United Kingdom

Individual Accounts
  • T. E. Cooke
  • R. S. Olusegun Wallace

Abstract

This contribution looks at the state of corporate financial reporting in the UK and the deliberate efforts that have been made and are being made to improve the level of reporting. Corporate financial reporting is an abstract concept which means a variety of things for a variety of users. In a competitive market, such as the business environment of the UK, customers, suppliers, employees, managers, investors, lenders and government (including tax authorities) need constant streams of information to assist them in their respective roles. In a regulated market, the regulator that serves as a surrogate for competition requires similar flows of information so as to regulate the market and stimulate customers, suppliers, employees, managers, investors and lenders to respond in that market in a way that is not dissimilar from a competitive market. Financial reporting is one constant stream of information available to these different constituencies.

Keywords

Marketing Expense Digoxin Malaysia Gout 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Bibliography

  1. Accounting Standards Board (ASB) (September 1991), Financial Reporting Standard No. 1 — Cash Flow Statements, London: ASB.Google Scholar
  2. ASB (July 1992), Financial Reporting Standard No. 2, Accounting for Subsidiary Undertakings, London: ASB.Google Scholar
  3. ASB (October 1992), Financial Reporting Standard No. 3, Reporting Financial Performance, London: ASB.Google Scholar
  4. ASB (July 1993), Statement: Operating and Financial Review, London: ASB.Google Scholar
  5. ASB (December 1993a), Financial Reporting Standard No. 4, Capital Instruments, London: ASB.Google Scholar
  6. ASB (December 1993b), Discussion Paper: Goodwill and Intangible Assets, London: ASB.Google Scholar
  7. ASB (April 1994), Financial Reporting Standard No. 5, Reporting the Substance of Transactions, London: ASB.Google Scholar
  8. ASB (July 1994a), Amendment to SSAP 19, Accounting for Investment Properties, London: ASB.Google Scholar
  9. ASB (July 1994b), Discussion Paper: Associates and Joint Ventures, London: ASB.Google Scholar
  10. ASB (September 1994a), Financial Reporting Standard No. 6, Acquisitions and Mergers, London: ASB.Google Scholar
  11. ASB (September 1994b), Financial Reporting Standard No. 7, Fair Values in Acquisition Accounting, London: ASB.Google Scholar
  12. ASB (December 1994), Amendment to FRS 5, Reporting the Substance of Transactions: Insurance Broking Transactions and Financial Reinsurance, London: ASB.Google Scholar
  13. ASB (October 1994), ‘Future events’ — publication of collaborative research study, Press Notice ASB PNS3, London: ASB.Google Scholar
  14. Accounting Standards Committee, (1978), Setting Accounting Standards Report and Recommendations by the Accounting Standards Committee, London: ASC.Google Scholar
  15. Accounting Standards Steering Committee (1975), Corporate Report: A Discussion Paper, London: ASSC.Google Scholar
  16. Alexander, D. (1993), ‘A European true and fair view?’, European Accounting Review, 2, No. 1, pp. 59–80.CrossRefGoogle Scholar
  17. Alexander, D. (1994), ‘The true and fair view concept — towards an international perspective’, Working Paper Series No. HUSM/DA/21, The University of Hull.Google Scholar
  18. Aliber, R. L. and Stickney, C. P. (1975), ‘Accounting measures of foreign exchange exposure: the long and short of it,’ The Accounting Review, 50, No. 1, January, pp. 44–57.Google Scholar
  19. Arden, M. H. (1993), ‘Legal opinion on financial reporting standards and true and fair view’. Accountancy, July, pp. 122–3.Google Scholar
  20. Arnold, J., Boyle, P., Carey, A., Cooper, M. and Wild, K. (1991), The Future Shape of Financial Reports, London: ICAEW.Google Scholar
  21. Barwise, P., Higson, C., Likierman, A. and Marsh, P. (1989), Accounting for Brands, London: ICAEW and London Business School.Google Scholar
  22. Brown, R. (1905), A History of Accounting and Accountants, Edinburgh.Google Scholar
  23. Canadian Institute of Chartered Accountants (1988), Report of the Commission to Study the Public’s Expectation of Audits, Toronto: CICA.Google Scholar
  24. Chisnall, P. (1994), ‘Banks and the small company audit reforms’, Accountancy, 114, (1216), December, pp. 76–7.Google Scholar
  25. Chopping D. and Skerratt, L. (1994), Applying GAAP 1994/95: A Practical Guide to Financial Reporting, third edition, London: The Institute of Chartered Accountants in England and Wales.Google Scholar
  26. Citron, D. B. and Taffler, R. J. (1992), ‘The audit report under going concern uncertainties: an empirical analysis’, Accounting and Business Research, 22, No. 88, Autumn, pp. 337–45.CrossRefGoogle Scholar
  27. Collins, W., Davie, E. S. and Weetman, P. (1993), ‘Management discussion and analysis: an evaluation of practices in UK and US companies’, Accounting and Business Research, 23, No. 90, Spring, pp.123–37.CrossRefGoogle Scholar
  28. Cooke, T. E. and Whittaker, J. (1983), ‘Segment reporting — directors’ discretion or SSAP?’ Accountancy, 94, No. 1076, April, pp. 77–81.Google Scholar
  29. Cooke, T. E. (1986), Mergers and Acquisitions, Oxford: Blackwell Publishing.Google Scholar
  30. Davies, M., Paterson, R. and Wilson, A, (1994), UK GAAP: Generally Accepted Accounting Practices in the United Kingdom, Basingstoke, Hants: Macmillan.Google Scholar
  31. Dearing, R. (Sir) (1988), The Making of Accounting Standards: Report of the Review Committee under the Chairmanship of Sir Ron Dearing, London: The Institute of Chartered Accountants in England and Wales.Google Scholar
  32. Department of Trade and Industry (July 1994), Small Company Audit: Implementing Regulations Come into Force in August, London: Department of Enterprise of the DTI.Google Scholar
  33. Department of Trade and Industry (September 1994), Companies in1993–94: Report for the year ended 31 March 1994, presented pursuant to the Companies Act 1985 Section 729, London: HMSO.Google Scholar
  34. Devine, C. (1963), ‘The rule of conservatism reexamined’, Journal of Accounting Research, 1, pp. 127–38.CrossRefGoogle Scholar
  35. Edwards J. R. (ed.) (1990), British Company Legislation and Company Accounts, 1844–1976, Vols. 1 and 2, New York: Arno Press.Google Scholar
  36. Financial Reporting Review Panel (1992), Press Release No. 9: Progress Report to 30 June 1992, London: FRRP.Google Scholar
  37. Fisher, L. (1994), ‘Big GAAP/Little GAAP’, Accountancy, 114, No. 1216, p. 23.Google Scholar
  38. Hoffman, L. (QC) and Arden, M. H. (1983), ‘Joint Legal Opinion on True and Fair View’, addressed to the Accounting Standards Committee, reproduced in Accountancy, November, pp. 154–6.Google Scholar
  39. Johnson, L. T. (1994), Future Events: A Conceptual Study of their Significance for Recognition and Measurement, Norwalk, CT: FASB.Google Scholar
  40. Leach, R. and Stamp, E. (1981), British Accounting Standards: The First 10 Years, London: Woodhead-Faulkner.Google Scholar
  41. Lee, T. (1979), ‘A brief history of company audits: 1840–1940’, Lee, T. A. and Parker, R. H. (eds), in The Evolution of Corporate Financial Reporting, Middlesex: Thomas Nelson and Sons Ltd, pp. 153–63.Google Scholar
  42. Lee, T. (1994), ‘Financial reporting quality labels: The social construction of the audit profession and the expectations gap’, Accounting, Auditing & Accountability Journal, 7, No. 2, pp.30–49.CrossRefGoogle Scholar
  43. Lee, T. A. and Parker, R. H. (1979), The Evolution of Corporate Financial Reporting, Middlesex: Thomas Nelson and Sons Ltd.Google Scholar
  44. Lorensen, L. (1972), Reporting Foreign Operations of US Companies in US Dollars, Accounting Research Study 12, New York: AICPA.Google Scholar
  45. Macve, R. (1981), A Conceptual Framework for Financial Accounting and Reporting: The Possibilities for an Agreed Structure, a Report prepared at the request of the Accounting Standards Committee, London: ICAEW.Google Scholar
  46. McMonnies, P. N. (ed.) (1988), Making Corporate Reports Valuable, London: ICAS and Kogan Page.Google Scholar
  47. Napier, C. J. (1983), Accounting for the Cost of Pensions, London: ICAEW.Google Scholar
  48. Nobes, C. W. (1980), ‘A review of the translation debate’, Accounting and Business Research, 10, No. 40, Autumn, pp. 411–31.CrossRefGoogle Scholar
  49. Ordelheide, D. (1993), ‘True and fair view: A European and a German perspective’, European Accounting Review 2, No. 1, pp. 81–90.CrossRefGoogle Scholar
  50. Parker, R. H. (1994), ‘Debating true and fair in Australia: An exercise in deharmonization?’, Journal of International Accounting Auditing & Taxation, 3, No. 1, pp. 41–69.CrossRefGoogle Scholar
  51. Power, M. K. (1992), ‘The politics of brand accounting in the United Kingdom’, The European Accounting Review, 1, No. 1, May, pp. 39–68.CrossRefGoogle Scholar
  52. Schmitthoff, C. M. with Kay, M. and Morse, G. K. (1976), Palmer’s Company Law, Volume I, twenty-second edition, London: Stevens & Sons.Google Scholar
  53. Solomons, D. (1989), Guidelines for financial reporting standards, a paper prepared for The Research Board of the Institute of Chartered Accountants in England and Wales and addressed to the Accounting Standards Committee, London: ICAEW.Google Scholar
  54. Turley, S. (1992), ‘Developments in the structure of financial reporting regulation in the United Kingdom’, The European Accounting Review, 1, May, pp. 105–22.CrossRefGoogle Scholar
  55. Wallace, R. S. O. (1987), Disclosure of Accounting Information in Developing Countries: A Case Study of Nigeria, Ph.d. thesis, University of Exeter, Devon.Google Scholar
  56. Wallace, R. S. O. and Cooke, T. E. (1990,) ‘The diagnosis and resolution of emerging issues in corporate disclosure practices’, Accounting and Business Research, 20, No. 78, Spring, pp. 143–51.CrossRefGoogle Scholar
  57. Walton, P. (1993), ‘Introduction: The true and fair view in British accounting’, European Accounting Review, 2, No. 1, pp. 49–58.CrossRefGoogle Scholar
  58. Watts, R. L. and Zimmerman, J. J. (1986), Positive Accounting Theory, Englewood Cliffs, NJ.: Prentice-Hall Inc.Google Scholar
  59. Zeff, S. A. (1993), ‘International accounting principles and auditing standards’, The European Accounting Review, 2, pp. 403–10.CrossRefGoogle Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1995

Authors and Affiliations

  • T. E. Cooke
  • R. S. Olusegun Wallace

There are no affiliations available

Personalised recommendations