PERAN TRANSPARANSI LAPORAN KEUANGAN PADA ENTITAS NONLABA DI TIMOR LESTE

Abstract

This study aims to investigate the critical role of financial statement transparency in enhancing accountability and public trust within not-for-profit entities, particularly local religious institutions in developing countries without formal reporting standards. The problems addressed is the low implementation of financial report transparency in these organizations, which hinders accountability and sustainability. Utilizing a qualitative approach with a case study design, this research explore existing transparency practices, identifies inhibiting and driving factors, and analyses stakeholders’ perception of financial reporting transparency. The study focuses on analyzing the role of financial statement transparency in improving accountability and building public trust, while also identifying internal and external factors that hinder or support its implementation. The findings of this study indicated that not-for-profit entities in Timor Leste lack financial reporting transparency due to the absesnce of national standards and limited resources. Clear and accessible reports are essential to demonstrate accountability, attract donor support, and ensure operational.