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During the 20th century financial accounting regulation appears to have developed as a series of responses to the evolving requirements of an ever-more complex and inter-related business environment.

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Introduction

During the 20th century financial accounting regulation appears to have developed as a series of responses to the evolving requirements of an ever-more complex and inter-related business environment. Accounting-the process for identifying, measuring and communicating information to permit informed judgements and decisions by users of the information. It provides the business functional areas the useful information to make the most effective decisions. If the accounting information can't give the supporting then it is a waste of time and money to produce. So we have known how important the accounting report for the business. But what is the importance for the accounting report? What can make sure if the accounting report is impartial and strict. The answer is a kind of financial accounting regulation. In the United Kingdom, which we are using for regulating the accounting report now is The Financial Reporting Review Panel (FRRP), the Financial Reporting Council (FRC) and the Accounting Standards Board (ASB) together to make up an organisation whose purpose is to promote good financial reporting. The FRRP and the ASB are operational bodies. ...read more.

Middle

of the Companies Act 1985 with effect from 20 August 1990 by The Accounting Standards (Prescribed Body) Regulations 1990 (S.I. 1990 No. 1667). The Accounting Standards Board Limited is prescribed as a standard setting body for Northern Ireland for the purposes of Article 264(1) of the Companies (Northern Ireland) Order 1986 with effect from 15 October 1990, by the Accounting Standards (Prescribed Body) Regulations (Northern Ireland) 1990 (S.R. 1990 No. 338).) At its meeting on 24 August 1990 agreed to adopt the 22 extant Statements of Standard Accounting Practice (by the SSAPS) issued Councils of the six major accountancy bodies following proposals developed by the Accounting Standards Committee (ASC)(Prior to 1 August 1990 accounting standards in the United Kingdom and Republic of Ireland were issued by the Councils of the six major accountancy bodies following proposals developed by the ASC. Since 1 August 1990 the Board has taken over the role of issuing accounting standards applicable in the United Kingdom. The Institute of Chartered Accountants in Ireland issues accounting, standards applicable in the Republic of Ireland.) ...read more.

Conclusion

And the new accounting standard board can deal with the ever-more complex and inter-related business environment. In developing accounting standards, the ASB set itself five principal objectives: 1. Exclude from the balance sheet-the statement of assets and liabilities-items that are neither assets nor liabilities 2. Make 'off balance sheet' assets and liabilities more visible by putting them on the balance sheet whenever practicable 3. Ensure that all gains and losses are reported prominently so that nothing can be overlooked 4. Reverse the 'bottom line' mentality by focusing performance reporting on the components of income 5. Use up-to-date measures, when appropriate, if other measures such as historical costs are ineffective. The new accounting standard can give the public and companies the more honest and faithful financial reporting. On the other hand, given the ingenuity of the human mind in circumventing the purpose of any regulations, it would perhaps be a delusion to think that it was possible to prevent the future development of accounting practices whose purpose was to mislead the user. And I think, up to now the practises improved that the ASB can benefit the users and help them get the right information in order to make better decisions. ...read more.

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