1.1 Regulatory framework - introduction Flashcards Preview

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Flashcards in 1.1 Regulatory framework - introduction Deck (6)
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1
Q

What is the main objective of financial reporting?

A

To provide useful information about the reporting entity to shareholders and other users.

2
Q

What does IFRS stand for?

A

International Financial Reporting Standards

3
Q

What does UK GAAP stand for?

A

The UK Generally Accepted Accounting Principles

4
Q

Which body issues the International Financial Reporting Standards (IFRS)?

A

The International Accounting Standards Board (IASB)

5
Q

Why are accounting standards often more effective than laws?

A

Laws are slow to change, whereas accounting standards can respond effectively to major incidents (e.g. Carillion)

6
Q

What are some key aims of the regulatory framework? (6 things)

A
  • ensure consistent and comparable reporting
  • ensure objective reporting
  • ensure a minimum level of information in financial statements
  • improve transparency and credibility
  • regulate the behavior of companies
  • achieve desired social goals (CSR)

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