ACCOUNTING AND FINANCIAL STATEMENTS
Preparation and Presentation of Financial Statements referring to the Financial Accounting Standards set by the Financial Accounting Standards Board-IAI.
• Accounting is often called the "language of business" because accounting is an information system that provides reports for interested parties (stakeholders) about the economic activities and condition of a company. Accounting can be defined as the process of recording, measuring and delivering economic information that can be used as a basis for decision making or discretion. Information is presented in the form of accounting records or better known as financial statements.
Purpose financial statements:
provide information about the financial position, performance and cash flows of the company for the benefit of the majority of users report in order to make economic decisions and demonstrate accountability (stewardship) management over the use of the resources entrusted to them.
• There are four main types of financial statements, the balance sheet (statement of changes in financial position), income statement, statement of changes in equity and cash flow statement.
• Parties relating to the financial statements are IAI, Bapepam, the JSE, the Tax Office and the Office of Public Accountants (Auditors) and other financial statement users. In a different way each party has the same goal, namely producing quality financial reports (can be trusted and reliable, relevant, and timely).

• The financial statements of a company consists of the following.
1. Income Statement.
2. Statement of Changes in Equity.
3. Balance Sheet report.
4. Statement of Cash Flows.