Bus1002 Unit 2 Assignment
5BUS1002 - Analysing Financial Information
Module leader -
5BUS1002 - Analysing Financial Information
Module leader -
Compare and Contrast the Regulatory Framework and the Conceptual Framework as used by public companies in the UK. How does each contribute to the preparation of a set of accounts? Use examples to support your answer.
In this piece of coursework I am going to be comparing and contrasting the Regulatory Framework and Conceptual framework which are used by UK public companies. I am also going to be going through how each of the frameworks contributes towards its companies accounts and how each is affected by the different Laws like the Companies act.
In the UK all the accounts …show more content…
The framework consists of 9 fundamental points, the objective of general purpose financial reporting, The Reporting Entity , Users of accounts, Objectives of Financial Statements, Underlying Assumptions , Qualitative Characteristics , Elements , Recognition , Measurement . The conceptual framework is based on two underlying accounting concepts, the accrual basis of accounting and the going concern. The accrual basis accounting portrays the results of transactions and other events on a reporting entity’s economics resources and claims. This is important because the information on the events of the reporting entity at the time which they are published can affect the way in which the entity is assessed as a good judgment cannot be made just on the cash receipts and payments during the period it took place. These financial statements are usually prepared on the assumption that the business is a going concern and will continue to operate in the projected
Module leader -
5BUS1002 - Analysing Financial Information
Module leader -
Compare and Contrast the Regulatory Framework and the Conceptual Framework as used by public companies in the UK. How does each contribute to the preparation of a set of accounts? Use examples to support your answer.
In this piece of coursework I am going to be comparing and contrasting the Regulatory Framework and Conceptual framework which are used by UK public companies. I am also going to be going through how each of the frameworks contributes towards its companies accounts and how each is affected by the different Laws like the Companies act.
In the UK all the accounts …show more content…
The framework consists of 9 fundamental points, the objective of general purpose financial reporting, The Reporting Entity , Users of accounts, Objectives of Financial Statements, Underlying Assumptions , Qualitative Characteristics , Elements , Recognition , Measurement . The conceptual framework is based on two underlying accounting concepts, the accrual basis of accounting and the going concern. The accrual basis accounting portrays the results of transactions and other events on a reporting entity’s economics resources and claims. This is important because the information on the events of the reporting entity at the time which they are published can affect the way in which the entity is assessed as a good judgment cannot be made just on the cash receipts and payments during the period it took place. These financial statements are usually prepared on the assumption that the business is a going concern and will continue to operate in the projected