Chapter 13 Flashcards
GAAP
UK generally accepted accounting practice
What do listed companies need to do?
must prepare financial statements under the international accounting standards
Do other companies need to prepare financial statements?
they may prepare it under UK GAAP or opt out using international accounting standards if they wish
What is the GAAP?
rules, regulations, concepts and conventions which govern accounting in the UK
What is UK GAAP made up of?
UK accounting standards
company law
Who is responsible for issuing UK accounting standards?
FRC financial reporting council
Who was it before the FRC?
accounting standards board
What does the companies act in the UK require companies to prepare?
annual financial statements in
specific formats
which must show a true and fair view
What are the documents required in the financial statement?
profit or loss account
balance sheet
directors report
auditors report
IASB
international accounting standard board
What does the IASB do?
set international standards
What does the IASB comprise of?
International financial reporting standards (IFRS standards) or international accounting standards (IAS standards)
What’s the difference between IFRS standards and IAS standards?
they carry the same status but IAS are older
What does the international term statement of profit or loss translate to UK?
profit or loss account or statement income
What does the international term revenue translate to UK?
turnover
