The Financial Report

Financial accounting information shows the financial condition and results of operations of a company that is used by the users in accordance with their respective interests, understanding financial reports according to PSAK No. Par 1 (IAI, 2007) is part of the financial reporting process that consists of a full profit and loss reports, balance sheet, cash flow reports, notes and other reports and explanations, which is the end product of the process of accounting in a single accounting unit. Meanwhile, according to financial reports Safri (2002: 201), namely the financial reports must contain information on the balance sheet, profit and loss reports, reports on changes in equity, cash flow reports, additional information and descriptive information.

The main focus of financial reporting is information about the profit and loss (earning) because information about the company's profit and loss based on the accrual basis which generally provide a better indicator of the progress of this company and should saaat to estimate the cash flow from which only limited to the rev.

Goal Financial Reports :

According PSAK No. 1 Par 12 (IAI, 2007) states that the purpose of financial reports is to provide information concerning the position of financial performance, financial position and changes in a company that are useful for a number of users in decision-making economy. Financial reports that are developed for this purpose meet the needs of most users. However, the financial report does not provide information that the user may be required in the economy because decisions reflect the general financial effect of events in the ago, and is not obliged to provide non-financial information.
According to the FASB (Financial Accounting Standard Board) issued guidelines on financial reporting purposes in SFAC No. 1 (Par 34) as follows:

a. Financial reports are not objective, but is intended to provide information useful in the decision making process of business and economic

b. Goal financial reports can not change himself, he is influenced by economic, legal, political, and social environment in which financial reports are.

c. Goal financial reports are also influenced by the nature and the limited types of information and financial reports are presented.

d. Goals in the financial report is for external use in general.

e. Term investors and creditors, is widely defined not only intended for those who have rights against the company but also a representative / consultant.

f. Although decisions about investment and credit mengambarkan expectations of investors and creditors of the company in the future, expectations are generally based at least in the assessment of the achievements that have been through.

g. The main focus is financial profit and loss information and components.

h. Information about the company's profit and loss based on the accrual basis which generally provide a better indicator of the progress the company at this time and so to appraise the cash flow of the information limited to the receipt and expenditure of cash only.

i. Financial reports are expected to provide information about the company's financial performance during a certain period, and how to account management leadership to the owner.

j. Financial report is not designed to measure the logical value of the company, but this information can help those who want to gauge value.

k. Investors, creditors and others can use the profit and loss report information about the elements of the financial report in many ways the achievement management, evaluate the company's ability to get profit for the future, assess risks or to confirm, modify or view the choice or the previous forecast. Although the financial reports should provide information to help them, the user of the financial reports do akan own ways for them to assess, evaluate, confirm, modify and reject.

l. Management mengetahi more about the company and the problem-the problem compared with the investors, creditors or other outside parties. By consequence, the financial reports are often more useful when the events in the company are identified and described the impact on financial aspects.