Application of ISAK 35 Concerning Financial Reports of Non-Profit Organizations at HKBP Gunung Bayu Church

Abstract

HKBP Gunung Bayu Church is a non-profit oriented entity. HKBP is part of a Protestant Christian church denomination and a member of the Indonesian Church Association (PGI). The HKBP includes the Congregational Assembly Worker's Body (BPMJ) which compiles the plans and realization of church activities including accounting activities that present the church's financial reports. This study aims to implement the Interpretation of Financial Accounting Standards (ISAK) No. 35 on Presentation of Financial Statements of Nonprofit Oriented Entities at HKBP Gunung Bayu. The results showed that the presentation of financial reports at the HKBP Gunung Bayu Congregation was prepared based on the HKBP Treasury Oversight and Management Service Manual in the form of income, spending and budget realization. This means that the presentation of the financial reports of the Gunung Bayu Congregation of HKBP has not implemented ISAK No. 35 concerning the presentation of financial statements of non-profit oriented entities.

Nonprofit Organization Financial Reporting Standards Implementation in Church

“…The results show that the church's financial statements are not under ISAK 35, as they only report income, spending, and budget realization. The church should have adopted ISAK 35 to provide more comprehensive and detailed financial information to its stakeholders, such as the congregation, the district, the central office, and the public (Purba & Sitanggang, 2022). The research also provides examples of how the church's financial statements should look based on ISAK 35, such as the statement of comprehensive income, the statement of changes in net assets, the statement of financial position, the statement of cash flows, and the notes to the financial statements.…”

“…The research also provides examples of how the church's financial statements should look based on ISAK 35, such as the statement of comprehensive income, the statement of changes in net assets, the statement of financial position, the statement of cash flows, and the notes to the financial statements. Implementing ISAK 35 will improve the accountability and transparency of the church's financial management and performance (Purba & Sitanggang, 2022).…”