Regulation of financial reporting by large listed companies in the UK Essay

Regulation of financial reporting by large listed companies in the UK - Essay ExampleLet us start with rendering of Standards. Different companies have interpreted the standards in different ways and it appears that this interpretation aspect is the major cause of difference or lack of uniformity appearing the capital punishment of IFRS among companies. Uniformity and creditability are highly essential for financial reporting and its regulation ensures that directors and auditors provide reports that are credible by giving them guidance to gratuity out instance relevant rules when certain policies are considered appropriate.(Barry Elliot and James Elliot, 2005)4IFRS is considered a principal- based system. The advantage of a principle based system is that it offers the accountant possibilities to conform the reporting of transactions to their unique economic settings. A high portion or flexibility increases the possibility to provide a fair presentation of transactions. (Wyatt , 2005)19. But this advantage is coupled with limitation of different interpretations in order to achieve fair presentation as far as possible, and thereby the inconsistency creeps in affecting the comparability.If a review is made of notes to financial statements of large companies, it will be revealed that most of these are either declaration of chronicle principles and policies or other necessary disclosures required to be made under IFRS. Out of such detailed andIt would be sufficient if companies make only wholeness line declaration that policies and procedures have been followed as laid down in IFRS manual, except for the principles and procedures detailed in the notes. In other words notes to financial statements of bigger companies should contain disclosure of those policies and procedures that have not been followed by the company knowingly or otherwise.Matez Bosnak12, partner of Ernest & Young in Slovakia has, while assessing the first year implementation of IAS, rightly stated that typically, IFRS financial