AccountingAnalysisandImplicationsforSMEsabroad[Abstract]SMEsandtheresearchobject,andusersoffinancialstatementsfromtheapplicationofaccountingstandards,internationalaccountingandreportingstandardsoftheIntergovernmentalWorkingGroupofExpertsopinion,theUKsystemoffinancialreportingforSMEsstartingtheresearchliteratureandaccountingbySMEsthestatusquotodoasystematicexpositionanddiscussion,andonhowtoregulateourfinancialreportingsystemforSMEsmadecommentsandsuggestions.[Keywords]SMEs,accountingresearch,differentialreportingSinceSMEsormajorisnot①notraisefundsoncapitalmarkets,thereisnoseparationofownershipandmanagement,accountingbaseisrelativelyweak,andverymuchneededtoguideitsaccountingwork,andinthenationalaccountingpracticeispreciselythelackofsuchguidanceIn2004,TheEUrefusedtorecognize1China’smarketeconomystatus,oneimportantreasonisthis:China’sSMEsneedtoimprovecompliancewithexistingstandardsofaccountingmanagementsystemtoensurethattradeprotectionduringtheinvestigationofthereliabilityofaccountinginformation,andthelistedcompaniesandmorecompleteaccountingsystemandmedium-sizedcomparedtotheaccountingsystemforSMEsbothinthedevelopmentandimprovementof,orintheimplementationofspecificaccountingsystem,isclearlyfarfromtheEuropeanUnion(Stephen&Aron,2004[1].First,SMEsandusersoffinancialstatementsofthetypeBerryman(1983)[2]studieshaveshownthatsomeSMEshavebeenbankruptinrecentyears,theUnitedStates,animportantreasonforbusinessfailureisitsfinancialmanagementandfinancialreportingqualityisnothighinBerrymanonthebasisofthestudy,McMahonandHolmes(1991)[3]forNorthAmericaSMEfinancialmanagementandfinancialreportingprinciplesandpracticeswerestudied,andconcluded:Comparedwithlargeenterprises,SMEs,financialreportingsystemisnot2perfectandthequalityisgenerallynothigh,andtheimplementationofthesecompaniesaccountingstandardsinthepast15yearshavenotbeenmajorchanges.McCahey(1986)[4]studied40smallandmediumenterprisesinAustralia’sfinancialreportingpractices,theresultsshowthat:mostcompanieshavepreparedfinancialstatements,theownersandmanagersareThemainusersoffinancialreports,loanbankloanofficerfollowedinaseparatesurveyofSMEsintheAustralianstudy,McMachon(1998)[5]foundthatabout84.5%ofsmallmanufacturingenterprisestoproduceabalancesheetandincomestatement,whileonly79.6%developedacashflowstatement.BarkerandNoonan(1996[6]investigatedanumberofSMEsintheUKdirectorsandauditors,andconsultthemontheannualfinancialreporttoevaluatetheimportanceofthesestudiesindicatedthatthefinancialreportisadailymanagementofSMEs,themainsourceofinformation.Hussey(1997[7]tothepubliconastudyof89SMEsintheUKquestionnaire,theirresearchshowedthat:(apreparationoffinancialstatementsofSMEs,(b)thebankandthecompany’sdirectorsarethemainusersof3financialreports.Chauveau,Deartini,andandMoneva(1996[8]studyalsoshowedthatitsinternalfinancialreportingforSMEs(management)andexternalusers(banksThemostrelevant.PremandSayel(2002[9]85SMEsinBahrainwastheuseoffinancialreportswerestudied,andalargenumberofquestionnairedesignonthecompany’sManagingDirector/GeneralManagerandHeadofFinancesurveyexperimentstudyfoundthatallbusinesseshavepreparedbalancesheet,90.3%ofthecompanypreparedtheincomestatement,thecompanyproduced48.4%ofretainedearningstable,plus71%ofthecompany’scashflowstatementpreparedsimplifiedinusersoffinancialstatements,theBank(Banks)isthemostimportantusersoffinancialreports(49%),...