

that form relevance, we see

here, the first is predictive value,

predictive value means that the

information published

will be able to add predictive value that is

used by investors to predict

expectations in the future, from

this information can be used to

predict

expectations in the future

the second component is the

confirmation value which means that

the information presented by the entity

can be used by users to

confirm or correct

expectations in the past and the third

component of

materiality which means that the

information is

material in terms of if the

information is lost or wrong in

the recording then it can affect the

basis of decision making by

users

as long as the information is material or can

affect the decision taken then the

information means it meets the

materiality limit and must be considered as

relevant information

well the second qualitative characteristic

is reliable presentation

or fade full representation

in this qualitative characteristic

there are three basic quality components

consisting of completeness neutral and

free from errors or errors

reliable presentation this

means that the numbers or information

presented really

exist and occur

to support

this reliable presentation then

three basic quality components are needed

first that the information must be

complete yes meaning all the information

needed is

actually already there and completely

presented so that eh the information user

will be able to obtain all the

information needed completely

next neutral Neutral in this case

the information published is not

only profitable and one particular party

yes because the

users of accounting information or

users of financial reports are all

equal as beautiful as the company or entity

that makes the financial report

cannot choose the information will only

benefit one party

and the third component is free from

errors, yes, it means that the information

presented is accurate

and can represent the

company's financial condition at the time of reporting.

Well, then there are

other additional qualities that can also

enrich or improve the

qualitative characteristics of

our financial reporting. We have four

additional characteristics or additional qualities. The

first is

comparable or comparably. Wow,

this means that the information

presented can be measured and

reported in the same way

as other companies in the

same industry. So, for example, we

have a company A, yes, which is engaged

in the trading industry. The

financial information produced by

company A must be able to be

compared with the information

published by company B, which is also

engaged in the trading industry. Because what

the information is reported in the

same way with the same measurement method. The

second quality is

verifiable, verifiable, eh,

it means that the information presented

can be verified to its source

using existing measurements and

verification methods, but later it will

get the same results. The

third is timely,

timely, which means that the accounting information

will be accessible to

users for decision making

before the information loses

its usefulness in decision making.

And finally, the financial report

or accounting information must be understandable

because by understanding the content or

value of accounting information.

presented then the condensation can

take relevant decisions

Well next is the basic elements or

elements in our financial statements

here know that there are five

elements or five basic elements that

form our financial statements have

assets liabilities and equity that will

form the financial position report

and income and expenses that will

form the income statement

we see one by one for assets

it is a resource that is controlled

does not have to be purchased yes does not have to be

owned but is controlled by the entity

as a result of past events

and can produce economic benefits

in the future

next for liabilities it is the

current obligation of the entity that arises

from events and in the past that

need to be settled

in the form of an outflow of

entity resources that contain economic benefits

the third is equity equity

is the residual value of assets or the

net value of the entity's assets after deducting

all

liabilities and this can be claimed by the

owner

or holder of equity resources

the fourth is

income those incomes are

increases in economic benefits during a

period in the form of

cash inflows can be in the form of increases in the

value of assets or decreases in the value of

liabilities that cause increases in

equip Hi other than the owner's contribution

and the last is costs

those are decreases in economic benefits

during the accounting period in the form of

cash outflows

or decreases in the value of assets or the emergence

or emergence liabilities that

result in a decrease in equity other than

those related to distribution to

equity owners

Well next we enter the

third level the third level contains the

recognition measurement and

disclosure concept This concept will later

explain How the company

should recognize measure and report

economic events or incidents that

occur in one period

Hi the first we will

use this assumption is the assumption

that we build or the assumption that we

use in financial reporting

first there is the assumption of an economic entity what

is an economic entity it assumes

that the company separates the activities of

its owner with the activities that occur

in the business unit so it can be said that the

company is a

separate entity from the owner

the second assumption is

business continuity or going concern

is this company assumes in each

that its operational activities can

last long enough so that the company

can achieve its goals and fulfill

its commitments to all stakeholders

the third is the monetary unit assumption

which assumes that in

measuring transactions measuring

economic events we use money

or monetary units as a

commonly used denominator

the fourth we use the assumption of

Peru on TVRI Odyssey tas here

means that the company can

divide its economic activities into

several time periods and the last

assumption regarding the accrual basis of accounting

which states that transactions will be

recorded in the period in which the

transaction occurs so it is different from the cash basis

yes sand the accrual basis of accounting

says that every When there is an

economic event that causes

a change in the company's financial position,

it must be recorded in the period it

occurs. Hi guys, which is different from the typical

cash-based transaction,

the transaction is recorded when there is a

cash inflow or cash outflow.

Here we use the accrual assumption.

Next, we are still at the

third level, namely the recognition

principle. There are several recognition principles. The

first is related to the

acquisition cost or historical cost.

Here, what is recognized is the price

paid to acquire

an asset at the time of acquisition. This is

usually used for assets. Yes, to

recognize

the value of the asset or the

acquisition price. From the second asset, it is related

to the assessment. There is the principle of

fair value,

which means that fair value is the price that

will be received when selling an

asset or the price that will be paid to

transfer ownership of a liability

in an orderly transaction on the

measurement date. In current market conditions,

accounting standard makers still

provide a

choice for companies whether to

use historical cost or

use fair value as the basis for

measuring financial assets and liabilities.

However, for financial instruments,

financial assets and financial liabilities are

all required to use

fair value.

The second principle is the

revenue recognition principle. The

revenue recognition principle here is

related to when the company

must recognize revenue.

No, the point is that the

company will be required to recognize it.

income in the accounting period where the

obligation has been fulfilled the obligation

to the consumer has been fulfilled

in accordance with the contract

then in the principle of cost recognition later

the cost will be recognized when there is an

outflow or there is

utilization of the asset value

or the emergence of obligations in a

period as a result of the delivery

or production of goods and or purchase of

services

here we can usually divide it into

product costs or period costs product costs

Of course it will be related

to the inventory of goods and later

the relationship to the cost of goods sold

or costs and revenue

recognition is to follow

the principle of recognition

ah cost that is

linking costs with revenue

so that for the product cost it

will be recognized in the period of income

when the income occurs

for example the cost of goods sold

secondly the period cost there is no

direct relationship between costs

and revenue and for the

period cost it will be charged or

recognized as an expense when

it occurs for example salary costs

office administration costs and also

other operational costs

then another principle is

full disclosure so

in this full disclosure principle

eh the reporting entity must present

information that is important enough in

decision making yes and also the provision of

assessments or jazmen for users of

information

as long as this information is considered relevant

is considered important in providing Jasman

and decision making by users

then this information must be presented either

through financial statements

or in the notes to financial reports

or by using additional information,

so the explanation regarding

level 3, yes, implementation in

financial reporting, we hope that

all of you can get an

adequate understanding of the

conceptual framework that is important to use

as a fundamental or basis in

financial reporting, thank you for

your attention. Hopefully this explanation

can be understood and don't forget to

complete your understanding by reading the

complete and comprehensive

material in the textbook. Kai again,

thank you and healthy greetings to

all.

Wassalamualaikum warohmatullohi

wabarokatuh