Usability and future applicability of The Basic Guidance of Accounting for SMEs in Japan

Abstract

　There are two accounting standards for SMEs in Japan. One is “The Guidelines of Accounting for SMEs” and the other is “The Basic Guidance of Accounting for SMEs”. The aims for establishing these two standards were the one related to business management that manager figure out the financial conditions of their own company, and the one related to funding that managers make use of the standards for the fund-raising from the financial institution (banks, etc.).

　In this study, hearing surveys with tax accountants, financial institutions, and Credit Guarantee Corporation were conducted. From the results of the surveys, the usability of submitting financial statements, which the accounting standards for SMEs were applied, in the fund-raising of SMEs was studied. The present situations that “The Guidelines of Accounting for SMEs” was hardly used and the only “The Basic Guidance of Accounting for SMEs” was applied, and that the SMEs tend to apply the accounting standards for SMEs only to receive the discount of the guarantee charge from Credit Guarantee Corporation were illustrated. Further, the scoring in financial institutions and the contents of the “Financial Inspection Manual (supplement)” by Financial Service Agency were explained. The usability of “The Basic Guidance of Accounting for SMEs” in the scoring and the Financial Inspection Manual (supplement) and the benefits of “The Basic Guidance of Accounting for SMEs” in the judgement of guarantee by the Credit Guarantee Corporation were illustrated.