Narrative Reporting in the UK

NARRATIVE REPORTING IN THE UK

Table of Contents
NARRATIVE REPORTING IN THE UK......................................................................................1
INTRODUTION .............................................................................................................................1
Evaluation of role of accounting theory and practice to overcome problems and help in
innovation and development........................................................................................................1
CONCLUSION................................................................................................................................4
REFRECNES...................................................................................................................................6

INTRODUTION
Accounting theory are the assumptions and rules and framework used to help individuals
to apply rules of accounting and financing in a systematic way. Managers uses accounting
theories for formulating their policies and strategies in efficient way which help in taking
essential and right decision related to financial activities. To understand the concept of
accounting theories in better way banking sector of United Kingdom has been taken. It play
essential role in UK economy. Bank of England act as central bank of this country. This bank
regulate and supervise of the businesses activities of Banking sector of UK. In this report issues
faces by banking sector of United Kingdom has been critically analysis. And effect of accounting
theory and practice are identify. In this report essential effect of technologies on this sector also
mention.
TASK 1
Evaluation of role of accounting theory and practice to overcome problems and help in
innovation and development
Accounting theories are used to help in provide explanation regarding accounting rules
and practices. Managers uses accounting theories for forecasting accounting behaviour and
events. Main purpose of applying accounting theories in business organization to take best
results. These theories play essential part in accounting process as every organization needs to
record their transactions in systematic way and accounting theories and practices help in making
effective policies by which business organization achieve their goal by optimum utilisation of
their scarce resource (Gantino, Ruswanti and Rachman, 2017 ).
Banking sector of UK built strong position till 2009 in world economy. After economy crises and
Brexit agreement their economy growth rate goes down this will adversely impact on each sector
of economy. It also impacted on banking sector. On the other side development of new
technologies will also impact on banking sector. The service sector may gain some advantages
but it becomes the reason of scam's and issues arises in banking sector.
Main major bank of United Kingdom is HSBC, Royal Bank of Scotland, Standard Charted are
largest bank of England which held almost 85 % shares of banking sectors.
At present banking sector of UK suffers from may problems due to lack of managerial
skills related to uses of accounting polices in business activities. Banking sector of UK in past
1