Statutory accounting is the mandatory submission of financial and non-financial information to a government agency. Each industry has its own set of laws and regulations that mandate reports. Logiframe statutory accounting service helps companies in preparing this mandatory report to ensure compliance with accepted accounting standards.
Why do I need statutory accounting?
Every industry has a given set of principles for the preparation of financial statements. These principles define how financial transactions should be accounted for in accordance with the rules and regulations of the statutory bodies. In Indonesia statutory accounting is using Indonesia GAAP (Generally Accepted Accounting Principles) or PSAK (Pernyataan Standar Akuntansi Keuangan), in United States of America is using US GAAP, or some other countries (including Indonesia) has harmonized its local GAAP with internationally accepted accounting standards which is known as International Financial Reporting Standard (IFRS).
On the other hand, GAAP provides a common set of accounting standards, procedures and rules that are defined by the professional accountancy body. Almost every publicly traded company in the United States has adopted GAAP. These principles provide authoritative accounting standards as well as commonly accepted methods of recording and reporting accounting transactions. Companies are required to follow GAAP in order to increase investors’ confidence to use financial information of the company for investment purposes.
What is the product of Statutory Accounting?
Product of statutory accounting is a set of financial statements which consisted of balance sheet, profit and loss, shareholders’ equity, cash flows, and notes to the financial statements.
Do you have further questions about statutory accounting service? Contact us to get in touch with Logiframe consultants.