Small Business Financial Reporting Issues

In pace with the economic reform accelerating, the position and function in the national economic life of small enterprise are becoming more and more outstanding. At present, in our country's national economic system, the small enterprise has already become the indispensable important component and enterprise institution that is full of vitality. They play an important and irreplaceable role in developing economy, prospering the market, improving obtaining employment, launching the technological innovation, promoting industry upgrading, and strengthening urban synthesized competitiveness. However, because of the historical reasons of the system and policy environment for a long time, there are some problems in small enterprise such as shortage of funding, talents and information, backwardness in technique, managerial style and operating mechanism which do not meet the needs of developing market and have caused quite a lot of small enterprises to be in weak position in the market competition. It restricts the further development under the socialist market economy system condition of small enterprise. At present, how to promote the development of small and medium-sized enterprises on the basis of institution improvement and policy formulation have already become the strategic measures of the problem that the country has to solve urgently. And what the accounting field should do have already become the subject that we must consider and further investigate too. Is it necessary to carry out the special standard to the financial report of small enterprise? What are its realistic meaning and theoretical reason? How to standardize the financial report of the small enterprise on earth? These questions impel the author to regard financial report of small enterprise as the research object. With analysis of financial accounting characteristics in small enterprise, the author achieves financial accounting concept of small enterprise, proceed from information demand for the financial report of small enterprise and find financial report frame suitable for small enterprise.The thesis is divided into three chapters altogether:The first chapter is a basic summary of the financial report question of small enterprise. The author proceeds from reason of why the question is put forward, concluding that it is not only that position and function of small enterprise in national economy but also the trend of the financial report development to cause. It embodies the requirement of the relevance principle, the materiality principle and cost principle. It guarantees the theoretical origin for the financial report question of small enterprise. On this basis, the author carries out a detailed discussion on the definition of small enterprise, because if a clear definition to the small enterprise couldn't be given at first, the research about that wouldn't be carried on. Existing criteria for classification of small enterprise are mostly on the basis of the industrial policy, do not have abundant pertinence to the difference of accounting characteristics, so the author believes it is essential to define the small enterprise in the financial accounting meaning specially. The essence is superior to the form. According to the financial report suppliers and users, the author defines the small enterprise in accounting field, which not only meet the standard of the scale but also consider their special different requirement of financial report. According to the accounting characteristic that the small enterprise has, the author puts forward the definition of the small enterprise of this thesis. On the basis of the standard of temporary provisions of small and medium enterprise of four ministries and commissions of the country on the scale, the ownership and power of management have not been separated, the main owner participates in the enterprise trading in managing directly, but, the listed company and state-owned enterprise not included. (The state-owned enterprise is not included, because the ownership nature of the state-owned...