Question

In general terms, how is financial reporting different in the Anglo-Saxon model of accounting from the continental European model of accounting?

Answer 1

Anglo -Saxon is investors based model in which they do not focus on taxable income,

in the case of the continental European model Expenses are recorded by the nature for example wages, material etc while in case of Anglo Saxon model expenses recorded by function example functional terms like the cost of sales.

protection of creditors by legal reserves* percentage from net income is needed in Continental European Accounting while it does not require in Anglo-Saxon model

legal reserves: limited liability companies in some civil law countries (e.g.
France, Belgium, and Germany) are required to allocate 5 percent of their net income for each
year to a legal reserve until the reserve equals 10 percent of nominal capital.

Earning Per Share disclosure is required by listed companies in the Anglo-Saxon model, which it's not required in the continental European model.

The statement of cash flow needs to be the part of financials in the Anglo-Saxon model, which it's not a compulsion in the continental European model.

As mentioned earlier The Anglo-Saxon is investors based model, therefore accounting practices do not in the line of tax rule while in the continental European model accounting practices follow all the tax rules relared to provisions & depereciation.