Study On Accounting Information's Quality For Small And Medium Sized Enterprises In China

The quality of the accounting information in China has been the focus of the theory realm as well as accounting application, as the problem for the distortion of the accounting information becomes worse. From the existing reference, the author finds that the current studies on the subject mainly concentrate on listed companies'accounting information, refer less to small and medium sized enterprises (SMEs). The position and function of the SMEs are becoming more and more outstanding in national economic life. Distorted accounting information obviously has negative effect for accounting information users in making right decision, for the tax bureau in levying taxes. To some degree, it may also affect the government to design the proper macro economic policy. Under such circumstance, it is necessary to study the quality of the accounting information of SMEs.The thesis is divided into six chapters altogether:The first chapter is the introduction of the thesis. This chapter includes the analysis of the purpose and importance for the research, the introduction of the research background in and out of the country, the main content and the method of the research.The second chapter has given introduction to the SMEs. The small enterprises and the medium sized enterprises have many in common, such as nature, position, function and production model, so they are usually put together in research. The SMEs have their own characteristics about accounting, especially in the aspects of organizational structure, accounting department, quality of accountants, internal accounting system, resource about accounting and supervision on accounting.The third chapter studies the evaluating standard for the SMEs on the basis of the available theory about qualitative characteristics of accounting information. The SMEs are different from big companies and companies of other countries in many aspects, so a specified characteristic quality evaluation system for SMEs needs to be established. Considering the accounting information requirements and accounting environment of SMEs in China, the author suggests the qualitative characteristics system of accounting information for SMEs.The fourth chapter is the main focus of this thesis. In this chapter, the author uses a detailed inspection and investigation including handling out questionnaire and visiting the target firms to analyze the actual accounting information quality of the SMEs, with particular emphasis on the aspects of reliability, regularity, relevance, comparability and understandability.The fifth chapter brings up some possible solutions and suggestions for the problems found in the investigation. The author points out that the government intendance, internal control, independent specialized agencies and accounting information users'inspection play the key roles in the improvement of information quality for the SMEs.The main innovation of this thesis are as follows:1. On selection of the topic. This thesis is reality–oriented. SMEs are play a more and more important role in the economic life. Compared with the accounting problem of big companies or listed companies, the accounting problem of SMEs are often easier to be ignored. The author hope that this thesis can arouse more academic attention to SMEs.2. In view of that the evaluating standard of accounting information for the SMEs being not available, the author tries to set up one, regarding the available theory about qualitative characteristics of accounting information and the accounting information requirements and accounting environment of SMEs in China.3. On the method of research. This thesis takes both normative and empirical research methods. On the one hand, the existing theory is made use of in deduction; on the other hand, the author uses a detailed inspection and investigation including handling out questionnaire and visiting the target firms to analyze the actual accounting information quality of the SMEs.4. The author puts forwards solutions for the improvement of information quality for the SMEs on the basis of inspection, so these solutions are workable.Because the study about accounting information problems of SEMs is inadequate at present, the useful material obtained is limited. Deficiencies may be available in questionnaire and investigation. Despite of the efforts that the author has made, it is unavoidable that there are some defects. The author is eager for every respectable professor to critic and to give some advice.