APPLICATION OF ACCOUNTING STANDARDS TO MICRO, SMALL AND MEDIUM ENTERPRISES IN PEKANBARU

This study discusses the application of Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM) in Pekanbaru. Employing an exploratory descriptive approach, the research aims to investigate the understanding and practices of financial reporting among MSME stakeholders. The findings reveal that many MSMEs in Pekanbaru do not fully understand the importance of preparing financial reports in accordance with standard. In addition, obstacles such as lack of accounting knowledge and skilled human resources are significant obstacles in the implementation of this standard. This study is expected to provide recommendations to increase the awareness and capacity of MSME actors in implementing appropriate accounting, thereby contributing to their business performance and sustainability.