THE ACCOUNTING FRAMEWORK, FINANCIAL STATEMENTS,

AND SOME ACCOUNTING CONCEPTS

Group 1 :
1. Astri Yuanita Herry Putri 4. Fajar Wahyudi
2. Azmi Said Al Ghiffari 5. Fitriyanti
3. Devy Annisa Arisandy 6. Ian Danarko
OUTLINE
1 Accounting Framework
2 Accounting Concepts
3 Financial Statements
Accounting Framework
 Accounting Framework 1
 Possible distinguish an accounting entity from other
persons or organizations that are associated with it
Accounting framework
 Resources available = resources provided by creditors
and owners

Accounting Equation:
Assets = Liabilities + Owner’s Equity




Tangible or intangible items Amounts owed to Net worth of the

of value own by the entities outside of the business to the
bussiness e.g cash, land, business e.g bank loan, owner.
copyrights or patent. supplier payments, etc.

• Accounting is processes of observing, measuring, and reporting that always carried

out to maintaining this fundamental equality of assets and equities
Accounting Concepts
 Accounting Concepts
2
• Accounting period concept covers the period over which a financial statement
has been prepared.

• Accrual concept supports the idea that income should be measured at the time
major efforts or accomplishment occur rather than simply when cash is received
or paid.

• Realization or recognition concept – These rules aid the accountant in

determining that a revenue or expense has occurred, so that can be measured,
recorded, and reported in financial reports.

• Matching concept – matching the revenues and expenses associated with

revenues in each accounting period, so that the net income can be measured.

• Money measurement concept – requires that companies include in the

accounting records only transaction data that can be expressed in money terms.
 Accounting Concepts
2
• Business entity concept - delineates the boundaries of the organization
for which accounts are kept and reports are made.

• Going concern concept – a company that considered will stay survived in

a long time and not gonna be diliquidated in future.

• Conservatism – concept in accounting that reduced total amount of

losses.

• Consistency – an accounting method that has selected should be used

for all future events of the same time.

• Materiality – ommision and misstatement influenced user’s economy

decision.
Financial Statements
 Financial Statements
3
•Balanced sheet is list of assets, liabilities, and owner’s equity at a specified point in time

Assets = Liabilities + Owner’s Equity

•The statement of income is the results of operations of business over a period of time

Revenue-Expenses = Net Income (or Net Loss)

•The statement of cash flow summarizes the reasons why the class of assets has increased
or decreased over a period of time.
 Financial Statements
3
Balanced sheet
 Financial Statements
Statement Of
3
Income
 Financial Statements
Statement of
3
Cash flow
THANK YOU