Measuring MSMEs’ Accounting Comprehension for Education of Financial Accounting Standard for MSMEs

DOI

10.2991/assehr.k.210525.113How to use a DOI?

Keywords

MSMEs, accounting comprehension, SAK-EMKM

Abstract

One of the few obstacles that often encountered in MSMEs is the lack of attention to financial accounting. This is due to the lack of accounting knowledge. Therefore, accounting education is important so that MSMEs can prepare financial reports in conformance with Financial Accounting Standards for Micro, Small, and Medium Entities (SAK-EMKM). This preliminary study measures the level of accounting comprehension, looks for the factors that influence it, and provides recommendations for designing accounting education for MSMEs. These recommendations are the novelty of this research. The analysis was carried out using three approaches. The descriptive analysis used graphs and proportion values. The comparative analysis used Mann-Whitney and Kruskal-Wallis difference tests. And multiple regressions were carried out to perform associative analysis. The results of the analysis show that MSMEs have a very low comprehension of accrual-based cash and fixed asset depreciation. Also, it was found that MSMEs that have been in business for more than 5 years have a better comprehension of accounting than those for less than 5 years. Recommendations given include: (1) Prioritizing MSMEs with a business duration of more than 5 years in the early stages of education; (2) Focus on accounting aspects with low comprehensions, such as accrual basis assumptions, adjustments, depreciation, financial statement components, accrued expenses, and unearned income; and (3) Repeating the materials with good comprehension, accompanied by sufficient examples.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yumniati Agustina
AU  - Widyat Nurcahyo
AU  - E Ermalina
AU  - Sri Setianingsih
PY  - 2021
DA  - 2021/05/26
TI  - Measuring MSMEs’ Accounting Comprehension for Education of Financial Accounting Standard for MSMEs
BT  - Proceedings of the 2nd Annual Conference on Education and Social Science (ACCESS 2020)
PB  - Atlantis Press
SP  - 381
EP  - 387
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210525.113
DO  - 10.2991/assehr.k.210525.113
ID  - Agustina2021
ER  -