Preparation of Financial Statements Based on Financial Accounting Standards Entity Without Public Accountability (SAK-ETAP) Case Study At SMEs CV. Kreasindo Prima Lumajang

Abstract

Financial Accounting Standards Entities Without Public Accountability (SAK-ETAP) is a financial standard established to facilitate SMEs in preparing and presenting more informative financial statements with the aim of providing convenience for investors and creditors in providing financing assistance for UMKM entrepreneurs. This research is designed to produce a simple financial report format for SMEs based on SAK-ETAP. The object of this research is UMKM CV. Kreasindo Prima, a SME in Lumajang City engaged in the procurement of goods and services. This research is a qualitative research applied. Data collection in this research through observation, interview and literature study. The results of the research concluded that UMKM CV. Kreasindo Prima has not implemented SAK-ETAP. Financial records system is done manually and still very simple. Factors causing failure of SAK-ETAP on CV. Kreasindo Prima because of internal factors such as lack of understanding of business owners and human resources that lack the ability in the field of accounting, while external factors due to lack of participation from the ministries of Cooperatives and SMEs and the Department of Cooperatives in socializing directly and conduct training to business actors in order to understands and implements Financial Accounting Standards for Non-Public Accountable Entities (SAK-ETAP) on the business it undertakes