Chapter 10 - Financial Reporting

Abstract

Accounting standards are currently developed in the UK by the Accounting Standards Board (ASB) under the auspices of the Financial Reporting Council (FRC). Historically, potential topics for accounting standards have been identified by the ASB from its own research and also from external sources. ASB staff have then undertaken a program of consultation and research, considering conceptual issues, existing practice in the UK, any existing pronouncements (both in the UK and abroad) and the practical implications of introducing new requirements in the UK. A Discussion Paper has usually been prepared setting out the main issues and inviting comments on the ASB's initial proposals. For accounting periods beginning on or after 1 January 2005, listed companies are required by the EU Regulation to prepare group accounts in accordance with International Accounting Standards (IASs) adopted by the EU rather the UK accounting standards. When a company is required or chooses to prepare IAS accounts, the detailed provisions of UK company law on the form and content of statutory accounts no longer apply. However, this does not mean that all accounting provisions in the legislation can be ignored.