Abstract :
The food and drink company Himalayan Kopi makes a decent profit every year. However, the financial reporting of this firm does not yet meet accounting standards since manual recording is still being used. One of main issues with adopting the Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM) is the lack of awareness among MSME owners. This research will look at how MSMEs in the Himalayan coffee industry have adopted SAK EMKM to make their financial reports more credible. This study takes a qualitative approach by using a case study to investigate MSMEs in the Himalayan coffee industry. Notation, interviews, and careful observation were the tools used for data collection. According to the results of the research, Himalayan Kopi MSME’s financial reports were less comprehensive and less methodical before SAK EMKM was implemented. This was because the reports just detailed cash inflows and outflows, rather than the overall financial health of the firm. With SAK EMKM in place, financial reports are more organized and accurate, allowing for a more precise assessment of business performance. Financial data that may support business choices is made more open via SAK EMKM, which is an additional perk. To better prepare for the difficulties of implementing this standard, businesses may consider taking accounting classes and seeking assistance with preparing financial reports in accordance with applicable standards.
Keywords :
Financial Statements, MSMEs, SAK EMKM.References :
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