Understanding Accountability in SMEs Context: A Phenomenology Investigation

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Arif Widyatama, Rahmi Syafitri, Ni Kadek Manis,


This study aims to find out how the understanding of Small and Medium Enterprises (SMEs) about accountability is manifested in financial statements. Financial reports prepared by SMEs as a form of accountability to stakeholders. However, SMEs consider that the costs incurred in implementing Entity-based Financial accounting standards without Public accountability are not comparable with the benefits obtained. The research is qualitative research using a phenomenological approach. Data collection is done by conducting unstructured interviews by understanding what is experienced by the entrepreneur. The results showed that the entrepreneur has understood the meaning and felt the importance of accountability. However, accountability is understood differently by large companies. Small and medium businesses only make simple records to determine profit and loss. The contribution of the research is one of the considerations for policymakers or regulators in making financial accounting standards that will be applied to small and medium businesses.

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