The effect of the implementation of financial accounting standards on MSMEs

Over the last two decades, the global financial landscape has changed dramatically, including the corporate and political climates, the creation of more market-based economies, and rapid technological advancements. Micro, Small, and Medium Enterprises (MSMEs) is one form of market-based economies created with the most significant business opportunities and very important socially and economically in developing countries for many reasons. However, MSMEs face significant difficulty related to financial reporting standards to evaluate the achievement of business activities. Most MSMEs use a simple form for financial reporting, such as by calculating the difference between inflow and outflow from their business activities. Also, numerous previous studies that focus on Financial Accounting Standards in Indonesia are still limited. Thus, the present study investigates the factors that influence the implementation of Financial Accounting Standards (FAS) of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province, Indonesia. This quantitative study uses cross-sectional data collected by distributing 200 questionnaires to MSMEs actors that spread North Aceh Regency, namely Lhokseumawe city and Bireuen regency. The data are analyzed using descriptive statistics (e.g., frequency, percentage, mean, standard deviation) and inferential statistic (multiple linear regression) analyses. The study indicated that Perception, Education, Socialization and Incentive factors had significant positive effects on implementing Financial Accounting Standards of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province, Indonesia. In conclusion, this study has successfully investigated the factors that influence the implementation of Financial Accounting Standards of Micro, Small, and Medium Enterprises (MSMEs) in Aceh Province.

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EMPLOYING FINANCIAL ACCOUNTING STANDARDS FOR ENTITIES WITHOUT PUBLIC ACCOUNTABILITY FOR AUDITING

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v3i2.2339 ◽

2013 ◽

Vol 3 (2) ◽

Author(s):

Akie Rusaktiva ◽

Adri Putra Nugraha

Keyword(s):

Financial Reporting ◽

Small And Medium Enterprises ◽

Accounting Standards ◽

Secondary Data ◽

Financial Accounting ◽

Public Accountability ◽

Financial Reports ◽

The Difference ◽

Small Medium Enterprises ◽

Medium Enterprises

Financial Accounting Standards for Entities Without Public Accountability (FAS-EWPA) is a financial accounting standards issued by The Indonesian Institute of Accountants or Ikatan Akuntan Indonesia (IAI) and endorsed by the Financial Accounting Standards Board of Indonesian Accountants or Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (DSAK IAI) and intended for small and medium enterprises. The underlying priciple of IAI in issuing this particular standards is the attempt to facilitate small and medium enterprises in arranging their financial reports. If this standard is not issued, they have to follow the new FAS (which is stage of adopting IFRS – full convergence 2012) to arrange their financial reports. The application of this FAS-EWPA based IFRS is relatively more complex and expensive for small and medium enterprises. FAS-EWPA adopted some parts of IFRS (International Financial Reporting Standards) for small-medium enterprises (IFRS for Small-Medium-sized Entities/SMEs). This study aims to describe the layout of the difference measurement, assessment, report and the implementation of auditing standards between FAS-IFRS and FAS-EWPA. This study employed descriptive qualitative technique of data analysis by reviewing literature and analysing the field concerning with the implementation of Financial Accounting Standards Statements (FASS) and FAS-EWPA. Specifically, the secondary data of this study are FAS-IFRS and FAS-EWPA. The findings shows that there is a difference presentation and disclosure of financial statements between entities which report using FAS-IFRS and FAS-EWPA. Therefore the perceived program and audit procedures will be different because it will be tailored to the presentation and objectives the audit, suppose that in the implementation of FASS and EWPA, there is a difference in the assertions about the disclosure/presentation. For other assertions about existence, completeness, rights and obligations as well as assessment and allocation, basically, between FASS and EWPA, they have a common concept. While in presentation assertions as has been described earlier, the FAS-EWPA has a simpler form than with FASS, therefore there is a definitely difference in terms of the presentation between the two.

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Accounting Records Using the Android Application to Evaluate Changes in Earnings

Wiga Jurnal Penelitian Ilmu Ekonomi ◽

10.30741/wiga.v10i2.556 ◽

2020 ◽

Vol 10 (2) ◽

pp. 132-147

Author(s):

Avincennia Vindy Fitrinana ◽

Indra Wijaya ◽

Chita Oktapriana

Keyword(s):

Small And Medium Enterprises ◽

Case Study Research ◽

Accounting Standards ◽

Financial Accounting ◽

Eligibility Criteria ◽

The Difference ◽

Quantitative Descriptive ◽

Feasibility Test ◽

Medium Enterprises

The purpose of this research is to test the difference in the logging of profit conducted by Micro, Small, and Medium Enterprises (MSME) with the recording in accordance with accounting standards and to test the feasibility of Akuntansi UKM application in the implementation in MSME business. The respondents of this research are the MSME in Bekasi City under the Dinas Koperasi dan UKM. There were 40 respondents in this study. This research is a case study research and uses quantitative descriptive methods. Data analysis Using test paired t-test and application feasibility test using PIECES. The results of this research are there is a difference between the average profit that has been recorded by the respondents with the profit recorded in accordance with the financial accounting standards, and the Akuntansi UKM application has fulfilled the eligibility criteria so that it can be applied in business actors, especially MSME.

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THE ACCOUNTING STANDARDS AND FINANCIAL REPORTING IN ALBANIA

CBU International Conference Proceedings ◽

10.12955/cbup.v4.748 ◽

2016 ◽

Vol 4 ◽

pp. 092-097

Author(s):

Rezarta Shkurti ◽

Brunilda Duraj

Keyword(s):

Financial Reporting ◽

Small And Medium Enterprises ◽

Accounting Standards ◽

Current Status ◽

International Accounting Standards ◽

Accounting Standard ◽

Non Profit ◽

National Accounting ◽

Financial Reporting Standards ◽

Medium Enterprises

Albania implemented its first set of 14 National Accounting Standards (NAS), which were prepared in compliance with the International Financial Reporting Standards, in 2009. The 15th standard, specifically the Accounting Standard for financial reporting by micro-entities, was added to this set in 2011 and a 16th standard, relating to the reporting for non-profit enterprises, was added in 2015. In 2014, the National Accounting Council of Albania (NACA) performed a major revision of this existing framework of NAS. The focus of this paper is to analyze the current status, as well as the development of accounting and financial reporting in Albania for the Small and Medium Enterprises (SMEs). An international standard of financial reporting for SMEs was issued by the International Accounting Standards Board but was not fully endorsed by the European Community, nor by the NACA, who instead chose to revise their current NAS. In this study, we provide a general overview of the accounting regime and platforms currently applied in Albania, by focusing on the changes over the recent years. We also depict the main differences between the IFRS for SMEs and the NAS in Albania in treatment of several elements of the financial statements.

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Financial Accounting Standards for Micro, Small & Medium Entities (SAK EMKM) Implementation and Factors That Affect It

JEMA Jurnal Ilmiah Bidang Akuntansi dan Manajemen ◽

10.31106/jema.v15i2.1126 ◽

2018 ◽

Vol 15 (2) ◽

pp. 50

Author(s):

Nur Diana Adhikara

Keyword(s):

Financial Reporting ◽

Small And Medium Enterprises ◽

Fundamental Problem ◽

Accounting Standards ◽

Financial Statements ◽

Educational Background ◽

Financial Accounting ◽

Accounting Standard ◽

Level Of Understanding ◽

Medium Enterprises

The low understanding of accounting and financial accounting standards is a fundamental problem for Micro, Small & Medium Enterprises (MSMEs) in Indonesia. This makes it difficult to prepare and manage financial statements. The presence of the Financial Accounting Standards for Non-Publicly-Accountable Entities (SAK-ETAP) on January 1, 2011, is expected to accommodate small and medium enterprises in making easy, transparent and accountable financial statements. But In fact, many MSMEs that have not been able to apply SAK ETAP properly because it is considered to be too complex and not by the financial reporting needs of MSMEs. On January 1, 2018, SAK EMKM was enacted as a standard that could help about 57.9 million MSME entrepreneurs in Indonesia in properly preparing their financial statements without having to get caught up in the complexity of it. SAK EMKM is a much simpler financial accounting standard than SAK ETAP. This study aims to provide empirical evidence on the perception of MSME business actors regarding the importance of financial bookkeeping and reporting for their business and the factors that affect the level of understanding of MSME’s related to SAK EMKM. The sample of research was MSMEs business actors in Malang Raya with purposive sampling method with the total of 225 respondents. The results showed that company size, educational background, and level of education affect the MSME business entrepreneurs' perception of the importance of financial bookkeeping and reporting. While the level of understanding of MSME business entrepreneurs of SAK EMKM is affected by the level of information on SAK EMKM, educational background and education level of the MSME business actors.

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INTERNATIONAL FINANCIAL REPORTING STANDARDS FOR SMALL AND MEDIUM ENTERPRISE (IFRS FOR SMES) AND THE STATEMENT OF ACCOUNTING STANDARDS (SAS): A COMPARATIVE STUDY

International Journal of Finance and Accounting ◽

10.47604/ijfa.211 ◽

2016 ◽

Vol 1 (3) ◽

pp. 79

Author(s):

Muotolu Peace Chikwemma ◽

Egungwu Ngozi Ursula ◽

Anichebe Alphonsus Sunday

Keyword(s):

Financial Reporting ◽

Small Firms ◽

Small And Medium Enterprises ◽

Accounting Standards ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Financial Reporting Standards ◽

Entrepreneurial Spirit ◽

Medium Enterprise ◽

Medium Enterprises

Purpose: Micro, small and medium-sized enterprises (SME) are the engines that propel the world economy; they are essential sources of jobs, they create entrepreneurial spirit and innovation in the economy and are thus crucial for fostering competitiveness and creativity. The objective of this study therefore, is to ascertain the need for International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) instead of Statement of Accounting Standards (SAS), to ascertain the extent to which IFRS aids managements in attaining goals and objectives as well as improving its market share and to ascertain the challenges for Non-compliance (causes and penalties) with international financial reporting standard for Small and Medium Enterprises.Methodology: Analysis of variance (ANOVA) was used to test hypothesis.Results: The findings were; a major factor why IFRS is adopted by Nigeria is because other countries have adopted it, the size of entities to participate in IFRS for SMES varies, adopting a globally accepted financial reporting is relevant to small firms as they operate in a globalized world.Policy recommendation: This study recommends that the IASB should ensure full implementation/compliance of IFRS for SME by companies that fall under that category, the cost of acquiring IFRS education should also be subsidized for small firms by major accounting regulatory bodies in Nigeria.

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Use of Accounting Information System, Accounting Standards of Small and Medium Entitles in SmallL and Medium Micro Businessesin Mojokerto Regency, East Java Province

Journal of Economics and Technology Research ◽

10.22158/jetr.v2n3p1 ◽

2021 ◽

Vol 2 (3) ◽

pp. p1

Author(s):

Untung Lasiyono ◽

Suhary Anto

Keyword(s):

Information System ◽

Data Analysis ◽

Financial Reporting ◽

Small And Medium Enterprises ◽

Accounting Information ◽

Accounting Standards ◽

Financial Accounting ◽

Research Subjects ◽

Accounting Information System ◽

Medium Enterprises

This study is a qualitative study that analyzed Micro, Small and Medium Enterprises (MSMEs) in Mojokerto Regency, East Java Province in carrying out financial reporting through an accounting information system based on Financial Accounting Standards for Micro, Small and Medium-sized Entities (FAS EMKM). The research was conducted in the Mojokerto Regency, East Java Province where the research subjects were MSMEs actors, while the object studied was an accounting information system based on financial accounting standards for micro, small and medium entities in MSMEs. By using a triangulation approach in collecting data, namely interviews, observations and documentation, the data analysis carried out also refers to a triangulation approach, so that the data obtained are then analyzed and discussed with reference to theory and empirical. The results of data analysis show that MSMEs actors have not as a whole implemented an accounting information system. MSMEs actors only record simple transactions including sales, purchases, debts, receivables, profit or loss. Likewise, because the accounting information system has not been implemented, the financial accounting standards of micro, small and medium entities have not been implemented by MSMEs actors.

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PENERAPAN STANDAR AKUNTANSI KEUANGAN KOPERASI BERDASARKAN SAK-ETAP PADA KOPERASI UNIT DESA

Jemasi: Jurnal Ekonomi Manajemen dan Akuntansi ◽

10.35449/jemasi.v14i1.107 ◽

2018 ◽

Vol 14 (1) ◽

pp. 64-83

Author(s):

Jumania Septariani

Keyword(s):

Financial Reporting ◽

Qualitative Data ◽

Management Practices ◽

Small And Medium Enterprises ◽

Accounting Standards ◽

Financial Accounting ◽

Economic Decision Making ◽

Analysis Technique ◽

Standards And Guidelines ◽

Medium Enterprises

This study discusses the application of cooperative financial accounting standards based on Financial Accounting Standards Entity Without Public Accountability (SAK ETAP) on Village Unit Cooperative. The object of this research is KUD Sriwijaya Plakat Tinggi Musi Banyuasin Regency. KUD Sriwijaya Plakat Tinggi Musi Banyuasin Regency has standards and guidelines used in the preparation of financial reporting will be reported at annual meeting members and can serve as the basis for economic decision-making as well as to improve the quality of supervision of cooperative business management practices. Previously the regulation or standard regarding cooperatives contained in PSAK 27. Along with the development and revision, the cooperative standard is regulated in SAK ETAP and refers to the Regulation of the Minister of Cooperatives and Small and Medium Enterprises Republic of Indonesia 12/2015 concerning General Guidelines for Cooperative Accounting. Therefore, KUD of Sriwijaya of Plakat Tinggi Musi Banyuasin Regency adjusted the application of standard in the preparation of financial statements. This research is conducted qualitatively by using qualitative data analysis technique. Qualitative data in the form of survey results and interviews conducted at KUD Sriwijaya Plakat Tinggi Musi Banyuasin Regency.

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PELATIHAN PENYUSUNAN DAN PENYAJIAN LAPORAN KEUANGAN UNTUK USAHA MIKRO, KECIL, DAN MENENGAH YANG BERBASIS STANDAR AKUNTANSI KEUANGAN (SAK) ENTITAS TANPA AKUNTABILITAS PUBLIK (ETAP) DI DESA MUARA JALAI KECAMATAN KAMPAR UTARA KABUPATEN KAMPAR

Dinamisia Jurnal Pengabdian Kepada Masyarakat ◽

10.31849/dinamisia.v1i1.279 ◽

2017 ◽

Vol 1 (1) ◽

pp. 15-22

Author(s):

Dini Onasis ◽

Wita Dwika Listihana ◽

Afvan Aquino

Keyword(s):

Small Businesses ◽

Stock Exchange ◽

Small And Medium Enterprises ◽

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

Traditional System ◽

Professional Management ◽

The Difference ◽

Medium Enterprises

One professional management is in the preparation of financial statements follow Financial Accounting Standards (IFRSs) which has been officially in force in Indonesia as a reference book and standards in preparing and presenting financial statements of business or company. But in fact many of the micro, small and medium enterprises that do not understand the SAK. Indonesia has the Financial Accounting Standards (GAAP) used for preparing and presenting the financial statements in order to make financial statements can be uniform and easily understood by the stakeholders. Because GAAP is difficult to be applied by the economic circles of micro, small and medium then issued Financial Accounting Standards specifically for micro, small and medium enterprises by giving the name of Financial Accounting Standards ETAP (entities Without Public Accountability), so that small businesses can create financial statements in accordance with SAK ETAP. Specificity SAK ETAP is easier to be applied by SMEs but should not be applied by companies listed on the Indonesia Stock Exchange or companies that require reporting to the public. The problem that often arises is the economic society is small or micro, small and medium SAK ETAP who do not understand this, so that if they make the financial statements are not in accordance with GAAP ETAP which has been recognized by the State and International. Treatment SAK ETAP is what will be used as a workshop by TIM Faculty of Economics, University of Lancang Kuning to SMEs in the village of Muara Jalai districts of North Kampar Kampar district. TIM explains the difference SAK ETAP with the usual accounting and provide training for the preparation and presentation of financial statements in accordance with GAAP ETAP Enterprises. The SMEs estuary Jalai never prepare and present financial statements, which exist only in the traditional system even if there is only a small note on the purchase of goods. Given this devotion brings the understanding and implementation of penyususan and Presentation of financial statements based SAK ETAP which brings various benefits to SMEs.

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