REVEALING THE CONFORMITY PREPARATION FOR COOPERATIVE FINANCIAL REPORT OF SHARIA FINANCIAL SERVICES BASED ON PSAK SHARIA IN MUNICIPALITY AND BLITAR DISTRICT

Abstract

With the development of business or activities of the Islamic Financial Services Cooperative (KJKS) in Blitar municipality and district which is indicated by an increase in managed assets and the amount of income obtained from its business activities, KJKS managers must be able to account for all operational activities to members. Municipality and Blitar district governments through the Cooperative service and UMKM Blitar also demand accountability from KJKS management in the form of financial reports that can be used to evaluate and monitor performance. In the theory of information asymmetry, managers or leaders of Islamic Financial Services Cooperatives are most likely to make irregularities in the preparation of financial statements, even though the preparation of financial statements is governed by an accounting standard.

The research entitled " Revealing the Conformity Preparation for Cooperative Financial Report of Sharia Financial Services based on PSAK sharia in Municipality and Blitar District" aims to evaluate KJKS financial statements and accounting treatment of Islamic finance (murabahah, mudharabah, musyarakah) conducted by KJKS. Output target this research in the form of recommendations concerning the preparation of financial statements sharia accounting and Islamic financing (murabahah, mudharabah, musyarakah) based on PSAK Sharia.

The paradigm used in this research is the interpretive paradigm, and the approach used is a descriptive approach. The research design was used to answer research questions about how the suitability of financial services cooperatives financial statements are: (1) selection of research methods, (2) selecting key informants related to research, (3) data collection, (4) data validity, and (5) data analysis.