Implementation of SAK EMKM-Based Financial Statement Preparation for MSMEs at CV. Ayu Pratiwi in Indonesia

Abstract

Micro, small, and medium enterprises require reliable financial reporting to support accountability, performance evaluation, and business decision-making. This study aims to examine the implementation of the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM) in the preparation of financial statements at CV. Ayu Pratiwi. Data were collected through interviews, observation, and documentation and analyzed using a descriptive qualitative approach. The results show that CV. Ayu Pratiwi has not prepared its financial statements in accordance with SAK EMKM. Its financial records are limited to cash inflows and outflows and do not include the required components, namely the statement of financial position, income statement, and notes to the financial statements. This condition limits the company’s ability to accurately measure financial performance and evaluate business development. The study concludes that the implementation of SAK EMKM at CV. Ayu Pratiwi remains inadequate. Therefore, the company should improve its accounting knowledge, adopt more systematic financial recording practices, and prepare complete financial statements in accordance with SAK EMKM to strengthen financial transparency, support managerial decision-making, and facilitate future business development