Discussion into the impact of adoption of International Accounting Standards to the UK

Accounting with Finance (Hons)

Advanced Financial Accounting Coursework

Discuss the impact of the adoption of international accounting system standards in the UK

Most companies in todays world take on to mug up some form of detailed record of its activities during the year. There argon several(prenominal) users who require such detailed information, and therefore companies hold yearly accounts, showing items such as incomes, cash flows, and summation measurement. These users usually have a vested interest in that gild; the most in need atomic number 18 probably investors, who have a monetary interest in the partnership, and directors who seek to go along the financial well-being and future growth of a company, moreover there atomic number 18 also others who whitethorn take an interest. Creditors may be interested to know the likelihood that a company idler honour its debts. In addition financial statements argon required when a company produces its yearly tax return. A useful set of financial accounts provides shareholders with precise information nearly the value of their shares, levels of dividend receivable, and future value of their investments. In addition the actions of directors are made clear and any actions adverse to the business performance can be avoided. In the interest of fairness and comparability several rules and regulations known as standards apply to the writing of financial reports. These are enforced independent accounting bodies.



In the UK the main consistence involved with the setting up of accountancy standards is the Accountancy Standards Board.

The accounting standards operated under by each country can vary, in something as basic as inventory evaluation, practices in major(ip) countries include:

*         Cost (first in first out) (e.g. some Japanese companies)

*         The lower of FIFO and net realisable value (e.g. general UK practice);

*         The lower of LIFO and incumbent replacement cost (e.g. common US practice).

Therefore existence of struggle standards can lead to...

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