the economics presentation

1. FINANCIAL
INFORMATION
SYSTEM
By:
M Nopi Agustio N P (2001026065)
Abdil Muttaqin Putra (1901026032)
GROUP NINE (9)

2. Key points
Financial Information System DEFINITION
CHARACTERISTICS
PURPOSES
FUNCTIONS
1.
2.
3.
4.

3. Definition
Financial Information System is an
information system that provides
information to people or groups both
within the company and outside the
company regarding financial issues and
also provides or contains information
about the flow of money for users
throughout the company.
"financial information
systems in relation to
management
information systems”

5. Financial Input Subsystem
Accounting Information System, providing input data for
financial applications
Internal Audit Subsystem, assists AIS in providing internal data
and information with specialized research conducted by
renowned auditors.
The Financial Intelligence Subsystem, collects information
from environmental elements that affect the money flow of the
financial community, shareholders and owners as well as the
government.

6. Financial Output Subsystem
Forecasting System, performs long-term forecasting of the
next 5-10 years to provide a basis for basic planning for
strategic planning.
Fund Management Subsystem. Relating to the flow of money
through the company.
Controlling Prepares annual operating budgets and then
provides feedback information to managers so they can
monitor actual costs against budgets.

7. Characteristics
Relevance and
Materiality
01
Relevant information is
capable of making a
difference in the
decisions made by
users. Materiality is an
aspect of relevance
which is entity-specific.
Faithful
Representation
02
The financial
information in the
financial reports should
represent what it
purports to represent.
Meaning, it should
reflect what really
happened, with the
correct financial values.
Comparability
03
Comparable information
enables comparisons
within the entity and
across entities. When
comparisons are made
within the entity,
information is compared
from one accounting
period to another.
Verifiability
04
Verifiability helps to
assure users that
information represents
faithfully what it
purports to represent.
Timeliness
05
Timeliness means
providing information to
decision-makers in time
to be capable of
influencing their
decisions. It shouldn't
be significantly delayed
or else it will be of little
or no value.

8. Characteristics
Understandability
06
Requires financial information to be understandable or
comprehensible to users with reasonable knowledge of
business and economic activities. To be understandable,
information should be presented clearly and concisely.
However, it is improper to exclude complex items just to
make the reports simple and understandable.

9. Purposes/
objectives
The financial information system that is prepared
must meet the fast principle, meaning that
financial accounting standards must be able to
provide the necessary data on time and can meet
needs (on time and meet needs).
Fast principle
The financial information system that is prepared
must have a secure principle, meaning that the
financial information system must help protect
the company’s assets.
Safe principle
"cheap" principle
The financial information system that is prepared
must have a low-cost principle, meaning that the
costs of implementing a financial information
system must be emphasized so that it is relatively
inexpensive.

10. Functions
Of Financial Information System
The following are some of the functions of a financial information system:
• Recording of all financial transactions in general ledger accounts
• Generating financial reports to meet management and statutory requirements
• To determine the results of the company's operations
Include:
o There is a separator of information on the amount of goods and money from company records.
o Generate reports for leaders.
• To be able to follow the company's assets and debts
This function includes the maintenance of various books and accounts such as cash, accounts in property accounting,
and others.
• To facilitate the planning of company activities, follow up on the implementation and improvement of plans.

11. Thankyou!
please if you have questions, criticism
and suggestions