(BQ) Part 2 book "Financial accounting" has contents: Valuation and performance measurement, control of accounting systems, information technology and accounting, the finale; interpretation, including ratio analysis and consideration of additional information required,and other contents. | 12/10/05 10:30 am Page 175 10 Regulatory framework in the UK compared with European examples and the international framework Objectives By the end of this chapter you should be able to: ᭤ Describe the regulatory framework of accounting in the UK. ᭤ Describe the regulatory framework of accounting in other European countries. ᭤ Describe the international regulatory framework of accounting. ᭤ Compare and contrast the regulatory framework of accounting in the UK with those of other European countries and the international framework. Introduction The regulatory framework of accounting in the UK has been shaped by various factors, many of which are historical. The same is true of other European countries. Several countries have a framework similar to that of the UK due to the influence of the UK in these countries at some point in history. Others have a very different framework. Attempts have been made to harmonise accounting across the EU, the initial steps in this being taken by the issue of EU Directives. The Fourth Directive issued by the EU requires all EU members to prepare their financial statements in accordance with a true and fair view. In fact, the Fourth Directive can be said to have exported the true and fair view from the UK to the rest of Europe and imported formatted presentation of accounts to the UK. In addition we also look at the framework identified by the International Accounting Standards Board (IASB) and note that all listed companies in Europe are required to prepare their accounts in accordance with International 12/10/05 10:30 am Page 176 176 Financial Accounting Accounting Standards as from January 2005. Remember small and mediumsized companies will still be able to use the national standards of the country they operate in. This means you will find companies from the same country using two different sets of standards in their reporting; ᭤ National standards for unlisted companies ᭤ International standards .
