Act No. 16 of 2000 on general provisions and tax procedures states that a person or business entity who keep books that can provide information for calculating includes taxable income, the price of the acquisition or delivery of goods and services in order to calculate the amount of tax calculated under provisions of the law taxation.
Bookkeeping must comply with the provisions as follows:
1. Intention well organized with and reflect the actual business situation
2. Held in the jurisdiction of Indonesian
3. The unit used is the rupiah or other currency that allowed by the Ministry of Finance of Indonesian
4. Using the Indonesian language or foreign language permitted by the Ministry of Finance of Indonesian
Basic Concepts of Accounting
The concept is a fixed rule accounting which form the basis for reporting accounting information. Some concepts or principles of accounting, among others:
- Equation principle, the income and expenditures of a company can be reported in a report by two approaches, namely; cash basis and Accrual basis. Cash basis approach is reported as income earned money, the cost is reported as the money spent. Accrual basis of the approach of income and expenses are recognized when reported to have occurred.
- The concept of Business (Busniess Entity), a company regarded as an independent institution that finances should be separate from the financial owners, directors, and employees.
- Sustainability (Going Concern), is a company deemed to be operational during the time that can not be determined.
- Concept Matching principle (comparison with the revenue expenditure burden). This principle is applied to compare or equalize costs with revenue generated during the period the costs occur.
- The acquisition price principle (HPP), the value or the cost of sacrificed to obtain a product ready for use hinga goods.
The nature of financial statements according to SAK must meet the following requirements:
* Understandable
* Relevant
* The reliability of the data presentation, honest, comprehensive, neutral, and substance
* Can be compared
* Given the constraints of relevant information and reliable, continuous between costs and benefits
* Presentation of a reasonable
Elements of Financial Statements include:
1. Balance
2. Income statement
3. Report changes in capital (equity)
4. Cash flow statements
5. Notes to the financial statements
Objectives / Functions Financial Statements
1. The financial statements provide information concerning the financial position, performance, and changes in financial position or a company that useful for a large number of buyers in economic decision making.
2. Financial reports prepared for the purpose of item 1 above together meet the bulk requirements with users.
3. The financial statements also show what done by management or management responsibility for a trusted resource to him.
Balance Sheet and Profit and Loss Report
Balance is a list of records in a systematic about where the company gets the money (ie an obligation or debt, and capital or capital) and how companies use that money on a certain date, and represented by the amount of money.
Balance includes:
1. How the money is used: Assets or property (assets) is a resource owned by the company as a result of past transactions.
2. Where the source of money (liabilities): Liabilities (Liabilities) is in the present corporate debt arising from past events. Capital (Equity / Equitity) is the right company for property or assets minus liabilities.
Profit and Loss Report is a report about the performance or the company's ability to earn profits.
Elements Profit Loss Report consists of:
1. Income from activities (business) major.
2. Expenses for the main activities; burden salaries, administration, HPP.
3. Revenue from outside the main activities; bank interest income.
4. Expenses for the activities outside main activities: interest expense, the burden for the lost inventory.
Forms of Profit-Loss Report
Reports 2 forms of Stafel there singgle step and multiple step. Report compiled form singgle step by collecting all the revenue on the one hand with the entire burden (cost) on the other hand. The report prepared by multiple step events to a business by gathering activities in their own business and continued business outside activities.
