HelpWithAssignment Blog

International Accounting : Europe

The blog article highlight’s the following points:
  • Understand how financial reporting is regulated and enforced in five European countries: France, Germany, the Czech Republic, the Netherlands, and the U.K.
  • Describe the key similarities and differences between the accounting systems of these five countries.
  • Identify the use of International Financial Reporting Standards at the levels of the individual company and the consolidated financial statements in these five countries.
  • Describe the audit-oversight mechanisms in these five countries.
International accounting, comparative accounting, europe accounting

Economic data for selected countries – www.HelpwithAssignment.com

IFRS in the European Union

  • Starting in 2005, all EU-listed companies must follow IFRS in their consolidated financial statements.
  • Generally, IFRS consolidated statements are permitted for non-listed companies.
  • Requirements for individual company financial statements vary – IFRS may be required, allowed, or prohibited.
International accounting, comparative accounting, europe accounting

IFRS Requirements – www.HelpwithAssignment.com

1. IFRS are based on fair presentation principles
2. IFRS may be overridden in rare circumstances to achieve fair presentation
3. Accounting measurements
  • Business combinations – purchase accounting
  • Goodwill – annual impairments test
  • Investments in associates – equity method
  • Translation of financial statements of foreign operations – functional currency concept
  • Assets valued at historical cost or fair value
  • Research costs – expensed; development costs – capitalized
  • LIFO not allowed
  • Finance leases – capitalized; operating leases – expensed
  • Provisions – recognized when probable and estimable
  • Deferred taxes – recognized in full, using the liability method, for temporary differences between the carrying amount and tax base

FRANCE

Overview
1. “The Plan” – national uniform chart of accounts (national accounting code)
  • Objectives and principles of financial reporting
  • Definitions of elements
  • Recognition and valuation rules
  • Standardized chart of accounts
  • Model financial statements

2. Other influences on French accounting rules

  • Commercial legislation (Code de Commerce)
  • Tax laws
Accounting regulation and enforcement
1. CNC – National Accounting Board
  • Keeps plan current
  • Makes rulings and recommendations on accounting issues
2. CRC – Accounting Regulation Committee
  • Converts CNC rulings and recommendations into binding regulations
3. ANC – National Accounting Authority
  • Will replace CNC and CRC as the national standard setter
4. AMF – Financial Markets Authority
5. OEC – Institute of Public Accountants
  • Represents the accounting profession
  • Members prepare financial statements, and provide tax, information systems, and management advisory services
  • Supervises securities markets
6. CNCC – National Institute of Statutory Auditors
  • Members audit and give an opinion on financial statements
  • Must report criminal acts to the High Council of External Auditors
  • Substantial overlap in OEC and CNCC membership
  • Statutory auditors not allowed to provide accounting services to the same client
  • AMF oversees audits of listed companies, but relies on a committee of the CNCC to conduct audit-quality reviews
Unusual features of French financial reporting
  • Must report results of environmental activities
  • Reports aimed at preventing bankruptcies
  • Social report

GERMANY

Overview
1. Creditor protection
  • Conservative balance sheet valuations
  • Reserves as protection against unforeseen risks and insolvency
  • Accounting is designed to compute a prudent income amount that leaves creditors unharmed after distributions are made to owner
 2. Influence of tax law
  • Determination principle: taxable income is determined by what is booked in a company’s financial records

3. Reliance on statutes and court decisions

Accounting regulation and enforcement
1. German Commercial Code (HGB)
  • Applies to all business entities
2. German Accounting Standards Board
  • Develops recommendations for consolidated financial statements
3. Financial Reporting Enforcement Panel
  • Enforces compliance with German financial reporting requirements and IFRS by listed companies
4. Chamber of Accountants
  • Oversees WPs (“enterprise examiners”)
Unusual features of German financial reporting
1. Auditor’s private report to board of directors and supervisory board on company’s future prospects.
HwA provides timely help at affordable charges with detailed answers to your assignments, homework , research paper writing, research critique, case studies or term papers so that you get to understand your assignments better apart from having the answers. The team has helped a number of students pursuing education through regular and online universities, institutes or online Programs.

 

Trust HwA to understand Accounting assignments and  Accounting Homework better!

We can provide assistance for the high school level as well as provide help for college level accounting degree courses.

Leave a comment