Accounting Standards and Quality of Financial Statements: A Case Study of Tirta Binangun Kulon Progo

Abstract

This research examines the application of accounting standards and their impact on the quality of financial statements at Tirta Binangun Company, Kulon Progo. Using a qualitative approach, data were collected through interviews and analyzed descriptively. The study focused on employees from the company's finance department as respondents. Financial statements represent the financial condition of a company over a specific period, providing insights into its performance through various reports such as balance sheets, income statements, cash flow statements, and statements of changes in equity. These reports serve as tools for communicating financial information to stakeholders. In Indonesia, Financial Accounting Standards (SAK) are developed by the Financial Accounting Standards Board under the Indonesian Accountants Association. These standards establish guidelines for preparing, recording, and presenting financial data to ensure uniformity and clarity for users. The findings of the study indicate that the implementation of accounting standards significantly influences the quality of the company's financial reports. This conclusion is supported by data obtained from interviews with respondents. Through adherence to SAK, Tirta Binangun Company ensures that its financial statements are comprehensible, consistent, and reliable, thereby meeting the needs of various stakeholders.