ANALYSIS OF THE APPLICATION OF FINANCIAL REPORTING BASED ON FINANCIAL ACCOUNTING STANDARDS FOR SMALL AND MEDIUM MICRO ENTITIES IN MSMEs

Abstract

The various cultures that exist in Indonesia can be processed and turned into commodities with market value so that they become the basis for the growth of micro, small and medium businesses. However, it needs to be emphasized that MSME players still lack awareness and must be provided with education regarding the relevance of financial openness in their businesses. So far, the MSME registration procedure is still quite simple. In fact, some of them have not documented or prepared financial reports in accordance with the Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM) which have just been established. This research aims to describe whether the financial reports of the Irin Jaya Cakalang Fish Processing UMKM in Bojong Village are in accordance with SAK EMKM or not. Data collection was carried out by means of interviews, observation and documentation. This research uses a qualitative method with a descriptive approach. Based on the research results, it shows that the records at the Irin Jaya Cakalang Fish Processing UMKM are not in accordance with SAK EMKM. Irin Jaya Cakalang Fish Processing UMKM has not prepared a financial position report, profit and loss report and notes to financial reports in accordance with SAK EMKM. Apart from that, Irin Jaya Cakalang Fish Processing MSMEs face obstacles in implementing SAK EMKM, namely the lack of knowledge of MSME owners about financial reports in accordance with SAK EMKM, the owners do not have accounting staff who understand preparing financial reports according to SAK EMKM, and MSME owners consider it unimportant to prepare financial reports. the most important thing is to get a lot of profit.