The Study Of Accounting Standards For Smaller Entities In China

This paper takes the establishment of China's small business accounting standards as the research objectives,starting from the definition of small business.It takes use of the normative study method,the comparative analysis and some of the economics research method to systematically research the problems related to small business accounting standards.Research results shows that: the small businesses can be define at management angle and accounting angle.Accounting angle define small businesses from three aspects: the scale, the independence and whether undertake the public accountability; accounting of small businesses have particularity in their structure,internal management,information users,environment etc,therefore,there is a theoretical and practical necessity to formulate an accounting standards for small businesses.The constituting mode of small businesses accounting standard has one method and points legislation,and it should be selected according to different economic situation.In China,accounting regulations should be replaced into small business accounting standards; our small business accounting standards should use separate legislation "a specific accounting standards" mode; set goals is mainly to satisfy the tax department,banks and other financial institutions needs; small business accounting standards should use the limited going-concern assumption,adopt cash basis and historical cost principle without tracing back and adjusting.The mainly innovation points of this paper embodied in improving the criterion constituting mode,setting goals,applicable scope,accounting hypothesis and the principles,etc.