Analysis of Accounting Standards and Financial Reporting in UK, 2024

This report presents a debate on accounting standards and financial reporting, focusing on the context of the UK. The report discusses the role of Generally Accepted Accounting Principles (GAAP) and its impact on financial statements. The debate explores whether current accounting standards lead to misleading accounts or encourage dysfunctional behavior. It highlights how GAAP provides guidelines for proper controls and safeguards, promoting fair and relevant financial information. The report references academic sources to support its arguments and emphasizes the importance of GAAP in maintaining financial integrity and enhancing goodwill. The conclusion reinforces the significance of adhering to accounting standards for accurate transaction recording. Desklib provides this report and other resources to support students in their academic pursuits.

Group Debate

Table of Contents
GROUP DEBATE ..........................................................................................................................1
REFERENCES................................................................................................................................2

GROUP DEBATE
In UK, Financial Accounting Standards Board established General Accepted Accounting
Principles which is some rules and guidelines for financial accounting followed by companies
working in UK (Chabrak and et.al., 2016). So that, all the companies working in UK can follow
same accounting standards. Also, UK government and shareholders get to know about the
companies' shares value and profits. No company cannot disclosed their profits by using
different accounting standards because different-different accounting standards have their own
rules and guidelines which impact the accounting statements differently (Elshandidy, and Neri,
2015).
No, It is not true that the current range of accounting standards result in misleading
accounts and encourage dysfunctional behaviour. In addition to this, using GAAP, company can
built trust of stakeholders because it allows the publication of financial reports and statement.
GAAP provides companies guidelines regarding proper controls and safeguards. Using these
controls and safeguards, companies can doing proper accounting. This leads to preparation of
more fair accounting statements (Elshandidy, and Neri, 2015). It also helps companies to
maintain financial information relevancy which helps in reduction of misrepresentation of
financial information and also helps to avoid fraud. This will also enhance the goodwill too
(Chabrak and et.al., 2016). This means that all accounting standards which are provided by
GAAP as this will be helping all companies into reporting and recording of accounting
transactions. It is very much required that firm who are following these accounting standards will
never be working in wrong path and will always be doing correct recording of transactions.
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REFERENCES
Books and Journals
Chabrak, N., and et.al., 2016, July. Accounting and the third enclosure movement. In Asia-
Pacific Interdisciplinary Research in Accounting Conference. (p. 1).
Elshandidy, T. and Neri, L., 2015. Corporate Governance, Risk Disclosure Practices, and Market
Liquidity: Comparative Evidence from the UK and I taly. Corporate Governance: An
International Review. 23(4). pp.331-356.
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