Who wants US GAAP?

Article Abstract:

There is growing acceptance that the harmonization of international accounting standards can be achieved without overdependence on US generally accepted accounting principles (GAAP). There are basic philosophical differences between US GAAP and the standards formulated by the International Accounting Standards Committee (IASC). The main difference is that US standards are based on the principle of uniformity while IASs are based on the concept of equivalence. The American accounting framework demands uniform information from all companies participating in the same capital markets. In contrast, IASs allow the co-existence of two financial reporting methods that produce different but equally useful information.

International aspects

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If it isn't useful, get rid of it

Article Abstract:

Statement of Standard Accounting Practice 10 (SSAP 10) is an inadequate accounting standard, and fund statements prepared under it fail to provide readers with useful information. SSAP 10 was originally written in 1975 to develop a minimum standard of disclosure in funds statements in order to supply users with a better accounting of their resource flows. The standard has several shortcomings including: concentrating on balance sheet classifications instead of business activities; failing to establish clear goals for funds statements; and failing to promote reporting practice uniformity.

Laws, regulations and rules, Cash flow, Great Britain, Fund accounting

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Small companies need different standards

Article Abstract:

It is inappropriate and useless to apply Companies Act 1985 and historical cost accounting procedures to small businesses, especially when they are owner-operated. The information provided by standard financial reports may be useful for large corporations, since investors and creditors have an interest in the data. Usually no more than a bank is interested in a small business's statements. Therefore the use of cash flows and net realizable values are more practical and informative than conventional, corporate reports.

Small business

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