Analysis of BMT Al Ishlah Jambi Management’s Understanding of PSAK 101

Abstract

Financial reporting in Islamic microfinance institutions requires managerial understanding of applicable accounting standards. However, previous research has emphasized compliance with PSAK 101, leaving managerial understanding and associated challenges less explored. This study examined managers’ understanding of PSAK 101 at BMT Al Ishlah Jambi and identified factors shaping that understanding. A descriptive qualitative approach involved five purposively selected managers. Data were collected through interviews, observation, and documentation and analyzed through data condensation, data display, and conclusion drawing and verification. The findings indicate that managers had a basic understanding of PSAK 101 and recognized its importance for transparent and accountable financial reporting. Nevertheless, their knowledge of financial statement components and technical presentation requirements remained limited. Differences in understanding were linked to educational backgrounds, professional experience, insufficient specialized training, operational workloads, and organizational support. These findings suggest that practical experience should be complemented by structured learning and sustained institutional support to develop comprehensive accounting competence. The study identifies professional learning needs within Islamic microfinance management and recommends regular training, accessible accounting guidelines, and continuous organizational support as priorities for strengthening managerial competence and financial reporting accountability.