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In 1999, the ASB published the statement of principles for Financial Reporting. In the Statement of Principles, the ASB sets out its approach to financial reporting in the UK. ...
Required
Write an essay assessing and explaining the approach taken by the ASB to financial reporting In the UK and contrasting this with the approach taken by its predecessor the ASC. ...
Paper
In understanding the contrasts between the Accounting Standards Board (ASB) and the Accounting Standards Committee (ASC), it is important to look at the aims of each organization. As the ASB succeeded, the ASC there must have been a change in attitude to accounting procedures by the profession to feel there was need to supersede the ASC. ... Its underlying objective was given as ‘to define accounting concepts, to narrow differences of financial accounting and reporting treatment, and to codify generally accepted best practice in the public interest’.
The need for a body to regulate financial reporting came out of accounting ‘turmoil’ in the 1960’s. ... Both companies had prepared financial reports, which gave a staggering £14. ... However, as the GEC bid was successful and the AEI’s new directors published the annual accounts. ... This demonstrates why there was lack of confidence in financial reports. ... The ASB’s perhaps finds a balance between writing of expenses and showing what part of the R&D is an intangible asset. ... Regulations have taken the form of Statement of Standard Accounting Practices (SSAPs) under the ASC. The treatment of these points illustrates the ASC’s approach to financial reporting. ... The main point raised by the disapproval was that the users of accounts had minimum input into the standard setting process therefore perhaps did not cater especially for the main users of published accounts. ... Wide ranges of results were witnessed in financial reports. Allowing for the same arbitrariness in financial statements, which provoked the setting up of a governing body in the first place. The ASC was consistent in not making the Financial Reporting as objective as it required to be for the needs of users and was fast losing it credibility.
Approximate Word count = 1615
Approximate Pages = 6.5
(250 words per page double spaced)
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