The effects in the purpose transition of accounting for Small and Medium-sized Entities

<p> The purpose of this paper is to clarify the effects of changes in accounting objectives under the formerly Commercial Code and the current Companies Act to Small and Medium-sized Entities (SMEs), and to consider the relationship with accounting DX that is progressing in recent years. Under the formerly Commercial Code, large public companies were the basic form of the company, and the idea of protecting creditors was emphasized. On the other hand, the current Companies Act, SMEs are the basic form of the company, and the function of providing information to stakeholders has also become more important. About the change in accounting purpose due to such as the basic form of companies, SMEs are placing more importance on providing information to contribute of funding and expansion of business partners, but there is a demand for creditor protection too.</p><p> In recent years, there have been many discussions on various problems associated with the progress of DX of accounting. In the past, when computer accounting became widespread, the quality of prepared financial statements was concerned. Even now, problems similar to these are still in existence, such as the prevention of fraud in AI and humans who operate that, and the black box of processing by automating of accounting processes. In addition, the quality of financial statements must not be impaired because they have evidence in proceedings. Therefore, especially in the case of SMEs, it is necessary to return to the basics of accounting, and it is expected that the importance of book entry for financial statements will increase further in the future.</p>