Uk and Us Accounting Standards
In today's unpredictable stock markets, it is extremely important for investors to expand investments to minimize risk and earn reasonable returns on funds. The diversification does not have to be restricted to domestic companies because of opportunities available in foreign markets. On the other hand, securities analysis becomes more complex because of supplementary variables such as foreign exchange risk, political, economic, cultural diversities, etc. that need to be taken into deliberation in making investment judgment. A significant variable in the analysis of foreign securities is various accounting standards. The accounting standard of United States (US) and United Kingdom (UK) and identifies the major differences that materially impact the Tangible Assets, Goodwill, Inventory, Auditing, and financial statements. The study is helpful in evaluating the financial statements of UK companies and comparing them with US financial statements.
U.K was one of the initial and first countries in the world to expand and have Companies acts containing supplies and also one of the initial professional accounting bodies was established in the U.K. Certified accountants and company law play a key role in dominating the U.K corporate financial reporting and play a important persuade varying from external and domestic factors. Britain's financial market is structured around a "capital financial market based financial system" where the stock market finances large scale businesses, trading securities and pricing role. The stock exchange and taxation system have very little power in financial reporting. Having said that, the stock market has association in increasing financial reporting standards for listed companies. Although U.K seems to have urbanized its own companies act and regulations, it still has established indirect foreign influence from member states of the European Union throughout EU directives and from U.S.A with their new accounting standards.
Financial
U.K was one of the initial and first countries in the world to expand and have Companies acts containing supplies and also one of the initial professional accounting bodies was established in the U.K. Certified accountants and company law play a key role in dominating the U.K corporate financial reporting and play a important persuade varying from external and domestic factors. Britain's financial market is structured around a "capital financial market based financial system" where the stock market finances large scale businesses, trading securities and pricing role. The stock exchange and taxation system have very little power in financial reporting. Having said that, the stock market has association in increasing financial reporting standards for listed companies. Although U.K seems to have urbanized its own companies act and regulations, it still has established indirect foreign influence from member states of the European Union throughout EU directives and from U.S.A with their new accounting standards.
Financial
Bibliography: Comparative International Accounting - Christopher Nobes & Robert Parker 2) http://www.iasplus.com/country/country.htm