Determinants: implementation of SAK EMKM financial accounting standards for MSMEs

Abstract

The implementation of Financial Accounting Standards for Micro, Small, and Medium Enterprises is very important as a basis for presenting reliable financial statements to gain public trust because the financial statements are written based on applicable accounting standards. The research population consisted of MSME players in Indonesia. The sample in this study was selected using purposive sampling technique. The research hypothesis was tested using SmartPLS 3.0 software with the Structural Equation Modeling Partial Least Squares (SEM-PLS) method. The results of the research showed that the use of information technology (IT), level of education, socialization of financial accounting standards for Micro, Small, and Medium Entity (SAK EMKM) and business age had no effect on the implementation of SAM EMKM, while accounting knowledge, the level of readiness of market participants, and taxpayer compliance were proven to have a positive effect on the implementation of SAK EMKM.