Research On The Accounting Standards For SMEs

With the impetus of the industrial revolution, the world economy is forging ahead with vigorous development. Especially in the current information age, wide range of innovative science and technology has brought new opportunities to the economic development of our country. The rapid development of economy creates more and more small and medium-sized enterprises. Small and medium-sized enterprises are occupying the important position of the national economy and society in our country. They play a big role in promoting the development of world economy.The PRC GAAP was the only technical specification for all the enterprises in accounting standards for quite a long period in the past. Therefore, small and medium-sized enterprises must apply these standards in accordance with specification for reporting. However, small and medium-sized enterprises are different from some large enterprises, such as the listed companies, multinational companies and some others. Generally, the small and medium enterprises are relatively smaller with simple businesses and they do not have public accountability so that the requirement of financial information between small and large enterprises has some differences. In this condition, the stakeholders are relatively limited for financial information. Moreover, when adopting the full version of PRC GAAP, the enterprises may spend more expenses accordingly. Based on this phenomenon, academia began to seek suitable accounting standards for small and medium-sized enterprises, combining the principle of cost-benefit considerations.Similar issues came up forty years ago. National institutions oversea and international organizations began to explore the applicable standards for small and medium-sized entities, led by Britain originally. The accounting groups make great effort and successively published their researches. Our country also has issued a "small business accounting standards", or that we may call ”PRC GAAP for SMEs”, to regulate recognition, measurement, recording and reporting of the small and medium-sized in convergence with the IFRS for SMEs.The research of this article is processing along with the application of the newest “PRC GAAP for SMEs” in our country, that mainly focuses on comparing our standards with international rules of small and medium-sized range from the theory to practice. The paper compares the due process; guidelines for guidance and formulate mode; the applicable scope, accounting objectives, and information quality requirements(parts of the conceptual framework); the presentation and disclosure of financial statements between two sets of rules. And on this basis, we will get some experience to perfect the standards to our country.