MIDTERM EXAMINATION
Manda Rahmania
Azkia
1910631030194
Submitted to fullfill a paperwork
by
Irvan Y. Pardistya, SE., MM., CA
Univesity of Singaperbangsa
Karawang
2019
Table
of Content
CHAPTER I
Financial
accounting is the process of preparing financial statements that companies’ use
to show their financial performance and position to people outside the company.
Including investors, creditors, suppliers, and customers. This is one of the
most important distinctions from managerial accounting, which by contrast,
involves preparing detailed reports and forecasts for managers inside the
company. Financial Statements are closely related to financial accounting. Most
companies put together quarterly and annual financial statements, which they
make available to shareholders and the investing public. There are four basic
financial statements used in the corporate world to show a company’s financial
performance:
1.
The income statement (also called the
profit and loss statement) covers a specific period of time (such as a quarter
or a year).
2.
The balance sheet is a statement of
assets and liabilities at the end of an accounting period. In other words, the
balance sheet is a financial snapshot at a specific point in time.
3.
The cash flow statement shows the actual
flow of cash into and out of a company over a specific period of time, in
contrast to the net income on the income statement, which is a non-cash number.
4.
The statement of retained earnings
covers a specific period of time and shows the dividends paid from earnings to
shareholders and the earnings kept by the company.
The example case related to Financial Accounting is
PT Indika Energy Tbk (INDY) revenues. The
Indika Energy Group has finally diversified its business lines and entered
startups in the technology sector through the expansion of its two
subsidiaries, PT Xapiens Technology Indonesia (enterprise IT) and PT Zebra
Cross Technology (digital technology services). "Getting into startups is
a matter of business of an IT company. We want to spin off and provide
solutions for companies in RI," said Purbaja Pantja, Indika Energy's Chief
Investment Officer (CIO), in a limited meeting with the media in Jakarta.
He explained that Zebra Cross aims to help companies
make more digital transformations, so that the company can be more efficient in
its operations. This diversification is carried out by the Indika Group with
the aim of widening business opportunities given the challenges in the main
business of mining is quite high amid fluctuations in mining commodity prices
and uncertain geopolitical conditions.
Xapiens was founded in 2018 as a provider of
information, communication and information technology services including IT
user support, enterprise IT and IT business consulting. Zebra Cross will
develop its 4.0 technology through automation and data analysis that will
support business transformation towards digital.
On the occasion, Indika Energy's CEO, Aziz Armand
said the 2019 Indonesian coal industry was indeed more challenging than 2018. "Demand
tends to be flat. Production rises because there is not too much rain or dry.
Global coal production rises so it tends to be oversupply. Domestic production
exceeds the target and last year. This makes the new coal prices plummet,"
he said.
But it remains optimistic about the company's
business prospects. "We remain optimistic about the prospects and
fundamentals of the coal industry going forward even though the volatility of
coal prices continues. INDI has the aspiration to provide optimal and
sustainable added value for all stakeholders, also to contribute more to
Indonesia's development." In addition to entering the startup business,
Indika also continues to diversify its business in fields related to competence
and the current business portfolio, namely mining.
After the end of 2018 the company invested in shares
with 19.9% ownership in Nusantara Resources Limited, which is the parent of
Masmindo Dwi Area. In the period 31 July-20 September 2019 India Energy
increased the share of shares in the archipelago by 1.12% to 21.02%. Masmindo
holds the Awak Mas project gold mining concession in South Sulawesi.
In terms of performance, the Indika Group's parent
company, PT Indika Energy Tbk (INDY), posted a non-positive performance during
the first 9 months of this year or as of September 2019 along with the
amortization of the acquisition of PT Kideco Jaya Agung. Management announced
during that period, Indika recorded a consolidated net loss of US $ 8.6 million
or equivalent to Rp 120.40 billion (assuming an exchange rate of Rp 14,000 / uS
$). Referring to the financial statements as of September 2018, Indika was able
to book a net profit of US $ 112.17 million or Rp 1.57 trillion, up from September
2017 at US $ 81.36 million.
"In
the third quarter, US $ 8.6 million was a consolidated loss. We recorded a book
loss due to the amortization factor from the purchase of Kideco," said
Aziz Armand.
He explained that throughout the year to September,
the company's revenue reached US $ 2.08 billion or Rp 29 trillion, down
compared to the same period last year of US $ 2.18 billion. In September 2017,
INDY's revenue was still US $ 694.68 million. At the end of 2017, Indika, which
also has a subsidiary of PT Petrosea Tbk (PTRO), together with its wholly owned
subsidiary, PT Indika Inti Corpindo, completed the purchase of an additional
45% stake in PT Kideco Jaya Agung (Kideco) from Samtan Co., Ltd. (Samtan) and
PT Muji Inti Utama (Muji).
1. What
happens to the income of the Indika Group?
2. Who
is involved & knows the decline in the income of the Indika Group?
3. Where
the Indika Group experienced a decrease in income?
4. When
did the Indika Group income decrease?
5. How
does the Indika Group overcome the decline in income?
CHAPTER II
According
to The American Institute of Certified Public Accountants
“An information system that identifies records and
communicates the economic events of an organization to interested users”
According
to A.W.Jhonson
“Accounting
refers to the process of identifying, measuring and communicating economic
information to permit informed judgments and decisions by users f the
information”
According
to the American Accounting Association
“Accounting is the art of recording, classifying,
summarizing in a significant manner in terms of money transaction or events
which are in part of at least of a financial character and interpreting there
of.”
Accoding
to Weygant, Kieso and Kimmel
“In
this changing world human life is also changing. With the change of everything
trade and commerce is also changing, with the changes, modifications and
complexities of business. With the development of technology the implication of
Accounting has achieved a new shape.”
The conclusion is Accounting may be defined as the
collection, compilation, and systematic recording of business transactions in
terms of money, the preparations of financial reports, the analysis and
interpretation of these reports for the information and guidance of management.
1. Results
of operations.
This pertains to
the profit generated by the company for a certain span of time (for a year, for
a quarter, for a month, etc.). This is measured by deducting all expenses from
all income. The resulting amount is called net income.
2. Financial
position
How much
resources does the entity currently have? How much does the entity owe third
parties? How much is left for the owners after we pay all obligations using our
resources? The first question refers to the entity's total assets; the second
to liabilities, and the third to capital.
3. Solvency
and liquidity
Solvency refers
to the entity's ability to pay obligations when they become due. Liquidity
pertains to its ability to meet short-term obligations.
4. Cash
flows
The financial
statements also show the inflows and outflows of cash in the different
activities of the business (operating, investing, and financing activities).
5. Other
information
The financial
statements provide qualitative, quantitative, and financial information. One of
the characteristics of the financial statements is relevance. Any information
that could affect the decisions of users should be included in the financial
reports.
1.
Identification and recording of
transactions
2.
Ascertainment of results
3.
Ascertainment of financial affairs
4.
Keeping accounts of cash
5.
Control over assets and liabilities
6.
Controlling money defalcation and cost
7.
Providing economic data
8.
Helping tax fixation
9.
Determination and evaluation of policy
10.
Testing the arithmetical accuracy of
accounts
11.
Acceptability to others
12.
Creation of values and accountability
13.
Following legal bindings and prohibition
1.
The scope of Accounting in personal life
2.
The scope of Accounting in business
organizations
3.
The scope of Accounting in non-trading
concerns
4.
The scope of Accounting in Government
Offices
5.
The scope of Accounting in professionals
According to Kieso and Weygant
“A series of processes that lead to the
preparation of financial statements relating to the company as a whole for use
by users of financial statements both internal and external parties of the
company.”
According
to Jogianto
“The provision of relevant information in
the form of periodic reports, such as balance sheets, income statements,
retained earnings, reports of changes in capital used by both internal and
external parties of the company as consideration in decision making.”
According
to Sugiarto
“A field in accounting
that focuses on preparing a company's financial statements on a regular basis.
This report is useful as a form of management's accountability to shareholders.
The accounting equation used is Assets = Liabilities + Equity. This refers to
Financial Accounting Standards”
According to Fess and Warrant
“The accounting field that deals with the
recording and reporting of a company's economic activity data. The report is
used as information material that will be used by interested parties.”
The
Conclusion of Financial Accounting is one branch of accounting that focuses on
the presentation of financial statements. This financial statement will be used
by internal and external parties of the company which can be used as
consideration in making decisions. Internal parties are those who work in the
company, such as the finance department and company leaders. While external
parties, including shareholders, potential investors, and the government. The
financial statements are prepared based on Financial Accounting Standards. With
this standard, it is expected that the financial statements made can be
understood by various parties because there are uniformity of rules.
At the heart of financial
accounting is the system known as double entry bookkeeping (or "double
entry accounting"). Each financial transaction that a company makes is
recorded by using this system. The term "double entry" means that
every transaction affects at least two accounts. For example, if a company
borrows $50,000 from its bank, the company's Cash account increases, and the
company's Notes Payable account increases. Double entry also means that one of
the accounts must have an amount entered as a debit, and one of the accounts
must have an amount entered as a credit. For any given transaction, the debit
amount must equal the credit amount. (To learn more about debits and credits, see
Explanation of Debits & Credits.)
The advantage of double entry
accounting is this: at any given time, the balance of a company's asset
accounts will equal the balance of its liability and stockholders' (or owner's)
equity accounts. (To learn more on how this equality is maintained, see the
Explanation of Accounting Equation). Financial accounting is required to follow
the accrual basis of accounting (as opposed to the "cash basis" of
accounting). Under the accrual basis, revenues are reported when they are
earned, not when the money is received. Similarly, expenses are reported when
they are incurred, not when they are paid. For example, although a magazine
publisher receives a $24 check from a customer for an annual subscription, the
publisher reports as revenue a monthly amount of $2 (one-twelfth of the annual
subscription amount). In the same way, it reports its property tax expense each
month as one-twelfth of the annual property tax bill.
By following the accrual basis of
accounting, a company's profitability, assets, liabilities and other financial
information is more in line with economic reality. (To learn more on achieving
the accrual basis of accounting, see the Explanation of Adjusting Entries.)
MIDTERM EXAMINATION
CHAPTER I
CHAPTER II
REFERENCES
Manda Rahmania
Azkia
1910631030194
Submitted to fullfill a paperwork
by
Irvan Y. Pardistya, SE., MM., CA
Univesity of Singaperbangsa
Karawang
2019
Table
of Content
CHAPTER I
Financial
accounting is the process of preparing financial statements that companies’ use
to show their financial performance and position to people outside the company.
Including investors, creditors, suppliers, and customers. This is one of the
most important distinctions from managerial accounting, which by contrast,
involves preparing detailed reports and forecasts for managers inside the
company. Financial Statements are closely related to financial accounting. Most
companies put together quarterly and annual financial statements, which they
make available to shareholders and the investing public. There are four basic
financial statements used in the corporate world to show a company’s financial
performance:
1.
The income statement (also called the
profit and loss statement) covers a specific period of time (such as a quarter
or a year).
2.
The balance sheet is a statement of
assets and liabilities at the end of an accounting period. In other words, the
balance sheet is a financial snapshot at a specific point in time.
3.
The cash flow statement shows the actual
flow of cash into and out of a company over a specific period of time, in
contrast to the net income on the income statement, which is a non-cash number.
4.
The statement of retained earnings
covers a specific period of time and shows the dividends paid from earnings to
shareholders and the earnings kept by the company.
The example case related to Financial Accounting is
PT Indika Energy Tbk (INDY) revenues. The
Indika Energy Group has finally diversified its business lines and entered
startups in the technology sector through the expansion of its two
subsidiaries, PT Xapiens Technology Indonesia (enterprise IT) and PT Zebra
Cross Technology (digital technology services). "Getting into startups is
a matter of business of an IT company. We want to spin off and provide
solutions for companies in RI," said Purbaja Pantja, Indika Energy's Chief
Investment Officer (CIO), in a limited meeting with the media in Jakarta.
He explained that Zebra Cross aims to help companies
make more digital transformations, so that the company can be more efficient in
its operations. This diversification is carried out by the Indika Group with
the aim of widening business opportunities given the challenges in the main
business of mining is quite high amid fluctuations in mining commodity prices
and uncertain geopolitical conditions.
Xapiens was founded in 2018 as a provider of
information, communication and information technology services including IT
user support, enterprise IT and IT business consulting. Zebra Cross will
develop its 4.0 technology through automation and data analysis that will
support business transformation towards digital.
On the occasion, Indika Energy's CEO, Aziz Armand
said the 2019 Indonesian coal industry was indeed more challenging than 2018. "Demand
tends to be flat. Production rises because there is not too much rain or dry.
Global coal production rises so it tends to be oversupply. Domestic production
exceeds the target and last year. This makes the new coal prices plummet,"
he said.
But it remains optimistic about the company's
business prospects. "We remain optimistic about the prospects and
fundamentals of the coal industry going forward even though the volatility of
coal prices continues. INDI has the aspiration to provide optimal and
sustainable added value for all stakeholders, also to contribute more to
Indonesia's development." In addition to entering the startup business,
Indika also continues to diversify its business in fields related to competence
and the current business portfolio, namely mining.
After the end of 2018 the company invested in shares
with 19.9% ownership in Nusantara Resources Limited, which is the parent of
Masmindo Dwi Area. In the period 31 July-20 September 2019 India Energy
increased the share of shares in the archipelago by 1.12% to 21.02%. Masmindo
holds the Awak Mas project gold mining concession in South Sulawesi.
In terms of performance, the Indika Group's parent
company, PT Indika Energy Tbk (INDY), posted a non-positive performance during
the first 9 months of this year or as of September 2019 along with the
amortization of the acquisition of PT Kideco Jaya Agung. Management announced
during that period, Indika recorded a consolidated net loss of US $ 8.6 million
or equivalent to Rp 120.40 billion (assuming an exchange rate of Rp 14,000 / uS
$). Referring to the financial statements as of September 2018, Indika was able
to book a net profit of US $ 112.17 million or Rp 1.57 trillion, up from September
2017 at US $ 81.36 million.
"In
the third quarter, US $ 8.6 million was a consolidated loss. We recorded a book
loss due to the amortization factor from the purchase of Kideco," said
Aziz Armand.
He explained that throughout the year to September,
the company's revenue reached US $ 2.08 billion or Rp 29 trillion, down
compared to the same period last year of US $ 2.18 billion. In September 2017,
INDY's revenue was still US $ 694.68 million. At the end of 2017, Indika, which
also has a subsidiary of PT Petrosea Tbk (PTRO), together with its wholly owned
subsidiary, PT Indika Inti Corpindo, completed the purchase of an additional
45% stake in PT Kideco Jaya Agung (Kideco) from Samtan Co., Ltd. (Samtan) and
PT Muji Inti Utama (Muji).
1. What
happens to the income of the Indika Group?
2. Who
is involved & knows the decline in the income of the Indika Group?
3. Where
the Indika Group experienced a decrease in income?
4. When
did the Indika Group income decrease?
5. How
does the Indika Group overcome the decline in income?
CHAPTER II
According
to The American Institute of Certified Public Accountants
“An information system that identifies records and
communicates the economic events of an organization to interested users”
According
to A.W.Jhonson
“Accounting
refers to the process of identifying, measuring and communicating economic
information to permit informed judgments and decisions by users f the
information”
According
to the American Accounting Association
“Accounting is the art of recording, classifying,
summarizing in a significant manner in terms of money transaction or events
which are in part of at least of a financial character and interpreting there
of.”
Accoding
to Weygant, Kieso and Kimmel
“In
this changing world human life is also changing. With the change of everything
trade and commerce is also changing, with the changes, modifications and
complexities of business. With the development of technology the implication of
Accounting has achieved a new shape.”
The conclusion is Accounting may be defined as the
collection, compilation, and systematic recording of business transactions in
terms of money, the preparations of financial reports, the analysis and
interpretation of these reports for the information and guidance of management.
1. Results
of operations.
This pertains to
the profit generated by the company for a certain span of time (for a year, for
a quarter, for a month, etc.). This is measured by deducting all expenses from
all income. The resulting amount is called net income.
2. Financial
position
How much
resources does the entity currently have? How much does the entity owe third
parties? How much is left for the owners after we pay all obligations using our
resources? The first question refers to the entity's total assets; the second
to liabilities, and the third to capital.
3. Solvency
and liquidity
Solvency refers
to the entity's ability to pay obligations when they become due. Liquidity
pertains to its ability to meet short-term obligations
.
4. Cash
flows
The financial
statements also show the inflows and outflows of cash in the different
activities of the business (operating, investing, and financing activities).
5. Other
information
The financial
statements provide qualitative, quantitative, and financial information. One of
the characteristics of the financial statements is relevance. Any information
that could affect the decisions of users should be included in the financial
reports.
1.
Identification and recording of
transactions
2.
Ascertainment of results
3.
Ascertainment of financial affairs
4.
Keeping accounts of cash
5.
Control over assets and liabilities
6.
Controlling money defalcation and cost
7.
Providing economic data
8.
Helping tax fixation
9.
Determination and evaluation of policy
10.
Testing the arithmetical accuracy of
accounts
11.
Acceptability to others
12.
Creation of values and accountability
13.
Following legal bindings and prohibition
1.
The scope of Accounting in personal life
2.
The scope of Accounting in business
organizations
3.
The scope of Accounting in non-trading
concerns
4.
The scope of Accounting in Government
Offices
5.
The scope of Accounting in professionals
According to Kieso and Weygant
“A series of processes that lead to the
preparation of financial statements relating to the company as a whole for use
by users of financial statements both internal and external parties of the
company.”
According
to Jogianto
“The provision of relevant information in
the form of periodic reports, such as balance sheets, income statements,
retained earnings, reports of changes in capital used by both internal and
external parties of the company as consideration in decision making.”
According
to Sugiarto
“A field in accounting
that focuses on preparing a company's financial statements on a regular basis.
This report is useful as a form of management's accountability to shareholders.
The accounting equation used is Assets = Liabilities + Equity. This refers to
Financial Accounting Standards”
According to Fess and Warrant
“The accounting field that deals with the
recording and reporting of a company's economic activity data. The report is
used as information material that will be used by interested parties.”
The
Conclusion of Financial Accounting is one branch of accounting that focuses on
the presentation of financial statements. This financial statement will be used
by internal and external parties of the company which can be used as
consideration in making decisions. Internal parties are those who work in the
company, such as the finance department and company leaders. While external
parties, including shareholders, potential investors, and the government. The
financial statements are prepared based on Financial Accounting Standards. With
this standard, it is expected that the financial statements made can be
understood by various parties because there are uniformity of rules.
At the heart of financial
accounting is the system known as double entry bookkeeping (or "double
entry accounting"). Each financial transaction that a company makes is
recorded by using this system. The term "double entry" means that
every transaction affects at least two accounts. For example, if a company
borrows $50,000 from its bank, the company's Cash account increases, and the
company's Notes Payable account increases. Double entry also means that one of
the accounts must have an amount entered as a debit, and one of the accounts
must have an amount entered as a credit. For any given transaction, the debit
amount must equal the credit amount. (To learn more about debits and credits, see
Explanation of Debits & Credits.)
The advantage of double entry
accounting is this: at any given time, the balance of a company's asset
accounts will equal the balance of its liability and stockholders' (or owner's)
equity accounts. (To learn more on how this equality is maintained, see the
Explanation of Accounting Equation). Financial accounting is required to follow
the accrual basis of accounting (as opposed to the "cash basis" of
accounting). Under the accrual basis, revenues are reported when they are
earned, not when the money is received. Similarly, expenses are reported when
they are incurred, not when they are paid. For example, although a magazine
publisher receives a $24 check from a customer for an annual subscription, the
publisher reports as revenue a monthly amount of $2 (one-twelfth of the annual
subscription amount). In the same way, it reports its property tax expense each
month as one-twelfth of the annual property tax bill.
By following the accrual basis of
accounting, a company's profitability, assets, liabilities and other financial
information is more in line with economic reality. (To learn more on achieving
the accrual basis of accounting, see the Explanation of Adjusting Entries.)
REFERENCES
https://www.accountingedu.org/what-is-financial-accounting.html
https://seputarilmu.com/2018/12/12-pengertian-akuntansi-menurut-para-ahli-lengkap.html
https://www.assignmentpoint.com/business/accounting/define-accounting.html
https://iedunote.com/accounting-objectives
https://iedunote.com/accounting-scope
https://www.accountingcoach.com/financial-accounting/explanation
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