Independent Auditor’s Report

This study aims to analyze the preparation of the financial statements of the Baitul Makmur Situbondo Mosque based on ISAK No. 35. The type of research used is descriptive qualitative research. Data collection techniques were obtained through observation, interviews and documentation. The data obtained are secondary data and primary data. The results of this study indicate that the mosque's financial statements are not in accordance with ISAK No. 35. Then the mosque's financial statements were reconstructed in accordance with ISAK No. 35 by identifying transactions, making general journals, posting to the general ledger, making trial balances before adjustment, adjusting journals, trial balance after adjustment, preparing financial statements, closing journals, and the post-closing trial balance. And the final results of the accounting process are statements of financial position, statements of comprehensive income, reports of changes in net assets, statements of cash flows, and notes to financial statements.

This chapter discusses different reporting or disclosure requirements introduced by a nongovernmental not-for-profit entity (NFP). FASB ASC 958-205-50-1 requires that the financial statements provide a description of the nature of the entity's activities, including a description of each of its major classes of programs, either on the statement of activities or in the notes to the financial statements. Some entities combine these two items into one note; others put them in two separate notes. Resources are classified for accounting and financial reporting purposes into categories established according to their nature and purposes to ensure observance of limitations and restrictions placed on their use. The assets, liabilities, and net assets of the Organization are reported in two categories: Net assets without donor restrictions and Net assets with donor restrictions. Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulation or by law. Expirations of donor-imposed restrictions on net assets are reported as reclassifications between the applicable classes of net assets. Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if the restrictions are met in the fiscal year in which the contributions are received.

This study aims to apply the concept of ISAK 35 concerning the Presentation of Financial Statements of Non-Profit Oriented Entities at the Al – Marhamah Orphanage in Medan. The concept of ISAK 35 is to allow non-profit-oriented entities to adjust the descriptions used for some of the posts contained in the financial statements and the financial statements themselves include statements of financial position, comprehensive income statements, reports of changes in net assets, statements of cash flows, and notes to financial statements. At the Al-Marhamah Orphanage in Medan, it has not yet implemented or made financial statements in accordance with this concept, so researchers apply the financial statements. The purpose of this study is to find out how the presentation of financial statements at the Al - Marhamah Medan Orphanage in accordance with the concept of ISAK 35 and to find out the benefits of financial statements that have used ISAK 35 for the Al - Marhamah Medan Orphanage. The data types used are primary data and secondary data. Data collection techniques are carried out using interview and documentation techniques. The data analysis method used is descriptive qualitative. The results of this study are the form of financial statements at the Al - Marhamah Medan Orphanage in 2020 has been adjusted to the concept of ISAK 35, which consists of a Comprehensive Income Report, Cash Flow Statement, Net Asset Change Report, Financial Position Report and Notes to Financial Statements, improving the quality of their financial statements, which later serves as an easier for aid providers to read how the financial statements are and to complete the elements Financial statements and making it easier to find out the surplus (deficit) of orphanage assets in the current year, besides being important, are also very helpful for the following years

PurposeThis paper aims to investigate whether Brazilian firms that legally bond to stricter enforcement and commit to stringent corporate governance requirements experience increased value relevance of discretionary fair value measurements (Levels 2 and 3), and how different measurement levels are associated with firms’ systematic risk.Design/methodology/approachThe Brazilian data’s distinctive feature helps in analyzing fair value’s relevance in an emerging market with heterogeneous enforcement regimes. Given the inherent self-selection in corporate governance levels and cross-listing decisions, the authors use a two-step generalized method of moments approach. Building upon Song et al.’s (2010) framework, the authors carefully address potential selection biases. Furthermore, the authors expand Riedl and Serafeim’s (2011) model, based on Ohlson’s (1995) model, to explore whether the negative correlation between Level 1 net assets (assets minus liabilities) and firms’ beta is more pronounced compared to Levels 2 or 3 net assets. Additionally, the authors investigate whether this relationship intensifies when firms align themselves with enhanced governance structures and stricter enforcement regimes.FindingsFair value measurements which require more judgment (Levels 2 and 3) are more value-relevant when a firm is legally bonded to higher enforcement and better corporate governance. Level 1 fair values of these firms’ net assets are associated with lower systematic risk, while Levels 2 and 3 fair values (high subjectivity valuation) are not.Originality/valueThe authors show that firms that bond to better corporate governance and stricter enforcement regimes mitigate the information risk involved in subjective fair-value measurements.

In accordance with Peter Koch’s letter of Intent a joint FPS and SWST Committee was formed to oversee the management of the Peter and Doris Koch Endowment Funds in 2017. Peter Koch indicated that the purpose of the Oversight Committee is “to audit the previous year’s actions regarding the three endowment funds” and “rule annually on whether the terms of the letter of intent are being met.” On December 31, 2021, the value of the Koch Endowment was $1,396,706. On December 31, 2020 the value of the Koch Endowment was $1,208,747. The value on December 31, 2019 was $983,043. The rate of return for 2021 was an estimated 15.5%. The current value for the three Koch funds as of May 31, 2022 is $1,311,115. The joint oversight committee met on July 26, 2022 and agreed unanimously that the terms of the agreement are being met.Peter and Doris Koch provided 3 endowment funds which are being managed by the Forest Products Society using directions in Peter Koch’s letters dated April 23, 1996 (attached); July 21, 1997; August 31, 1997 and in the Will of Doris Koch dated November 7, 2017. Peter Koch directed that a joint FPS/ SWST oversight committee review the management of the investments annually after the passing of Doris Koch. Doris Koch passed away in 2017.As called for in Peter’s April 23, 1996 letter of intent (LOI) this report provides – 1) the full letter dated April 23, 1996, and for the three Koch funds, 2) a statement of 2020 transactions, and 3) a statement of the current and past years’ net asset values.The three Peter and Doris H. Koch Endowment funds areThe total value of the Koch Endowment on December 31, 2021 was $1,396,706 and on December 31, 2020 was $1,208,747. The estimated was return 15.5% for 2021.The 2021 return for the Basic, the Intermediate fund and the Centennial funds were 9.5%, 24%, and 15.8%, respectively.We compare fund returns to returns for two benchmark investments. For the Intermediate and Centennial funds that are entirely in stocks, we compare return to the Vanguard Total Stock Market Index. For 2019, the return for these two funds were less than the Index, 28.1% and 7.6% versus 30.8%. For 2020, the return for these two funds were less than the Index, 13.6% and -3.9% versus 21.0%. For 2021, the return for these two funds was less than the Index, 24% and 15.8% versus 25.6%For the Koch Basic fund which is a mix of stocks and bonds, we compared return to a portfolio of 3 Vanguard funds used to meet the IMC Charter guidelines for a conservative, income producing investment.Transactions are for January to December for the Vanguard accounts.This table below represents the gain YTDAccounts are directly managed by Raymond James (a.k.a, Erik Lawser).The Vanguard 500 Index is always held, and an analysis is done to identify 3 other mutual funds invested in small, medium and large capitalization companies, respectively. Peter Koch indicates that an analysis should be done every other year (we use the beginning of even numbered years) to determine the best stock mutual funds in the small, medium and large capitalization categories for the next two years (beginning in January of even numbered years) using data from Morningstar.com. Peter indicated screening factors in his letters dated April 23, 1996; July 21, 1997 and August 31, 1997.Vanguard 500 Index Fund; Jensen Quality Growth Fund; Touchstone Mid Cap Fund; Fidelity Advisor Small Cap Fund make up this fund in 2022 where we sold Parnassus Mid Cap Fund; Vanguard Dividend Growth Fund; and Vanguard Tax Managed Small Cap Fund as part of the rebalancing.The Centennial fund is to be invested at the beginning of each year in 4 of the 5 Small Dogs of the Dow - with the stock having the lowest per share price being excluded.The 4 Small Dogs of the Dow on December 31, 2021 were Walgreens, Dow, Verizon, Coca-Cola. Changes for 2022 (from 2021) included dropping Cisco and adding Walgreens.In accordance with Peter Koch’s direction in his letter dated April 23, 1996, p. 8, shown below, a notice will be placed in the Forest Products Journal after the July 2022 meeting of the Joint FPS/SWST Oversight Committee.1) Peter Koch’s letter of intent dated April 23, 1996

Background/Objectives: This research aims at improving the methodological framework, as well as calculation and procedural mechanism of measuring and recognizing derivative financial instruments by firms. Methods/Statistical analysis: The researchers used the following methods: abstract method; induction method; deduction method. Findings: Relevant challenges of transforming financial interests in accordance with the requirements of international standards, and transactions with derivative financial instruments in particular, have been discussed in this article. As a result of this research, the authors have presented key problems that arise in transformation of statements; original methodology of transforming financial instruments in accordance with the requirements of international financial reporting standards, and have developed detailed calculation tools to be applied in basic forms of financial statements of any firm, i.e. a statement of financial position and statement of total income. The authors have developed an overall fair and amortised cost measurement methodology for financial statements, and then provided a special measurement procedure for derivative financial instruments that includes measurement formulas for forward, future, option, swap contracts and warrants. Applications/Improvements: This methodology may be applied by organizations that transform their financial statements in accordance with the requirements of international financial reporting standards, including credit institutions, insurance companies, investment funds and town planning organizations that undergo listing procedure.

Mosques are non-profit entities that use guidelines from Financial Accounting Standards Interpretation (ISAK) 35 in preparing their financial statements. The purpose of this study is to analyze the compliance of the financial statements of the Kalianda Grand Mosque with ISAK 35. The research method used is qualitative, and data was obtained from observations, interviews, and documentation at the Kalianda Grand Mosque. The results of this study indicate that the financial statements of the Kalianda Grand Mosque are not yet in accordance with ISAK 35. The preparation of the financial statements of the Kalianda Grand Mosque only consists of recording cash outflows and inflows. Financial statements of the Kalianda Grand Mosque that comply with ISAK 35 consist of a Statement of Financial Position, a Statement of Comprehensive Income, a Statement of Changes in Net Assets, a Cash Flow Statement, and Notes to the Financial Statements.

Abstract— The purpose of this research is to assist Langgeng Bakery 99 in preparing financial statements for 2018 and 2019 in accordance with the Financial Accounting Standards for Micro, Small and Medium Enterprises (SAK EMKM) intended as a reference in preparing financial statements for MSMEs and provide information about filling the Annual Tax Return. The preparation of financial statements based on SAK EMKM will present three financial statements, namely the income statement, statement of financial position, and notes to the financial statements . Source of data used in this research are primary data and secondary data. The type of data used is quantitative data and qualitative data . Data collection is done by interview, observation, documentation study, and data triangulation. The results of this research are financial statements based on SAK EMKM, including: comparative income statement which shows the net profit after tax of Langgeng Bakery 99 in 2018 is Rp220,471,627 and in 2019 is Rp306,977,942, a comparative statement of financial position that presents total assets in 2018 and total liabilities and equity equal to Rp1,270,885,794 and for 2019 of Rp1,493,196,958, as well as notes to the financial statements and annual tax return of Langgeng Bakery 99 tax year 2019. The researcher suggests that Langgeng Bakery 99 will continue to compile financial statements based on SAK EMKM in accordance with what has been made by researchers to make it easier for companies in tax reporting and business development . Keywords— : UMKM, Financial Statement, SAK EMKM, Annual Personal Income Taxpayers Tax Return (Form 1770).

Introduction This study assesses the relation between fair values of equity and fixed maturity debt securities and share prices of property-liability insurers. The results provide the first evidence on the valuation implications of financial statement disclosures regarding fair value estimates for the majority of assets held by insurers. This evidence is important because, beginning with financial statements for year-end 1994, the Financial Accounting Standards Board's (FASB) Statement of Financial Accounting Standards No. 115 (SFAS 115), Accounting for Certain Investments in Debt and Equity Securities, requires formal balance sheet recognition of fair values for considerably more investment securities than was previously the case. The new accounting standard could have a substantial impact on earnings, assets, and capital of property-liability insurers because investment securities comprise over 60 percent of the total assets of a typical property-liability insurer. The economic consequences of balance sheet recognition of fair values for investment securities are debated widely. The controversy centers primarily on whether fair value estimates for investment securities are sufficiently reliable to be valuation-relevant. Advocates of fair value accounting, including former Securities Exchange Commission (SEC) Chairman Breeden, assert that recognition of fair values will enhance the relevance of information in financial statements (Wall Street Journal, January 8, 1992). Opponents, including Federal Reserve Board Chairman Greenspan and various representatives of the financial services industry, assert that estimates of fair values of thinly-traded securities will be unreliable and, thus, valuation-irrelevant (Wall Street Journal, November 8, 1990). In addition, opponents assert that fair value accounting will induce additional volatility in earnings and capital measures that does not reliably reflect underlying economic volatility, leading to inefficient capital allocation decisions by investors and excessive intervention by regulators.(1) The FASB (1980) cites relevance and reliability as the two principal criteria for choosing among accounting alternatives. The FASB defines relevant information as that which is capable of influencing decisions, and reliable information as that which is verifiable. These two characteristics are clearly not independent. In this setting, fair values of key assets such as investments are likely to be considered relevant by investors, if disclosed fair values are sufficiently reliable.(2) Since fair values must be estimated for certain securities, estimation error could impair the value-relevance of related disclosures.(3) This study tests the relevance and reliability of fair value disclosures by analyzing their association with share prices of property-liability insurers. Prior research on accounting for investments, which has focused primarily on banking, has shown that fair value estimates help explain bank share prices.(4) However, prior work does not detect a link between fair value gains and losses and bank stock returns, perhaps because of measurement error in changes in fair value estimates (Barth, 1994). The insurance industry is a more powerful setting to test the valuation implications of fair value disclosures, because bank investment portfolios only range from 14 to 21 percent of total assets and almost exclusively include fixed maturity securities. We find that fair value disclosures for certain types of investment securities are important determinants of share prices and returns of property-liability insurers. In particular, our evidence suggests that property-liability share prices can be explained by fair values of equity securities, which have traditionally been recognized on the balance sheet, and fair values of U.S. Treasury securities, which have been disclosed in footnotes. We also find that fair value disclosures for other types of investment securities (e. …

Standard setters contend that fair value accounting yields the most relevant measurement for financial instruments. We examine this claim by comparing the value relevance of banks' financial statements under fair value accounting with that under current GAAP, which is largely based on historical costs. We find that the combined value relevance of book value of equity and income under fair value is less than that under GAAP. We also find that fair value income is less value-relevant than GAAP income because of the inclusion of transitory unrealized gains and losses in fair value income. More surprisingly, we find that book value of equity under fair value is not more value-relevant than under GAAP, due both to divergence between exit value and value-in-use and to measurement error in fair value estimates. Overall, our results suggest that financial statements under fair value accounting provide less relevant information for bank valuation than financial statements under current GAAP.

Subject. The article discusses the assessment of the actual value of a company participant's share in the context of distortion of accounting (financial) statements. Objectives. The aim is to identify and outline the features of assessing the actual value of a company participant's share in the context of misrepresentation of accounting (financial) statements from the perspective of a judicial expert engaged by a court in a corporate dispute. Methods. The study employs the expert method, i.e. solving problems based on the judgment of highly qualified specialists in the relevant field of knowledge. Results. The paper reveals the specifics of conducting complex forensic examinations to determine the actual value of a company participant's share. Important are the abilities (competencies) of a forensic expert to identify motivational factors, risk markers for unreliability of financial statements, expressed in significant changes in financial and economic indicators, the ability to distinguish between creative (acceptable) and aggressive (unacceptable) accounting methods, and to reconstruct indicators. Creative accounting should be considered as a complex financial and accounting, legal, ethical and psychological phenomenon inherent in relationships within corporations, while understanding that the size of corporate assets and liabilities may depend on the professional judgment of those involved in valuation or accounting, which must also be taken into account when conducting a forensic examination. Conclusions. The findings will enable expert economists and appraisers to obtain more reasonable and reliable results of economic assessment of assets and liabilities, net assets.

The purpose of this study was to analyze the compliance of the Financial Statements of toko kue Parahyangan to the Financial Reporting Standards of Micro, Small and medium enterprises (SAK EMKM) in 2018. The method used in this study is a comparative descriptive study using a qualitative approach.technical data is collected through surveys and documentation. Based on the results of the study conducted based on interviews obtained by researchers from the financial statements prepared by the confectionery company Parahyangan lebong Regency, it is still very easy to record income and expenses, so it is not in accordance with the EMKM SAK in 2018. Based on the results of the analysis, it was found that the statement of financial position, Income Statement and memorandum of financial statements did not meet the requirements of the EMKM SAK in 2018.

This study aims to determine the financial statements at Jingga Batik Bukittinggi, to find out the financial statements according to SAK ETAP and also the suitability of the preparation of financial statements at Jingga Batik Bukittinggi with generally accepted accounting standards, namely SAK ETAP. This research uses quantitative descriptive method. The focus of research is documents or records related to financial statements. Sources of data in this study using primary and secondary data sources obtained from Owner Jingga Batik Bukittinggi. Data collection techniques using interview and documentation techniques. The results of the study found that the recording system carried out by Jingga Batik Bukittinggi was still very simple, only recording income and expenses. Financial statements according to SAK ETAP consist of income statements, statements of changes in equity, statements of financial position, statements of cash flows, and notes to financial statements. Jingga Batik Bukittinggi has not prepared financial reports in accordance with generally accepted standards due to limited knowledge and understanding in the field of accounting so that the preparation of financial statements is not in accordance with SAK ETAP.

The aim of this paper is to describe, analyze and compare the development of conditions for the activities of foundations and endowment funds in the Czech Republic in the area of legislation and accounting in years 1989 to 2014. The analysis is focused on:* the development of the legal regulations of foundations and endowment funds after 1989, after the effect of a separate law on foundations and endowment funds up to the present, which is related to the adoption of the new Civil Code,* changing conditions for accounting, financial statements, the content and the publication of annual reports and their verification by the auditor.The integral part of this paper is to draw attention to the negative aspects of the changes, suggest possible measures to address the drawbacks and facilitate the decision-making process of potential founders whether or not to establish a foundation or endowment fund while respecting legal and accounting perspective.

Fraud is an intentional act that results in a material misstatement in financial statements that are the subject of an audit. The risk of material misstatement refers to the risk that the financial statements are materially misstated and do not present true and fair view. Material misstatements relate to the information included in the financial statements. Material misstatements are such omissions and misstatements of financial information included in the financial statements that can affect the economic decisions of the users of financial statements. In an audit of financial statements, detection risk is the risk that the procedures performed by the auditor will not detect a misstatement that exists and that could be material, individually or in combination with other misstatements.