ABSTRACT

Preparation and utilization of financial statements that are part of the financial aspects that can help small medium enterprise (SMEs) in developing the business. Accounting information contained in the financial statements can be used for management decision making, reducing agency costs and as information for creditors (Allee and Yohn 2009; Cassar 2009). In May 2009 the Financial Accounting Standards Board has issued the Financial Accounting Standards of Entities without Public Accountability (SAK ETAP), effective on January 1, 2011. Narsa et al (2012) states that several obstacles in the application of SAK ETAP are that SMEs do not have a good and orderly transaction record and do not understand the form of financial transaction records most SMEs also lack understanding of SAK ETAP this is due to the lack of socialization and information they obtain (Rudiantoro and Siregar, 2012). This study aims to determine the relationship between the quality of financial statements and sak etap on the amount of credit received by SMEs. This research is a quantitative research, using primary data, collecting data using questionnaires distributed to 100 respondents online and offline located in Jakarta, West Java and Bali, analyzed data using multiple linear regression. The results of this study show that the quality of financial statements affect the amount of credit obtained by SMEs which means that the more qualified financial statements the amount of credit that can be obtained greater than the companies that do not have the financial statements that are less qualified. This study proves that the quality of SME financial statements to be considered external parties in making decisions, as evidenced by the influence of the quality of financial statements on the amount of credit received by SMEs. Information or socialization, educational background has a positive and significant influence on the entrepreneur's understanding of SAK ETAP.

Type of Paper: Empirical

Keywords: Financial Reporting Quality, SAK ETAP, SMEs