Describe the General Development of Financial Accounting Regulation in the United Kingdom from 1970 to the Present Day
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The role of financial accounting in today's business environment is undeniably important. The information provided by accountants can have major influences over a number of different people and parties, from a firm's management team, to an external investor. Here in the UK, we have a large and complex stock market system as well as broad based community of investors. As such, it is vital that the profession be properly regulated and monitored.
The fundamental principle upon which all UK regulation is based, is that accountants should be constantly striving to 'provide a true and fair view' to any interested parties. Traditionally, accounting regulations have been formulated loosely around the main principles of accounting, such as the prudence convention, the going concern convention, etc. This approach to accounting regulation did however leave the actual methods of application of these conventions up to the preparers of the financial information.
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