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MSMES’ PERCEPTION TOWARDS THE USEFULNESS OF
ACCOUNTING STANDARD FOR MSMES (SAK EMKM)
(Undergraduate Thesis)
Researcher
AYU FATMAWATI
ECONOMICS AND BUSINESS FACULTY
LAMPUNG UNIVERSITY
BANDAR LAMPUNG
2019
ABSTRACK
MSMES’ PERCEPTION TOWARDS THE USEFULNESS OF
ACCOUNTING STANDARD FOR MSMES (SAK EMKM)
By
Ayu Fatmawati
Micro, Small, and Medium Entities (MSMEs) have been growing for the past few
years but many MSMEs still face various challenges in developing their business.
One of the challenges is the lack of financial access that hinder their growth and
development. Financial access is limited because MSMEs lack of knowledge and
ability to make financial report. In response, Institute of Indonesia Chartered
Accountants (IAI) released Indonesian Accounting Standard for MSMEs (SAK
EMKM) as a new standard for MSMEs with purpose to act as a guidance for
MSMEs to make their financial reports and to get a loan from bank more easily.
This thesis aims to investigate the importance of SAK EMKM from MSMEs’
perception and to know whether SAK EMKM is useful on perception of MSMEs
or not. A qualitative research applying semi-structured interviews and Focus
Group Discussion (FGD) was carried out with six MSMEs in Lampung to ensure
the conclusion drawn are accurate, thorough, and reflective of the situation. Based
on the qualitative results, it shows that MSMEs in Lampung find SAK EMKM
important for their business for various reason, such as striving for administrative
discipline, simplifying funding proposal progress to banks, and developing their
businesses to bigger entities. Discussion, limitation, and recommendation for
future research are discussed.
Keywords : Indonesia, Accounting Standard, Micro, Small, and Medium Entities
(MSMEs), Institute of Indonesia Chartered Accountants (IAI),
Accounting Standard for MSMEs (SAK EMKM), Accounting
Standard Non-Publicly-Accountable Entities (SAK ETAP).
MSMES’ PERCEPTION TOWARDS THE USEFULNESS OF
ACCOUNTING STANDARD FOR MSMES (SAK EMKM)
Researcher
AYU FATMAWATI
Undergraduate Thesis
As One of Requirements to Achieve
BACHELOR OF ECONOMICS
in
Accounting Department
Faculty of Economics and Business, University of Lampung
ECONOMICS AND BUSINESS FACULTY
LAMPUNG UNIVERSITY
BANDAR LAMPUNG
2019
AUTHOR BIOGRAPHY
Ayu Fatmawati was born on June 20th
, 1997 in Bandar Lampung as the second
child of three siblings of Abdul Ghofar and Alfiyah. The author started formal
education in TK Bunga Bangsa in 2002 and continued the study in SDN 2
Sukabumi from 2003-2009, MTsN 2 Bandar Lampung was her choice to continue
the study from 2009-2012, and MAN 1 Bandar Lampung as the last 12 year
education. Through an invitation in 2015, author continued the higher level of
formal education to finish bachelor degree in University of Lampung until 2019
with Accounting as her major and join international class during the college.
The author participated in several organizations during college such as
Economics’ English Club (EEC) and AIESEC. In 2017, the author had special
opportunity to be a secretary of education for first division in EEC during 17/18
period and as a quality manager of Outgoing Global Volunteer (OGV) of AIESEC
in 17/18 period. The author also participated in Global Volunteer 2017 by
AIESEC in Unila as an exchange participant in Poland for 2 months to share
about Indonesian culture and education system, and in the same year, won second
place in speech competition in Agriculture Faculty and now still actively continue
the interest and sharing knowledge about speech branch in EEC.
MOTTO
“Twenty years from now you will be more disappointed by the things you didn't
do than by the ones you did do. So throw off the bowlines. Sail away from the
safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
(Mark Twain)
“We are what we repeatedly do. Excellence then, is not an act, but a habit.”
(Aristotle)
“Banyak hal yang bisa menjatuhkanmu tapi satu-satunya hal yang benar-benar
dapat menjatuhkanmu adalah sikapmu sendiri.”
(R.A. Kartini)
DEDICATION
With gratitude to Allah S.W.T for always giving his guidance and
blessings, this thesis I dedicate to my dearest family, the most important
people in my life; my mother, my father, and my two brothers.
I would not have been this far and be who I am today without all of their
supports, encouragement, and prayers.
ACKNOWLEDGEMENT
This undergraduate thesis, entitled “MSMEs Perception Towards the Usefulness
of Accounting Standard for MSMEs (SAK EMKM)” is submitted for partial
fulfilment for Bachelor Degree in Faculty of Economics and Business, University
of Lampung. In finishing this undergraduate thesis, the author got lots of supports.
Thank you for all the helps, encouragement, guidance, advices, and suggestion
from various parties. The author would like to thank deeply to:
1. Prof. Dr. H. Satria Bangswan, S.E., M.Si., the Dean of Economics and
Business Faculty, University of Lampung.
2. Dr. Farichah, S.E., M.Si., Akt., the Head Program of Accounting
Departement of Economics and Business Faculty, University of Lampung.
3. Mrs. Yuztitya Asmaranti, S.E., M.Si., the Secretary Program of
Accounting Department of Economics and Business Faculty, University of
Lampung.
4. Mr. Yuliansyah, S.E., M.S.A., Ph.D., Akt., CA., the author’s academic
advisor.
5. Mrs. Susi Sarumpaet, S.E., M.B.A., Ph.D., Akt. as the Chairperson of
advisor for this undergraduate thesis. Words can not express my great
gratitude for all of your advices, guidance, and motivation, Mam.
6. Mrs. Dewi Sukmasari, S.E., M.S.A., CA., Akt. as the Co-Advisor of this
research, I am profoundly thankful for your helps, supports, and guidance
that have been given during the process of writing this undergraduate
thesis. Thank you for every encouragement and advice to motivate me to
be the better version of me, Mam.
7. Dr. Rindu Rika Gamayuni, S.E., M.Si., the Assessor of this undergraduate
thesis. I am immensely thankful for your criticism and recommendation to
improve this research, also for all the kindness that you have given to me.
8. Mrs. Agustina Awan, Ms. Diana, Mr. Noveriady, Mr. Yana, Mrs. Mpok
and all lecturers and staffs in Economics and Business Faculty, University
of Lampung.
9. My six respondents who were willing to help and contribute in my
research, Pak Robani, Pak Supardi, Pak Budiman, Kak Apip, Yapri, and
Refly. I deeply thank for the time, effort, and willingess to be my
respondents and came to University of Lampung. May this research can
help in adding more knowledge about accountancy.
10. My support system in college; Elia Agusta, Risna Pertiwi, Suci Mardhina,
Tiara Sella, Yolanda Kharisma, Rizki Annisa, Intan Pratiwi, and Annisa
Nadhila. I am immensely grateful for having you guys during college for
all the craziest moments and thank you for the supports, encouragement,
and advices.
11. My very best friend since childhood, Anastasya Indri Septiadi who always
support and waiting for my graduation to come. Here you go.
12. My primary-sampling-model partners and those who accompany us; Tiara
Sella, Dwi Jayanti, Dieky Laundry, Deka Hutami, Fajri Hansyah, and
Dicky Ramadhan. We did it. Thank you for accompany me, for the sweat,
tears, and laugh during the research.
13. My EEC presidium 17/18 sweethearts; Elia, Risna, Tisel, Putri, Suci, Silfi,
Nadnad, Dieklaw, Dwi Bikes, Cyn, Gusti, Deka, Erik, Dicky R, Jarwo,
Suci R, and Muda. Thank you Elia for trusting me in joining the team,
never in a second I regret the decision. Thank you for the happiness, ups
and downs, crazy moments, the tears, the laugh, and the gossips we have
shared as a family. You always have that special part in my heart.
14. My dearest first division, the team that drives me crazy; Putri as my Emak
in college, Suci MP, and Dicky R.
15. My international class mates 2015; Rachma, Naditra, Elia, Erik, Rani,
Devita, Cindy, Ayu Budi, Annisa, Adrima, Astri, Cia, Inike, Karina, Muti,
Monica, Icha, Nabila, Maria and Silvi. Thank you for the jokes, laugh, and
gossips memories, and that spirits which triggered me to learn more and
more.
16. My summer project 2017 team! Kak Sofie, Almaas, Alvira, Abi, Kak
Gilang, Hanu, Sakinah, and others. Thank you for all unforgetable
moments. And my AIESEC Team in 17/18, especially OGV-Pixie Dust
team.
17. My senior highschool mates; Indria, Rori, Lili and Sita. Thank you for
always supporting me even we are far apart.
18. My KKN Kebangsaan team who are far away from here; Nila, Ade, Tessa,
Kiki, and Fuad. Hoping to meet you again someday, guys. Thank you for
the memories we have shared during KKN.
19. My friends in Accounting 2015; Lele, Bella, Adzkia, Novira, Dara, Rio,
Kholid, Adrima, Anisa Feb, Cangga, Devi A, Fendi, Citra, Devi, Debby,
Neva, Nadia Ulfa, Ardita, Destty, Rona, Ilma, Wuri, and others that I can
not mention one by one. Thanks for the togetherness, I had so much fun!
20. All individuals and parties who directly or indirectly contributed to the
writing of this thesis.
This undergraduate thesis is still far from perfection, however the author hopes
this would benefit the readers and encourage further studies in related topic.
Bandar Lampung, June 22nd
, 2019
Ayu Fatmawati
TABLE OF CONTENTS
Page
COVER PAGE .................................................................................................... i
ABSTRACT ......................................................................................................... ii
TITLE PAGE ...................................................................................................... iii
APPROVAL SHEET .......................................................................................... iv
ADMISSION ........................................................................................................ v
STATEMENT OF ORIGINALITY .................................................................. vi
AUTHOR BIOGRAPHY.................................................................................... vii
MOTTO ............................................................................................................... viii
DEDICATION ..................................................................................................... ix
ACKNOWLEDGEMENT .................................................................................. x
TABLE OF CONTENTS .................................................................................... xiv
LIST OF TABLES .............................................................................................. xvii
LIST OF APPENDICES .................................................................................... xviii
I. INTRODUCTION ........................................................................................ 1
1.1 Research Background .............................................................................. 1
1.2 Research Questions .................................................................................. 4
1.3 Research Objectives ................................................................................. 4
1.4 Research Benefits ..................................................................................... 5
1.4.1 Theoritical Benefits ......................................................................... 5
1.4.2 Practical Benefits ............................................................................. 5
II. LITERATURE REVIEW ........................................................................... 7
2.1 Theoritical Base ....................................................................................... 7
2.1.1 Perception ...................................................................................... 7
2.1.1.1 Definition of Perception ..................................................... 7
2.1.1.2 Factors Influencing Perception .......................................... 8
2.1.2 Information Quality ....................................................................... 10
2.1.3 Micro, Small, and Medium Entreprises (MSMEs) ........................ 10
2.1.4 Standar Akuntansi Keuangan untuk Entitas Mikro, Kecil dan
Menengah (SAK EMKM).............................................................. 11
2.1.5 Financial Statements for MSMEs .................................................. 12
2.1.6 Objective of Financial Statements for MSMEs ............................. 13
2.1.7 Users of Financial Statements for MSMEs .................................... 14
2.2 Differences between SAK ETAP and SAK EMKM ............................... 15
2.3 Previous Research .................................................................................... 17
III. RESEARCH METHOD .............................................................................. 21
3.1 Research Design ....................................................................................... 21
3.2 Respondents of Research ......................................................................... 21
3.3 Data Collection Method ........................................................................... 24
3.4 Data Analysis Method .............................................................................. 25
3.5 Data Validity Techniques......................................................................... 26
3.5.1 Qualitative Descriptive ................................................................... 26
3.5.2 Measurement Model ....................................................................... 26
3.5.2.1 Triangulation ....................................................................... 27
3.6 Questions .................................................................................................. 28
IV. RESEARCH RESULT AND DISCUSSION ............................................. 31
4.1 Research Result ........................................................................................ 31
4.1.1 Financial Statement Benefits for MSMEs ...................................... 33
4.1.1.1 The Benefits of Financial Statements for MSMEs ............. 33
4.1.1.2 The Use of Financial Statements in Setting Targets
for MSMEs .......................................................................... 35
4.1.1.3 The Importance of Financial Statements for MSMEs ........ 36
4.1.2 Users of MSMEs’ Financial Statements ......................................... 37
4.1.2.1 Owner .................................................................................. 37
4.1.2.2 Supplier or Vendor .............................................................. 38
4.1.2.3 Bank .................................................................................... 39
4.1.2.4 Government (Tax) ............................................................... 40
4.1.3 MSMEs Awareness of SAK EMKM .............................................. 41
4.1.4 MSMEs’ Perception of SAK EMKM ............................................. 42
4.1.4.1 The Importance of SAK EMKM ........................................ 42
4.1.5 Interest and Challenges of MSMEs in Implementing
SAK EMKM ................................................................................... 45
4.1.5.1 Interest in Joining the Training and Socialization of
SAK EMKM ....................................................................... 45
4.1.5.2 Interest in Implementing SAK EMKM ............................... 45
4.1.5.3 Challenges in Implementing SAK EMKM ......................... 46
4.1.5.4 Solutions for the Challenges in Implementing
SAK EMKM ....................................................................... 48
4.2 Discussion ................................................................................................ 49
4.2.1 Benefits of Financial Statements for MSMEs................................. 49
4.2.2 Users of MSMEs’ Financial Statements ......................................... 51
4.2.3 MSMEs’ Awareness of SAK EMKM ............................................. 53
4.2.4 MSMEs’ Perception of SAK EMKM ............................................. 53
4.2.5 Interest and Challenges in Implementing SAK EMKM ................. 55
V. CONCLUSION AND RECOMMENDATION ......................................... 57
5.1 Conclusion ............................................................................................... 57
5.2 Limitation ................................................................................................. 58
5.3 Recommendation ..................................................................................... 59
REFERENCES
APPENDICES
LIST OF TABLES
Table Page
Table 1 Factors Influencing Perception ................................................................ 8
Table 2 Differences Between SAK ETAP and SAK EMKM .............................. 15
Table 3 Previous Research ................................................................................... 17
Tabel 4 MSMEs Total in Lampung per 31st of December, 2017 ......................... 22
Tabel 5 The Most Contributed Industries to Lampung Economy in 2017 ........... 22
Table 6 Interview Questions ................................................................................. 28
Table 7 Focus Group Discussion Questions ......................................................... 30
Table 8 Indicator................................................................................................... 33
LIST OF APPENDICES
Appendix
Appendix 1 Respondents Answer
Appendix 2 Research Permission Letter
I. INTRODUCTION
1.1 Research Background
Micro, Small and Medium Entities (MSMEs) have been growing for the past few
years, not only in number but also in their contribution to Indonesian economy. In
accordance to this phenomenon, Deputy I of Macroeconomics and Finance
Coordination Iskandar Simorangkir (2018) stated that the total numbers of
MSMEs in 2018 are as followes: 93,4% unit for small entities, 5,2% unit for
medium entities, and 1% for big entities. MSMEs contributed significantly to
Gross Domestic Product (GDP) with 60,34% (Yasa, 2018). This proves that
MSMEs are able to contribute for the better of Indonesian economy.
Although MSMEs have increased in number, many MSMEs still face various
challenges in developing their business. One of the challenges is the lack of
financial access that then hinder their growth and development. Governor of Bank
Indonesia, Agus D.W. Martowardjojo (2016), stated that the reason of limited
financial access was the lack of knowledge and ability to make financial report. In
consequence, the financial statement quality of MSMEs is low.
The weakness is partly due to the lack of education and understanding regarding
Financial Accounting Standards (GAAP) in owners and managers because of the
absence of regulations requiring the preparation of financial statements for
2
MSMEs (Wulanditya et al, 2012). In addition, it is evident that small companies
in Indonesia tend to choose their own calculations (without preparing sufficient
financial statements) as the basis for daily financial report when in reality, to get
funding access through banks, investors, or others, MSMEs should prepare their
financial statements based on the standard which has been set.
Under those conditions and problems, Ikatan Akuntan Indonesia (Institute of
Indonesia Chartered Accountants – IAI) released a new standard for Small and
Medium Entreprises (SMEs) known as Standar Akuntansi Keuangan untuk
Entitas Tanpa Akuntabilitas Publik (Indonesian Accounting Standard Non-
Publicly-Accountable Entities – SAK ETAP) in July 2009 by IAI to be used by
Non-Publicly-Accountable Entities (entities that do not have significant public
accountability and publish the financial statements for general purpose only and
not for external users (IAI, 2016)). It is the simpler form of Pernyataan Standar
Akuntansi Keuangan (Indonesian GAAP – PSAK) or International Financial
Reporting Standards (IFRS) for SMEs who have not been able to make financial
statements based on IFRS or PSAK. The purpose is to create flexibility on
implementing it and give easy access for the funding from bank (IAI, 2016).
Krismiaji (2016) believed however, that the lack of human resource is the main
problem in making financial statement while Muntoro (1990) thought it was
because of the absence of regulation requiring the preparation of financial
statements for SMEs.
A research from Hendrian and Rini Dwiyani Hadiwidjaja (2016) found that only a
small number of SMEs have used SAK-ETAP as a guidance in the preparation of
the accounting and financial statements. The primary problems faced was the lack
3
of their knowledge of SAK-ETAP and even lower competence from their
accounting staff. Teti Rahmawati and Rita Puspitasari (2016) reasoned that the
root of those problems was lack of proper socialization, education, and training
about SAK-ETAP.
In response to how small the number of SMEs that used SAK-ETAP to prepare
their financial statements, IAI then released Standar Akuntansi Keuangan untuk
Entitas Mikro, Kecil dan Menengah (Indonesian Accounting Standard Micro,
Small and Medium Entities – SAK EMKM) as a new standard for MSMEs for the
preparation of financial reporting. This financial reporting standard, SAK EMKM,
is the simpler form of SAK ETAP for MSMEs. According to IAI, the purpose of
this standard is to help MSMEs do the transition from cash basis to accrual basis
and to have broader access for funding from banking industries. SAK EMKM also
has a purpose to act as a guidance for MSMEs to make their financial reports. It
was introduced in 2017 but has been effective in use since the 1st of January,
2018. (Dewan Standar Akuntansi Keuangan, 2016).
IAI expected SAK EMKM to help around 57,9 million MSMEs in Indonesia meet
the standard for financial reports. Regardless of its use in bettering their financial
reports, SAK EMKM can also be implemented as a tool to analyse cash flow and
assist individual entity in making more accurate and profitable decisions IAI
stated in SAK EMKM Exposure Draft that they were looking for businesses,
universities, regulator, and others to give their opinions about the Exposure Draft.
Although it has been well prepared by accepting various critics and suggestions
from other parties, it is important as well to understand how it is perceived by
4
MSMEs-especially those who did not have a chance to give their opinion due to
lack of information- are indeed the targeted users of SAK EMKM.
Nur Diana (2018)‘s research showed that company size, education background,
and level of education could affect MSMEs business entrepreneurs‘ perception of
the importance of financial bookkeeping and reporting. The discussion of
MSMEs‘ perception towards SAK EMKM is more in depth in the form of
qualitative descriptive method in order to keep most things written without any
reduction.
This research aims to investigate whether SAK EMKM is useful in MSMEs‘
perspective. Therefore, the title of this research is “MSMEs’ Perception
Towards the Usefulness of Accounting Standard for MSMEs (SAK
EMKM).”
1.2 Research Questions
Based on the explanation above, the formulations of this research‘s problems are:
1. Is SAK EMKM important for MSMEs to be implemented in MSMEs‘
financial statements?
2. What is MSMEs‘ perception towards SAK EMKM?
1.3 Research Objectives
Specific objectives of this research are:
1. To investigate the importance of implementing SAK EMKM in MSMEs‘
financial statements.
2. To investigate MSMEs‘ perception towards SAK EMKM.
5
1.4 Research Benefits
This study is expected to provide benefits for different parties either directly or
indirectly, as follows:
1.4.1 Theoretical Benefits
1. Contribution in terms of knowledge, experience development, and
understanding for the researcher.
2. Helping to develop literature related to the MSMEs‘ perception towards the
usefulness of SAK EMKM.
1.4.2 Practical Benefits
1. For MSMEs
The researcher expects this study to motivate MSMEs to learn more about
accounting information for better financial reporting.
2. For the government
This study is expected to help government help MSMEs‘ to gain credit access
and provide information about MSMEs‘ condition towards financial reporting
in line with accounting standard.
3. For IAI
To help IAI in finding out the reason MSMEs in Lampung have not
implemented SAK EMKM and to provide more information about the
MSMEs‘ perspective towards SAK EMKM compiled by IAI which has been
activated since January 2018.
6
4. For researchers
This study can be used as an example of implementation of theoretical
knowledge about accounting standard in Indonesia.
II. LITERATURE REVIEW
2.1 Theoritical Base
2.1.1 Perception
2.1.1.1 Definition of Perception
Rookes and Willson (2000) defined Perception as a process which involves the
recognition and interpretation of stimuli which register on our sense. Whereas
Nelson & Quick (2011), perception is a process of interpreting information about
another person. It is the primary vehicle in which understand the surroundings.
Lindsay and Norman (1977) see perception as a process by which organisms
interpret and organize sensation to produce a meaningful experience of the world.
Perception is a process that allows an adaptation to the environment but it is also a
cognitive and emotional assessment process, a practical and ideological pledge
that gives sense to the perceived objects of the environment based on Vazquez in
2011.
From explanation above, it can be concluded that perception is a cognitive and
emotional process to interpret and recognize an environment to produce
information about surroundings.
8
2.1.1.2 Factors Influencing Perception
Table 1 Factors Influencing Perception
Perceiver Situation Object/Target
Attitude Time Shape
Motives Work Setting Size
Interests Social Setting Shade
Experience Sound
Expectations Silhoutte
Movement
Background
Source: V.G. Kondalkar, 2006.
The Perceiver: when an individual looks at the object and attempts to interpret the
same, what he or she sees, it is largely influenced by the personal characteristics.
This is indicative of positive and negative attitude patterns that could affect
MSMEs‘ perception towards SAK EMKM. They could consider it in positive way
to help getting a loan from bank easier, or negative way as a burden for their
business. This can result a motivation which considerable influence on perception.
It is an encouragement for MSMEs in making financial statements based on SAK
EMKM. Motive could affect their desire whether implement SAK EMKM or not.
The Interest is persons liking for a particular thing in an individual. Perhaps
MSMEs‘ get interested to SAK EMKM because its aim or the simplicity to be
implemented, therefore different person (perceiver) will perceive SAK EMKM
based on perceivers‘ interest. And it can be another additional motivation to
encourage the MSMEs to implement SAK EMKM.
9
Past experience also plays an important role in perception because it narrows
down one‘s perception. When MSMEs have bad experience that connected to
funding or taking a wrong decision because there is no guidline, then they will try
to implement SAK EMKM into their financial statements. MSMEs which had a
bad experience in the past try to make financial statements based on accounting
standard with expectation the loan will be approved by bank.
The Target: objects, events that are similar to each other tend to group together
and have a tendency of perceiving them as common group. For example, the
target is SAK EMKM with a background to help MSMEs in getting a loan from
bank easily and to assist MSMEs in making the right decision based on financial
statements.
The Situation: change in situation leads to incorrect perception about a person.
Time is one factor, which influences the perception. Time is related to work
setting and social setting. Time can affect one‘s perception about SAK EMKM.
Perhaps in the present, one MSME is not interested in implementing SAK EMKM
but after time goes by when SAK EMKM is often used by MSMEs and as one of
the requirements from bank to approve the loan, the one MSME will follow others
to implement SAK EMKM in its financial statements. This happens because the
work and social setting which can influence one‘s peception towards SAK
EMKM.
10
2.1.2 Information Quality
Information is useful data that have been processed in such a way as to increase
the knowledge of the person who uses the data (McFadden et al, 1999). Paul
Lillrank (2003) explores the information quality as the successful received what is
the sender‘s intended to deliver information to receiver. The expectation is the
receiver understood the communication is about. Otherwise, it is not a good of
quality information.
Laudon and Laudon (2012) written dimensions for information quality such as
accuracy which is referring to the extent in which data are able to represent
reality, integrity which defined as the consistency of the structure of data and
relationships among the entities and attributes, consistency relates to the
consistency in the definition of the data elements, completeness which is about all
necessary data being present, validity which defined as data values falling within
the defined ranges, timeliness refers to data being available when needed, and
accessibility that defined as data being accessible, comprehensible and usable.
2.1.3 Micro, Small, and Medium Entreprises (MSMEs)
Indonesian Law Number 20 Year 2008 about Micro, Small and Medium Entities
(MSMEs) defined each categories based on the following characters:
Micro Business is a productive entreprise owned by an individual person and/or
business entities that having a net worth of maximum Rp50.000.000 exclude land
and building for establishing business and maximum sales is Rp300.000.000.
Small Business is a stand-alone productive economic enterprise, conducted by an
individual or business entity that is not a subsidiary or not a branch of a company
11
owned, controlled, or becomes part of the direct or indirect business of medium or
large-scale enterprises which having a net worth of more than Rp50.000.000 to
Rp500.000.000 annually, excludes land and building for establishing business and
sales more than Rp300.000.000 up to Rp2.500.000.000 each year.
Medium Enterprise is a stand-alone productive economic enterprise, conducted by
an individual or business entity that is not a subsidiary or a branch of a company
owned, controlled, or becomes part directly or indirectly with a Small Business or
a large business with a net worth more than Rp500.000.000 up to
Rp10.000.000.000 annually, excludes land and building of business premises.
And sales more than Rp2.500.000.000 (two billion five hundred millions rupiahs)
up to Rp50.000.000.000 (fifty billion rupiahs).
2.1.4 Standar Akuntansi Keuangan untuk Entitas Mikro, Kecil dan
Menengah (SAK EMKM)
Standar Akuntansi Keuangan untuk Entitas Mikro, Kecil dan Menengah (Micro,
Small and Medium Entities - SAK EMKM) is an accounting standard released by
Ikatan Akuntan Indonesia (Institute of Indonesia Chartered Accountants – IAI)
intended to meet the financial reporting needs of micro, small and medium entities
which are not or have not yet been able to fulfill the accounting requirements
arranged on Standar Akuntansi Keuangan untuk Entitas Tanpa Akuntabilitas
Publik (Indonesian Accounting Standard Non-Publicly-Accountable Entities -
SAK ETAP). IAI's Financial Accounting Standards Board (DSAK) approved the
Exposure Draft of SAK EMKM on May 18, 2016 and has been effectively used
since January 1st, 2018.
12
SAK EMKM contains the simpler accounting rules than SAK ETAP because it is
ruled transaction generally done by EMKM and the basic measurement use
historical cost. With the adoption of SAK EMKM, the financial accounting
standard in Indonesia will be completed with four pillars of financial accounting
standards, such as PSAK (Pernyataan Standar Akuntansi Keuangan), SAK ETAP
(Standar Akuntansi Keuangan untuk Entitas Tanpa Akuntabilitas Publik), PSAK
Syariah (Pernyataan Standar Akuntansi Keuangan Syariah), SAK ETAP (Standar
Akuntansi Keuangan untuk Entitas Tanpa Akuntaibilitas Publik), and Standar
Akuntansi Keuangan untuk Entitas Mikro, Kecil dan Menengah (SAK EMKM)
In SAK EMKM, financial statements compiled by using accrual basic assumption
as well as used by other entities besides micro, small, and medium entities and
using business entity concept.
2.1.5 Financial Statements for MSMEs
According to PSAK No. 1 year 2015, financial statement is a structured
presentation of the financial position and financial performance of an entity. The
fair presentation of financial statements for MSMEs requires an entity to present
information to achieving goals of : relevant, means that information can be used
by users for the decision making process. Precise representation means that
information is presented precisely or in what should be presented and free from
material errors and bias. Comparability means that information in the entity's
financial statements can be compared between periods to identify trends in
position and financial performance. And understandable, which means the
information presented can be easily understood by the user. Users are assumed to
13
have adequate knowledge and willingness to learn the information with
reasonable persistence.
SAK EMKM wrote financial statements of MSMEs are consisted of statement of
financial position, statement of profit or loss income, and notes to financial
statements. Information of an entity's financial position consists of information
about assets that are controlled by an entity as a result of past events and from
which the entity's future economic benefits are expected to be obtained; liabilities
that are the entity's current obligations arising from past events, which are the
solution results in an outflow from the entity's containing resources economic
benefits at a certain date, and presented in the statement of financial position; and
equity that is the residual right of the entity's assets after deducting all of its
liabilities.
SAK EMKM describe entity's financial position report that includes cash and
equivalent to cash; accounts receivable; inventory; fixed assets; trade debt; bank
debt; and equity.
2.1.6 Objective of Financial Statement for MSMEs
IFRS (2015) stated that general purpose financial statements are financial
statements prepared for the common information needs of a wide range of users
who are not in a position to demand reports tailored to meet their particular
information needs. The objective of general purpose financial statements is to
provide information about the financial position, performance and changes in
financial position of an entity that is useful to a wide range of users in making
economic decisions. In establishing standards for the form and content of general
14
purpose financial statements, the needs of users of financial statements are
paramount.
Whereas SAK EMKM explained that the purpose of financial statements is to
provide financial position and performance information financial entity that
benefits a large number of users in making economic decisions by anyone who is
not in a position can request financial statements specifically to meet these
information needs.
2.1.7 Users of Financial Statement for MSMEs
Internal users of accounting information work for the organization and are
responsible for planning, organizing, and operating the entity. The area of
accounting known as managerial accounting serves the decision-making needs of
internal users. External users do not work for the organization and include
investors, creditors, labour unions, and customers. Financial accounting is the area
of accounting that presents financial information of interest to external users.
(Dauderis & Annand, 2014).
To provide the information needed, Dauderis & Annand (2014) explained that the
entities make financial statements to communicate information, with a focus on
the needs of financial statement users such as a company‘s investors and creditors.
The users include the provider resources for entities such as creditors and
investors. In fulfilling its objectives, the report finance also shows management's
accountability for resources entrusted to them (SAK EMKM).
15
The Basis for Conclusions of the IFRS for SMEs Standard (2015) highlights a
number of such external users, including: Banks that make loans to SMEs;
Vendors that sell to SMEs and use SMEs‘ financial statements to make credit and
pricing decisions; Credit rating agencies and others that use SMEs‘ financial
statements to rate SMEs; Customers of SMEs that use SMEs‘ financial statements
to decide whether to do business; And those who hold shares in an SME but who
do not also manage that enterprise.
2.2 Differences between SAK ETAP and SAK EMKM
Table 2 Differences between SAK ETAP and SAK EMKM
SAK EMKM
SAK ETAP
Definition Intended to fulfilled the
financial reporting needs of
MSMEs
Intended to be used by
entities without
significant public
accountability but issuing
general-purpose financial
statements for users
A set of financial
statements
1. Statement of financial
position
2. Statement of profit or
loss
3. Notes to financial
statements
1. Statement of financial
position
2. Statement of profit or
loss
3. Statement of changes
in
equity
4. Cash flow
5. Notes to financial
statements
16
Table 2 (Continue)
Qualitative
characteristic
1. Relevant
2. Precise representation:
3. Comparability:
4. Understandable
.
1. Understandable
2. Relevant
3. Materiality
4. Reliability
5. Substance
Outperforming
Forms
6. Well Considerations
7. Completeness
8. Comparable
9. On time
10. Balance between
costs and benefits
Business continuity The entity has the ability to
continue its business in the
future
The entity must assess
business continuity when
preparing financial
statements
Source: SAK EMKM & SAK ETAP
17
2.3 Previous Research
Table 3 Previous Research
No Author Title Variables Result
1 Lily Indarti,
Lirong Huang,
Pham Thi Thanh
Hien
(2009)
Accounting for
Small and
Medium-Sized
Enterprises in
Sweden
Independent:
Accounting for
Small and
Medium-Sized
Enterprises in
Sweden
Most SMEs do not
have sufficient
accounting knowledge,
practices,
resources for preparing
financial statements in
compliance
with IFRS for SMEs.
2 Sutthirat
Ploybut
(2012)
Financial
Reporting by
Small and
Medium
Entreprises in
Thailand
Independent:
Small and
Medium
Entreprises in
Thailand
Dependent:
Financial
Reporting
Financial information
in SME financial is
unable to meet the
needs of these main
users. SME
stakeholders generally
support using simpler
accounting standards
for SMEs. The IFRS
for SMEs seems to be
too complicated for
many Thai SMEs and
inconsistency with tax
rules is an issue.
3 Howard Van
Auken &
Shawn Carraher
(2013)
Influences on
Frequency of
Preparation of
Financial
Statements
Among SMEs
Independent:
Frequency of
preparation of
financial
statements
Dependent:
SMEs
The frequency of
financial statement
preparation was
directly associated
with community
gender & size where
the firm located
4 Dinuja Perera
(2015)
Adoption of
International
Financial
Reporting
Standards (IFRS)
for Small and
Medium-Sized
Enterprises
(SMEs):
Problems And
Challenges
Independent:
International of
Financial
Reporting
(IFRS) for
Small and
Medium-Sized
Enterprises
(SMEs)
Dependent:
Problems and
Challenges
Allowing financial
reporting of SMEs to
be less complex by
providing certain
exemptions from the
disclosures but
retaining similar
recognition &
measurement
principles.
18
Table 3 (Continue)
No Author Title Variables Result
5 Teti Rahmawati
& Oktaviani
Rita Puspasari
(2016)
Mengungkap
Kesiapan
Implementasi
SAK ETAP
dalam
Menyajikan
Laporan
Keuangan
UMKM di
Kabupaten
Kuningan
Independent:
Kesiapan
Implementasi
SAK EMKM
Dependent:
Laporan
Keuangan
UMKM
Business
measurement, Term
of business
establishment,
socialization and
training of SAK
ETAP, education
background and the
owner education
grade, also
management
professionalism
influence toward the
doers comprehension
of UMKM which is
related with
implementation of
SAK ETAP.
6 A.A. Solanke, P.
Adinnu, & K. A.
Alhassan
(2016)
Adoption of
International
Financial
Reporting
Standard for
Small and
Medium
Enterprises in
North Central
Nigeria:
Implications for
Financial
Reporting Quality
Independent:
International
Financial
Reporting
Standard for
Small and
Medium
Entreprises in
North Central
Nigeria
Results show that the
financial reporting
practice of SMEs in
North-Central Nigeria
is not only poor, but
also majority of the
business entities do not
prepare financial
reports in line with the
guidelines of the IFRS
for SMEs.
7 Deddy
Kurniawansyah
(2016)
Penerapan
Pencatatan
Akuntansi dan
Penyusunan
Laporan
Keuangan
Berdasarkan
SAK ETAP Pada
UMKM Desa
Gembongsari
Independent:
SAK ETAP
Dependent:
Pencatatan
akuntansi dan
penyusunan
laporan
keuangan
MSMEs have not yet
needed accounting
information and stated
that it is difficult to do
the reporting with all
of the limited
resources.
19
Table 3 (Continue)
No Author Title Variables Result
8 Siti Samsiah
&
Nadia
Fahurrahmi
Lawita
(2017)
Review the
Readiness of
MSMEs in
Indonesia
Compliance with
Accounting
Standards Micro,
Small and
Medium
Entreprise (SAK
EMKM)
Independent:
Accounting
Standards
Micro, Small
and Medium
Entreprise
(SAK EMKM)
Dependent:
Readiness of
MSMEs in
Indonesia.
The study found that
several SMEs do not
make a financial
record of business
because the lack of
human resources
owned SMEs to
prepare financial
statements.
9 Merve Kiliç
and Ali Uyar
(2017)
Adoption process
of IFRS for
SMEs in Turkey:
Insights from
academics and
accountants
Independent:
Adoption
process of IFRS
for SMEs in
Turkey
Dependent:
Insight from
Academics and
Accountants
Findings of the
interviews reported the
need for a
separate financial
reporting standard set
for SMEs due to the
complexity and costly
adoption of the full set
of IFRS.
10 Anton Indra
Budiman,
Harun Delamat,
Rina
Tjandrakirana,
Rochmawati
Daud,
Ermadiani,
Burhanuddin,
Ubaidillah
(2017)
Factors Affecting
Understandibility
of
Micro, Small,
And Medium
Enterprises in
Preparation of
Financial
Statement Based
on SAK ETAP in
Palembang
Independent:
Factors
Dependent:
Understandibilit
y of Micro,
Small, and
Medium
Entreprises in
Preparation of
Financial
Statement on
SAK ETAP in
Palembang
Giving information
and socialization,
educational
background, level of
education
and business size do
not affect on the
understanding of
MSMes in presenting
financial statements
based on the SAK
ETAP on MSMEs.
11 Nuril Badria &
Nur Diana
(2018)
Persepsi Pelaku
UMKM dan
Sosialisasi SAK
EMKM Terhadap
Diberlakukannya
Laporan
Keuangan yang
Berbasis SAK
EMKM
1 Januari 2018
Independent:
Laporan
Keuangan
Berbasis SAK
EMKM
Dependent:
Persepsi pelaku
UMKM
Perception and
sosialization about
SAK EMKM have
positif significant
impact towards the use
of SAK EMKM
20
Table 3 (Continue)
No Author Title Variables Result
12 Yuli Setyawati,
Sigit
Hermawan
(2018)
Persepsi Pemilik
dan Pengetahuan
Akuntansi Pelaku
Usaha Mikro,
Kecil dan
Menengah
(UMKM) Atas
Penyusunan
Laporan
Keuangan
Independent:
Persepsi
Pemilik dan
Pengetahuan
Akuntansi
Pelaku Usaha
Mikro, Kecil
dan Menengah
(UMKM)
Dependent:
Penyusunan
Laporan
Keuangan
Micro business actors
in Krian and Pasuruan
region have already
made financial report
of bookkeeping record
although they are
simple, and their
accounting knowledge
is quite simple
according to their
education level.
13 Nur Diana
(2018)
Financial
Accounting
Standards for
Micro, Small &
Medium Entities
(SAK EMKM)
Implementation
and Factors That
Affect It
Independent:
Factors that
affect Financial
Accounting
Standards for
MSMEs
implementation
Dependent:
Financial
Accounting
Standards for
Micro, Small &
Medium
Entities (SAK
EMKM)
Implementation
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.
14 Yananto
Mihadi Putra
(2018)
Pemetaan
Penerapan
Standar
Akuntansi
Keuangan
EMKM Pada
UMKM di Kota Tangerang
Selatan
Independent:
Penerapan
Standar
Akuntansi
Keuangan
EMKM
Dependent:
Pemetaan Penerapan
Standar
Akuntansi
Keuangan
EMKM
80.4% of MSMEs in
South Tangerang City
have not implemented
the SAK EMKM in
their financial
statements.
III. RESEARCH METHOD
3.1 Research Design
This research used qualitative descriptive with phenomenological approach. The
qualitative research is concerned with developing explanations of social
phenomena that aims to help understanding the social world whereas
phenomenological approach is attempted to interpret data from the perspective of
the participants (Hancock, Beverley et al, 2009). This method is chosen to
describe the phenomenon on the perception of MSMEs towards SAK EMKM in
greater detail. Focus Group Discussion (FGD) and Semi Structured Interview
involve more participants with deeper discussion to find out more about the
situation in real life about MSMEs‘ perception towards SAK EMKM.
3.2 Respondents of Research
Sampling while collecting data for qualitative research is not the same as
sampling in quantitative research because researchers are not interested in being
able to generalise at a statistical level – instead the key is purposive or strategic
sampling (Hancock et al, 2009).
22
Table 4 MSMEs Total in Lampung per 31st of Desember, 2017
NO KAB/KOTA BUSINESS SECTOR
TOTAL MICRO SMALL MEDIUM
1 Lampung Barat 5.065 159 4 5.228
2 Lampung Selatan 7.943 467 152 8.562
3 Lampung Tengah 1.155 0 0 1.155
4 Lampung Timur 34.492 6.080 122 40.694
5 Lampung Utara 34.492 6.080 122 40.694
6 Mesuji 3.029 151 5 3.185
7 Pesawaran 1.097 214 58 1.369
8 Pesisir Barat 782 29 3 814
9 Pringsewu 3.706 770 42 4.518
10 Tanggamus 5.773 0 0 5.773
11 Tulang Bawang 13.804 239 2 14.045
12 Tulang Bawang Barat 1.373 2 0 1.375
13 Way Kanan 5.575 70 4 5.649
14 Bandar Lampung 1.933 152 40 2.125
15 Metro 6.426 907 85 7.418
Total 101.051 11.356 547 157.922
Source: Dinas Koperasi, Usaha Kecil dan Menengah Provinsi Lampung
The report of Government of Lampung Province of Dinas Koperasi, Usaha Kecil
dan Menengah in 2018, there are MSMEs listed based on the top industries
towards PDRB (Pendapatan Domestik Regional Bruto) or GDRP (Gross
Domestic Regional Product) per 31st of December, 2017 can be seen in table 5:
Table 5 The Most Contributed Industries to Lampung Economy in 2017.
NO BUSINESS FIELD
CONSTANT PRICE IN 2010
(IN MILLION RUPIAH)
2016 2017
1 Pertanian, Kehutanan dan Perikanan 65.737,08 66.285,52
2 Pertambangan & Penggalian 12.606,48 13.421,06
3 Industri Pengolahan 37.312,09 39.618,80
23
4 Pengadaan Listrik, Gas 269,49 373,06
5 Pengadaan Air, Pengelolaan
Sampah, Limbah & Daur Ulang
207,84 222,70
6 Konstruksi 18.963,10 21.041,12
7 Perdagangan Besar & Eceran, dan
Reparasi Mobil % Sepeda Motor
24.843,32 26.474,76
8 Transportasi & Pergudangan 10.566,31 11.263,64
9 Penyediaan Akomodasi & Makan
Minum
2.813,17 3.040,39
10 Informasi & Komunikasi 9.300,23 10.299,09
11 Jasa Keuangan & Asuransi 4.475,53 4.677,08
12 Real Estate 6.427,27 6.814,39
13 Jasa Perusahaan 297,39 314,83
14 Administrasi Pemerintahan
Pertahanan & Jaminan Sosial Wajib
6.457,06 6.727,89
15 Jasa Pendidikan 5.723,37 6.012,97
16 Jasa Kesehatan & Kegiatan Sosial 2.020,87 2.116,77
17 Jasa Lainnya 1.793,40 1.953,28
PDRB/JUMLAH 209.813,98 220.657,35
Source: Dinas Koperasi, Usaha Kecil dan Menengah Provinsi Lampung
Based on the data above, the order of the 3 most contributing MSMEs industries
on GDRP per the 31st of December, 2017 is:
1. Agriculture (30,40%)
2. Production Industry (18,91%)
3. Trading (11,42%)
Hancock et al (2007) recommended sample size for focus group studies is 6-10
people, having fewer than this could limit the potential interaction, and having
more than this could make it difficult for everyone to join in the discussion. The
respondents chosen will participate in both interview and focus group discussion,
thus the same size for both studies will be applied and there will be two
representatives for each industry but with different kind of business and
background.
24
Thus, the industries chosen for respondents in Semi Structured Interview and
Focus Group Discussion (FGD) are MSMEs within the Agriculture Industry;
Production Industry; and Trading Industry in Lampung with two representatives
from each industry. Therefore, the total of MSMEs chosen are six MSMEs.
Data sources used for this research is primary data as the main data gathered from
field research, either through Semi Structured Interview or FGD. This data will be
in the form of words about main topic and related phenomenon.
3.3 Data Collection Method
The research data collection method that are used are Focus Group Discussion
(FGD) and Semi Structured Interview. Focus Group Discussion is a type of in-
depth interview accomplished in a group, whose meetings present characteristics
defined with respect to the proposal, size, composition, and interview procedures.
The focus or object of analysis is the interaction inside the group. The participants
influence each other though their answer to the ideas and contributions during the
discussion (Mishra, Lokanath, 2016).
The general characteristics of the Focus Group Discussion are people's
involvement, a series of meetings, the homogeneity of participants with respect to
research interests, the generation of qualitative data, and discussion focused on a
topic, which is determined by the purpose of the research. A focus group
discussion (FGD) is a good way to gather together people from similar
backgrounds or experiences to discuss a specific topic of interest (Mishra,
Lokanath, 2016).
25
The semi structured interview involves a series of open-ended question based on
the topic areas the researcher wants to cover. The interviewer has the freedom to
probe the interviewee to elaborate on the original response or to follow a line of
inquiry introduces by the interviewee (Mathers et al, 2002).
FGD is chosen to provide depth and focus while Semi Structured Interview is
used to gather more informatio. Both methods are chosen to ensure the conclusion
drawn are accurate, thorough, and reflective of the situation.
3.4 Data Analysis Method
The mass of words generated by interviews or observational data needs to be
described and summarised. The question may require the researchers to seek
relationships between various themes that have been identified, or to relate
behaviour or ideas to biographical characteristics of respondents such as age or
gender. Implications for policy or practice may be derived from the data, or
interpretation sought of puzzling findings from previous studies (Lacey & Luff,
2007).
The analysis method used in this study is a model from Miles and Huberman
(1984) who explained three activities needed in analysing qualitative data; data
reduction, data display, and conclusion. Data reduction is done during the study
by choosing the theme and topic, then eliminating unsuitable data. The suitable
data will then be coded and shown in data display. The chosen data will be
displayed by arranging the quotation descriptively. Conclusion aims to find the
conclusion of the study from data display.
26
3.5 Data Validity Techniques
3.5.1 Qualitative Descriptive
Qualitative descriptive studies provide a comprehensive overview of specific
events experienced by individuals or groups and are based on naturalistic inquiry,
and a commitment to studying something in its natural state ( Lambert & Lambert,
2012). Based on that statement, researcher has chosen this method to explain
MSMEs‘ perception towards SAK EMKM.
3.5.2 Measurement Model
Padgett (1998) in Bowen (2005) enumerates and elaborates on six strategies to
enhance the accuracy of a research, which include prolonged engagement,
triangulation, peer debriefing and support, member checking, negative case
analysis, and auditing. In this research, triangulation strategy will be chosen to
enhance the accuracy of research. Norman K. Denzin‘s widely cited work on the
theoretical underpinnings and implications of combined methods in sociological
qualitative research has popularized the definition of triangulation as a
combination of methods used to study the interrelated phenomena from multiple
and different angles or perspectives.
This is chosen because triangulation means to take several methodological
perspectives or theoritical perspectives on an issue under study (Denzin, 1970 on
Flick, 2013). The basic idea underpinning the concept of triangulation is that the
phenomena under study can be understood best when approached with a variety or
a combination of research methods.
27
3.5.2.1 Triangulation
Triangulation is a method used by qualitative researchers to check and establish
validity in their studies by analyzing a research question from multiple
perspectives (Guion, Lisa A et al). In qualitative inquiry, researchers tend to use
triangulation as a strategy that allows them to identify, explore, and understand
different dimensions of the units of study, thereby strengthening their findings and
enriching their interpretations (Sage Encyclopedia, 2008).
There are 4 types of triangulation from Denzin (1970) in Hales (2010):
a. Methodological triangulation
Denzin notes two variations: within-method and between method
triangulation. Within-method triangulation refers to different ways of finding
data contained in one method (Nøkleby, Field, 2011). Whereas between-
method combines different methodological approach with different strength
and weakness.
b. Investigator triangulation
The use of more than one researcher. Using researchers from different ethnic,
age, gender and class groups can be used to check things like observer and
interviewer bias.
c. Data triangulation
A method which involves approaching – by the same methodological
approach – several sets of data, from different times, different places or
different people.
28
d. Theory triangulation
Approaching data with multiple perspective and hypotheses in mind. It
involves a research combining different research methodologist, such as
quantitative and qualitative methods in an attempt to improve research
reliability and vailidity.
For this research, there will be two types of triangulations chosen, methodological
triangulation (Focus Group Discussion and Semi Structured Interview) and data
triangulation (due to the different places and times of data gathering).
3.6 Questions
In order to begin this research, questions have been made as a guide to ask the
respondents either in Interview or in FGD sessions. Some parts of these questions
are taken from the journal of Setyawati and Hermawan (2018) entitled Persepsi
Pemilik dan Pengetahuan Akuntansi Pelaku Usaha Makro Kecil dan Menengah
(UMKM) Atas Penyusunan Laporan Keuangan in Krian and Pasuruan as the
research location. The questions are listed as follows:
Table 6 Interview Questions
Indicator Questions
A
Financial statement
benefits for MSMEs
1. What is your opinion about the usefulness of
financial statement for your business?
2. How do you decide for your business? Do you use
any kind of guideline?
3. How do you make a target for your business and
ensure the target is achieved?
29
Table 6 (Continue)
B
Users of MSMEs
Financial
Statements
1. If you would like to order or buy raw material from
suppliers or distributors, are financial statements or
information needed to gain trust from them?
2. If you would like to borrow money from bank, what
are the requirements for that?
Probe:
- If financial statements are needed, what kind of
financial statement?
- If not, what is the guarantee to make bank trust
you?
3. If you would like to pay taxes, what is the reference
about how much money you need to pay?
Probe:
- If financial statements are needed, what kind of
financial statement?
C
MSMEs‘ awareness
of SAK EMKM
1. Do you know anything about accounting standard for
financial statements from government?
D
MSMEs‘ perception
of SAK EMKM
1. In your opinion, is SAK EMKM important for your
business? What do you think you can gain from
implementing it?
Probe:
- If yes, are you willing to join the socialization or
training? Have you ever joined one?
- If not, why is SAK EMKM not important?
2. What do you think of the effort of government has
done in making SAK EMKM?
3. Do you have any plan to implement SAK EMKM in
making your financial statements?
E
Interest and
challenges of
MSMEs in
implementing SAK
EMKM
1. What are the obstacles and challenges in making
financial statements with or without SAK EMKM?
30
Table 7 Focus Group Discussion Questions
Indicator Questions
A
Financial statement
benefits for MSMEs
1. What are the important things to have in a business?
2. What is your opinion towards financial statements?
(such as its benefits and general uses)?
3. What is the contribution of financial statement in
determining targets?
B
MSMEs‘ perception
of SAK EMKM
1. In your opinion, is SAK EMKM important for your
business?
2. What is your opinion towards the effort government
has done in making SAK EMKM?
3. If financial statement is likened to the daily things
around you, what would it be?
C
Challenges and
suggestion given to
government
1. What are the suggestions you would like to convey
to government about SAK EMKM?
2. In your opinion, what is conclusion for this
discussion?
V. CONCLUSION AND RECOMMENDATION
5.1 Conclusions
This study is conducted to reveal MSMEs‘ perception towards SAK EMKM and
implementing it. Several questions have been asked during interview and Focus
Group Discussion (FGD) sessions with five indicators. The respondents of this
research are the owners of six MSMEs from five regencies, Pringsewu,
Pesawaran, Central Lampung, East Lampung, and Bandar Lampung and from
three different industries, trading, production, and agriculture.
The conclusions of this research are given as follows:
1. Financial statements are used to find out entities‘ profit and loss, cash and
goods flow, and helping in decision making. Whereas to make targets,
MSMEs do not rely on their financial statements. However, financial
statements are important for MSMEs because of their benefits.
2. Financial statements users are more likely to be the owners and managers
themselves as an internal user rather than to the external users such as
supplier, bank, and government.
3. All respondents do not know about SAK EMKM and have never heard of this
accounting standard. Despite not knowing about SAK EMKM beforehand,
58
after giving an explanation about accounting standard and SAK EMKM to
MSMEs during interview session, five out of six respondents agree that SAK
EMKM is important for businesses to get a loan from bank more easily,
discipline the administration, and expand their businesses.
4. All six MSMEs show an interest to implement SAK EMKM in their
businesses but there are obstacles and challenges, such as the unpredictable
factors in reality, human resources, and the lack of knowledge regarding SAK
EMKM. To solve these problems, respondents proposed some ways to solve
it such as a more simplified language, assistance for each MSMEs, and easy-
to-use financial statement templates that are provided by government based
on each industry.
5.2 Limitations
There are limitations in this study that create disruption of the research. Some
limitations that researcher has encountered are as follows:
1. The research is limited only to three industries, trading, production, and
agriculture. It also only focuses on five regencies of Lampung area,
Pringsewu, Pesawaran, Central Lampung, East Lampung, and Bandar
Lampung. Thus, the research result cannot be used to generalise MSMEs as a
whole.
2. The owners of MSMEs‘ time and distance caused difficulty to find
respondents who were willing to contribute in Focus Group Discussion
(FGD) session.
59
3. The coding process done manually which will not be effective for research
with bigger participants and more complex data.
5.3 Recommendations
Based on the conclusions and limitations, the researcher proposes some
recommendations:
1. Ikatan Akuntan Indonesia should hold proper socializations and trainings
about SAK EMKM. It should be done in remote regions as well as big cities.
The introduction of SAK EMKM should be done not only through social
media or television, but also by door-to-door to the MSMEs by creating field
teams for the socialization. IAI should also start to consider making templates
based on each industry.
2. The training or socialization for only 2-3 days will not be enough for the
MSMEs, so it will be better if the government creates an assistance team to
directly communicate with the MSMEs to be able to understand the real
obstacles they face every day.
3. For further research, adding more samples and industries may increase the
validity of the data. Gender diversity in respondents is recommended as well
because the respondents of this research are all men.
4. It would be better for further research to use software for coding the answer
of participants.
5. The specific industries chosen for further research may come from businesses
that presumably make financial statements diligently and continually.
60
6. Further research can also use quantitative method on top of qualitative
method this research uses. Adding questionnaires in data collection can also
increase the level of qualification of research result.
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