Abstract

The obligation to prepare financial statements to meet the demands of transparency and accountability towards society. In accordance with Government Regulation Number 24 of 2005 dated June 13 2005 concerning Government Accounting Standards (PP SAP) and PP No. 71 of 2010 concerning Government Accounting Standards as a substitute for PP No. 24 of 2005 Every Report Local Government Finance (LKPD) must be prepared and presented in accordance with the Standard Government Accounting (SAP). Financial Statements and Government Accounting Standards (SAP) stated in the statement of Government Accounting Standards (PSAP) No. 1. About Report Government Finance. PSAP No. 1 contains the principles regarding Financial Statements. The objective of the Government Accounting Standards establishes the basis for the presentation of Financial Statements for the government in order to meet the objectives of accountability as determined by legislation. This study aims to determine the application of PSAP 01 qualitative description taken from the relevant literature.