Reporting Standards

Question 1

IFRS

Answer 1

International financial reporting standards

Question 2

GAAP

Answer 2

General Accepted Accounting Principles

Question 3

Role of financial and accounting standards in the UK

Answer 3

Maintain a transparent, reliable, and efficient financial system

Question 4

The key roles of the financial reporting and accounting standards

Answer 4

1. Standardisation
2. Transparency
3. Investor protection
4. Regulatory compliance
5. Economic stability
6. International harmony
7. Audit basis
8. Performance evaluation
9. Corporate governance
10. Adaptability
11. Public interest
12. Tax compliance
13. Access to capital

Question 5

Arguments against accounting regulation

Answer 5

Rigid accounting could have a:
1. Detrimental effect in the long term
2. May not fit all
3. Somewhat arbitrary
4. Too many standards