FRS 1

The relationship between law and standards

Companies solve formed in 1900 - compulsory examine of the balance sheet - non the director.

Bigger business, utilization of directors determined by sh arholders - appointing auditors, the requirement for a consistent approach.

1948 Companies act - balance sheet and profit loss account mustiness give a true and sane view, disclosure levels introduced, audit requirements established. The accounting profession took on to a greater extent responsibility. From 1948 because of SCANDALS (Pollypeck) - present, more and more principles, amount and valuation rules, extended disclosure = true and fair override.

1985 and 1989 companies act changes in accounting practise

1)         uniform formats

2)         Publication requirements, what how to be published and when to recorded.

3)         Accounting principles

4)         Disclosure - amount of information expose is increased.

The ASB is a recognised body for the issuance of accounting standards that atomic number 18 to be complied with under the companies act. FRS and SSAPs adopted by the ASB argon the Accounting Standards for the purposes of this act - standards need to be complied with but ar not law.

Ardens - although standards arent law. Giving a TFV is in the companies act. Generally, complying with standards gives a TFV, if not disclosure is required to justify departure from standards - the TFV override. Departures investigated by the FRRP and confirm the right to prosecute.

So what does the law require

1)         give a TFV

2)         Disclosure if TFV overridden

3)          attender requirement to declare whether accounts have been prepared in union with standards

4)         Standards are regulated - defective accounts can be prosecuted.

Aim - FRSs are developed within the context of current legislation with the select of ensuring consistency between accounting standards and law

Coverage

Both law and standards cover measurement rules, disclosure and format items -

overlap =...

If you want to get a just essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .