MICRO, SMALL AND MEDIUM ENTERPRISES’ UNDERSTANDING IN PREPARING FINANCIAL STATEMENTS BASED ON SAK ETAP

Wisnu Mawardi,Nenik Woyanti,Darwanto Darwanto,Lala Iriviana

doi:10.32479/ijefi.8748

Wisnu Mawardi, Nenik Woyanti + Show 2 more

Open Access

https://doi.org/10.32479/ijefi.8748

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Abstract

Micro, small and medium enterprises (MSMEs) sector in Indonesia plays an important role in developing the economic growth, but it still has some problems. One of the problems faced by MSMEs sector is the preparation of financial reports that are in accordance with the standards for preparing financial statements, namely SAK ETAP (Financial Accounting Standards for Entities without Public Accountability). MSMEs uses financial statement as a reference in efforts to develop MSMEs. The purpose of this study is to analyze and determine the influence of information and socialization, education levels, scale of business, and the company’s age on MSMEs’ understanding in preparing financial statements based on SAK ETAP. The sample of this study is owners of MSMEs in Semarang. The method of determining the sample uses a random sampling method (the research sample was 50 respondents). Data are analyzed using logistic regression analysis. The results show that the provision of information and socialization, business scale, and education level have a significant influence on the understanding of MSMEs in preparing financial statements based on SAK ETAP, while the company’s age does not affect the understanding of MSMEs in preparing financial statements based on SAK ETAP. Keywords : MSMEs, financial reports, SAK ETAP, logistic regression JEL Classification s : A1; C01; M41 DOI: https://doi.org/10.32479/ijefi.8748

Highlights

Law of the Republic of Indonesia Number 20 of 2008 regarding micro, small and medium enterprises (MSMEs) describes MSMEs as productive economic businesses standing alone, conducted by individual persons or business entities not constituting subsidiaries or not constituting company branches
Coefficient determination test results show that the independent variables provide almost all information needed in predicting dependent variable variation
The understanding of MSMEs in preparing financial statements based on SAK ETAP especially MSMEs in Semarang based on the results of testing the coefficient of determination shows that the variables of information and socialization, education level variables, business scale variables and company’s age variables are able to explain the variable understanding of MSMEs in financial compilation based on SAK ETAP

Summary

Introduction

Law of the Republic of Indonesia Number 20 of 2008 regarding micro, small and medium enterprises (MSMEs) describes MSMEs as productive economic businesses standing alone, conducted by individual persons or business entities not constituting subsidiaries or not constituting company branches. The objective of establishing MSMEs is to engender and develop businesses in the context of building the national economy based on equitable economic democracy. The Ministry of Cooperatives and MSMEs recorded the development of MSME business units in 2012 up to 2017 has increased to 13.98 percent by absorbing employment of 116,673,416 people in 2017. The empowerment of MSMEs by Bank Indonesia is based on the five-finger philosophy where empowerment efforts need the collaboration among related parties such as financial institutions, regulators (Government and Bank Indonesia), catalysts (such as promoting access to credit [PEAC] units, credit guarantee companies), facilitators, and MSME actors. Problems that are generally faced by small and medium enterprises (UKM) are categorized as financial problems and non-financial

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