ISSN: 2225-8329
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This study explores the basic elements of Micro, Small, and Medium Enterprises (MSMEs) financial statements for agricultural entities. These basic elements for each type of business entity have specific characteristics in terms of its economic activity. The agricultural entity, as the object of this research, is the rice farmer group. This research uses the qualitative method. Data were collected through in-depth interviews and literature studies. Data analysis uses an interactive analysis model with data reduction stages, data display, and concluding the exploration of MSMEs financial reporting's basic elements. The results show that these basic elements include forming elements of financial statements component, concept elements underlying the financial statements, and process elements for generating financial statements. The forming elements consist of the existing conditions of MSMEs and agricultural activity. Agricultural activities include rice plant, rice harvest, and rice post-harvest activities, and their financial transactions. The concept elements are basic assumptions for preparing financial reports that cover the entity unity, going concern concept, and accrual basis, and the concept of biological assets and their accounting treatment. The process elements include the MSMEs accounting system. The accounting system consists of the accounting cycle, forms, accounting records, and the component of financial statements.
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In-Text Citation: (Rumambi et al., 2020)
To Cite this Article: Rumambi, H., Kaparang, R., Lintong, J., & Tangon, J. (2020). Explores the Basic Elements of Preparing MSMES Financial Statements for Agricultural Entities. International Journal of Academic Research in Accounting Finance and Management Sciences, 10(3), 502–509.
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