The Analysis of Financial Report Effectiveness through Berlo Communication Model: A Case Study of PT Megah Sembada Industry, Indonesia

Abstract

Aims: Effective communication is crucial in the delivery of the company's financial reports, to ensure that the reports produced can meet their objectives as receivers of financial information. This study aimed to empirically investigate the determinants that affect the effectiveness of corporate financial reporting. Study Design:  The research method employed in this study is descriptive quantitative research. Place and Duration of Study: The study was conducted at Perseroan Terbatas Megah Sembada Industri (PT. MSI), a prominent nonwoven manufacturer specializing in disposable products and healthcare items in Indonesia. Methodology: Data collection techniques was collected by observation, interviews, documentation, and distributing questionnaires. Results: The results showed that the application of Berlo's SMCR (Source, Message, Channel, and Receiver) model in accounting information communication at PT MSI provides positive results in creating an effective work environment and producing quality financial reports. Conclusion: This study confirmed that PT. MSI is able to report on time and accurately every month according to the actual data. The implication of this finding can be a foundation for other companies in improving their accounting information communication process to achieve better goals.