ACC1000 Study Guide - Quiz Guide: Listing Rules, Deferred Tax, Royal Society Of Biology
Document Summary
Topic 1: the international accounting environment and financial reporting. Accounting has been regulated in di erent ways around the world (mainly due to commercial advances) There are 4 major in uences to explain di erences in the way accounting has developed around the world: legal systems. Civil law? (detailed rules for accounting, very standardised, was a branch of law) Common law? (no all-embracing laws for accounting and nancial reporting, was an independent discipline, historically the accounting profession provided the details: providers of finance. Primarily shareholders? (capital provided by large number of private investors, so investors did not have access to internal information; they required disclosure, auditing, and decision-useful information - technical rules for best practice = gaap) Primarily banks/state/family? (banks act as important owners of shares in companies as well as lenders, can nominate directors and so obtain restricted information and therefore the need for published information that is audited smaller.
