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UK and US Financial Reporting Ethics. - Essay Example
Author : rohanleta
Pages 6 (1506 words)
In the United Kingdom, for example, shareholdings are likely to be comparatively more concentrated and controlled by a few institutional investors, resulting in lesser pressure for public disclosure. …
There are several reasons that strongly support this argument. For sometime now, the U.S. Financial Accounting Standards Board (FASB) and its international counterpart (IASB), have made progress in reducing these disparities between U.S. GAAP and IFRS. (IFRS) accounting rules are set to be followed by all public companies falling under the European Union but about 100 other countries are either already applying or weighing them up. In light of the changing nature of the international market, it is important that comparable transactions between competing companies in different regions be reported in the same way or the differences be understood by these companies so as to be able to understand the financial performance of a competitor. “Ethical values provide the foundation on which a civilized society exists.” (Smith K, 2003). Managers are faced almost on a daily basis a multitude of decisions that have to take into account variables such as profitability, personal advantage and overall benefits to the community, in the overall context of the correctness of these decisions. ...