Presentation of financial statements of a non-profit oriented entity based on isak 35 at the original gelora kasih sibolangit

Abstract

Entity characteristics are different from business entities. The main difference lies in the way the company obtains the resources needed to carry out its various operating activities. An entity obtains a resource from a resource provider who does not expect repayment or economic benefits commensurate with the amount of the resource provided. This study aims to evaluate the implementation of financial reports at the Gelora Kasih Orphanage Sibolangit based on the Interpretation of Financial Accounting Standards Number 35. So far, the Gelora Kasih Orphanage still uses financial reports as cash in and cash out. This study aims to describe the financial statements of the Gelora Kasih Orphanage with a complete financial report based on ISAK 35 with an auxiliary application, namely Microsoft Excel. Although non-profit organizations do not focus on making profit, they still face financial problems because non-profit organizations have budgets, pay employees, pay bills, electricity and telephone and other financial problems. In addition, there are special characteristics of non-profit organizations in obtaining the necessary resources to carry out their operational activities. Non-profit organizations obtain funds from contributions from donors who do not expect repayment or receive economic benefits commensurate with the funds provided (PSAK 45, 2015). This privilege has characteristics that give rise to different types of transactions, business cycles, financial management patterns, accounting treatment and financial reporting needs of business entities in general (IAI, 2018). The Orphanage is a non-profit organization. The orphanage is a social welfare business institution that has the responsibility to provide social welfare services to neglected children by carrying out sponsorship and alleviation of neglected children, providing physical, mental, and social substitute services for foster children.