4.2 Regulatory Framework

    Cards (14)

    • The regulatory framework in accounting ensures financial reporting is transparent, accurate, and consistent
    • Which regulatory body develops International Financial Reporting Standards (IFRS)?
      IASB
    • The regulatory framework helps maintain the credibility and integrity of financial markets.
    • The International Accounting Standards Board (IASB) develops International Financial Reporting Standards (IFRS) to promote consistent financial reporting globally
    • Match the regulatory body with its role:
      International Accounting Standards Board (IASB) ↔️ Develops International Financial Reporting Standards (IFRS)
      Financial Reporting Council (FRC) ↔️ Oversees accounting and auditing in the UK
      Companies House ↔️ Registers and stores company information
    • Accounting standards provide rules for recognizing, measuring, and presenting financial information
    • The International Accounting Standards Board (IASB) develops IFRS to ensure global consistency in financial reporting.
    • International Accounting Standards (IAS) enhance the comparability of financial statements across different companies and countries
    • What is one key benefit of Financial Reporting Standards (FRS)?
      Comparability
    • The Financial Reporting Council (FRC) oversees accounting and auditing practices in the UK.
    • Which regulatory body ensures accounting and auditing meet standards in the UK?
      FRC
    • IAS improves the transparency of financial information, ensuring it is clear and accessible to all stakeholders
    • What is one primary goal of Financial Reporting Standards (FRS)?
      Comparability
    • Regulatory compliance in financial accounting increases transparency but may raise costs.
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