MID SEMESTER TEST
ARDZYKA
RAKA RAMADHAN
1910631030065
Submitted
to Fulfill Mid Semester Test
Irvan
Yoga Pradistya SE.,MM.,Ak.,CA
UNIVERSITY
OF SINGAPERBANGSA KARAWANG
2019
TABLE OF CONTENS
TABLE OF CONTENS
CHAPTER I
BACKGROUND
1.1 Resume
1.2 Question
CHAPTER II
THEORY
2.1 Defition Accounting
2.2 Definition Of financial Accounting
2.2.1 Scope of financial accounting
2.2.2 Function of Financial Accounting
2.2.3 Benefits of Financial Accounting
CHAPTER III
DISCUSSION
3.1 Company Profile
3.2 Discussion
3.2.1 What is the topic about?
3.2.2 Who is was involved in case?
3.2.3 When this case occured?
3.2.4 Where is this case happening?
3.2.5 Why this case can happen?
3.2.6 How this case can happen?
CHAPTER
I
BACKGROUND
1.1 Resume
in
this resume I will discuss the issue of financial statements which presents
examples of the decline in GE General Electric shares after considering
falsifying financial statements requires investors to distrust and trust harmed
over the incident and I will explain accounting according to experts and myself
,But more focused on financial
Accounting
precisely
since April 2008, at the close of trading on the United States stock exchange
(US) on Thursday (8/15). This stock closed down 11% to the level of US $ 8.01
per share. As a result, GE's market capitalization value declined from
Wednesday's (8/14) position of US $ 78.8 billion to US $ 69.9 billion after its
share price declined at the close of trading on Thursday.
The
drop in GE shares was the aftermath of a report claiming that this
multinational company had manipulated its financial statements to hide the
company's financial problems. One way is to change the format of financial
statements every 2-4 years, so that the performance cannot be analyzed
according
to the chart above, we can see the dynamics index of GE general electrics
shares in the last 5 years that have decreased due to this case according to
the graph above we can see the dynamics index of GE general electrics shares in
the last 5 years that have decreased due to this case
1.2
Question
1. What is the topic about?
2.
Who
is was involved in case?
3.
When
this case occured?
4.
Where
is this case happening?
5.
Why
this case can happen?
6.
How
this case can happen?
CHAPTER II
THEORY
THEORY
2.1 Defition Accounting
According
to American Institute of Certificate Public Accounting
Accounting is an information system
that identifies records and communicates the economic events of an organization
to interested users.
According
to Weygant, Kieso and Kimmel
In this changing world human life is
also changing. With the change of everything trade and commerce is also
changing, with the changes, modifications and complexities of business. With
the development of technology the implication of Accounting has achieved a new
shape.
According
to the American Accounting Association
‘Accounting is the art of recording,
classifying, summarizing in a significant manner in terms of money transaction
or events which are in part of at least of a financial character and
interpreting there of.’
According to Suparwoto L
Accounting
is as a technique or system for measuring and managing financial transactions
and presenting the results of management in the form of information to internal
and external parties of the company. External parties include investors,
creditors, governments, trade unions and so on.
According to Soemarsono S.R (2004)
Accounting
is the process of identifying, measuring and reporting economic information to
enable clear and explicit assessments and decisions for those who use that
information.
Paul Grady
Accounting is a process
that begins by recording, grouping, processing and presenting data, recording
any transactions related to finance so that the information obtained is used by
people who are competent with the information, and the information is used as
material for making a decision.
2.2 Definition
Of financial Accounting
According to Donald E. Kieso, etal (2008: 2)
Financial
accounting is a process that leads to the preparation of financial statements
relating to the company as a whole for use by both internal parties and
external parties. "(2008: 2)
According to Martani (2012: 8)
Financial accounting is oriented towards reporting external parties. The diversity of external parties with the aim of detailed for each party to make the makers of financial statements using the principles and assumptions in making financial statements.
According to Jogianto, 1997:
54
Financial
accounting is the provision of relevant information in the form of periodic
reports, such as income statements, balance sheets, retained earnings, reports
of changes in capital used by internal or external parties of the company as
consideration in management making decisions.
Definition of Financial
Accounting Standards (SAK)
Financial
Accounting Standards (SAK) is a framework in the procedure of making financial
statements so that there is uniformity in the delivery of financial statements
(Augustyas, 2011).
Financial Accounting is one part of accounting
relating to the presentation of the company's financial statements to external
parties in the form of balance sheet, income statement, Changes in Capital and
Cash Flow to shareholders, creditors or investors, especially regarding
profitability and credibility of the company, to suppliers, and the government
.
2.2.1 Scope
of financial accounting
For the scope of information, the Financial
Accounting report generally presents financial information about the company as
a whole. Balance sheet (statement of financial position) that presents the
assets, liabilities (liabilities), and the company's capital as a whole, or the
Income Statement (comprehensive income statement) which presents the results of
activities of the company as a whole. Because the purpose of financial
statements for users from outside the company, the information contained in the
financial statements is more in the form of a summary (summary) and describes
the overall financial company. This is very important for users of financial
statements from outside the company as an extension of information about the
company as a whole.
2.2.2 Function of Financial Accounting
1.
Helping the company
to determine the rights for each party that has a stake in the company, both
parties from within the company or external parties. The rights referred to are
profit rights or profit rights for providers of corporate funds, the right to
repay loans for corporate investors, the right for the government, and the
rights for internal company, namely management rights and all employees. Fund
providers or shareholders of a company not only need but the right to know the
company's targets in the future and predict future losses.
2.
As a monitor and
controlling various activities that occur in the company. Company activities
must always be given supervision to prevent and minimize potential losses.
Supervision can be carried out by internal parties, namely shareholders and
also external parties, namely the government through economic policies for each
company.
3.
To check the
advantages and disadvantages of a company. What is meant by checking here is that
a financial accountant must look, detail and calculate how much profit and loss
that happens to the company. Profits and losses are really needed by a company
to predict the potential for profit in the future and prevent losses.
4.
As a form of
reporting to company management. As an accountant, of course we are given a
form of accountability not only external parties such as shareholders or fund
providers but also internal company parties such as company management so it is
fitting for company management to know all forms of financial information. This
financial information is a form of description used by company management for
evaluation materials in considering the steps taken by the company.
5.
In order to help the
company achieve predetermined goals. Of course, from the beginning the parties
have determined the goals or targets used as a reference, then an accountant is
required to provide financial transaction information so that the company can
analyze, evaluate and achieve the targets that have been determined.
2.2.3 Benefits of Financial Accounting
1. Disclose other information relating to financial
statements for the benefit and needs of users of the notes to the financial
statements
2. Helping users of financial information in estimating
a company's potential or opportunity to make a profit.
3. Provides reliable information about Assets,
Liabilities, and Capital.
4. Easily achieve a set goal.
5. Manage, control, and supervise company activities.
6. Providing accurate and reliable information is
useful for management so that changes in the company's economic resources can
be identified.
7. Make it easy for companies to calculate and
determine the rights of internal parties and external parties.
8. Help the company to find out the profit gained.
CHAPTER III
DISCUSSION
3.1 Company Profile
General Electric Co. is a
technology and financial services company that develops and manufactures
products for the generation, transmission, distribution, control and
utilization of electricity. Its products and services include aircraft engines,
power generation, water processing, security technology, medical imaging,
business and consumer financing, media content and industrial products.
The company operates through the following
segments: Power, Oil & Gas, Aviation, Healthcare, Transportation, Appliances
& Lighting and GE Capital. The Power segment serves power generation,
industrial, government and other customers worldwide with products and services
related to energy production. The company was founded by Thomas A. Edison in
1878 and is headquartered in Boston, MA
3.2 Discussion
3.2.1 What
is the topic about?
Topics in this discussion include about GE’s stock plunged more than 11
percent Thursday after Harry Markopolos, the whistleblower who raised flags
about Bernie Madoff’s Ponzi scheme in 2008, published a 175-page report alleging the company misled investors in financial
statements to the tune of $38 billion.
3.2.2 Who is was involved in case?
The
person who involved in this case is Madoff
Harry Markopolos with the team in uncovering cases of manipulation of GE
financial data and also Lawrence Culp as CEO and chairman of GE
3.2.3 When this case occured?
This case is occurred in january
2019 markopolos and his team succeeded in uncovering a case of stock fraud on
GE, but this case was only revealed in august 2019
3.2.4 Where is this case happening?
this
case happening in Boston, Massachusetts, United States
3.2.5 Why this case can happen?
this
case can happen because of data manipulation in GE General Electrics' financial
statements that caused investors to lose as much as $ 38 billion
3.2.6 How this case can happen?
This case began in January 2019
when Marcopolos and his team succeeded in uncovering the act of manipulating
financial statement data that was not within the budget within the past 5
years, in its disclosure it turned out that GE was manipulating at least within
2-4 years at that time. In this data falsification act, it rained so that GE
could reap as much profit as possible from the investors
REFERENCES
Bitar 26/10/2019 Pengertian Akuntansi Menurut Para Ahli diakses pada 4 november 2019 dari https://www.gurupendidikan.co.id/pengertian-akuntansi/
Define Accounting diakses pada 4 november 2019 dari https://www.assignmentpoint.com/business/accounting/define-accounting.html
Jonnelle Marte 8/16/2019 General Electric shares plunge after report alleges it’s a ‘bigger fraud than Enron’ diakses pada 4 november https://www.washingtonpost.com/business/2019/08/15/general-electric-shares-fall-after-new-report-alleges-bigger-fraud-than-enron/
Rachel Siegel 8/20/2019 General Electric issues expanded response about fraud allegations, financial reporting diakses pada 4 november https://www.washingtonpost.com/business/2019/08/19/general-electric-issues-expanded-response-about-fraud-allegations-financial-reporting/
Fariha Sulmaihati 16/8/2019 Dituding Palsukan Laporan Keuangan, Saham GE Anjlok 11% diakses pada 4 november https://katadata.co.id/berita/2019/08/16/dituding-palsukan-laporan-keuangan-saham-ge-anjlok-11
Maldiani Pratiwi 22/12/2017 Fungsi Akuntansi Keuangan Terlengkap diakses pada 4 november https://dosenakuntansi.com/fungsi-akuntansi-keuangan
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