IMPLEMENTATION OF FINANCIAL ACCOUNTING STANDARD OVER NON-PUBLICLY ACCOUNTABLE ENTERPRISES: ITS FINDINGS ON SMALL AND MEDIUM ENTERPRISES IN JAKARTA

Abstract

The study aims to identify and to analyze the implementation of Financial Accounting Standard
for Non-Publicly-Accountable Enterprises (FAS-NPAE) on Small and Medium Enterprises
(SMEs) in Jakarta and its buffer areas. Conducting identification and analysis to determine the
comparison between accounting records by SMEs with accounting records based on
implementation of FAS-NPAE. SMEs continuously provide the recording of accounting in
company's operation. This research used an explanatory survey method at knowing the
implementation result of FAS-NPAE. The way of recording the accounting transactions by SMEs
that becomes a habit certainly will not be easy if it is immediately changed with other habits. The
implementation of FAS-NPAE as of January 1, 2011, to SMEs without public accountability is
required for using FAS-NPAE. The primary data found the comparison the recording of
accounting with or without using FAS-NPAE. The research findings revealed that there were
twenty enterprises of SMEs in various businesses to explain these phenomenons via closed
questionnaire and interview. The results show the understanding of SMEs on the importance of
accounting was at 75% of respondents. Not reporting the financial statement based on FAS-NPAE
but obtaining a loan from the bank was at 50%. There were 25% of the respondents who understand
about FAS-NPAE. Receiving information the socialization of FAS-NPAE was at 45%. Preparing
the financial report based on FAS-NPAE was only at 10%.