Beyond The Standards: An Examination Of Companies Operating Without Implementing Financial Accounting Standards (Sak)

Abstract

Financial statements have an important role in ensuring transparency, accountability, and reliability of information for stakeholders. In Indonesia, Financial Accounting Standards (SAK) are the main guidelines in the preparation of financial statements. However, in practice, many companies, particularly micro, small, and medium enterprises (MSMEs), have not formally adopted SAK, even though they have applied basic accounting principles. This study aims to analyze the extent to which companies that do not implement SAK still maintain the qualitative characteristics of financial information, namely relevance, reliability, comparability, and comprehensibility. This study employs a qualitative descriptive approach, using data obtained from interviews with four companies in the trade, health, and processed food sectors. The results of the study show that most companies do not understand the importance of SAK and still rely on external consultants for preparing financial statements. Financial statements are generally only prepared for tax purposes and do not meet adequate reporting standards. The main factors causing the non-implementation of SAK are limited human resources, lack of accounting literacy, and the perception that implementing SAK is not urgent for small businesses. This finding emphasizes the need for government support and accounting professional institutions to provide training and assistance in implementing SAK EMKM, thereby improving the quality of MSME financial reporting.