Analysis of the Implementation of Financial Accounting in the Village-Owned Enterprise (BUMK) Toray, Sota District, Merauke Regency

Abstract

The application of SAK ETAP as a guideline for presenting financial reports is still poorly understood by BUMK managers and village governments. Financial reports are information that presents the financial condition of an entity, which contains the results of the accounting process used by interested parties in making decisions, the financial reports presented must be in accordance with SAK ETAP so that the financial reports are more effective and efficient and reliable. The formulation of the problem in this research is how the Implementation of Financial Accounting in Toray Village-Owned Enterprises (BUMK) Based on Generally Accepted Accounting Principles. The purpose of this research is to determine whether the application of financial accounting in BUMK Toray is in accordance with generally accepted accounting principles. The data analysis technique in this research uses a descriptive qualitative method with data collection methods through observation, interviews, and documentation. The data sources used are primary data and secondary data. The research informants are represented by the head of Toray village, the chairman of the BUMK Toray management, the secretary of the BUMK Toray management, the treasurer of the BUMK Toray management, the Toray village community. The results of this study state that the financial reports prepared by BUMK Toray only record daily cash reports, do not present balance sheets, profit and loss reports, statements of changes in equity, notes to the financial statements and cash flow statements, as well as a lack of accounting knowledge among BUMK Toray managers. It is hoped that BUMK will participate in training or socialization regarding the presentation of financial reports so that the preparation of financial reports is in accordance with SAK ETAP.