Preparing Financial Statements for Higher Education Cooperatives Based on Indonesian Financial Accounting Standards for Private Entities

Abstract

Purposes: to assist cooperatives in higher education institutions in improving the quality of financial management and preparing financial statements in accordance with Indonesian Financial Accounting Standards for Private Entities (SAK-EP) issued by Institute of Indonesia Chartered Accountants (IAI).

Design/Methodology/Approach: community service activities are carried out in five stages: socialization, training, technology implementation, mentoring and evaluation, and program sustainability. During the implementation stage, the community service team evaluates the cooperative's old reports, then assists in the re-compilation of financial reports, including net surplus reports (SHU), equity change reports, balance sheets, and cash flow reports in accordance with SAK-EP. In addition, the cooperative was provided with financial statement templates and recommendations for governance improvements.

Findings: The main problems identified include a lack of understanding of cooperative accounting, disorganized transaction records, account classification errors, and financial reports that do not comply with standards. Partner participation was evident through active involvement in training, technical discussions, transaction recording, and report preparation. The impact of these activities showed significant benefits: improved financial statement quality, more orderly recording processes, greater financial transparency, and increased ability of administrators to prepare financial statements independently.

Originality/Value: The novelty of this Community Service Program lies in its practical and easily replicable mentoring model for strengthening cooperative financial management in higher education institutions through the preparation of financial reports based on SAK-EP. This program focuses not only on training, but also on direct application through the provision of financial report templates and intensive mentoring in the process of recording and preparing reports.