Reporting Standards Flashcards
1
Q
IFRS
A
International financial reporting standards
2
Q
GAAP
A
General Accepted Accounting Principles
3
Q
Role of financial and accounting standards in the UK
A
Maintain a transparent, reliable, and efficient financial system
4
Q
The key roles of the financial reporting and accounting standards
A
- Standardisation
- Transparency
- Investor protection
- Regulatory compliance
- Economic stability
- International harmony
- Audit basis
- Performance evaluation
- Corporate governance
- Adaptability
- Public interest
- Tax compliance
- Access to capital
5
Q
Arguments against accounting regulation
A
Rigid accounting could have a:
1. Detrimental effect in the long term
2. May not fit all
3. Somewhat arbitrary
4. Too many standards
