PUTU TRISNA PRABASARI BUKIAN 2417051077 / IKI ACCOUNTING SCOPE OF ACCOUNTING AND SAK
Problem 1:
Financial accounting uses standardized principles like International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP) to record and report financial transactions for external stakeholders, including creditors, investors, and regulators.
In contrast, managerial accounting gives management access to financial information for internal use in budgeting, performance review, and decision-making. For example, a company’s yearly financial statements issued under Financial Accounting help investors assess profitability, while a cost analysis report under Managerial Accounting supports managers in regulating manufacturing costs.
Problem 2:
Accounting standards are a collection of rules that regulate the preparation and presentation of financial statements, guaranteeing uniformity, openness, and comparability among businesses. In order to preserve trust and give stakeholders accurate financial information, companies must abide by these requirements. Adhering to accounting standards guarantees regulatory compliance, boosts investor confidence, and helps avoid financial misstatements.
Following standards in financial reporting guarantees that financial statements fairly depict a business's financial situation, which facilitates performance analysis and comparison for users.
Problem 3:
When assessing a company’s financial performance, key financial indicators include
profitability ratios (e.g., net profit margin and return on assets), liquidity ratios (e.g., current ratio and quick ratio), solvency ratios (e.g., debt-to-equity ratio), and efficiency ratios (e.g., inventory turnover and asset turnover). These indicators help evaluate a company's ability to generate profit, meet short-term and long-term obligations, and efficiently utilize resources.
Interpreting these results involves comparing them with industry benchmarks or past performance to determine financial stability and identify areas for improvement.
Problem 4:
In the United States, accounting standards are primarily established by the Financial Accounting Standards Board (FASB), which develops and updates GAAP. The Securities and Exchange Commission (SEC) oversees and enforces compliance with these standards for publicly traded companies. The Public Company Accounting Oversight Board (PCAOB) ensures audit quality, while the American Institute of Certified Public Accountants (AICPA) provides additional guidance for accountants. This collaborative process ensures that
financial reporting remains transparent, accurate, and reliable for stakeholders.
Problem 5:
The Financial Accounting Standards Compilation Board (DSAK) in Indonesia is responsible for developing and updating Financial Accounting Standards (SAK) to ensure consistency and relevance in financial reporting. DSAK plays a crucial role in harmonizing Indonesia’s accounting standards with international frameworks, such as IFRS, to enhance global
comparability and attract foreign investment. By aligning SAK with IFRS, DSAK facilitates cross-border financial reporting and improves transparency, ultimately strengthening
Indonesia’s financial market.