Successful Factors in Implementing Financial Accounting Standard (FAS) of MSMEs: A Study in Tangerang, Indonesia

Abstract

The rapid growth of MSMEs in Indonesia needs to be supported by other facilities, such as marketing and production training, including training in making good and correct financial reports. This financial report can assist MSME actors in their operational activities, such as obtaining credit and as a performance evaluation. Based on a survey conducted by the Central Bureau of Statistics in 2018, around 28% of SMEs have difficulty obtaining financing from financial institutions due to a lack of ability to compile financial statements due to a lack of knowledge of accounting information, resulting in difficulty for MSMEs to obtain financing or credit at banks. This study aims to analyze further what factors can influence MSME actors to interest and be able to implement FAS. This research is a type of survey research with a quantitative approach. The data collection instrument used a questionnaire with a Likert scale of 1 to 5, distributed to MSME actors in the Gading Serpong area, Tangerang. The data analysis technique that will be used is path analysis to determine the coefficient values of the exogenous and endogenous variables using the help of SEM-PLS software. The results showed that motivation, socialization, and significant positive influence directly or indirectly through understanding FAS.