Study On Differential Reporting For Small And Medium Sized Enterprises In China

Differential reporting is the notion that some entities should be allowed to depart from particular requirements of accounting standards or entire accounting standards in preparing their financial statements. Therefore, it permeates the idea that different entities should be subject to different accounting rules. Differential reporting means tailoring requirements to the circumstances, not necessarily fewer requirements for financial statement preparers or less information for users.The case for differential reporting has been articulated and to some extent practiced for a long time in some developed countries (for example, USA, UK, Canada, Australia and New Zealand and the European countries). Increasing, developing countries have raised this issue and taken proactive steps to introduce a differential reporting framework (for example, Hong Kong, Sri Lanka, South Africa, Thailand and Malaysia, to name a few) for small and medium sized enterprises (SME).This study shows the views on the necessary of differential reporting in China and gives an answer on how to apply the differential reporting and how to choose the model of different reporting.This study involves five chapters:the first introduces the theory about SMEs,The second describes the situation of financial reporting in China ,The third introduces the theory of differential reporting and some achievements in the world ,The fourth gives a detail interpret on the necessity of differntial reporting ,The fifths explains how to apply the differential reporting in China.