This website uses cookies to ensure you have the best experience. Learn more

What Effects Are The New Accounting Standards To Be Introduced Going To Have On Business's Within The Uk And Us?

1686 words - 7 pages

International reporting StandardsOver the last 15-20 years, the financial world has undergone a major transformation. These developments have been mainly attributable to dramatic changes in the business and political climates, increasing global competition and rapid technological improvements whilst at the same time, the world's financial centres have grown increasingly interconnected (Reinstein, Weirich,, 2002).These developments have left financial managers facing several major issues. One major issue that continues to re-emerge time and time again is the diversity of financial reporting standards, between trading nations.As the principle objective of financial accounting being to provide all the information required in making sound economic decisions, companies are required to produce the following financial statements:1.Trading profit and Loss Accounts2.Balance sheets3.Cash flow statementsHowever, even with these financial statements, it is not always possible for financial managers to make sound economic decisions due to the differences that exist in accounting standards (Blake, 1997).Accounting SystemsThe modern day global market place has many different accounting systems that operate under their respective professional accounting bodies. The major accounting practices are found in the U.S. the U.K. and also Europe that operates under the control of several different accounting standards.U.S.The U.S Generally Accepted Accounting Principles (GAAP) is a largely rule based approach to financial reporting. It is based on tens of thousands of pages of accounting rules that have been accumulated over decades. For example, there are around six hundred pages on derivatives alone. U.S GAAP contains many so-called 'bright lines' (Nobes, 1995). This system extends beyond the U.S. into Canada, Mexico and more recently Japan.U.K.GAAP in the U.K. differs significantly than in the U.S., largely due to the differences in the size of the economies. While the U.S. concept of GAAP draws on the a hierarchy of official recommendations headed up by the FASB (Sauder, 1991) this is in contrast to the U.K. standards that are set by the Financial Reporting Standards (FRS). Companies operating within the U.K. are obliged to operate within FRS, these rules tell companies the layout and what has to be included and disclosed. Whilst the differences between the two systems have narrowed in recent years, several major differences still remain.EuropeWithin Europe there are several accounting systems that operates under the control of different professional accounting bodies. A major feature of this system is the strong link between accounting and tax rules. In some cases the European tax regulations offer opportunities to reduce taxable income compared to the provisions of commercial law. However these tax benefits may only be enjoyed if the same accounting treatment is followed in the published accounts (Elliot, 2002).It is widely believed that to compete with the...

Find Another Essay On What effects are the new accounting standards to be introduced going to have on business's within the UK and US?

“The recession has had devasting effects on UK businesses. Even long established companies have been unable to withstand the impact of the worst recession for 90 years.” To what extent do you agree...

1043 words - 4 pages economy during the post-war period and the last recession occurred between 1990-92. Even if the UK economy is actually on the "brink of leaving recession", according to the British Chambers of Commerce (BCC), fears are still on mind. Which we can easily be understood regarding the consequences and what happened during this recession as 1.3 million people were made redundant which has doubled the fall in employment and shops'

“The recession has had devasting effects on UK businesses. Even long established companies have been unable to withstand the impact of the worst recession for 90 years.” To what extent do you agree...

1043 words - 4 pages economy during the post-war period and the last recession occurred between 1990-92. Even if the UK economy is actually on the "brink of leaving recession", according to the British Chambers of Commerce (BCC), fears are still on mind. Which we can easily be understood regarding the consequences and what happened during this recession as 1.3 million people were made redundant which has doubled the fall in employment and shops'

Should Smoking Be Banned From Public Places? What Are The Effects Of Smoking? Do We Have The Right To Ban Smoking In Public Places, Taking Into Consideration The Morals And Ethics

1260 words - 6 pages wish to lose weight which was proved not to be very efficient. Lack of confidence on someone's character can have a link to start smoking. For example, people smoke because they want to socialize and fit in with their friends, because of peer pressure or because it's an easy way to meet people. Parent's influence also clearly increases the probability of the child to smoke. Advertisements from cigarette are now targeting teenagers who are

Proposed Accounting Standards Changes and Their Effects on

892 words - 4 pages Discussion of the Changes Proposed by the International Accounting Standards Board and How These Changes Will Affect the United States’ General Accepted Accounting Practices The changes that are proposed by the International Accounting Standards Board (IASB) will affect the United States’ Generally Accepted Accounting Principles (GAAP). These changes may have the most significant effects in the areas of revenue recognition, leases, and financial

ine symbolism. Discuss its use to develop character and/or theme in "Where are you going,Where have you been?" and "The Yellow Wallpaper."

899 words - 4 pages , Joyce Carol. "University of San Francisco (USF) -"Where Are You Going, Where Have You Been?" University of San Francisco (USF). Web. 14 Dec. 2011.Gilman, Charlotte Perkins. "The Yellow Wallpaper."Literature: An Introduction to Reading and Writing. Ed. Edgar V. Roberts and Robert Zweig. 5th Compact ed. New York: Pearson Longman, 2012. 419-28. Print.The Eternal Present in Joyce Carol Oates's "Where Are You Going, Where Have You Been?", Michele D. Theriot,Journal of Short Story in English, 48, Spring 2007, 59-70.

What is meant by the term globalization? What are the features of the new global economy? What effects as globalization had on world trade and financial flows?

1259 words - 5 pages services. The world's goods and services trade has risen from 12% in 1964 to 24% in 2004 as a percentage of global GDP. Another measure of the growth in global markets is the extent to which a nation depends on imports and exports compared to their value of production (GDP). This is known as trade dependency.There are 43 nations which have a very high trade dependency in that the value of goods exports and imports totaled at least 80% of the

The Fine Line Between Good and Evil in Where Are You Going? Where Have You Been? and A Good Man is Hard to Find”

1138 words - 5 pages or not, they both have similar and their own personal qualities like the need to inflict pain upon others although they go about it in different ways. In the story “Where Are You Going? Where Have You Been?” Arnold Friend is depicted as the antagonist of the book, trying to seduce Connie into going with him on a ride. He could be shown as an evil person, intent on doing harm to Connie, by the way Oates wrote the book, you can almost feel the

"Beauty itself is not given to us by anyone; it is a power we have within us; a radiance inside us." What is feminine?

1110 words - 4 pages that I want to get married, live in a nice house with my husband, and live the "traditional' life. I do not feel however that I am just succumbing to society's images, because it is what I want to do for me. Unlike that traditional image, I want to peruse graduate studies, and pay my own way, not depending on my husband financially. I intend to peruse opportunities that are traditionally not feminine and I am proud of that. I have learned thought, to not fall into oppressing other women, that I need to not judge others be my standards, because we may all be women, that does not make us all the same.

Delivering Moral Messages in Where Are You Going, Where Have You Been and A Good Man is Hard to Find

1514 words - 6 pages family, “Their belief in their own virtue is a sign of their moral blindness. In pride they have separated themselves from God.” The grandmother in “A Good Man is Hard to Find” and Connie in Joyce Carol Oates’s “Where Are You Going, Where Have You Been” have many things in common and play similar roles. Both place a great importance on their appearances. They also meet a similar demise at the hands of a devilish character. It could be said

This is a response to the story "where are you going where have you been". It includes my personal opinion about the story, and why and weather or not I liked it

546 words - 3 pages he? Did he somehow know that she would come out to him? Now another thing is, say Arnold is a psychopath, that's why he wants to do whatever it is he wants to do to Connie, but why bring someone else in on it? I would have to think that even a psychopath would know that an accomplice could rat him out. And, what exactly is Ellie's role in their crime anyway? I don't get the impression that they are both going to hurt Connie, and if Ellie knew

Concerns about the impacts that a free-flow of US-sourced media products would have on Australian local culture.To what extend are these concerns justified

1136 words - 5 pages some people with stronger will can resist the effects of media.With the US/Australian Free Trade Agreement, there would be a free-flow of US-sourced media products into Australia, but to what extend would this effect the local culture? With or without the US/Australian Free Trade Agreement, there are already programs which are common such as music channels (MTV and Channel [V]), TV series (The Simpson and Law & Order) or just some reality TV

Similar Essays

Discussion Into The Impact Of Adoption Of International Accounting Standards To The Uk

1530 words - 6 pages US rules (SFAS2, which does not allow such capitalisation) and inconsistent with UK rules SSAP 13 which merely allows 'capitalisation'.The cost of conforming to IAS may be a significant issue, when assessing the impact of adopting. Many businesses have software to prepare their accounts and financial statistics, which may become obsolete and new systems purchased. The UK in particular has a long and detailed system of accounting, it would be a

In What Ways And Why Are The Constitutions Of The Uk And The Us Different?

1022 words - 4 pages Britain immediately become part of their constitution, which suggests that the UK constitution cannot be deemed as uncodified.Emerging from the codified/uncodified aspect of the constitution is the assumption that the US constitution is rigid and the UK's is flexible. However, there are complications with this vague assessment due to the way that each has been structured, regardless of whether or not they have been written. The US constitution

The Data Protection Act Was Introduced In The Uk In 1984. It Gives Rights To Data Subjects (I.E. People Who Have Data

3095 words - 12 pages Dean Smith 11k LEGISLATION The data protection act was introduced in the UK in 1984. It gives rights to data subjects (i.e. people who have data about them stored on computer systems). The act was updated in 1998 to take the increasing use of computers, and changes in European Union law, into account. The 8 principles of the data protection act are: 1. Data must not be processed unless there is a specific

The Advantages And Disadvantages Of New Accounting Standards Ifrs

968 words - 4 pages standard will consist of a mixture of rules from around the globe (Spulber 2001).The necessary reform at tax authorities will be costly and possibly time consuming (Spulber 2001). As most business are not familiar with the new accounting standards, the government have to give support to business community, this involves lots of time and money spending on training and the transition to IFRS.Another disadvantage is the differences between Accounting