AdminAdvertising financial statements is a form of financial statements of a company that is advertised in the mass media. Companies that have this obligation are usually SOEs through the mass media business. Business newspapers such as Cash, Investor Daily, Bisnis Indonesia and so on usually carry a lot of advertisements like this.
The rules regarding the obligations of a SOE company to report their finances to the public are regulated in Act No. 19 of 2003 concerning SOEs. The purpose of a company to report its financial condition is one of them as a public assessment point about the description of the company's financial condition that concerns the interests of many people.
The financial statements themselves are defined as information on the financial condition of a company in an accounting period needed to provide an overview of the financial condition of the company concerned.
Important Points Making Advertising Financial Statements
A company's financial statements that will be advertised through mass media must be prepared in the best format so as to provide a clear picture for the public who need that information. Some important points to note include:
1. Can be understood
To be understood, the preparation of a financial statement before being advertised must follow the rules of the correct accounting standards. The report must be complete covering assets, capital, debt, liabilities, income to the company's expenses. With the correct recording patterns, the public will be better able to understand the company's financial statement advertisements.
2. Reliability
In the rules made by the Indonesian Institute of Accountants (IAI) in 2002, it was stated that one of the requirements for a good financial statement is to have reliability.
A company report published in the mass media must be reliable in terms of information. This reliability will be influenced by many factors such as honesty in the presentation, neutrality and completeness of information
In SOE financial reporting, for example, which was published in the mass media, the government mentioned a ban on polishing the related financial statements of companies. Dishonesty sometimes makes reports look always good, always profitable and experiencing growth, when in fact far from it.
However, the public cannot always be fooled. Through analysis conducted by experts on corporate financial newspaper advertisements can often prove the manipulation is done. Political objectives often fertilize this reason why companies manipulate their financial statements.
3. On time
Delay in the financial statements of a company, especially SOEs will foster public suspicion that tends to be negative. Assumptions will emerge why company X is slow to report, it could be a loss, it could be polishing the report or even other negative things.
Even though there is a government regulation that states that the time limit for depositing financial reports every year, in conditions of loss many companies are still slow to deposit reports, let alone advertise them in the mass media.
4. Valid and not Hoax
A financial statement in a newspaper must have a validity value that can be trusted.
Therefore, before being advertised in a newspaper or other media, the report must be audited first by the Public Accounting Firm. So that later reports that have been published in the mass media have guaranteed validity, not hoaxes and can be trusted.
If in the case of audits are found unnatural things or errors, then advertising may be delayed, including depositing reports to those in need.
5. Trusted Media
In terms of advertising also consider aspects of the chosen level of media confidence. A company's financial advertising is not carelessly published in the mass media online. Usually this report advertisement will be published in special business newspapers that have the best level of trust and have specific readers who need that information.
Even if you have to use online advertising (the influence of technological developments), the presentation of the report is usually in the form of an e-paper that can be validated. Usually online media will list the sources from which they get a copy of the e-paper financial statements and in general are related print media.
It is important to avoid hoax news information about a company's financial condition. Including the selected media scale, media should be on a national reader scale so that the effectiveness of the information can be more widely read by people.
Later, there might be a lot of media reviewing the financial statements. Then it must be ensured that the source of the data contained in the text in the mass media must be valid, complete and can be accounted for.
6. Can be compared
A financial report published in the mass media must be comparable between periods in order to know how the trend of the position and financial performance of a company.
The financial statements must also be used to evaluate the company's financial condition. So one way is, the presentation of the transaction must be done consistently.
For the general public, the existence of financial statements in the mass media may only be used as a general description of the company's financial condition, only limited to information.
However, for the interested parties, this report is very important to understand, analyze and compare to measure the financial performance of a company.
7. Relevant
Financial statements of a company before being published in the mass media must be made in accordance with the objectives of the company. This report also presents information on activities in accordance with the facts of the activities carried out by the company. Activities carried out must be reported, activities that are not carried out do not be manipulated.
