FINANCIAL STATEMENT PRESENTATION STANDARDS FOR A TAX CONSULTANT’S CLIENT COMPANY IN BALI

 

By:   Adv. Ida Bagus Made Utama, S.E.,S.H.,M.H, BKP.,CPCLE

           Tax Consultant in Bali

 

The comprehension of tax consultants in Bali regarding the standardized display of financial statements has enhanced. If financial statements are presented consistently and employ comparable descriptions for similar items, the understanding and comparison of financial statements among different companies will advance. However, implementing such uniformity may prove challenging and hinder companies from providing pertinent information tailored to their unique circumstances and requirements. Hence, it is crucial to enhance the quality of financial statements presented in line with the Financial Accounting Standards by other means.

1. The financial statements should adhere to the guidelines set out in the SAK (Standar Akuntansi Keuangan) Statement, including the necessary disclosure requirements.
2. The financial statements should adhere to the guidelines set out in the SAK Statement, including the necessary disclosure requirements. The financial statements should adhere to the guidelines set out in the SAK Statement, including the necessary disclosure requirements. The financial statements must contain all major components, accounting policies, and notes to comply with structure guidelines.
3. The implementation of feasible guidelines for concerns regarding Materiality, business continuity, Preference of Accounting Policies in the non-existence of provisions by the SAK Statements, Uniformity, and Demonstration of Comparative Data.

In order to establish a framework for producing general-purpose financial statements, referred to henceforth as “Financial Statements”, that can be compared to both previous periods’ company financial statements and those of other companies, certain transactions and events are subject to recognition, measurement, and disclosure regulations as outlined by the relevant Accounting Standards Directive.

General purpose financial statements are financial statements designed to meet the common requirements of most users, including tax consultants in Bali who are legally obligated to comprehend them. These statements also encompass financial statements presented separately or in other public documents, such as annual reports or prospectuses. This statement is also applicable to consolidated financial statements.

It also employs terminology appropriate for-profit enterprises. Not-profit organizations and other enterprises adhering to this standard may need to modify certain financial statement descriptions and terminologies and may also include supplementary elements in their financial statements.

The purpose of general-purpose financial statements is to provide information about the company’s financial position, performance and cash flow that is useful for most users of the report in order to make economic decisions and show management’s accountability (stewardship) for the users of the resources entrusted to them. In order to achieve these objectives, a financial report presents information about the company which includes:

a). assets

b). liabilities

c). equity

d). income and expenses including gains and losses; and

e). cash flows

The information provided above and in the financial statement notes assists report users in forecasting future cash flows, particularly in relation to the timing and likelihood of obtaining cash and cash equivalents.

The company’s management holds responsibility for the preparation and presentation of its financial statements, which will ultimately be submitted to a tax consultant with expertise in Bali.

The components of a complete Financial Statement consist of:

a). balance sheet

b). income statement

c). statement of changes in equity,

d). cash flow statement, and

e). notes to the financial statements

Companies should provide a financial review that outlines the key attributes influencing their financial performance, position, and uncertainty.  Environmental and value-added statements should also be included, especially for industries that value environmental factors or with employees as a crucial user group. This would also apply to tax consultants operating in Bali.

 

The author is a Tax Consultant in Bali Registered with the Directorate General of Taxes, Managing Partner at IBU Consulting Denpasar and Lawyer at World Prime Law Firm and lecturer at many Universities in Bali.