ABSTRAK

This study examines the effect of SME’s financial statement quality on level of credit received by SME. This study examines enterpreneur’s perception on the urgency of financial statement arrangement, and implementation prospect of SAK ETAP (FAS EWPA) as well. This FAS has been implemented since 2011 to ease enterpreneur to arrange financial statement.
Samples in this study are SMEs in Kampung Batik Laweyan Solo, determined by convenience sampling method. The data is obtained by 40 questionnaires with 33 returned (82,5%). This study employs multiple linear regression to analyze the effect of independent variables on variable dependent on 3 study models.
This study shows that entrepreneur’s education background and enterprise’s size positively and significantly affects the entrepreneur perception on arranging financial statement. While enterprise’s size and FAS EWPA information level positively and significantly affect the enterpreneur understanding. In the other hand, quality of SME’s financial statement does not significantly affect the credit level received by SME.
Keywords: quality of financial statement, entrepreneur’s perception, credit level,
enterepreneur’s understanding