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Motto:Do Not Follow What You Do Not Know
Al Quran 17:36:
”And do not pursue that of which you have no
knowledge. Indeed, the hearing, the sight and the heart -
about all those [one] will be questioned”.
The Objective of Financial ReportingFASB 1978
- To provide information for making economic decision;
- For predicting, comparing and evaluating enterprise earning power;
- To governmental and not for profitorganizations is for evaluating theeffectiveness of the management ofresources in achieving the organizationsgoal
Methodology1. A library research, 2. Submission comments to some articles of IFAC, IASB, FEE
(Accountancy Europe now), ICAEW 3. Submission feed back to Cogito of FEE, IAESB, FASB, GASB 4. Accessing the website and made correspondence via e-mail
to writer‘s friends in Indonesia and foreign, FASB, SEC, IAI of Indonesia, GAO, many PhD of Accountants of University of Indonesia and made discussions with many of them.
5. Use the original idea of the Author written in 1979 regarding the ‘new’ Global Financial Statement and his essay made in the year of 1982 to get his Accounting Bachelor degree
DefinitionProf. Staubus:The Accountant’s definition of ‘measurement’ could be ascertaining the quantity of an economic attribute of an object or event.”
Accounting Measurement in Financial Report
The Purpose of Measurement
FASB (1979) “The purpose of numbers contained in the Financial Statement is to know the change happened in the exchange value of an object that represented a business result”.
Limitation of Accounting Measurement
UncertaintyThe Lack of ObjectivityInaccurately value from the real conditionLimitation of monetary unitThe Conservatism in MeasurementLimitation of the concept of Materialism
1. The failure of the mathematical truth examination,
2. Many methods of assets valuation, 3. A predictability of financial information
shown in the financial statement, 4. Deviation from the real world phenomena5. Uselessness of financial statement
The Weaknesses of Accounting Measurement
The Weaknesses of Accounting Measurement
- Mathematical Approach
Staubus (1977):”The failure of the sum to represent a measure of the
value of the whole firm (additivity failure) is a limitation
of the accounting that we do not know how to
overcome”
Kuhn and Weaver (1935):”The sum of two numbers is a unique numbers” and “If
equal number be added to equal number the sums are equal number”. For example: 5 plus 3 its sum is 8
In the mathematic, the operation of addition needs the
uniqueness of property
Keedy (1965): ”the essential property of operation is
the uniqueness”.
Balance Sheet : Cash, Inventory, Building, Land and so on. Cash item
its property of valuation is face value, for Inventory
we know many types of valuation methods i.e.: LIFO,
FIFO and so on, for Building item its property
valuation is acquisition or historical cost minus
accumulated depreciation.
Balance Sheet only accumulates the total value of
money based on the respective property of each item
of assets and liabilities fail the test of their
mathematical truth. It means Balance Sheet is an
illogical financial statement from the mathematical
approach.
Item of Assets Amount (Rp) Attribute
Cash 1.000.000.000 — market value (at current exchange rates).
Receivables 120.000.000.000 — undiscounted predicted net realizable value.
Purchased inventory 50.000.000.000 — lower of cost or market, where cost depends on an assumed physical flow.
Manufactured inventory 70.000.000.000 — lower of cost or market, where cost is an impenetrable amalgam of allocated
numbers based on predictions and assumptions.
Investments in stock 25.000.000.000 — market value or a bizarre equity method accumulation.
Investments in bonds 100.000.000.000 — cost, amortized cost or permanently impaired market value.
Property & plant 5.000.000.000.000 — depreciated book value based on predictions, unless impaired.
Land 6.700.000.000.000 — cost, unless impaired.
Leased assets 480.000.000.000 — zero, depreciated book value or (coming soon) the balance of the lease
liability.
Intangibles 50.000.000.000 — zero, cost, allocated residual of an acquired company’s purchase price or
amortized book value, unless impaired.
Total 12.596.000.000.000 ????
Clearly, financial statement totals are indecipherableaggregations of numbers reflecting various attributes, allexpressed in a murky mixture of different original monetary unitsthat aren’t adjusted for inflation.This atrocious gobbledygook can never be fully useful for anyrational purposes, period.
Paul B.W. Miller Paul R. Bahnsonhttps://www.accountingtoday.com/opinion/the-spirit-of-accounting-debunking-myths-about-market-values-part-4
INCOME STATEMENTPaton in his monograph and Littleton in An Introduction to
Corporate Accounting Standards in the year of 1940
(Paton, 1980) said:
”I have not read the entire monograph, or any substantial
part of it, for 35 years or … the monograph has faults…the
major faults is our failure to call attention to what is
perhaps the most important measurement in a
corporation’s financial history the earning rate…‟Earning
power‟ was mentioned, I believe, at one point, but the
subject was not pursued I might add that lack of
meaningful earning rate determination is a glaring
weakness of present day accounting practice”.
Belkoui (1979):
” The reliance of accounting income on
the historical cost principle makes
comparability difficult, given the
different acceptable methods of
computing „cost‟ (for example, the
different acceptable methods of
allocation) deemed arbitrary and
incorrigible”.
Revsine (1971): income is an artifact.
Various Methods of Measurement Approach
Predictability Approach
The Real World Phenomena Approach
The Usefulness Approach
- The Usefulness Approach
FASB SFA Concepts No. 1 - Objectives of Financial
Reporting by Business Enterprises is to provide
information useful in order to make an economic
decision.
Lev and Gu (2016):“This accurate reading of financial information
usefulness yields a highly surprising, or depressing,
result: corporate quarterly and annual reports currently
contribute only 5 to 6 percent (!) of the total information
used by investors”.
These weaknesses caused increasethe need to high quality of financialreporting, even an innovation of a‘new’ financial reporting to replaceor substitute the current financialstatements.
Proposal:
•The financial statements contains vagueness and
uncertainty, still in doubt its usefulness and
relevancy in the process of making an economic
decision;
•The content, the format need changes
•They have to relevant, far from the subjectivity
contains relevant, objective and reliable information
in the process of making economic decision either
from macro-economic and micro-economic view.
SO WHAT TO DO?
GO TO
THE NEW GLOBAL FINANCIAL STATEMENT
The Background
Small entities including the cadgers, stall, hawkers
and not for profit organization could not apply the
accounting standard
Wright (2016): Under the current framework, it is
difficult to take action on behalf of small private
companies because their cost/benefit concerns are
much different from those of large private
companies that have large accounting staffs’
.
Two hypotheses:
• There is no SFA or GAAP that simple,
effective and efficient for small (weak)
entities
• No simple financial reporting - easy in
preparing, but remain reliable to meet basicneed of the users of the financial report
THE PURPOSE OF DISCUSSION
To answer question:”Is there any
accounting principles that can be applied
from small enterprise to high
sophisticated enterprise of all types of
industries?”
IS IT POSSIBLE?
Yes it is,
By presenting a ‘new’ concept of the
financial reporting as a substitution of
the current conventional financial
statements – Balance Sheet, Income
Statement, Statement of Cash Flow and
Statement of Equity Changes.
Propose solution ‘New Global Concept’
of Financial Report.
THE BASIC PRINCIPLE
The basic principle of accounting is the truth in
accounting mathematically and empirically
represents the real world phenomena
To present a ‘new’ concept of financial
statement as the true global financial statement.
Adopts the United Nation’s Sustainability
Concept in the true global financial statement.
THE BASIC NEED OF STAKEHOLDER
What is the basic need of human from a
business of goods or services? The answer is
easy and simple:”Money”. All parties involved
in the business need some money.
- Hawkers buy meals, merchandise inventory.
- Owners of diner buy food stuff like vegetables, rice,
meat, fish, water and so on, pay some wages for
their labors.
- Employees including management need salaries
and other allowances,
- Suppliers, Contractors need payments from buyer
- Creditors need the repayment of the installment of
the principal and interest
- Investors need cash dividend
- Government need taxes from tax payers and otherstate revenues.
THE SYSTEM OF ADMINISTRATION
The activities of recording, classification of
transactions and preparation of financial
statement.
The ‘new’ concept remains needs book or other
mean for recording the transactions occurred
then preparing the financial statement. The
‘new’ concept remains apply the system of
administration even in the simplest way.
MONETARY UNIT OF FINANCIAL REPORT
In the economic world use multi currencies, so
in this ‘new’ concept use multi currencies too.
If the transactions use one currency, so the
‘new’ one will use one currency.
This ‘new’ concept of Financial Statement
anticipate one world monetary unit with the
abbreviation “W”.
THE APPLICATION IN BUSINESS
-Simple Approach
- Comprehensive Approach
-Simple approachhawkers, diner, cadger and the lowereconomic class of private company.These groups generally don’t or less in applying the activities of recording transactions either in daily or periodicallybasis.
Balance as of August 17, 2025 Rp. 50.000.000
Liabilities/Payable - -/-
Balance after Liabilities 50.000.000
Personal Exemption 40.000.000 -/-
Tax Basis 10.000.000
Trade Tax ( 2 ½%) 250.000 -/-
Cash of the Owner Rp. 9.750.000
Stall Tegal “ Always Healthy”
Cash of the Owner Statement
For the year end of August 17, 2025
Money in the wardrobe and safe and in the
bank account in the year end as total the money
as Cash Balance. The year end is the birth date instead of calender year
to know all liabilities either current or long term
liabilities at the year end. The liabilities have
been proof by legal evidences.
Deduction total liabilities from the cash balance
is the basis for tax calculation, it named as
Cash Balance after Liabilities
For sole proprietorship, private company, Cash
Balance after Liabilities deducted by Personal
Exemption will get Tax Basis.
For the private company, not profit organization, the
personal exemption is ignored because in the
individual calculation of personal income tax of
investors or workers of not profit organizations.
If tax basis is positive balance, has to pay Tax and if
the tax basis is negative balance, has not to pay Tax.
tax as Trade or Corporate Tax for private company,
Activity Tax for not for profit organization.
The result of a deduction Corporate Tax from Tax
Basis named Cash of the investors for private
company and Cash of the Organization for not for
profit organization.
- Comprehensive approach
- many books for recording transactions for example
the Cash Book, sub-ledger of account receivable,
account payable, list of assets and so on- By using technology, cash and non-cash transactions willbe input in the data base that can produce sub-ledgersautomatically and combined with the software related tothe bank transactions, it can produce the financial reportautomatically one day after the year-end, even in amonthly basis
-Transaction of cash disbursement input in by coding therespective classification either for management purposeand the Sustainability Classification of the United Nations(UN)
(Dalam Ribuan W)
CASH INFLOW:
Beginning Balance October 27th 2024 W 50.000
Sale of Common Stock 2.000.000
Liabilities 1.000.000
Sales of goods 4.250.000
Sale of Building 1.350.000
Donation 100.000 +/+
Total Cash Inflow 8.750.000
CASH OUTFLOW
Purchase of Machine, Plant 1.225.000
Purchase of anti pollution equipment 1.000.000
Purchase of Raw Materials 3.750.000
Salaries - Production Section 400.000
- Non Production Section 325.000
Repayment of Liabilities 750.000
Payment of Taxes 1.250
Donation 25.000
Payment of Dividend 10.000
Total Cash Outflow 7.486.250 -/-
CASH BALANCE 1.263.750
LIABILITIES 850.000 -/-
TAX BASIS 413.750
TRADE TAX 2 1/2% 10.344 -/-
CASH OF THE OWNER W 403.406
Sky Light Co., Ltd.
Cash of the Investors Statement
For the year ended on October 28th, 2025
THE FORM OF FINANCIAL STATEMENT
be applied either regulated economic or non economic
unit involved in monetary unit transactions either cash
inflow or cash outflow. Sole Proprietorship, Partnership,
Corporation, Incorporated (Inc.), Limited (Ltd.), Limited
LiabilityCompany/Corporation (LLC) Limited Company (LC
or Ltd. Co.), No Liability (NL), Unlimited and cooperation
and so on.
non economic unit activities here economic unit activities
that regulated by regulations and law. For example:
activities of the Social Foundation, Education Foundation,
Pension Fund Foundation, Hospital, maternity hospital,
Political Party, social organization, not for profit
organization and so on.
The application of this ‘new’ financial statement
involves all type of industries for example:
Aerospace & Defense, Airlines, Broker Dealers in
Securities, Engineering & Construction,
Depository and Lending Institution, Gaming,
Healthcare, Hospitality, Insurance, Investment
Assets Management, Not for profit, Oil & Gas,
Power and Utility, Software, Telecommunication,
Timeshare.
The ‘new’ financial statement in two types use the
world monetary unit and type use multi currencies,
this second type named type of transition before
use the world monetary unit.
To overcome the additivity failure in accounting, we
only measure item that its value is objective forever
and represent the real world phenomena and apply
the principle of going concerns. They are cash and
liabilities and we do not need Balance Sheet and
Income Statement anymore. The other assets are
recording as they are and with a simple way. With
technology we can create many sub-ledgers of other
assets based on public interest need and still show
its money value of each transaction if any, but there
are no accumulated money value shown in the sub-
ledger.
There is no subjectivity in the measurement of
cash and liabilities (loan, account payable). All
people will know the value of cash only by
watching the nominal value shown in it both the
paper money and the coin. For the loan, people
only see the figure shown in the loan agreement
paper especially the loan that applies zero
interest rate and for Account payable only see
the figure of unpaid invoices.
QH Corp.
Cash of the Investor Statement
For the Year of 2050
Cash Inflow W XXX.XXX.XXX.00
Cash Outflow XXX.XXX.XXX.00 -/-
Cash Balance XXX.XXX.XXX.00
Liabilities XXX.XXX.XXX.00 -/-
Cash Balance after Liabilities XXX.XXX.XXX.00
Minimum Income of Investor/Owner
(Personal exempt) 0.00 -/-
Tax Basis XXX.XXX.XXX.00
Corporate Tax XXX.XXX.XXX.00 -/-
Cash of the Investor/Owner XXX.XXX.XXX.00
The Solution for the Future Shape of Financial Report
World Currency
QH Corp.
Cash of the Investor Statement
For the Year of 2050
USD Euro Yen
Cash Inflow XXX.XXX.00 XXX.00 X.XXX.00
Cash Outflow XXX.XXX.00 X.XXX.00 -/-
Cash Balance XXX.XXX.00 XXX.00 X.XXX.00
Liabilities XXX.XXX.00 X.XXX.00 -/-
Cash Balance after Liabilities XXX.XXX.00 XXX.00 X.XXX.00
Minimum Income of Investor/Owner 0.00 0.00 0.00 -/-
Tax Basis XXX.XXX.00 XXX.00 X.XXX.00
Corporate Tax XXX.XXX.00 XXX.00 -/-
Cash of the Investor/Owner XXX.XXX.00 XXX.00 X.XXX.00
Multi Currency
CASH OF THE OWNER/S STATEMENT in line with the UN’s Sustainability Concept
UN's Description
Cash Inflow W XXX.XXX.XXX.00
Cash Outflow XXX.XXX.XXX.00 -/-
- NO POVERTY
- ZERO HUNGER
- GOOD HEALTH AND WELL BEING medicine, hospitality
- QUALITY EDUCATION training
- GENDER EQUALITY
- CLEAN WATER AND SANITATION
- AFFORDABLE AND CLEAN ENERGY
- DECENT WORK AND ECONOMIC GROWTH wages and salary
- INDUSTRY, INNOVATION AND INFRASTRUCTURE Expenditure for R & D
- REDUCE INEQUALITIES
- SUSTAINABLE CITIES AND COMMUNITIES CSR
- RESPONSIBLE CONSUMPTION AND PRODUCTION prodution expenditure
- CLIMATE ACTIONexpenditure for equipment to reduce air
pollution
- LIFE BELOW WATER
- LIFE ON LAND
- PEACE, JUSTICE AND STRONG INSTITUTION
- PARTNERSHIP FOR THE GOALS
Cash Balance XXX.XXX.XXX.00
Liabilities XXX.XXX.XXX.00 -/-
Cash Balance after Liabilities XXX.XXX.XXX.00
Minimum Income of Investor/Owner
(Personal Exemption)XXX.XXX.XXX.00
-/-
Tax Basis XXX.XXX.XXX.00
Corporate Tax XXX.XXX.XXX.00 -/-
Cash of the Owner XXX.XXX.XXX.00
QH Corp.
Cash of the Owner Statement
For the Year of 2050
CASH OF THE INVESTORS STATEMENT in line with the UN’s Sustainability Concept
UN's Description
Cash Inflow W XXX.XXX.XXX.00
Cash Outflow XXX.XXX.XXX.00 -/-
- NO POVERTY
- ZERO HUNGER
- GOOD HEALTH AND WELL BEING medicine, hospitality
- QUALITY EDUCATION training
- GENDER EQUALITY
- CLEAN WATER AND SANITATION
- AFFORDABLE AND CLEAN ENERGY
- DECENT WORK AND ECONOMIC GROWTH wages and salary
- INDUSTRY, INNOVATION AND INFRASTRUCTURE Expenditure for R & D
- REDUCE INEQUALITIES
- SUSTAINABLE CITIES AND COMMUNITIES CSR
- RESPONSIBLE CONSUMPTION AND PRODUCTION prodution expenditure
- CLIMATE ACTIONexpenditure for equipment to reduce air
pollution
- LIFE BELOW WATER
- LIFE ON LAND
- PEACE, JUSTICE AND STRONG INSTITUTION
- PARTNERSHIP FOR THE GOALS
Cash Balance XXX.XXX.XXX.00
Liabilities XXX.XXX.XXX.00 -/-
Cash Balance after Liabilities XXX.XXX.XXX.00
Minimum Income of Investor/Owner
(Personal Exemption)XXX.XXX.XXX.00
-/-
Tax Basis XXX.XXX.XXX.00
Corporate Tax XXX.XXX.XXX.00 -/-
Cash of the Investors XXX.XXX.XXX.00
QH Corp.
Cash of the Investors Statement
For the Year of 2050
CASH OF PROVINCE STATEMENT in line with the UN’s Sustainability Concept
UN's Description
Cash Inflow W XXX.XXX.XXX.00
Cash Outflow XXX.XXX.XXX.00 -/-
- NO POVERTY expenditures on agriculture
- ZERO HUNGER
Social protection programmes include social
assistance, such as cash transfers, school
feeding and targeted food assistance, as well
as social insurance and labour market
programmes, including old-age pensions,
disability pensions, unemployment insurance,
skills training and wage subsidies, among
others.
- GOOD HEALTH AND WELL BEING medicine, hospitality
- QUALITY EDUCATION training
- GENDER EQUALITY expenditure women salary, training
- CLEAN WATER AND SANITATIONgovernment expenditure for developing clean
water facilities and sanitation
- AFFORDABLE AND CLEAN ENERGYgovernment expenditure for developing
sources of energy
- DECENT WORK AND ECONOMIC GROWTH wages and salary
- INDUSTRY, INNOVATION AND INFRASTRUCTUREexpenditures plants, biaya riset and
developing infrastructure
- REDUCE INEQUALITIES expenditures for economic developments
- SUSTAINABLE CITIES AND COMMUNITIES CSR
- RESPONSIBLE CONSUMPTION AND PRODUCTION prodution expenditure
- CLIMATE ACTIONexpenditure for equipment to reduce air
pollution
- LIFE BELOW WATERexpenditure for water treatment before
ending up in the sea
- LIFE ON LAND
Protect, restore and promote sustainable use
of terrestrial ecosystems, sustainably manage
forests, combat desertification, and halt and
reverse land degradation and halt biodiversity
loss
- PEACE, JUSTICE AND STRONG INSTITUTIONexpenditures of institution of the judiciary
and police
- PARTNERSHIP FOR THE GOALS
Strengthen domestic resource mobilization, including
through international support to developing countries, to
improve domestic capacity for tax and other revenue
collection; donation to developing countries: Total amount
of approved funding for developing countries to promote
the development, transfer, dissemination and diffusion of
environmentally sound technologies; Dollar value of
financial and technical assistance (including through North-
South, South-South and triangular cooperation) committed
to developing countries; expenditure for export activities;
expenditures to public-private and civil society
partnerships; expenditures to strengthen statistical
capacity in developing countries; expenditures to conduct
at least one population and housing census in the last 10
years; and (b) have achieved 100 per cent birth registration
and 80 per cent death registration
Cash Balance XXX.XXX.XXX.00
Liabilities XXX.XXX.XXX.00 -/-
Cash Balance after Liabilities XXX.XXX.XXX.00
Minimum Income of Investor/Owner
(Personal Exemption)0.00
-/-
Tax Basis XXX.XXX.XXX.00
Corporate Tax XXX.XXX.XXX.00 -/-
Cash of the Province XXX.XXX.XXX.00
Province of Banten
Cash of Province Statement
For the Year of 2050
The Measurement of Management Performance
The Cash of the Investor Statement, no use Earning per
Share (EPS) to measure the success of management
performance anymore. It will use Cash of the Investor per
Share (CIPS) to measure it. If Board of Directors rely on
the Loan both in term of Short Term either Long Term to
fund the operation of the entity and the Cash Balance
after Liabilities is negative balance, it means investors
pay the creditor/s and they will not received the cash
dividend. If Government making a decision the rate of
interest is zero, the creditor has no incentive to lend their
money and it is better if they invest their money in the
business entity instead of as an Idle Money.
The reason why the liabilities are deducted from Cash
Balance because it will represents the ability of an entity
can produce cash from the operation or from the
investor.
This ‘new’ concept of Financial Report has a correlation
with the change a position of Audit Firm in the Economy,
the Fiscal policy both domestic either international, the
enhancement of internal audit function. We need more
time and chance to make explanation of them in other
time.
IMPACTS OF CASH OF THE INVESTORS/OWNER
STATEMENT
•Business and non business entities do not need to prepare
Balance Sheet (statement of financial position), Income
statement (Statement of financial performance), statement
of cash flow and statement of Equity changes anymore.
Those financial statements is substituted by Statement of
Cash of Investors Statement, sub ledgers and list of
liabilities, list of account receivables, list of assets, list of
inventory and so on.
•The management remains able to make financial
ratio analysis but differ from the current financial ratio
analysis. The ratio of cash of the owner per share that
came from the cash of the owner balance divided by
total share. It shows the potential cash available to be
distributed to the investors (shareholders). But remain
depend on the decision making of shareholders
whether all or a portion of available cash be
distributed to them.
•Government in this case Directorate of Taxes of Finance Ministry of Republic of Indonesia or Internal Revenue
Service (IRS) of US Government will get an increase of total of tax payers and wider industry either business or non
business.
In this ‘new’ concept either from hawkers, diner, cadger and entrepreneurs of the lower economic class,
social and education foundation even individual can be tax payer. But it needs limitation and requirement and
regulation of their technical execution.
This ‘new’ concept represents a direct relationship between tax to be paid with the available cash of the
investors and ready to be paid to the state’s treasury.
The low tax rate of 2 ½% of the cash of the investors will reduced the propensity to avoid the taxes and it
is automatically increase the taxes receipt.
This case shown in the daily of Republika date March 30, 1996 as follows:”The Tariff decreased the
consciousness of Tax Payers increase. The decrease of tax tariff has proven boost powerful the taxes receipts. The
proof is after lowering the respective tariff from 35% to 30% for the high tariff and from 15% to 10% for the low tariff
the volume of taxes receipts in fact climbed for 8%. The projection of the receipts the Budget of State of 1995/1996 at
the first only 38.136 trillion rupiahs but was revised to 41.3 trillion rupiahs. Especially for income taxes, that is a direct
tax and often become a main indicator to appraise the consciousness of the tax payers and show an increase from
19.2 trillion rupiahs to 20.5 trillion rupiahs. With a decrease of the tariff, tax payers don’t reluctant to pay their
obligation. It is slowly increase their consciousness as said Director of Directorate of Taxes – Fuad Bawazier, ….It is
actually Fuad added, not only the decrease of the tariff that caused the target of taxes receipts boost, but the
economic activities that more vivid joined the role. At least it can be proof from its contribution given by public
companies. Till yesterday, from the public companies the government has successfully collected the taxes about 3.8
trillion rupiahs whereas the target is only 2.97 trillion rupiahs.”
With the simplicity of this concept, the degree of its applicability in the business is wider, even with the
join of government and the parliament can expand the obligation of its implementation to non economic activities area.
SUMMARY• Small entities need a simple accounting concept and
easy in implementation
• Cash of the investors Statement (CIS) is one alternative
that important to be considered by professional
accountants as well as by the government to give a
solution to those needs as shown in the point 1 above.
The consideration of the need of its implementation in the
business are as follow:
• easy application;
• fulfill the basic need all parties who have interested in
economic and non economic activities;
•Tax obligation to be paid has a direct correlation with
the available cash;
•Tax obligation to be paid by business entity doesn’t
too burdensome, so it decreases the propensity to
avoid tax and in the next turn will increase the state
receipt from the taxes;
•The scope of taxpayer wider because it includes the
non economic entities that have financials transactions.
•The Cash of investors Statement is the financial report
that avoid the exchange rate problem as it exist in the
balance sheet and income statement.
•The Cash of investors Statement is the most important
Financial Statement in an economy in the globalization
era because it has anticipated the effectiveness of the
world monetary unit.
•The user cash of the Investors statement remain can make
financial ratio analysis in making economic decisions.
•The user cash of the Investors statement will be avoided
from the subjective and arbitrary information i.e.:
depreciation in the balance sheet and income statement.
•The Cash of investors Statement can be applied by
economic and non economic unit from the lowest level to
conglomerate level for all industries.•The Cash of investors Statement is the financial report that avoid the exchange rate problem as it exist in the balance sheet and income statement.•The Cash of investors Statement is the most important Financial Statement in an economy in the globalization era because it has anticipated the effectiveness of the world monetary unit.
CONCLUSION
• The current financial statements are illogical and
irrational one to make an economic decision.
• People need financial statement contains
relevant, full the truth, objective and reliable
information in the process of making economic
decision either from macro-economic and micro-
economic view.
• The world needs a true global financial
statement
Conclusion ….
The true global financial statement as a
substitution or replacement of the current
financial statements.
It needs dissemination either via formal and
non-formal education.
The author has available time and chance to assist its application in the real business.
THANK YOU
GOD BLESS US