Balance Sheet

Balance Sheet (English: Balance Sheet or Statement of Financial Position) is part of a company's financial statements resulting in an accounting period that shows the company's financial position at the end of the period. Balance consists of three elements, namely assets, liabilities, and capital associated with the following equation:

Statement of Financial Accounting Standard

In accordance with PSAK No.1 issued by the Indonesian Institute of Accountants mentioned in the balance sheet:

* Company presents current assets separately from non-current assets and short-term liabilities separately from long-term liabilities except for certain industries regulated by a special SAK. Current assets are presented according to the size of liquidity while the liabilities are presented in order of maturity.
* The company must disclose the information amount of each asset to be received and paid duty before and after twelve months from the balance sheet date.
* If a company provides goods or services in a cycle of operations which can be clearly identified, then the classification of current assets and non-current and short-term liabilities and long-term balance sheet to provide useful information by distinguishing the net assets as working capital to assets used for operations long-term.


The elements of the report usually consists of

* Revenue from sales
o Less Cost of sales
* Profit / loss dirty
o Reduced operating costs
* Profit / loss surgery
o Plus or minus income / other expenses
* Profit / loss before tax
o Reduced tax costs
* Profit / loss net

Benefits of cash flow information

* Cash flow information is useful as an indicator of cash flows in the future, as well as useful to assess the accuracy of the estimated cash flows that have been made previously.
* Statements of cash flows also become a tool of accountability cash inflows and cash flow out during the reporting period.
* If associated with other financial statements, cash flow statements provide useful information for users in evaluating the changes in reporting net worth / equity funds reporting entity and the government's financial structure (including liquidity and solvency).

In accounting terms, the obligation is a debt to be repaid or service should be done in the future on the other side. Liability is the opposite of that asset is something owned. Examples obligation is money borrowed from the other side, demand deposits or checks that have not been paid, and sales taxes that have not been paid to the state.

Liabilities included in the balance sheet report with a normal balance of credit, and is usually divided into two groups, namely:

1. Current Liabilities - obligations that can be expected to be paid in the short term (usually one year). Usually consists of debt payments (payables, payroll, taxes, etc.), deferred revenue, part of the long-term debt maturing this year, short-term bonds (such as the purchase of equipment), etc..
2. Long-term obligations - obligations that can not be fulfilled within one year. Usually consists of long-term debt, pension obligations, etc..