Conceptual Framework for Government Accounting Standards

The government also called senior State executives is chaired by the President. In addition to the executive, there are also legislators who have an interest or responsibility for the interests of the people.

Conceptual Framework of the Government Accounting Standards are built by several assumptions, which include:

a. Independence Entities.

This means that the entity is capable of managing the finances of State with the legal responsibility. As a form of accountability is the existence of the financial statements as a form of accountability and performance monitoring. This dibatsi Seara closely by the State management, especially in terms of budgeting. In Indonesia, the budgeting system is performance-based budgeting system outlined in the Government Accounting Standards.

b. Measurable in Finance.

Government Accounting Standards interpreted as a sign the procedure. The corridor is related to the mechanism of action and be bound by the format - the format of reporting. In Government Accounting, every transaction there is recording of transactions and budget approval.

The difference between the conceptual framework of Business Entities with the Entity governments.
Business Entities:
a. Singular
b. Profit orientation
c. Accounting equation is Assets = Liabilities + Owners' Equity

Government Entities:
a. Plural (Multiple)
b. Not-for-profit (community welfare)

c. Accounting equation is Assets = Liabilities + Equity or it could be Assets = Liabilities + Fund Balance (general or basic concepts). This means that owners are not recognized individually.

Owner's equity in the Government Accounting does not get anywhere, there are no reports profit / loss and no recognition of private ownership. 

Government Entities in the accounting equation which is equity, this equity is party unity and intellectual property rights of third parties. Party unity is the people, but not all people have the right of ownership and therefore the extent of its equity owned by the individual in question of ownership. Equity in net wealth in the form of government accounting results of operations. The report contains revenue and operating expenses coupled with the transfer and revenue sharing.

We see the difference between the Government Regulation Government Regulation No. 24 of 2005 and Government Regulation No. 71 Year 2010.

Government Regulation No. 24 of 2005, concerning the Financial Statements.

1. Realization Budget Report

2. Balance Sheet

3. Statements of Cash Flows

4. Notes to Financial Statements

Government entities when required to prepare Statements of Changes in Equity.

Government Regulation No. 71 Year 2010, on the Components of Financial Statements.

1. Budget Realization Report

2. Statement of Changes in Balance Budget

3. Balance Sheet

4. Statements of Cash Flows

5. Operations Report

6. Statement of Changes in Equity

7. Notes to Financial Statements