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The main obstacle faced by SME’s is capital problem. To overcome this problem, in 2007 the President launched the Kredit Usaha Rakyat (KUR) program whose guarantee was facilitated by the government. In practice, the realization of KUR is still far from the target, the reason is the bank did not get enough information related to the condition of SME’s, so the bank became very careful in distributing credit. One of the information required by the banks is the financial statements, but many SME’s perpetrators have not prepared financial statements in accordance with the standards. In addition to the lack of accounting knowledge, existing standards are also considered quite complex. At the end of 2016 the Indonesian Institute of Accountants issued Financial Accounting Standards of Micro, Small and Medium Entities. This standard is very simple and easy to implement so it is expected to help the SME’s perpetrators in preparing financial statements.

Financial Report for Micro, Small, and Medium Enterprise According to Financial Accounting Standards: Case Study Rafita Cake