Accounting Information Of Micro Small Medium Enterprises in Indonesia: Proprietary Theory Perspective

The observed phenomenon showed that Micro Small Medium Enterprises (MSME) in Indonesia did not perform financial accounting standard completely, but until now MSME still exists and even forms the backbone of Indonesian economy. The purpose of this study is to describe accounting forms in MSME, how they perform recording and use accounting information in decision making. This is a qualitative study approach. The subject of the study is the proprietor and manager of an MSME in Indonesia. The purpose of this study is to understand in detail the MSME owner characteristics in creating and using accounting information to obtain relevant information to create financial accounting standard for MSME. From investigation, MSME in Indonesia performs accounting recording according to Proprietary Theory and not Entity Theory.