ntal bodies to determine what taxes a business must pay; and occasionally by customers to determine the price to be paid when contracts call for cost-based payments. (Encyclopedia Britannica, 2007)
The aim of this paper is to critically compare and contrast the accounting methods, structure and regulation in Canada with the UK including a critical and detail analysis of both current issues and academic literature surveyed relevant to the country. To begin we will talk briefly about the evolution of Accounting in both countries.
According to Baylin et al (1996), Accounting standard setting in Canada has undergone a number of significant structural adjustments since the late 19th century. Following Canada’s emergence from its colonial status and due to the establishment of new trading partners, there was a change in the demand for accounting and the accounting standard setting process in Canada (Baylin et al, 1996).
There have also been changes in the source of authority for standard setting, the range of interests were formally included in the standard setting process and changes in relative influence of technical versus political concerns. Canada continues to have one of the few private standard-setting processes in the world. (Baylin et al, 1996).
No central source of accounting standards existed in Canada before 18646. Accounting standards were governed by common law. For example, the Dominium Insolvent Act was introduced in 1864 and was the first legislation to recognise the need for the regulation of accounting and the quality of financial information. (Baylin et al, 1996).
Following this act, Canada witnessed the first real appearance of public accountants to act as “Official Assignees” for the handling of the affairs of estates, which were bankrupt. Foreign influences, government, and the internal needs of the early accounting firms drove the accounting profession, which was still at its infancy. (Baylin et al, 1996). As a result, the legal