What is the comparative analysis of the similarities and differences between the accounting standard

The differences between the Accounting Standards for Business Enterprises and the Accounting Standards for Small Enterprises are as follows:

1. The scope of application is different. The Accounting Standards for Small Enterprises are applicable to enterprises established within the territory of the People's Republic of China that do not raise funds externally and operate on a small scale;

2. The accounting subjects are set differently. The Accounting Standards for Small Enterprises have 25 fewer first-level subjects than the Accounting Standards for Business Enterprises;

3. The treatment of asset inventory is different. There is no pending property loss or excess account in the Accounting Standards for Small Enterprises, and the pending items of assets have been eliminated from the balance sheet in the Accounting Standards for Business Enterprises.

What are the classifications of accounting standards.

The classifications of accounting standards include:

1. The basic guidelines include: General Principles, General Principles of Accounting, Elements, Accounting Statement System.

2. Specific guidelines include: GAAP, GAAP, GAAP, Accounting Standard for Financial Statements. According to the subject of their enactment, they are divided into norms set by statutory doctrine and norms formulated by private professional organizations.

Legal basis: Article 12 of the Accounting Standards for Business Enterprises - Basic Standards.

Enterprises shall carry out accounting confirmation, measurement and reporting on the basis of actual transactions or events, truthfully reflect the accounting elements and other relevant information that meet the requirements of recognition and measurement, and ensure that the accounting information is true, reliable and complete.

Article 13. The accounting information provided by the enterprise shall be related to the economic decision-making needs of the users of the financial accounting report, and shall be helpful for the users of the financial accounting report to evaluate the past, present or future situation of the enterprise.

There are the main differences between the Accounting Standards for Small Enterprises and the Accounting Standards for Business Enterprises: The accounting treatment is different

1.Asset inventories are treated differently. The Accounting Standards for Small Enterprises do not set up a "property loss and loss to be disposed of" account, and small enterprises will directly deal with the profit or loss of assets in the property inventory.

In the author's view, this approach is concise and consistent with what is reflected in the balance sheet. However, the balance sheet in the Accounting Standards for Business Enterprises has cancelled the items to be disposed of in the balance sheet, and the enterprise must dispose of the assets to be disposed of before compiling the report, so the property inventory must also be accounted for through the account of "property loss and excess to be disposed of", which the author believes is redundant.

2.No provision is made for impairment of long-term assets. The recoverable amount of long-term assets is difficult to determine, and more professional judgment is required when making provision for impairment, while small enterprises have fewer accountants and fewer high-quality accountants, so the Accounting Standards for Small Enterprises only require the old group to make provisions for short-term investments, inventories and receivables for falling prices or bad debts, and do not require provisions for impairment of long-term assets such as fixed assets and intangible assets.

3.Simplify the accounting of long-term investments. Small enterprises invest in relatively small businesses, and the simplified cost method or simplified equity method is used to account for long-term equity investments according to the materiality principle.

The Accounting Standards for Small Enterprises have 25 fewer first-level subjects than the Accounting Standards for Business Enterprises. There are two main reasons for this: First, the economic business of small enterprises is relatively simple, so some accounts in the Accounting Standards for Business Enterprises can be merged, such as dividends receivable and interest receivable are combined into dividend receivable accounts, and raw materials and packaging materials are classified into material accounts.

Second, the accounting of small enterprises is simplified or there is no economic business to be reflected in a certain account, so that it can be reduced. The scope of application is different, and the Standards for the Accounting of Small Enterprises are applicable to enterprises established within the territory of the People's Republic of China that do not raise funds externally and operate on a small scale (excluding small enterprises established in the form of sole proprietorship and partnership). Small enterprises that meet the requirements of the Accounting Standards for Small Enterprises may choose to implement the Accounting Standards for Business Enterprises in accordance with the provisions of the system.

If you choose to implement the Accounting Standards for Business Enterprises, you cannot choose to implement the relevant provisions of the Accounting Standards for Small Enterprises at the same time. The scope of application of the Accounting Standards for Business Enterprises is that, in accordance with the provisions of the Accounting Standards for Business Enterprises, enterprises (including companies) established within the territory of the People's Republic of China shall implement the Accounting System for Business Enterprises, except for enterprises that do not raise funds externally and operate on a small scale, as well as financial and insurance enterprises. Judging from the provisions of the "Accounting Standards for Small Enterprises", small enterprises that meet the requirements of the "Accounting Standards for Small Enterprises" can also implement the "Accounting Standards for Business Enterprises".

The differences between the General Accounting Standards for Business Enterprises and the Accounting Standards for Small Enterprises are as follows:

1. The scope of application is different.

The SAS applies to companies with relatively small operations, but there are three types of small businesses that do not apply, namely small businesses that are publicly traded** or bonds in the market, small businesses of a financial nature, and parent companies and subsidiaries within an enterprise group.

2. The number of accounting subjects is different.

The Accounting Standards for Small Enterprises have fewer accounting subjects than the Accounting Standards for Business Enterprises. For example, the provision for inventory decline, bad debt provision, trading financial assets, labor costs, and profit and loss adjustments for previous years are not reflected in the accounting standards for small enterprises, but exist in the accounting standards for business enterprises.

3. Different accounting methods.

The accounting method of the Accounting Standards for Small Enterprises is simpler than the simplified accounting method of the Accounting Standards for Business Enterprises.

The content of accounting standards

1. The accounting for asset impairment is different. The accounting standards for small enterprises stipulate that the assets of small enterprises are measured at cost, and no provision for asset impairment is made, which does not require provision for inventory decline, fixed asset impairment, biological assets and intangible assets, as well as no provision for bad debts.

2. The accounting of borrowing costs is different. The Accounting Standards for Small Enterprises stipulate that long-term borrowings need to be charged with interest expenses on a regular basis according to the principal of the loan and the interest rate of the loan contract, and the borrowing costs incurred before the completion of the final accounts of the construction of fixed assets need to be included in the cost of fixed assets, rather than financial expenses.

Difference between Accounting Standards for Business Enterprises and Accounting Standards for Small Enterprises: The scope of application is different. There is a clear difference between the Accounting Standards for Business Enterprises and the Accounting Standards for Small Enterprises, and compared with the Accounting Standards for Business Enterprises, the Accounting Standards for Small Enterprises are relatively simple in terms of the setting of accounting subjects, the accounting content of business operations, and the preparation of accounting statements.

The difference between the Accounting Standards for Business Enterprises and the Accounting Standards for Small Enterprises is mainly manifested in the different scopes of application. The SAS applies to companies with relatively small operating scales, but there are three types of small businesses that do not apply, namely small businesses that are publicly traded** or bonds, small businesses of a financial nature, and parent companies and subsidiaries within enterprise groups.

The Accounting Standards for Business Enterprises stipulate that the valuation of fixed assets shall be recorded in the accounts from the date on which they have reached the intended state of use, and adjustments shall be made after the completion of the final accounts, and no retrospective adjustments shall be made. Fixed assets are made up of expenses incurred before the final accounts are completed. The cost of fixed assets for financial leasing is determined according to the total amount of payment agreed in the lease contract and the relevant taxes and fees incurred in the process of signing the lease contract.

Accounting Standards for Business Enterprises: Recorded Value of Fixed Assets = Lesser of Fair Value of Leased Assets and Present Value of Minimum Lease Payment + Initial Direct Expenses. The Small Business Criterion has no present value and does not take into account financing costs. The cost of purchasing fixed assets in installments is determined on the basis of the present value of the purchase price.