Finance Accounting Essay Example | Topics and Well Written Essays - 1000 words

Finance Accounting - Essay ExampleThe accounts above are made in light of portraying a true plastic film to the shareholders as well as any investors interested in the company. The true and fair put one across concept has been at the heart of financial reporting in the UK for over forty years. In new-fashioned years there has been a major increase in the international importance of this concept. This has come about with its sufferance by the European Community in the Fourth Directive on company law and its implementation in all Community countries. However, this concept has never been defined in UK legislation, and a variety of meanings can be attributed to it. In view of the recent international developments and given that the UK is the source of the concept, this study sought to invoke the views of senior UK practitioners on the true and fair concept.The FRC has laid three points that the concept of the true and fair view remained a cornerstone of financial reporting and audit ing in the UK that there had been no material change in the objectives of an audit and the nature of auditors responsibilities and that the need for professional judgement remained central to the bring of preparers of accounts and auditors in the UK.To support the application of the true and fair view, accounting has adopted certain concepts and conventions which help to ensure that accounting information is presented accurately and consistently.The almost commonly encountered convention is the historical cost convention. This requires transactions to be save at the price ruling at the time, and for assets to be valued at their original cost. This is relevant when the calculations were made for the fixed assets of plant and machinery, fixtures and fittings and buildings. Under the...In view of the recent international developments and given that the UK is the source of the concept, this study sought to elicit the views of senior UK practitioners on the true and fair concept.The FRC has laid three points that the concept of the true and fair view remained a cornerstone of financial reporting and auditing in the UK that there had been no substantive change in the objectives of an audit and the nature of auditors responsibilities and that the need for professional judgement remained central to the work of preparers of accounts and auditors in the UK.To support the application of the true and fair view, accounting has adopted certain concepts and conventions which help to ensure that accounting information is presented accurately and consistently.The most commonly encountered convention is the historical cost convention. This requires transactions to be recorded at the price ruling at the time, and for assets to be valued at their original cost. This is applicable when the calculations were made for the fixed assets of plant and machinery, fixtures and fittings and buildings. Under the historical cost convention, therefore, no account is taken of changing pri ces in the economy.The other convention employ is the monetary measurement concept.