EKMA4115 Pengantar Akuntansi - Ruang Lingkup Akuntansi

Main Ideas and Lessons

Purpose / Definition of Accounting

• Accounting is the process of recording, measuring, and communicating economic information.
• The output—economic information—is used for:
  • decision-making
  • shaping accounting policies
• Businesses use accounting to produce reports for stakeholders about:
  • the economic activities
  • the economic condition of an entity (e.g., a company or the government)

Users (Stakeholders) of Financial Reports

1. Investors
   • Focus on the company’s financial position and future prospects
   • Use financial report figures to meet investors’ needs
2. Creditors and Suppliers
   • Evaluate the risk of credit or supply decisions
   • Poor reported numbers can increase perceived risk
3. Employees and Organizations
   • Interested in stability and profitability
   • Concerned about whether the firm can continue as a going concern
4. Academics
   • Use accounting/financial data for research and education
   • Process data to form academic conclusions
5. Management (Company Managers)
   • Responsible for directing operations
   • Information needs vary by company size and industry type
   • Example: banking must prepare reports meeting requirements of Bank Indonesia

Need for Common Accounting Language

• Because many parties rely on the same information, financial reports must use:
  • consistent terminology
  • consistent preparation rules
• This prevents misinterpretation.
• Financial reports are prepared using Generally Accepted Accounting Principles:
  • In Indonesia, referred to as PABU/SAK
  • PSAK stands for Statements of Financial Accounting Standards

Standards-Setting Bodies and Structure

• IAI (Indonesian Accountants Association) is mentioned as preparing guidelines/standards.
• The standards are structured as:
  • SAK (financial accounting standards)
  • containing multiple PSAK (statements of financial accounting standards)

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Areas / Specialization of Accounting

The video outlines several accounting specializations:

Financial Accounting

• Records company transactions and prepares periodic financial reports
• Reports can be annual or quarterly
• Used widely in accounting practice; aligns with Indonesian authority requirements (example mentioned: Financial Services Authority)

Cost Accounting

• Focuses on determining and controlling costs
• Related to production costs in manufacturing
• Used to calculate cost of goods for companies producing tangible goods

Management Accounting

• Includes cost accounting aspects
• Uses historical costs and cost estimates to support:
  • management activities
  • planning
  • selecting among alternative actions and choosing the best option
• Key distinction:
  • Cost accounting focuses on how much product cost is produced
  • Management accounting uses cost information for decision-making

Auditing

• An independent examination of financial reports by auditors/public accountants
• Auditors gather and evaluate evidence supporting accounting records and financial statements
• Auditors provide an opinion on whether financial statements are fairly presented according to applicable accounting standards

Accounting Systems

• Focuses on planning procedures, methods, and techniques to:
  • record and process transactions
• Emphasizes the need for expertise in information technology (IT) because most processing is computerized

Public Sector Accounting

• Covers the public sector, including:
  • central government agencies (e.g., ministries)
  • regional government agencies (e.g., city or district governments)
• Mentioned as a growing area for public-sector institutions

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Basic Concepts of Accounting

The video states there are four basic concepts used in accounting practice:

1) Business Entity Concept

• Accounting is applied to individual economic units (entities) in society
• The entity is treated separately from owners and other entities for accounting purposes

2) Accrual Basis Concept (Basis of Recording)

• Determines when a transaction is recognized
• Contrasts two recording bases:
  • Cash basis
    • Transactions recorded when cash receipts and cash disbursements occur
  • Accrual basis
    • Transactions recorded when they actually occur, not when cash moves
• Highlights a significant difference between cash basis and accrual basis

3) Going Concern / Business Continuity Concept

• Assumes the entity will continue operating
• Therefore, the entity can carry out future transactions

Note: There is a minor wording/order glitch around the “second concept” in the subtitle text, but the three concepts above and the cash-vs-accrual distinction are clearly presented.

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Accounting Equation (Concept and Example)

Core Elements of a Financial Report

• Assets
• Liabilities (debt)
• Equity / Owner’s capital

Relationship

• Assets represent owned resources/wealth
• Liabilities are treated as the source that funds assets
• The equation given:
  • Assets = Liabilities + Equity
• Logic explained:
  • if assets equal liabilities plus equity, then liabilities and equity (together) explain how assets are financed

Worked Example

• Mr. Joko opens a business “ABC”
• Initial expenditures:
  • Buildings worth R million
  • Merchandise inventory worth R million
• Total initial assets needed: R0 million (placeholders are used in the subtitle)
• Mr. Joko has only R0 million capital, so he covers the shortfall with a loan of Rp50 million
• Accounting equation (as presented):
  • Assets (Rp10 million) = Debt (Rp50 million) + Own capital (Rp0 million)
• Breakdown:
  • Assets
    • buildings (R million)
    • inventory (R million)
  • Sources (passive side)
    • debt (R million)
    • own capital (R0 million)

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Conclusion / Takeaways (As Stated)

• The accounting scope topic provides:
  • the definition of accounting
  • the stakeholders/users of financial reports
  • the fields/specializations of accounting
  • the accounting equation

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Speakers / Sources Featured

• Open University lecture program (no individual speaker named in the subtitles)
• IAI (Indonesian Accountants Association)
• Bank Indonesia (mentioned as a reporting requirement example)
• Financial Services Authority / OJK (referenced as an authority for provisions)
• Public accountants / auditors (role referenced; individual names not provided)