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    Materi Kuliah

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    Marco Lawinata

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    Materi Kuliah

    Uploaded by

    Marco Lawinata
    23 views9 pages

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    materi kuliah

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    23 views9 pages

    Materi Kuliah

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    © All Rights Reserved
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    of 9

    Financial Accounting

    IFRS 4th Edition


    Weygandt ● Kimmel ● Kieso

    Chapter 1

    Accounting in Action
    Accounting Activities and Users
    Three Activities

    LO 1 Copyright ©2019 John Wiley & Son, Inc. 2


    Accounting Activities and Users
    Internal Users

    LO 1 Copyright ©2019 John Wiley & Son, Inc. 3


    Accounting Activities and Users
    External Users (1/2)

    LO 1 Copyright ©2019 John Wiley & Son, Inc. 4


    The Building Blocks of Accounting
    Accounting Standards
    Ensure high-quality financial reporting.

    Primary accounting standard-setting bodies:


    International Accounting Standards Board (IASB)
    • Determines International Financial Reporting Standards (IFRS)
    • Used in 130 countries
    Financial Accounting Standards Board (FASB)
    • Determines generally accepted accounting principles (GAAP)
    • Used by most companies in the U.S.

    LO 2 Copyright ©2019 John Wiley & Son, Inc. 5


    The Building Blocks of Accounting
    Measurement Principles
    IFRS generally uses one of two measurement principles, the historical cost
    principle or the fair value principle.

    Historical cost principle (or cost principle): dictates that companies


    record assets at their cost. This is true not only at the time the
    asset is purchased, but also over the time the asset is held.

    Fair value principle: states that assets and liabilities should be


    reported at fair value (the price received to sell an asset or settle a
    liability).

    LO 2 Copyright ©2019 John Wiley & Son, Inc. 6


    The Building Blocks of Accounting
    Selecting Measurement Principles
    Selection of which principle to follow generally relates to trade-offs between
    relevance and faithful representation.

    Relevance means that financial information is capable of making a


    difference in a decision.
    Faithful representation means that the numbers and descriptions
    match what really existed or happened—they are factual.

    LO 2 Copyright ©2019 John Wiley & Son, Inc. 7


    The Building Blocks of Accounting
    Assumptions
    Assumptions provide a foundation for the accounting process. Two main
    assumptions are the monetary unit assumption and the economic entity
    assumption.

    Monetary unit assumption: requires that companies include in the


    accounting records only transaction data that can be expressed in
    money terms.
    Economic Entity Assumption: requires that the activities of the
    entity be kept separate and distinct from the activities of its owner
    and all other economic entities. Typical entity forms are
    proprietorship, partnership, corporation.

    LO 2 Copyright ©2019 John Wiley & Son, Inc. 8


    Thank You

    Copyright ©2019 John Wiley &


    Son, Inc. 9

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