Financial Accounting Standards

Financial Accounting Standards are guidelines that must be a reference in the preparation of financial statements for the purpose of reporting to users outside the company's management. In order for the information presented in the financial statements are not misleading and do not give rise to misunderstandings. As a basic guideline preparation and presentation of financial statements, financial accounting standards absolutely need to be developed in line with the development of the business world. Indonesian Accountants Association (IAI) as the organization of the accounting profession in Indonesia, in 1973 had succeeded in preparing accounting standards applicable in Indonesia known as the Indonesian Accounting Principles (PAI). After several revisions to the Indonesian Accounting Principles, since 1994 Indonesia has had Framework for the Preparation and Presentation of Financial Statements, as well as a set of accounting standards which Setarap international standards.