ISSN: 2225-8329
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What are the elements of financial statement making for MSMEs of rice farmers groups? Statement of Financial Accounting Concepts (SFAC) number 6 states that the elements of the financial statement are building blocks that construct the financial statement. Much MSMEs management in Indonesia does not understand the concept of financial reports so they have difficulty in preparing them. Therefore, this research aims to describe the elements that form the financial statement of MSMEs of rice farmers groups in Indonesia. This research uses a qualitative research method. We collect the data through in-depth interviews with the chairs of rice farmers groups about the scope of a business, business activities, and transactions that occurred. After that, we conducted an analysis and interpretation data through the process of identification and classification of data and presented them in the form of classification of MSMEs' transactions. This classification describes the elements that make up the MSME financial statements. This research results in a description of assets, liabilities, equity, income, and expense of MSMEs of rice farmers groups. The description of these elements is a representation of the economic phenomena of MSMEs that obtained from the scope of business and transactions, which occur of the activities of rice planting, rice harvesting, and rice post-harvest. The results of this study will help the management of MSMEs in making their financial statements.
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To cite this article: Rumambi, H., Kaparang, R., Lintong, J., Tangon, J. (2019). The Building Blocks to Construct Financial Statement of Micro, Small, and Medium Enterprises (MSMEs) of Rice Farmers Groups, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (4): 1-9
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