SIA - Sistem Buku Besar dan Pelaporan

28_YudhistiraK I

3 Aug 202016:22

Summary

TLDRThe script discusses the general ledger and reporting system, presented by Group 6 members. It covers four key activities: updating the general ledger, posting adjusting entries, preparing financial statements, and producing managerial reports. The presentation also outlines potential threats like inaccurate data, unauthorized financial disclosures, and data loss, along with corresponding control measures. Topics include the importance of accurate record-keeping, regulatory compliance, and modern financial reporting methods such as XBRL. The presentation concludes with a focus on managerial reporting and decision-making based on reliable financial data.

Takeaways

📚 The general ledger and reporting system consists of four key activities: updating the general ledger, posting adjusting entries, preparing financial statements, and producing managerial reports.
📊 The system's data flow diagram (DFD) includes four main processes: updating the general ledger, posting entries, preparing financial statements, and producing managerial reports.
💼 The general ledger data store is centralized and supports both internal and external information needs, with managers requiring detailed and timely reports, and investors and creditors expecting regular financial updates.
⚠️ Key threats to the system include inaccurate or untimely updates to the general ledger, unauthorized disclosure of financial information, and the loss or destruction of master data.
🔑 Controls for these threats include data integrity checks, restricted access, encryption, and backup procedures.
💾 The update process for the general ledger includes posting journal entries from the accounting subsystem and treasury, with a journal voucher file used to store all journal entries.
📈 Adjusting journal entries are classified into five categories: accruals, deferrals, estimates, revaluations, and corrections, and are crucial for accurate financial reporting.
🔐 Controls for adjusting journal entries focus on preventing unauthorized entries and ensuring accuracy through processing integrity checks and strong access controls.
🧾 The financial statement preparation process includes closing journal entries to zero out income and expense accounts and moving net income or loss to retained earnings.
📊 The system also supports managerial reporting, with ERP systems helping managers plan and evaluate performance through tools like flexible budgets, balanced scorecards, and well-designed graphs.

Q & A

What are the four basic activities of the general ledger and reporting system?
-The four basic activities are: 1) Updating the general ledger, 2) Posting adjusting journal entries, 3) Preparing financial statements, and 4) Producing managerial reports.
What are the primary data storage systems mentioned in the general ledger process?
-The primary data storage system is the general ledger, while journal vouchers are used to record journal entries.
What is the purpose of a centralized database in the general ledger and reporting system?
-A centralized database is used to meet the information needs of both internal and external users, such as managers, investors, and creditors, by providing timely and accurate reports.
What is the main risk associated with inaccurate or untimely updates to the general ledger?
-Inaccurate or untimely updates can lead to misleading financial reports, which may result in poor decision-making by managers and other stakeholders.
How can unauthorized disclosure of financial information be controlled?
-Unauthorized disclosure can be controlled through access controls and encryption to protect sensitive financial data.
What are some examples of adjusting journal entries, and what purpose do they serve?
-Examples include accruals, deferrals, estimates, revaluations, and corrections. These entries ensure that financial statements accurately reflect the company's financial status by adjusting accounts at the end of the accounting period.
What is the role of the controller's office in the adjusting journal entry process?
-The controller's office provides the original adjusting entries after the initial trial balance is prepared, ensuring the accuracy of the financial statements.
What steps are involved in preparing financial statements?
-Steps include closing temporary accounts, such as revenue and expense accounts, and moving net income to retained earnings. This is followed by preparing the income statement, statement of changes in financial position, and cash flow statement.
What is XBRL, and how does it impact financial reporting?
-XBRL (eXtensible Business Reporting Language) is a programming language designed for the consumption and interpretation of financial data. It allows for the standardization and efficient exchange of financial information.
What are some of the threats associated with managerial reporting, and how can they be mitigated?
-One major threat is poorly designed reports and graphs, which can lead to incorrect decisions. This can be mitigated by using responsibility accounting techniques, such as flexible budgets, balanced scorecards, and understanding proper graph design principles.

Outlines

00:00

📚 Introduction to General Ledger and Reporting System

This paragraph introduces the General Ledger and Reporting System. It outlines four primary activities: updating the general ledger, posting adjusting entries, preparing financial statements, and producing managerial reports. The system supports both internal and external information needs, including timely updates for managers, investors, and creditors. The paragraph also mentions the threats and controls in the system, such as inaccurate or untimely data, unauthorized financial disclosures, and data loss, with controls like data integrity and backup procedures.

05:01

🧾 Detailed Process of Updating the General Ledger

This section delves into the process of updating the general ledger, including posting journal entries from accounting subsystems and treasury. It emphasizes the importance of input accuracy through validation checks and the role of different subsystems in ensuring accurate updates. The paragraph highlights integrity controls, such as reconciliation and audit trails, which ensure that mistakes during the updating process are caught and addressed. It also details the steps to verify the accuracy of balances and journals.

10:02

🔧 Adjusting Entries and Threats in General Ledger Updates

This paragraph explains the different types of adjusting entries, such as accruals, deferrals, estimates, revaluations, and corrections. Each type is illustrated with examples, like depreciation or interest revenue. The section also addresses the risks associated with unauthorized or inaccurate adjusting entries and describes controls, such as strong access control and independent audits, to prevent errors and fraud during the process.

15:05

📊 Financial Statement Preparation and Latest Trends

This part discusses the process of preparing financial statements, such as income statements, balance sheets, and cash flow reports. It includes modern regulations and technological advances that affect the preparation process, like transitioning from local accounting standards to IFRS and the use of XBRL (eXtensible Business Reporting Language). The paragraph explains XBRL terminology and its significance in electronic financial reporting, along with controls to ensure the accuracy and security of financial reports.

Mindmap

Keywords

💡General Ledger

A general ledger is a complete record of all financial transactions made by a company. In the video, it is highlighted as the central database where all financial entries are stored and managed. The process of updating the general ledger ensures that financial data is accurate and up to date, which is critical for producing financial statements and managerial reports.

💡Adjusting Entries

Adjusting entries refer to journal entries made at the end of an accounting period to update accounts before financial statements are prepared. The video discusses this as the second core activity in the general ledger system, helping to align the financial records with actual business transactions that have occurred but may not have been recorded in real-time.

💡Financial Statements

Financial statements are official records that outline the financial activities and condition of a business. The video emphasizes their importance, particularly in providing periodic updates to internal and external stakeholders, such as managers, investors, and creditors. These statements are the result of accurate bookkeeping and adjusting entries in the general ledger.

💡Managerial Reports

Managerial reports provide detailed financial information to assist management in making informed decisions. In the video, managerial reports are presented as one of the four main outputs of the general ledger system, tailored to the needs of internal users to analyze the company's financial health in real-time and support decision-making processes.

💡Journal Voucher

A journal voucher is a document used to record transactions that need to be updated in the general ledger. The video mentions that all journal entries are consolidated into journal vouchers, which serve as the source document for updating financial records and ensuring that both routine and non-routine transactions are accurately reflected in the system.

💡Backup and Disaster Recovery

Backup and disaster recovery procedures refer to measures taken to protect data and ensure its restoration in the event of loss or destruction. In the video, these procedures are mentioned as essential controls to mitigate the threat of data loss or destruction, ensuring the continuity and accuracy of financial records.

💡Responsibility Accounting

Responsibility accounting is a system that measures the results of each department or business unit by comparing actual performance to planned budgets. The video introduces this concept as a managerial control tool, helping managers evaluate their performance through flexible budgeting and balanced scorecards.

💡Audit Trail

An audit trail is a detailed chronological record that traces the financial transactions from the source to their final output in the financial statements. The video emphasizes the importance of an audit trail in providing transparency and allowing errors to be detected and corrected. It helps ensure that financial data is reliable and can be verified through external audits.

💡XBRL (eXtensible Business Reporting Language)

XBRL is a language designed specifically for the electronic communication of business and financial data. The video explains XBRL as a new technology influencing the general ledger and reporting systems, allowing for more efficient and accurate sharing of financial data, particularly in regulatory filings.

💡Reconciliation

Reconciliation is the process of comparing two sets of records to ensure they are in agreement. In the video, reconciliation is discussed as a key control process in updating the general ledger, verifying that all entries are accurate and match the balances from subsidiary ledgers, preventing errors from affecting the financial statements.

Highlights

The four basic activities of the general ledger and reporting system: updating the general ledger, posting adjusting entries, preparing financial statements, and producing managerial reports.

The centralized database used in the general ledger system must cater to the information needs of both internal and external users, such as managers, investors, and creditors.

Data integrity control is essential to avoid inaccurate or untimely financial data, which can lead to misleading reports and poor decision-making.

Access restrictions and encryption are critical to prevent unauthorized disclosure of financial information and premature reporting.

Backup and disaster recovery procedures are necessary to protect the general ledger from data loss or destruction.

General ledger updates involve posting journal entries from accounting subsystems and treasurers for routine and non-routine transactions.

The key control methods for updating the general ledger include validation checks, zero balance checks, and reconciliation processes.

Audit trails ensure that every transaction can be traced back from its origin to the final financial statement output.

There are five basic categories of adjusting journal entries: accruals, deferrals, estimates, revaluations, and corrections.

Unauthorized or inaccurate adjusting journal entries pose a significant threat to the accuracy of financial reports.

Most companies perform a monthly or yearly closing process to prepare financial statements and zero out revenue and expense accounts.

Technological advancements, such as XBRL, have significantly impacted the process of preparing and reporting financial data.

Responsibility accounting and balanced scorecards help managers monitor and evaluate performance across multiple dimensions, including financial, operational, and customer perspectives.

Properly designed charts and reports are crucial for helping management make informed decisions by presenting data trends and relationships effectively.

Independent audits and robust data processing controls are essential to mitigate the risk of fraudulent or inaccurate financial reporting.