Financial Report
2.4.1 Definition of Financial Statements
According to Harahap (2011), "Financial statements are the output and final result of the
accounting process. This financial report will be an information material for investors as one of
the materials in the decision-making process ". Meanwhile, Sutrisno (2012) argues that financial
statements are the final result of the accounting process which includes two main reports, namely
the balance sheet and income statement.
Based on the above definition, it can be concluded that financial statements are the final result of
an accounting process in the form of information that describes the financial condition and
performance of a company as one of the considerations in decision making.
2.4.2 Purpose of Financial Statements
The purpose of the financial statements is to provide financial information to parties inside and
outside the company who have an interest in the company. The purpose of preparing or preparing
financial reports according to Fahmi (2013), explains that financial reports are to provide
information to parties in need, both investors and other parties who need information about the
condition of a company from the point of view of numbers in monetary units.
Furthermore, the objectives of financial statements according to Cashmere (2012) are as follows:
1. Provide information about the type and amount of assets (assets) owned by the company
at this time.
2. Provide information about the types and amounts of liabilities and capital that the company
currently has.
3. Provide information about the type and amount of income earned in a certain period.
4. Provide information about the amount of costs and types of costs incurred by the company
in a certain period.
5. Provides information about changes that occur to the company's assets, liabilities, and
capital.
6. Provides information about the performance of the company's management in a period.
7. Provides information about notes to the financial statements.
8. Other financial information.
2.4.1 Definition of Financial Statements
According to Harahap (2011), "Financial statements are the output and final result of the
accounting process. This financial report will be an information material for investors as one of
the materials in the decision-making process ". Meanwhile, Sutrisno (2012) argues that financial
statements are the final result of the accounting process which includes two main reports, namely
the balance sheet and income statement.
Based on the above definition, it can be concluded that financial statements are the final result of
an accounting process in the form of information that describes the financial condition and
performance of a company as one of the considerations in decision making.
2.4.2 Purpose of Financial Statements
The purpose of the financial statements is to provide financial information to parties inside and
outside the company who have an interest in the company. The purpose of preparing or preparing
financial reports according to Fahmi (2013), explains that financial reports are to provide
information to parties in need, both investors and other parties who need information about the
condition of a company from the point of view of numbers in monetary units.
Furthermore, the objectives of financial statements according to Cashmere (2012) are as follows:
1. Provide information about the type and amount of assets (assets) owned by the company
at this time.
2. Provide information about the types and amounts of liabilities and capital that the company
currently has.
3. Provide information about the type and amount of income earned in a certain period.
4. Provide information about the amount of costs and types of costs incurred by the company
in a certain period.
5. Provides information about changes that occur to the company's assets, liabilities, and
capital.
6. Provides information about the performance of the company's management in a period.
7. Provides information about notes to the financial statements.
8. Other financial information.
