Decisions for SMEs Adopt Financial Accounting Standards (SAK) for Micro and Small and Medium Entities

Abstract

To survive in an increasingly complex global environment, micro and small and medium enterprises have developed new strategies to adopt financial accounting standards, which are effective from 1 January 2018, expected to create flexibility in the implementation and ease of access to banking funding in small micro entities and medium. The research objective is to find out the factors that provide the impetus to adopt SAK EMKM in small and medium micro enterprises using multiple linear regression analysis, the results of the analysis show that the adoption of the latest financial standards is influenced by several factors including knowledge, interaction of individual factors and technical factors, and the age of MSMEs. MSMEs have the potential to use accounting standards in accordance with the age of MSEs.