Determinants of the Implementation of SAK EMKM (Financial Accounting Standards for Micro, Small, and Medium Entities) and Sharia Accountability Principles among MSMEs in Wajo Regency

Abstract

This article examines the factors that may determine the implementation of the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM) and the enactment of Sharia accountability principles among micro, small, and medium enterprises (MSMEs) in Wajo Regency, South Sulawesi, Indonesia. Using a focused narrative literature review and a contextual analytical approach, the article integrates the SAK EMKM framework with accounting-literacy, institutional-support, technology-adoption, and Islamic accountability perspectives. The analysis identifies accounting knowledge, educational background, owner and employee competence, business scale and age, separation of business and personal finances, access to accounting information technology, SAK EMKM socialization, and external mentoring as plausible determinants of standards implementation. It further conceptualizes Sharia accountability through amanah (trustworthiness), shiddiq (truthfulness), ‘adl (justice), transparency, and responsibility to God, people, and the environment. The article argues that technical compliance and ethical accountability are complementary but analytically distinct: SAK EMKM provides a proportionate financial-reporting structure, while Sharia principles shape the ethical purpose and conduct of recording, disclosure, and resource management. Because no primary survey data from Wajo Regency were supplied for this manuscript, the article does not claim statistical findings or causal effects. Instead, it develops an integrated research framework and testable hypotheses for subsequent field research. The proposed framework can guide local government, accounting educators, professional associations, and MSME-support institutions in designing practical training and mentoring that combines financial-reporting competence with Islamic ethical values.