In: Economics
Developed economies all have their own regulatory environment for accounting and financial reporting. This assignment allows you to explore two different regulatory environments of your choice, and to evaluate the theories of regulation that best describe those environments. This assignment is in two parts, which you will combine into a single report. Each will involve a review of the relevant literature to establish the dominant views involved in each environment. Your conclusion at the end of the report will identify the most important findings for each review. Part A Select any two of the following countries: Australia United Kingdom India Singapore.
1. Financial Reporting - Australia:
Australia has a differential disclosure regime under which financial reporting requirements are set according to the type of entity, principally on the basis of the level of public interest in the entity. The types of entities can be classified as:
Under the Corporations Law, all disclosing entities, companies and registered managed investment schemes are required to maintain records which accurately record their financial transactions and which would enable the preparation of financial statements and the audit of those financial statements.
Annual financial statements must be prepared by all entities except small proprietary companies. The annual financial statements consist of a balance sheet, a profit and loss statement and a cash flow statement. The matters to be disclosed in the financial statements are contained in accounting standards, which are made by the Australian Accounting Standards Board (AASB) and which have the force of law under the Corporations Law. The Corporations Law also provides that consolidated financial statements must be prepared where the preparation of such statements is required by an accounting standard. This normally occurs in circumstances where an entity controls one or more other entities. Annual financial statements must be circulated to members of the entity (for consideration at the annual general meeting of the disclosing entity or company) and must be lodged with the Australian Securities and Investments Commission (ASIC).
In addition to meeting annual disclosure requirements, disclosing entities are required to prepare half-yearly financial statements. These are generally an abridged version of the annual financial statements. Half-yearly financial statements must be lodged with ASIC but do not have to be circulated to members.
Both the annual and half-yearly financial statements must be:
Three important elements underpin Australia’s financial reporting framework:
2. Financial Reporting - United Kingdom
Delivery of statutory financial statements prepared in accordance with current UK GAAP, FRS 102, FRS 101 or IFRSs (as endorsed by the EU) for single entities or consolidated groups.
Migration and translation
Ensuring accurate migration or translation between the following GAAPs:
Consolidation
Preparation of the consolidated results of your business from subsidiary company information to support preparation of statutory financial statements.
Audit liaison
A tailored approach for your needs, from simply answering queries relating directly to our statutory financial statement preparation work, to being an integral part of your relationship with your auditors.
iXBRL
Converting your statutory financial statements into InLine eXtensible Business Reporting Language (iXBRL) format for submission to HMRC in close collaboration with our iXBRL team.