Financial accounting information is a product of management, and management information knowing
that it can be used as input in the process of governance (Richard, 2001). This means that financial accounting
information as a basis for an important input in the process of good governance. In line with the opinion of the
Bushman and Smith (2003) that the accounting information is the product of accounting. According to Schiavo-
Campo and Tomasi (1999) making of accounting information in the form of financial statements is a form of
transparency requirements as a condition of supporting the lack of accountability in the form of openness on the
activities of government management of public resources. Transparency of information, especially financial and
fiscal information should be in a form that is relevant and easy to understand. From this statement may indicate
that the financial statements that meet the principles of accountability and transparency of financial reporting
quality is established through information that is relevant and easy to understand.