Implementation of Financial Accounting Standards for Private Entities (SAK EP) at Modern Cooperative to Achieve a Green Economy

DOI

10.2991/978-94-6463-882-0_48How to use a DOI?

Keywords

Cooperative Financial Reform; ESG Disclosure; Green Economy; SAK EP; Sustainability Reporting

Abstract

This study examines the transformation of financial reporting in Indonesian cooperatives following the implementation of Private Entity Accounting Standards (SAK EP), alongside the emerging integration of Environmental, Social, and Governance (ESG) principles. Grounded in Legitimacy Theory, the research explores how modern cooperatives shift from procedural compliance to normative internalization, reflected in revised accounting policies and values-based governance. Using a qualitative descriptive approach, the study focuses on Koperasi ABC, a transparent savings-and-loan cooperative in Bali. Data were collected through structured interviews and document analysis, including annual reports and simulation-based statements. Key changes under SAK EP include fair value revaluation of assets, recognition of long-term employee benefits, and risk-based loan provisioning. These adjustments improve financial accuracy and signal institutional maturity. ESG integration, though voluntary, is gaining traction through disclosures in member meetings and reports. Initiatives in digitalization, education, and ethical governance reflect a shift toward moral legitimacy, aligning cooperative identity with green economy goals. SAK EP’s flexibility enables ESG synergy without structural conflict, while PSAK 118 affirms national commitment to sustainability reporting. Together, SAK EP and ESG serve as dual pillars enhancing cooperative legitimacy, accountability, and alignment with Indonesia’s sustainable development agenda.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ni Nengah Lasmini
AU  - Wayan Hesadijaya Utthavi
AU  - Ni Wayan Dewinta Ayuni
AU  - I Made Adhi Wirayana
PY  - 2025
DA  - 2025/11/14
TI  - Implementation of Financial Accounting Standards for Private Entities (SAK EP) at Modern Cooperative to Achieve a Green Economy
BT  - Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2025 (ICOSTAS-SAS 2025)
PB  - Atlantis Press
SP  - 420
EP  - 429
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-94-6463-882-0_48
DO  - 10.2991/978-94-6463-882-0_48
ID  - Lasmini2025
ER  -