Financial statements of small and medium enterprises- users and information quality on financial statements

Abstract

Financial statements prepared by enterprises, including small and medium enterprises (SMEs), is to provide useful information to users. Due to differences in size and business characteristics, the user of information on financial statements of SMEs often differs from those of large enterprises. Therefore, the identification of the main groups using the financial statements of SMEs as well as their requirements and evaluation of the quality of information on financial statements is extremely important to better satisfy the needs of the users. From there, facilitate the activities of SMEs related to information users. Using the quantitative research methodology through the SPSS 22 statistical software, the author identifies the primary users of SME financial statements being the bank and tax office. These two groups rated low on the quality of information in the report especially the “true and fair” and “objective” characteristics.