lOMoARcPSD|34096219
lOMoARcPSD|34096219
fundamental-analysis-of-fair-
value-of-shares-using-
discounted-cash-flow-model-
valuation-method-study-on-
banking-companies-kbmi-iv-
for-the-2023-2024-period
, lOMoARcPSD|34096219
CHAPTER I
INTRODUCTION
1.1. Background problem
The preparation of financial reports by companies is intended to provide an
overview regarding management performance in managing existing resources.
Information related to this description is conveyed through financial reports so that
it can be used by external or internal parties. These financial reports must comply
with accounting principles, rules and objectives that meet generally accepted
standards in order to be able to make financial reports that can provide benefits to
users and can be accounted for (Ramadhoni et al, 2014).
Financial statements describe the financial condition and results of
operations of a company at a certain time or period of time (Harahap, 2009:105).
This allows internal and external parties to see a picture of the company so that
company management can determine the company's strategy in the future, as well
as investors who use financial reports to determine whether the company has good
financial reports and see the company in a healthy condition in determining
investment activities. .
However, companies in earning profits as well as investors are now faced
with the conditions of the COVID-19 pandemic where it is very difficult for
companies to generate profits so that the resulting financial reports can attract
investors to invest in their companies so that companies must compete even more
fiercely with each other to retain their consumers. use the services or products
produced by the company in the midst of this pandemic.
The capital market is a very appropriate place to look for capital flows and
investment is always needed by everyone to continue to grow their business sector,
this is one of the options that companies have in maintaining the company's
condition by making various decisions that will make the company survive in
conditions This.
1
lOMoARcPSD|34096219
fundamental-analysis-of-fair-
value-of-shares-using-
discounted-cash-flow-model-
valuation-method-study-on-
banking-companies-kbmi-iv-
for-the-2023-2024-period
, lOMoARcPSD|34096219
CHAPTER I
INTRODUCTION
1.1. Background problem
The preparation of financial reports by companies is intended to provide an
overview regarding management performance in managing existing resources.
Information related to this description is conveyed through financial reports so that
it can be used by external or internal parties. These financial reports must comply
with accounting principles, rules and objectives that meet generally accepted
standards in order to be able to make financial reports that can provide benefits to
users and can be accounted for (Ramadhoni et al, 2014).
Financial statements describe the financial condition and results of
operations of a company at a certain time or period of time (Harahap, 2009:105).
This allows internal and external parties to see a picture of the company so that
company management can determine the company's strategy in the future, as well
as investors who use financial reports to determine whether the company has good
financial reports and see the company in a healthy condition in determining
investment activities. .
However, companies in earning profits as well as investors are now faced
with the conditions of the COVID-19 pandemic where it is very difficult for
companies to generate profits so that the resulting financial reports can attract
investors to invest in their companies so that companies must compete even more
fiercely with each other to retain their consumers. use the services or products
produced by the company in the midst of this pandemic.
The capital market is a very appropriate place to look for capital flows and
investment is always needed by everyone to continue to grow their business sector,
this is one of the options that companies have in maintaining the company's
condition by making various decisions that will make the company survive in
conditions This.
1
