Preview

Legal And Regulatory Influence On Financial Statements

Satisfactory Essays
Open Document
Open Document
256 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Legal And Regulatory Influence On Financial Statements
Legal and Regulatory Influence on Financial Statements
All businesses have to meet the internal and external reporting standard of financial activities in order to provide meaningful and acceptable financial statement.
There were so many development of regulations in the UK in time past which different business owners used in preparing their financial statement as it suite them. For example in1844 the Joint stock companies Act incorporated by registration of audited balance sheet is required, 1855 the JSCA creation of limited liability consolidation of 1844 and 1855 Acts, 1900 the company Act compulsory the audit of balance sheet as required 1929 the company Acts require profit statement 1948 the companies act requires balance sheet and profit and loss accounts to be true and fair and to be disclosed at minimum level and so on.
Accounting regulations in the UK is divided into three main regulatory authority and governance which all entities whether sole trade partnership or limited company which all entities must abide by in preparing their financial year end. These regulatory bodies are the company Act 2006, UK Accounting Standards Board and International Accounting Standards (IAS).
There were no specific legal or regulation requirement dealing with the sole trader and partnership accounts in the company Act 2006. For example if these companies registered for value added tax, they will want to prepare their records based on HMRC requirements. Therefore owners of companies keep the accounting records in ways that satisfy them most http://www.termpaperwarehouse.com/ Assess The Implications Of Financial Statements For Users Essays and Term Papers

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Unit 17 Quiz

    • 4609 Words
    • 19 Pages

    4. A public company's financial statements should be prepared following standards of the Public Company Accounting Oversight Board.…

    • 4609 Words
    • 19 Pages
    Satisfactory Essays
  • Good Essays

    Financial Statements are designed to define the health and well-being of a company. It is necessary that the information on the financial statements is accurate.…

    • 989 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    MODULE 4 HOMEWORK

    • 431 Words
    • 3 Pages

    1) The Securities & Exchange Commission requires publically traded companies to have their financial statements audited by their internal auditors.…

    • 431 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Hcs 405 Week 1

    • 1225 Words
    • 5 Pages

    It is important that organizations report financial accounting performance fairly and factually to ensure that the organization is performing and operating within compliance guidelines, as well as in compliance with standards in regards to medical billing and coding reimbursements, errors, revenues, expenditures, audits, and so forth. This is important to avoid audits of financial records, losing accreditation, and/or legal actions being brought against the organization.…

    • 1225 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    In a business life keeping the records accurate and up to date is very important in order for a business to run smoothly and produce good levels of profits. The accountant for the business or actual business owner, must keep either a PC document or written copy of all the money going in and out of the business. This should be to the last penny as one wrong number or one forgotten means that the businesses whole records are wrong. If a business fails to do this, it could potentially find itself forgetting to pay bills, forgetting about chasing payments from other businesses or customers and even worse finding themselves in trouble with HM Revenue and Customs. This is something a blot of businesses are worried about due to, if a recorded transaction is wrong the final report will be wrong which could lead to tax payments being wrong. If the tax payments are wrong and HMRC, also known as HM, find out then the business could even find themselves in court and with a fine.…

    • 696 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    In a public company, management must assess and report on internal control over financial reporting.…

    • 11346 Words
    • 62 Pages
    Powerful Essays
  • Good Essays

    Peaceful action allows a community to not only highlight the injustices of society, but to create a solution to the problem. To ensure the success of a nonviolent campaign, one must consider the sources of power of the opponent and the need for unity among the protesters. For example, in her Ted Talk, “The Secret to Effective Nonviolent Protest,” Jamila Raqib employs a graphic of a block tower, representing ISIS, with each block representing a necessary component of ISIS’s power, such as skilled labor. As these blocks are removed one by one, the structure of the tower crumbles, and ultimately collapses. Raqib uses a cause-and-effect relationship to illustrate how depriving opponents of their vital resources and institutions allows protesters to attack the oppressors at their foundation to break them from the ground up.…

    • 486 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Financial statements show the physical numbers of the cash flow and losses, they also make it easier to prove to a bank if ever a loan is needed.(http://www.oakhillbp.com paragraph 2) Having an accountant or the skills of one is beneficial and highly crucial to keep your business clear and clean for government and mind.…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    2. The two main types of companies permitted to be registered under the Corporations Act are:…

    • 1210 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Regulatory Bodies

    • 380 Words
    • 2 Pages

    The major regulatory bodies include: Internal Revenue Service, Securities and Exchange Commission, Financial Accounting foundation, Government Accounting Standards Board, Federal Accounting Standards Advisory, International Accounting Standards Board, Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants.…

    • 380 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Intermediate Notes 101

    • 617 Words
    • 3 Pages

    5. The objectives of financial reporting are to provide (1) information that is useful in investment and credit decisions, (2) information that is useful in assessing cash flow prospects, and (3) information about enterprise resources, claims to those resources, and changes in the resources and claims to resources.…

    • 617 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    This working paper was originally published as Gaffikin, M, Regulation: Standardising Accounting Practice, Accounting & Finance…

    • 8625 Words
    • 28 Pages
    Powerful Essays
  • Satisfactory Essays

    The major accounting regulatory bodies would include the Securities and Exchange Commission, American Institute of Certified Public, Financial Accounting Standards Board, and Government Accounting Board. Each regulatory body contributes to the ethical over watch of companies by keeping them transparent, follow GAAP, and other ethical practices that should be used by accountants and their companies. The Securities and Exchange Commission regulates companies in how they report their financial statements and to make sure that investors receive all necessary information that involves investment decisions. This commission helps ensure that investors are not deceived and allows them to make better investment decisions. The American Institute of Certified Public Accountants sets guidelines and standards on how companies should be audited, and set standards in accounting practices that certified public accountants should follow. Like the American Institute of Certified Public Accountants, the Financial Accounting Standards Board sets up standards for companies and how they should be reporting their financial reports. Companies that follow the FASB standards can provide more accurate financial information than those who do not. It is important to note that the FASB is for the private sector, the compliment to this regulatory body would be the Government Accounting Standards Board who sets standards for government agencies, programs, and bodies. The GASB is crucial for the federal government because it sets standards on how government agencies report their finances. For example, every state who reports their finances over a certain accounting period would all have the same format in how their balance sheets, financial statements, and other records are presented. This makes the reports easy to understand and compare against other…

    • 271 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    U.K was one of the initial and first countries in the world to expand and have Companies acts containing supplies and also one of the initial professional accounting bodies was established in the U.K. Certified accountants and company law play a key role in dominating the U.K corporate financial reporting and play a important persuade varying from external and domestic factors. Britain's financial market is structured around a "capital financial market based financial system" where the stock market finances large scale businesses, trading securities and pricing role. The stock exchange and taxation system have very little power in financial reporting. Having said that, the stock market has association in increasing financial reporting standards for listed companies. Although U.K seems to have urbanized its own companies act and regulations, it still has established indirect foreign influence from member states of the European Union throughout EU directives and from U.S.A with their new accounting standards.…

    • 3488 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    When a financial report is prepared, those charged with governance (Board of Directors) are responsible for ensuring that the information contained within it is relevant, reliable, comparable and understandable. As well as this they must also ensure that the report is true and fair in nature which means that the reports must be faithful and have a consistent application of accounting standards or applicable framework. Management, or those charged with governance are required by Section 295(4)(c) of the Corporations Act 2001 to provide a Directors’ statement of solvency, stating that to the best of their knowledge and information, the entity does and will continue to trade as a going concern for the foreseeable future. The Accounting Standard AASB 101 Presentation of Financial Statements states that management must make an assessment as to the ability of the entity to continue trading as a going concern in the foreseeable future when preparing the financial reports and make necessary disclosures as to any conditions that may…

    • 1442 Words
    • 6 Pages
    Powerful Essays