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THE IMPLEMENTATION OF INDONESIAN ACCOUNTING STANDARDS FOR MICRO, SMALL AND MEDIUM ENTITIES
Corresponding Author(s) : Dyah Nirmala Arum Janie
Humanities & Social Sciences Reviews,
Vol. 8 No. 1 (2020): January
Purpose of the study: Indonesian taxation regulations are forcing MSMEs to apply Indonesian Accounting Standards for Micro, Small and Medium Entities/Standar Akuntansi Keuangan untuk Entitas Mikro, Kecil, dan Menengah (SAK EMKM), according to their particular conditions. The application is confusing for MSMEs. This problem is what drives this research, aiming to define the relationship between MSMEs’ conditions and how they perceive SAK EMKM.
Methodology: There were 70 MSMEs in Indonesia participated in this research by filling out questionnaires. However, only 66 MSMEs guided questionnaires returned that we could process. We analyzed using linear regression and SPSS 23. The research indicators are built based on the factors that influence each variable, as already stated in the literature review.
Main Findings: These results from data processing indicate that the MSMEs' conditions have a very positive effect on respondents' perceptions of SAK EMKM. Statistically, we can get the coefficient regression of 0.262, the significance of 0.001 and the coefficient of determination of 22.8%. It means that MSMEs with good conditions have the potential to make respondents' perceptions of SAK EMKM also agreeable.
Applications of this study: The regulation is still new. Also, the amount of MSME implementing SAK EMKM is still meager. Tax regulators and The Institute of Indonesia Chartered Accountants can utilize the results of this study to understand the obstacles faced by MSMEs. By knowing the condition of MSMEs, they can group MSMEs and provide appropriate facilities for the good of MSMEs as well as tax advantages.
Novelty/Originality of this study: Indonesia does not implement IFRS SMEs. However, we have implemented the SAK for Non-Public Accountability Entities, which is too complicated for MSMEs. Therefore we use SAK EMKM. Since it is still new, this research is still in its early stages. So far, we have not found a study in Indonesia that discusses the link between MSMEs' conditions and their perceptions of SAK EMKM.
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