Bank indonesia is a concept or theoretical basis that is use as a guide for business entities and organizations in preparing financial reports. This financial reporting conceptual framework provides direction regarding the basic principles, objectives and financial reporting criteria that should be followe in preparing an entity’s financial reports. The main objectives of the Financial Reporting Conceptual Framework are: Relevance : Financial reports must provide relevant information for stakeholders in making economic decisions.
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The information must be able to influence the understanding and evaluation of the entity’s performance and financial position. Reliability : The information presente in financial reports must be reliable. This means that the information must be accurate, reliable Canada Phone Number List and trustworthy by stakeholders. Ease of Understanding Understandability. The information presente in financial reports must be easy to understand by stakeholders who have various levels of financial and business knowlege.
Stability table of contents
Comparability : Financial reports must allow comparisons between different periods or between different entities. This allows stakeholders to see changes over time or compare performance between different entities. Overall (Completeness) : Financial reports Canada Whatsapp Number must include all information. Necessary to provide a complete picture of the entity’s performance and financial position. Consistency : The accounting principles use in preparing financial reports must. Be applie consistently from year to year, unless there is a good reason to change them.
