Across the Pond: An Insight into US Accounting
Article Abstract:
There are many similarities between United States and United Kingdom accounting practice. But there are major differences in the areas of methods and regulation. Force behind standards is stronger in the United States. There is no comparison to the United Kingdom Companies Acts. The Financial Accounting Standards Board (FASB) regulates standards and is independent of both government and the profession. Despite differences, the United Kingdom accountant would feel quite at home in United States accounting. There is a difference in handling mergers and goodwill. The United Kingdom and United States differ in handling currency translation; the United States FASB proposes current rate method in most cases. Research and development (R&D) is written off immediately in the United States and can be capitalized in the United Kingdom. Oil and gas is a major topic of controversy in United States accounting, not in the United Kingdom. Leasing in United States accounting is advanced. Deferred tax is not such an issue in United States accounting but inflation did not reach such heights. On inventories, last in first out (LIFO) is encouraged in the United States and is not allowed in the United Kingdom. Reactions to and treatment of inflation in accounting is treated similarly in both countries. Though recent economic developments have increased similarities, the European Economic Community (EEC) has pulled the United Kingdom farther away from United States accounting norms.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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Exposure draft 33 - 1 October 1989: additional guidance on attendance at inventory locations and confirmation of accounts receivable and inquiry regarding litigation and claims - a proposed addendum to International Auditing Guideline 8, Audit Evidence
Article Abstract:
The International Federation of Accountants' International Auditing Practices Committees' Exposure Draft (ED) 33 (Oct 1, 1989): Additional Guidance on Attendance at Inventory Locations and Confirmation of Accounts Receivable and Inquiry Regarding Litigation and Claims - a proposed addendum to International Auditing Guideline 8, Audit Evidence, is presented. The ED includes provisions for attendance at inventory locations, confirmation of accounts receivable, and communications with lawyers concerning litigation and claims.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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The defective detectives
Article Abstract:
The UK's Financial Reporting Review Panel does not use a strategy that will detect defective accounting practices. Creative compliance with accounting standards uses loopholes, selective interpretation of gray areas, and inventing new techniques, and the Panel has yet to discover a way to challenge such practice.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1999
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