Narrative Reporting in the UK: Issues, Developments, and Analysis

This essay critically analyzes narrative reporting in the UK, drawing on accounting theory and practice to evaluate current issues and recent developments. It examines the role of accounting theories in addressing problems within the UK banking sector, particularly in light of economic crises, technological advancements, and increasing instances of fraud. The report highlights the importance of effective accounting policies, auditing practices, and regulatory frameworks in enhancing the performance and stability of UK banks. Concluding that while challenges exist, the strategic application of accounting principles can significantly improve the banking sector's resilience and contribution to the UK economy. Desklib provides solved assignments and past papers for students.

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
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decade contribute to the economy 6.18 % but now their ratio is reduces. With advancement of
technologies banking sector provides various facilities to their customers. They provides them
uses of smart card to enhance cash less transaction. Banking sector provide ATM facilities to
their customers by which they can withdraw cash at any time anywhere in their country. Now
they can uses their mobiles to check their account status without gone to bank. Customers also
deposit and withdraw cash with the use of online banking system it will help in saving their
time. New technologies may give customers so many facilities but due to technology
advancement work load.
New technologies incre4se work pressure to employers. Banks may provides locker facilities to
their customers. Now bank also provides facilities of payment of their bills, and act as mediator
to provides financial assistance to many Small organizations. All online transaction may give
benefits to customers but they also have their limits. Due to technologies advancement business
organization uses online software for to record their financial transactions. Banking sector
suffering from scams most of scams are arises due to lack of securities (Harta, 2018).
At present time in United Kingdom economy scams and fraud cases generated due to lack of
securities issues. Investors money is not secure in Banks if UK. This is serious topic emerge
since 2014 . Hackers hack accounts of customers by using internet. They developed dummy sites
and offers customers many things at cheap rate and get personal details from their customers
regarding their bank statements. Hackers easily hack account of customers. In first half year
of2018 820 million dollar fraud case is recorded in banking sectors all are related with online
hacking. On the other side non performing assets ratio is also increase in banking sector of UK it
will adversely effect n their profitability rate as due to non payment of loans. Banks could not
generated cash and it will directly impact on liquidity ratio of UK. Many problems are arises due
to lack of liquidity. Money circulating is changed. It will directly impact on government policies.
They formulated rigid policies in which bank's charges high interest rate on their customer.
Many cases sue on large banks of United Kingdom. Government of UK charged penalties on
Charted Standard bank due to unauthorised transaction of money. This will adversely impact on
financial position of the business organization.
To solve all these problems manager banks needs to implement their accounting polices in better
way. They need to implement effected accounting policies. For this purpose they need to
formulated and uses accounting theories concept in beneficial way. Banking sector of UK will be
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overcome with the problem and discuss of non performing assets and down rate of their
profitability by apply effective accounting policies and method in their daily routine business
activities. Manager of banks need to specifically identify which theory they uses for their
business. They will make budgets to set fix target and will also help in taking decision for future
and estimate incomes of future. They also uses managerial costing methods and technique to
identify cost of running their business activities. These techniques help in analysing high cost
incurred activities. It will help them to minimize their cost and maximize return. Accounting
theories and practices also impact on management process. Banks use accounting theories to
apply theoretical rules in practical way. These also help in providing best decision regarding
future project. Efficient use of accounting theories and practice will help in identifying those
project which help in achieving maximum result with minimum risk (Haryadi, 2018.).
Accounting theories and practice directly impact on banking sector .Due to lack of managerial
polices managers of bank could not implement these theories in efficient way. Central bank of
UK is also need to implement effected accounting policies. It will help the in deciding interest rat
, discounting rate, and their monetary policies decision in better way. Bank of England need to
introduced new rules and regulation which provides financial assistance of small as well as large
banks they need to provide them various facilities to overcome their problems..
Accounting authorities of UK need to implement new rues and regulation regarding banking
sector of their country.
At present time banking sector of this country is suffers from worst situations. To overcame from
these problems they needed to change their accounting structures. Applying accounting concept
in practical life scenario is also an art this government need to recruit skilled, expertise who will
easily understand market economy and implement accounting policies in as way which provides
help in enhancing performance of business activities. To increase profitability rate of banks and
growth in this sector government need to implement rigid policies regarding auditing . Each bank
follow specific accounting standard in a way. Only after that they can enhancing their
performance. Banking sector of United kingdom is not in very good condition . Due to various
system and their status of non performing assets raking in world economy of UK is goes down.
Managers of banks needed to effectively use auditing concept it will help in reducing scam in
and fraudulent case of banking sector. Banks are essential part of any economy. Entire economy
growth rate is depends in banks as they play essential part in circulation of money in country.
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UK is one of the largest country in world economy . The country obtain their specified
policies .Thus it is essential for government to impose those policies which help in overcome
problems of banks. Banking institutions of UK will be apply their financial policies in a better
way (Sledgianowski, Gomaa, and Tan, 2017).
They can use technologies to implement these rules and poloc3es in a better way. It will help in
provide security to organization. Using effective business tool will also help in maintaining
organization security level. Accounting standard mentions rules and regulation regarding
auditing According to accounting standard there will be fixed time of for banks to auditing their
documents . In each financial year auditors check and verify records. T will help in reduces the
cases of fraud and corruption in banking sector of this country. Auditing help in presenting
financial statement in front of stakeholders of banks. Accounting standard mention rate of
depreciation, methods of calculating and imposing tax liability on banks, deduction and
calculation Of depreciation etch. Accounting theories and practices play important role in
banking sector of economy. Accounting theories help in providing solution regarding typical
problem. These theories will be help in reform banking sector of the economy. Accounting
principles helps banking sector in identify best possible way of implementing interest rate to
their investor. It will also help in identifying ways of gaining financial benefit. These theories
also help in identifying problems to overcome threat oh banking sector. In 2018 Charted bank of
UK is pays penalties due to their money laundering cases . Accounting theories and principles
help in formatting those polices and strategies which make strict and rigid cases to not enjoy
benefit of power of banking sectors managers. Banks are necessary not for country but also for
individuals they help them to provided various services. They accept deposits and provides loan
and give other securities services like locker facility online transaction facilities. At present
banks charges high interest rate to their customer due to their low profitability rate. Accounting
theories helps in overcome all these problems and run business organization in efficient way.
CONCLUSION
From the above analysis it has been concluded that accounting theories and practice play
vital role in success of an business organization whether it is production or service sector.
Banking is service sector and it is essential part of UNITED Kingdom economy. Due to
economy crises and effect of new technologies various scams and problem arise in banking
sector of this country. But with the uses of accounting theories and principle of various
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accounting techniques they can overcome their problems effectively. Accounting theories are
used to explain effect of various accounting polices on future event. Banking sector of this
country uses these theory to implement better policies which help in enhancing performance and
overcome problem of fraud , cybercrime, corruption an money laundering etc. At present money
laundering scams are main problems in banking sector. Employers of banks enjoy use black
money and convert it in white money. They also gave loans to their related party at low cost. To
end all these problems government need to impose strict or rigid policies regarding banking
sector. This will help in improve growth of banking sector and reduce case of money laundering.
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REFRECNES
Books and Journals
Gantino, R., Ruswanti, E. and Rachman, T., 2017. Performance model: Environmental
uncertainty, decentralization of authority and business strategy on managerial
performance (property and real estate and food and beverage sectors listed on Indonesia
stock exchange). International Journal of Economic Research. 14(13).pp.151-163.
Harta, S.B., 2018. ANALISIS PERLAKUAN AKUNTANSI PENYUSUTAN ASET TETAP PT
TAHTA AULIA PERKASA SAMARINDA (PSAK NO. 16). EKONOMIA. 7(3).
pp.007-021.
Haryadi, B., 2018. MENGUNGKAP RAHASIA DIBALIK ANGKA PENDAPATAN
(METODE STUDI KRITIS). EKUITAS (Jurnal Ekonomi dan Keuangan), 2(2), pp.143-
164.
Maseda, A., Garcia-Ramos, R., Iturralde, T. and Arosa, B., 2016. Boards of directors in SMEs:
An empirical evidence of board task performance. South African Journal of Business
Management. 47(4). pp.47-58.
Ratnaningsih, S.D.A. and Permatahati, I.A., ACCOUNTING STUDENT READINESS FOR
THE ASEAN ECONOMIC COMMUNITY: MEET THE NEEDS. ON ECONOMICS
AND BUSINESS 2016, p.212.
Sledgianowski, D., Gomaa, M. and Tan, C., 2017. Toward integration of Big Data, technology
and information systems competencies into the accounting curriculum. Journal of
Accounting Education, 38, pp.81-93.
Yakovis, L., Sporyagin, K. and Chechurin, L., 2016. Control with Constraints for Multivariable
Objects with Time Delay. IFAC-PapersOnLine, 49(12), pp.996-1001.
Zyznarska-Dworczak, B. and Sačer, I. M., 2019. Accounting Systems in Poland and Croatia-
comparative study. Zagreb International Review of Economics and Business, 22(1).
pp.55-72.
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