elements of financial statements

Information about company finances can be seen in temporary information about company finances can be seen in the income statement. To consider what is meant by financial position or whatever is needed by the company, it is necessary to first fill in or what information is in the type of financial statement. The contents or information contained in this financial statement will be arranged based on certain criteria so as to form groups.

Each group is then referred to as a non-financial statement. Each group is given terms and resolutions. These terms are the language of business or accounting jargon. For example in three major groups namely assets, assets taken and. While in the income statement recognized two major groups, namely the case and the burden.

According to the Basic Framework, the preparation of the Statement Presentation, which is not directly related to the financial position, is a necessary asset and equity. then no.

1. Assets

Understanding Assets in General are Resources controlled by the Company as a Result of the Past. then from where the future economic benefits are expected to be obtained by the company. Assets are classified as current assets, fixed assets and other assets.

Current assets are cash and other assets that are expected to be cash and then sold or paid within one year or in the operating cycle. The rules also generally discuss assets that can be converted into cash or used to pay obligations within one year or the operating cycle, while the longer the assets are classified as current.

Fixed assets are assets that are not resold, used for company operations and have economic benefits of more than one year or normal cycle operations.

Other assets are assets that do not meet the nature of the assets and fixed assets.

2. Obligations

Liabilities represent current corporate debt arising from past events, the liability is estimated to originate from company resources that contain economic benefits. Liabilities are classified as short-term liabilities, long-term liabilities and other obligations.

3. Equity

Equity is the residual rights to the assets of the company after the initial collection. Equity is usually referred to as net assets (net assets). For individual companies reflect the capital invested by the owner in the company he founded. Equity for a partnership company consists of capital invested by allies or partners that make up the company. The company's capital consists of shares owned by the company's investors. Meanwhile, cooperatives consist of members' savings.

4. Income (income)

Income is profit from the economy during the accounting period in the form of income or payment of assets that are excluded from wealth released from investor contributions.

5. Expenses (expenses)

Economic expenditures for several accounting periods in the form of outflows or deductions from expenses include:

A. Expenses incurred in carrying out company activities are usually excluded from cost of goods sold, payments and depreciation. These expenses consist of outflows or decreases in assets such as cash and cash equivalents, required and fixed assets.

b. Losses represent other items that meet resolutions that may or may not arise from the usual activities of the company. Examples include losses from fire, natural damage and impairment in assets