International Journal of Latest Engineering and Management Research (IJLEMR) ISSN: 2455-4847 www.ijlemr.com || Volume 06 - Issue 01 || January 2021 || PP. 24-33 Analysis of the Implementation of Accounting Standard Non Publicly Accountable Entities (SAK ETAP) In Badan Usaha Milik Desa (Bumdes) Ellyn Octavianty1, Agung Fajar Ilmiyono2, Sigit Edi3, Dias Nursifa4 Department of Accounting, Faculty of Economics Pakuan University, Bogor Indonesia Abstract: Bogor Regency is a district in West Java Province that has many villages that have BUMDes such as BUMDes Karanggan Bersatu in Gunung Putri which is angaged in the maintenance and procurement of garden and ornamenral gardens with Australian grass cultivation, then BUMDes Kurnia Abadi in Tajurhalang which is engaged in services primarily in services savings and loans, and BUMDes Adi Karya Mandiri in Babakan Madang are engaged in the field of manufacturing product primarily made cans of garbage. BUMDes must refer to general guidelines, namely the Financial Accounting Standards for Entities without Public Accountability. The purpose of this research is to provide knowledge of the application of SAK ETAP in preparing financial reports, to explain the obstacles in implementing SAK ETAP and to provide solutions. This research was conducted at BUMDes Karanggan Bersatu in Gunung Putri and also BUMDes Adi Karya Mandiri Sumur Batu Village, Babakan Madang District, Bogor Regency. This type of research is a qualitative descriptive method. The data used are qualitative data with data collection techniques from the results of interviews, observations, documentation, records of reports on transaction evidence and literature studies. The results showed that the financial statements BUMDes were not in accordance with the SAK ETAP. BUMDes presents only one type of financial statement, namely the statement of profit or loss . Recognition and measurement of financial statements presentation have not fully implemented the SAK ETAP properly. Constraints: Low understanding of SAK ETAP. The absence of an intensive companion. Lack of socialization. The occurrence of multitasking. Lack of supervision. Keywords: SAK ETAP, BUMDes, Annual Report Preliminary Accounting has standards in preparing financial reports, the Indonesian Institute of Accountants (IAI) has published standards in preparing financial reports. The standards for preparing these financial reports are in the form of Financial Accounting Standards and Financial Accounting Standards for Entities without Public Accountability. With this standard, these standards can facilitate the preparation of financial reports. SAK ETAP is effective for the preparation of financial statements beginning on or after January 1, 2011. In accordance with the scope of SAK ETAP, it is intended for use by entities without public accountability. The entity without public accountability in question is an entity that does not have significant public accountability and issues financial reports for general purposes to external users. Then the stipulation of these standards is expected to be able to apply and adjust what has been regulated in it, so as to achieve reliable financial reports, as well as create transparency, accountability and globalization of the language of financial statements. According to Law Number 6 of 2014 concerning Villages, it is stated that BUMDes is a business entity whose entire or most of its capital is owned by the village through direct participation of separated village assets to manage assets, services and other businesses for the maximum welfare of the Village community. Village- owned enterprises (BUMDes) are business entities that are characterized by a village and are formed collectively by the Village Government and the Village community. The implementation of the preparation of BUMDes financial reports must pay close attention to the financial standards used. This means that in terms of preparing its financial statements, BUMDes must refer to general guidelines, namely Financial Accounting Standards for Entities without Public Accountability or often referred to as SAK ETAP. In SAK ETAP, the presentation of financial statements states that the complete financial statements of an entity consist of: Financial Position Report, Profit and Loss Report, Change in Equity Report, Cash Flow Statement and Notes to Financial Statements. This means that BUMDes must prepare complete financial reports in accordance with SAK ETAP guidelines . Bogor Regency is a district in West Java Province that has many villages that have BUMDes such as BUMDes Karanggan Bersatu in Gunung Putri which is angaged in the maintenance and procurementof garden and ornamenral gardens with Australian grass cultivation, then BUMDes Kurnia Abadi in Tajurhalang which is engaged in services primarily in services savings and loans, and BUMDes Adi Karya Mandiri in Babakan www.ijlemr.com 24 | Page International Journal of Latest Engineering and Management Research (IJLEMR) ISSN: 2455-4847 www.ijlemr.com || Volume 06 - Issue 01 || January 2021 || PP. 24-33 Madang are engaged in the field of manufacturing product primarily made cans of garbage. With the BUMDes, it is hoped that it can move the economy in rural areas. According to Ade Yasin as the Regent of Bogor, out of 416 villages in Bogor Regency, only 276 villages have BUMDes, of which only 189 BUMDes are active while other are still not active. In fact based on data from the Village Community Empowerment Service of the 189 BUMDes that ware only active, only 2 BUMDes were in advanced categories, 22 BUMDes were developing and 165 Villages were in basic categories. The existence of BUMDes is important because it wants to build thus district from a village that does not destroy nature, maximizes existing potential and is sustainable (kanaljabar.com 2019) Sumur Batu Village, Babakan Madang District, is one of the villages in Bogor Regency. The number of factories and businesses that are located in the vicinity of Sumur Batu Village supports the village economy. The economy that is growing rapidly has an influence on the progress of social welfare in the economy of rural communities. To encourage this progress, the Adi Karya Mandiri Village-Owned Enterprise (BUMDes) was formed in Sumur Batu Village which aims to increase the Village's original income in order to increase the capacity of the Village Government. BUMDes Adi Karya Mandiri is engaged in manufacturing, where the main production is trash cans. The BUMDes has been established since 2014. Even though it has been selected as the location for BUMDes empowerment, it does not mean that the BUMDes Adi Karya Mandiri in Sumur Batu Village has not encountered any problems, there are several problems that need to be studied in the Adi Karya Mandiri BUMDes, one of which is the financial statements they have compiled whether has met the predetermined standards, namely the Financial Accounting Standards for Entities without Public Accountability (SAK ETAP). The following is data on the completeness of financial statement presentation at BUMDes Adi Karya Mandiri based on the presentation of SAK ETAP financial statements and this data is obtained using the interview method with the Chairman of BUMDes. BUMDes Adi Karya Mandiri and BUMDes Karanggan Bersatu in preparing its financial statements is still not in accordance with SAK ETAP, usually BUMDes management only provides a profit or loss calculation report which is self-calculated but does not present detailed financial reports of all income and expenditure in the current period since BUMDes was founded. So that it can raise suspicion over the management of BUMDes. This will cause problems when BUMDes funds are managed from their activities without going through a recording process based on SAK ETAP. So guidance is needed for BUMDes management on the management of financial reports in accordance with the standards of SAK ETAP. Literature Review 1. Definition of Financial Statements The Association of Accountants Indonesian (IAI) in the Statement of Standard Accounting Finance (2018 : IAS 1) put forward the notion reports Financial is representation structured from a position of financial and performance finance an entity. Lubis (2017 : 137) stated the report financial is the result of the end of the process of recording which is summary of transactions in financial that occurred during the years of the book that happened during the years of the book are concerned. 2. Purpose of Financial Statements IAI (2018: ETAP3) explains that the purpose of financial statements is to provide information about the financial position, financial performance and cash flow statement of an entity that is useful for most users of financial statements in making economic decisions by anyone who is not in a position to request specific financial reports. to meet specific information needs. In fulfilling its objectives, financial statements also show what management has done ( stewardship ) or management's accountability for the resources entrusted to it. According to IAI in PSAK (2018: 1.3) it is known that financial statements aim to provide information about the financial position, financial performance and cash flow of an entity that is useful for most users of financial statements in making economic decisions. Financial reports also show the results of management's accountability for the use of resources entrusted to them. 3. Definition of Financial Accounting Standards for Entities without Public Accountability (SAK ETAP) Financial accounting standards