Study On Some Issues Of China's Accounting Standard(s) For SMEs With International Horizons

It is widely recognized that small and mediun-sized enterprises(SMEs) differ from big ones,and private enterprises have something that you can not find in listed companies. The definition of SMEs is based on the size criteria while the concept of private enterprises is characterized with no social accountability.SMEs in accounting that will comply with an accounting standard or accounting standards for SMEs can be defined depending on the size test along with the quarlity of social responsibility,which is common in many jurisdictions.It is the distinction of SMEs in accounting that determines they often have to face difficulties in applying accounting standards which are primarily designed for listed enterprises and big businesses.However,it is necessary to regulate the accounting and reporting practice of SMEs in accounting,considering the great significance of SMEs in the growth of social economy.Therefore,the development of an accounting standard or accounting standards for SMEs in accounting becomes fairly in need.In fact,many jurisdictions and some international accounting organizations have ever developed or are developing this type of standard(s) in one or another way.Since history is comprised of changes,the development of an accounting standard or accounting standards for SMEs in accounting is always in process.It is admitted that the development of an accounting standard or accounting standards for SMEs in accounting attracted attention after that of standards for other enterprises,with a lower technical level as well.Consequently,once planning to develop an accounting standard or accounting standards for SMEs in accounting,it is demanded to choose an appropriate logical starting point,which means whether to produce a standard or standards for SMEs in accounting by modifying existing accounting standards designed for other entities or to begin with forming a new conceptual framework specially for SMEs in accounting.In addition,the approaches to the following issues——which format is proper,how to fix the objectives,how to do simplications if developing a standard or standards for SMEs in accounting based on other accounting standards,will not only decide the format but also the basic structure and essential contents of this(these) standard(s).We compared specific options and some relevant opinions on how to develop an accounting standard or accounting standards for SMEs in accounting of the International Accounting Standards Board(IASB),the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting(ISAR),some western countries,the Council of the Hong Kong Institute of Certified Public Accountants(HKICPA) and China at present,to pursue the essence of the issues for the purpose of providing suggestions for improving China's accounting standard(s) for SMEs in accounting.