Importance of Compliance

IMPORTANCE OF
COMPLIANCE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Four main bodies of regulatory framework in accounting standards..........................................3
Consequences of non compliance................................................................................................4
Significance of compliance..........................................................................................................5
CONCLUSION................................................................................................................................5
RECOMMENDATION...................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Compliance termed out as firm that is obeying all regulations and legal laws in aspect of
how they manage the business, staff and treatment towards their consumers (Murray, McVie and
Norris, 2020 ). This defines as that firm is meeting with all legal obligations that leads to protect
the health, safety and welfare to others.
The present report is based on explantation on regulatory framework and their key
requirements. Also, study will evaluate the consequence of non compliance to requirements from
four regulatory bodies for range of businesses. Lastly, evaluation will be conducted on the basis
of compliance to regulatory bodies.
MAIN BODY
Four main bodies of regulatory framework in accounting standards.
Regulatory framework for the financial reporting is designed in terms to sort out the
common language that firms and businesses accounts are clear and can be comparable within
international environments (Coban, 2020). In addition to this, accounting regulations mainly
consists of standards, legal framework, education and other sort of standards. Thus, four main
regulatory bodies are as-:
Companies act and key financial reporting requirements- Company law in the UK needs that
director of firms who are incorporated under UK must prepares the account for company for
each of its financial years. It must be made in manner that gives true and fair view. Henceforth,
such accounts as-:
 Companies act accounts- This must be made in terms with accounting and disclosure
needs of company law. Also, needs to prepared as financial reporting standards that
published with help of financial reporting council (Anarfo and Abor, 2020).
 IAS accounts- It needs to be prepared as per international financial reporting standards
that has been published with help of International Standard board. This is adopted by the
European union.
Thus, there are four different size of firm such as micro, small, large and medium sized.
Thus, specification has been given for the small and micro firms while preparing and filling
annual accounts and reports (Compliance with International Financial Reporting Standards,
2018). Part 15 set out the requirements as distribution, filling and preparation of reports and
accounts. Also, part 16 states that general details requirement must be given for account to be