Legal And Regulatory Influence On Financial Statements

Topics: Balance sheet, Financial statements, Corporation Pages: 1 (256 words) Published: February 17, 2015
Legal and Regulatory Influence on Financial Statements
All businesses have to meet the internal and external reporting standard of financial activities in order to provide meaningful and acceptable financial statement. There were so many development of regulations in the UK in time past which different business owners used in preparing their financial statement as it suite them. For example in1844 the Joint stock companies Act incorporated by registration of audited balance sheet is required, 1855 the JSCA creation of limited liability consolidation of 1844 and 1855 Acts, 1900 the company Act compulsory the audit of balance sheet as required 1929 the company Acts require profit statement 1948 the companies act requires balance sheet and profit and loss accounts to be true and fair and to be disclosed at minimum level and so on. Accounting regulations in the UK is divided into three main regulatory authority and governance which all entities whether sole trade partnership or limited company which all entities must abide by in preparing their financial year end. These regulatory bodies are the company Act 2006, UK Accounting Standards Board and International Accounting Standards (IAS). There were no specific legal or regulation requirement dealing with the sole trader and partnership accounts in the company Act 2006. For example if these companies registered for value added tax, they will want to prepare their records based on HMRC requirements. Therefore owners of companies keep the accounting records in ways that satisfy them most

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