The Preparation of Not-For-Profit Organization Financial Statement: A Case Study on The Financial Statement of Indriya-Nati Foundation, Daerah Istimewa Yogyakarta

Abstract

Sari, Diah Nur Eko (2004). The Preparation of Not-for-Profit Organization Financial Statement: A Case Study on The Financial Statement of Indriya-nati Foundation, Daerah Istimewa Yogyakarta. Yogyakarta Accounting Department. International Program. Faculty of Economics. Islamic University of Indonesia. The existences of social empowerment institutions are very important to support and motivate independent society in Indonesia. Accountability of social empowerment institution as not-for-profit organization becomes an important part for the public. One of the instruments to declare accountability is by using financial statement. Many not-for-profit organizations still use cash basis in financial record whereas accrual basis gives more accurate financial description inside the organization. The accurate financial descriptions needed to predict future financial condition, evaluation, and organization's sustainability - where most not-profit-organizations live from the impermanent donor's donation. To give a guideline on the accounting report for not-for-profitorganization, The Association of Indonesian Accountant (IAI) has already promulgated the accounting standards. The standards established by IAI concerning accounting treatment of not-for-profit organization are Financial Accounting Standards, Statement No. 45 about Financial Statement of Not-for- Profit Organization. Therefore, the research is focused on organization's financial report system and its accordance with SFAS No. 45. Jo find out the implementation of financial statement that in accordance with SFAS No. 45, the researcher observes the financial statement of not-forprofit organization within a case study on the Financial Statement ofIndriya-nati Foundation, Daerah Istimewa Yogyakarta. Based on the research and evaluation done by the researcher, then it can be concluded that Indriya-nati Foundation has no appropriate internal control in its accounting system and has no accurate data about fixed asset, account receivable, and account payable. Then, Indriya-nati Foundation could not prepare financial statement that is in accordance with SFAS No. 45. Some suggestions have already been provided for improvement in Indriyanati Foundation accounting system-performance. The proposed financial statement in this research can be used as a basic-and guidance for the organization's next period financial statement.