Application of Financial Accounting Standards for Micro, Small and Medium Entities to the Preparation of Financial Statements in MR MSMEs

Abstract

The purpose of this study is the purpose of this study is to apply financial accounting standards for micro, small and medium entities (sak-emkm) in preparing financial reports for UMKM MR. Data analysis used a qualitative descriptive method. Qualitative descriptive method is a research method that seeks to describe and interpret objects with what is there. The results of the report that describe the condition of the object or subject under study are in accordance with what is there, in other words that describe descriptively systematically the objects and objects under study and must be precise. The data in this study were obtained from interviews conducted by researchers with informants. The interviews were conducted using an unstructured method and were carried out as relaxed as possible, with the aim of digging up more and deeper information from the informant. Accounting system in order to obtain more accurate data and to facilitate the process of analysis and preparation of financial reports using Micro, Small and Medium Entities (AK-EMKM). The results of the study show that (1) the business obtains a profit that is not too large or not comparable to the costs incurred, (2) The cost of raw and auxiliary materials is too high while the income/sales are not too much/not comparable, (3) the capital spent is sufficient large but the profits are relatively small, (4) the use of cash for business is not optimal so that business development is relatively slow, calculated for more than 40 years the business has been established, (5) withdrawals are quite large every month, because the business owner does not pay himself or does not calculating the energy that has been expended, so that to meet his daily needs he takes business money.