Comparison of Financial Reporting Systems

Comparison of Financial Reporting Systems Comparison of financial reporting systems:  UK, France, Germany and Poland Introduction Although recent moves have been made towards the harmonisation of accounting and financial reporting systems within the European Union (EU), there are some differences between the ways that member states treat this issue (Ann Tarca, 2002). This paper compares the systems used in four member states, being the UK, France, Germany and Poland. In addition, it will also provide an evaluation of the harmonisation movement. Financial reporting systems The financial reporting systems of EU member states have evolved from their political, culture histories, and have different levels of regulatory control and responsibility. UK The accounting and financial reporting system in the UK has been developed in the main by accountants (Nobes and Parker, 2006, p.485), although in latter decades the state and EU have had a significant influence upon its rules. Accountants have also been involved with the main legal regulations that apply to audits and reporting, such as the Companies Act 1989 and later amendments, including that of 2006. Historically, the UK reporting system has been geared towards meeting the needs of investors and therefore has a high level of transparency and disclosure. As such, the impact of the taxation system is of less importance than in other EU countries. This has led to some differences between taxable and accounting income (Blake and Amet, 2003, p.213). The thrust of the system is to achieve financial reports that show a true and fair value. Statements confirming this, and that â€Å"applicable accounting standards† have been used, or explanations for deviation from this, must be included within the report (Nobes and Parker, 2006, p.287). Following the introduction of increased legal and regulatory rules of corporate governance, and the formation of the Financial Reporting Council (2004), responsibility for accuracy falls on auditors, directors and shareholders. â€Å"From 2005 UK listed companies must use IFRS for their consolidated statements† (Nobes and Parker, 2006, p.103) France France has a much smaller accounting profession than the UK, with only 45 compared with 352 accountants per hundred thousand of the population (Saudagaran, 2003, p.10). Historically, its accounting system has been dominated by a macroeconomic central system and geared to providing information for government control purposes (Blake and Amet, 1993, p.114). Tax Law is the dominant influence and auditors are responsible to, and regulated by, the Ministry of Justice (Nobes and Parker, 2005, p.236). French accounting falls under the â€Å"National Accounting Plan† regulation, which is administered by the CNC (National Accounting Council). However, a peculiarity of the French accounting system is that the regulations apply to individual companies, but not to groups (Nobes and Parker, 2005, p.226). The regulation requirements call for a uniform chart of accounts with standard bookkeeping procedures, account title and classification numbering. For example, all individual companies must report salary and associated costs under account 641. Similarly, there are standard accounting statement formats as laid down by EU directives and a uniform procedural treatment for items such as fixed asset valuation and creation of legal reserves (Nobes and Parker, 2006, p.301). There are also strict regulations with regard to the methods of depreciation and expense calculation for use in reducing tax liabilities. At present, the detail between French and IFRS reporting details and procedures differs significantly. Germany Like France, the accounting professions influence in Germany is low. Accounting rules are mainly determined by Tax law and Federal fiscal Courts, although these incorporate EU directives. The keeping of books and records is a statutory requirement of the German Commercial Code (HGB 1985) and historical cost accounting is operated with strict revaluation restrictions (Choi and Meek, 2005, p.79). Unlike the UK, the German accounting reporting system is heavily geared towards the protection of creditors and therefore, accruals and provisions tend to be high (Nobes and Parker, 2006, p.301). The income results are also aimed at a conservative position. Asset valuation tends to be reported on a forced sale basis and the financial results must equate to the taxable position. In addition, there is a requirement for a value of one tenth of nominal capital to be held in legal reserves. Whilst the effect of the German accounting reporting system is to protect creditors, because of the impact on results, it has also led to a position that does not encourage outside investment into German Businesses. Whilst IFRS rules apply in Germany, it is only applicable to a limited number of organisations. The majority still use German regulations for financial reporting purposes (Nobes and Parker, 20-06, p.290). Poland Historically Poland, which is the largest ex-communist country to join the EU (Nobes and Parker, 2006, p.229), came from a state dominated economy, where enterprises were not autonomous, with all aspects of business controlled by the state. The accountancy profession was not very strong (Sucher and Kosmala-MacLullich, 2004, p.484) and there is a lacked of skilled professionals that is still being addressed. Since returning to a market economy, Poland has introduced accounting regulations, embodied within the Accounting Act 1994 and subsequent amendments, which are regulated by the Accounting Standards Committee, set up in 1997. Under these regulations, all businesses are required to adopt an accounting plan. Whilst these regulations incorporate parts of the EU directives, it is primarily geared to the protection of the state and tax policies. Like France, the Polish state is the main instigator and influence on accounting reforms (Sucher and Kosmala-MacLullich, 2004, p.438) and, because of this their system is not inherently geared as much towards attracting investors as more market based economies like the UK. Similarly, although IFRS is widely used, there are significant differences in the Polish system (Nobes and Parker, 2006, pp.236-8). Summary As can be seen from the above individual country analysis, whilst accounting reporting systems may all have similar aims, namely to provide financial information to end users, there are a range of factors that influence and create differences in accounting reporting systems between nations. From an internal viewpoint, the differences are driven primarily by cultural, political and economic factors. Added to these are the influence of the accountancy profession, which is greater in some countries than others, and the domination of state taxation requirements. Externally, individual reporting systems may respond to perceived dominant position of the United States and growing stature of the European Union in international trade. From an investment stance, the growth of share ownership that has resulted from the global expansion of financial markets has also had an effect (Nobes and Parker, 2006, p.6). Lastly, the changing face of commercial organisation because of the continuing globalisation of trade has affected their need for differing accounting reporting systems. As has been seen, multinational corporations require a significantly higher level of control in these areas than do nationally focused organisations. As Nobes and Parker (2006) earlier publications (1980 and 1998) have shown over the years, this has resulted in differing reporting classes of nations, between those who are driven by business or state and who have weak or strong equity markets. Harmonisation Historically the EU opposed international reporting standards, partially out of fear of the US dominance in this area. However when, by the early 1990’s it was shown that EU attempts at harmonisation was failing, it took on board international standards and became the most dominant force for change in this area (Nobel and Parker, 2005, p.105), certainly within its own community. Among the areas that the EU has dominated are the legalisation of enforcement, such as those used to support its 4th and 7th directives and the requirement for all corporations to adhere to international standards. By using EU regulations as a vehicle for this legislation, it is incumbent upon member states to incorporate these within domestic legislation. Although such legislation is not compulsory for multinational organisations for reporting, the EU â€Å"transforms them into EU standards,† (Flowers, 2002, p.273). The EU regulation has met with mixed reactions. Sir David Tweedie (2003, p.15) states that it provides the opportunity to â€Å"unite its [the EU’s][1] many national markets.† However, others state, â€Å"the reality is disparity and muddle† (Amat and Blake, 1993,p.5) The International standards are extensive and aimed to cover all aspects of financial reporting within corporations (Flowers, 2002, p.263). In general, they cover five main areas. These include treatment of assets and revenue; liabilities; accounting for groups; the context within which reporting takes place and disclosure statements (Nobes and Parker, 2000, p.6). In reality, the regulations have the effect of moving accounting away from the historical cost accounting format to a more current fair value system. Currently the international accounting and financial reporting system is subjected to thirty seven different standards (Nobes and Parker, 2006, p.6), although this is likely to change in the future as further harmonisation and clarification is sought. Conclusion Despite IFRS and its joining with US GAAP in 2002, individual nations financial reporting differences remain (Nobes and Parker, 2006, p.19). Attempts to harmonise the EU position across its member states are continuing but, until or unless the influences that attach to individual nations are addressed both internally and nationally, it will be difficult to achieve. As Gregoriou and Gaber’s (2006) publication reveals, internationally there are still numerous accounting systems in place. In the opinion of the author, the relevant national and international regulatory and legal bodies will need to be cognisant of national differences as they seek improvements and further harmonisation of the global accounting reporting systems that currently exist. However, it is apparent from the current direction of international standards that they will lead to the end of individual nations reporting standards and influences (Nobes and Parker, 2006,p.103) References Blake, John and Amat, Oriol (1993). European Accounting. FT Prentice Hall. Choi, Frederick D.S and Meek, Gary K (2005). International Accounting. 5th Ed. FT. Prentice Hall. UK. Feature (2003). IAS Who’s Who – setting the pace. Accountancy Age, UK 4th September 2003, p.15. Flower, John (2001). European Financial Reporting: Adapting to a Changing World. Palgrave Macmillan. UK. Gregoriou, Greg N and Gaber, Mohamed (eds.) (2006) International Accounting: Standards, Regulations, Financial Reporting. Butterworth-Heinemann. UK. Nobes, C. and Parker, R. (2006). Comparative International Accounting. 9th Edition. FT Prentice Hall. UK. Saudagaran, Shahrokh M (2003). International Accounting: A User’s Perspective. 2 Rev. Ed. South Western College Publishing. UK. Sucher, Pat and Kosmala-MacLullich, Katarzyna (2004). A Comparative Analysis of Auditor Independence in Economies in Transition. Institute of Chartered Accountants of Scotland, UK. Tarca, Ann. (2002). Achieving International Harmonisation through Accounting Policy Choice. University of Western Australia – Department of Accounting and Finance. Australia Footnotes [1] Brackets added by author

Life Is A Journey Compare and Contrast Essay

Life is a journey that begins when you are born. Through this journey, we see and hear many things that change the way we think about the people who influence us as well as the world around us. Jack Kerouac’s On the Road, is a great example of the theme â€Å"life is a journey†. This novel is about two characters, Sal Paradise, a young writer, and Dean Moriarty, a wild youth who lives life to the fullest. Together they go all around America; their journeys include traveling through the wilderness, small towns, jungles, and deserts. The Miraculous Journey of Rubin Carter by James S. Hirsch is a story about a boxing legend that is framed by a crooked cop for a murder he didn’t commit. Carter spent twenty-two years of his life in prison for something he didn’t do, but instead of feeling sorry for himself Carter tried to do everything in his power to prove his innocence. He wrote an autobiography in prison, which ultimately helped in bringing out the truth and he would receive his justice. see more:city and village life There are many different themes in On the Road, but life is a journey is the strongest theme in this novel. By reading the title alone this theme is dominant, because Sal and Dean are constantly traveling from one place to another. Sal is a confused person, who can’t decide whether to live a traditional life by settling down and starting a family or to travel around enjoying life like his friend Dean. Dean lives a life free of burden, and responsibility and he seems happy throughout the novel. He is the probably the most interesting character in On the Road because he is essentially what all the other characters in the novel want to be. Dean fascinates Sal, and they become really close friends. They begin a restless journey going back and forth across the country. They go to Denver, California, New Orleans, San Francisco, New York, and then Mexico City. Sal starts off the book as being depressed, gains happiness, confidence, and falls in love at the end. The theme of life is a journey is also a very prominent theme in The Miraculous Journey of Rubin Carter. Carter goes from being a contender for the middleweight boxing crown to jail, charged with murders. The trial was racially biased, because Rubin Carter and John Artis, an acquaintance of Carter’s, were the only black people in the court room, both innocent men were sentenced to life in prison. While in prison, Carter refused to behave like a guilty man by not wearing the prison uniform, or eating prison food,  and refusing to see a parole officer. He wrote an auto-biography entitled The Sixteenth Round: From Number 1 Contender to #45472, with this book he would meet a group of Canadians that would help him become a free man. Carter lost his family, boxing career, and 22 years of his life, but he refused to allow the bitterness overcome him. When Carter was finally released in 1988, he said: â€Å"If I have learned nothing else in life, I’ve learned that bitterness only  consumes the vessel that contains it. And for me to permit bitterness  to control or infect my life in any way whatsoever, would be to allow  those who imprisoned me to take even more than the twenty-two years they’ve already taken. Now, that would make me an accomplice to their crime†¦Ã¢â‚¬  Life is not a still or short-lived event. It is a process of travel, a journey with many ups and downs. The characters in both On the Road and The Miraculous Journey of Rubin Carter went through many different emotions. Both novels had unique journeys through life, with both ending in a positive way.

How Does Spielberg create fear and humour within ‘Jaws’?

The film â€Å"Jaws† was made in 1975 and was the film that brought the director Steven Spielberg his first major success. The film, with Spielberg as director, won three academy awards for editing, sound and original source. Spielberg, as a result of the film, became one of America's youngest multi millionaires. Spielberg was given $7,000,000 to spend as the films budget. This may not seem a large sum of money compared to the sort of money that is spent on films nowadays but, it was a very large sum of money to spend on a film in those days. The film received mostly positive reviews, there was the odd bad review, which was critical of Jaws not being able to make the audience feel sorry for the victims. The film is based on Peter Benchley's best selling novel, in which Jaws centres around the fictional North Atlantic resort island of Amity. A gigantic great white shark terrorizes the island. There are two killings at the beginning of the film, which brings in Matt Hooper, played by Richard Dreyfuss, an ichthyologist and oceanographer that is taken to Amity to help, using his expertise. Later on in the film, Amity's most respected and most feared shark hunter, the enigmatic, vaguely malicious Quint teams up with Matt Hooper and the chief of the Amity Police Department, Brody, to find and kill the enormous shark and save the town from financial disaster. Jaws has one of the best anti-heroes movies have ever seen, Quint played by Robert Shaw is humorous and is frightening all at once. His soliloquy in which he tells the others about the tragic sinking of the USS Indianapolis is a most chilling and unforgettable performance. As well as analysing the storyline and plot, many other aspects of the film should be analysed such as: digetic and non-digetic sound, camera angles and their effects and the use of props and setting. It would be impossible to analyse the entire film in such depth without producing an epic piece of writing, therefore for the purpose of this essay an indepth analysis of the second attack will be used to show how fear and humour are used. John William's had to make the music scary as the shark is not seen at the beginning therefore it needs the music to build suspense. It is instantly recognisable and almost as famous as the music from Physco. One of the reasons the music had to create the idea of the shark effectively was because, obviously Spielberg could not use a real shark. There was a mechanical model of a shark built (it was nicknamed â€Å"Bruce†). It created many problems. â€Å"Bruce† was made of polyurethane, was 24ft long and weighed 11/2 tons. On â€Å"Bruce's† first test, he sank, and on his second, he exploded. An inspection of the shark revealed that the shark was cross-eyed and its jaws would not shut. These problems compelled Spielberg to be more inventive and to hide the shark for as long as he could throughout the movie. The Stravinskian rhythms of John Williams's remarkable score created the idea of a menacing underwater killer. The fear that William's created meant that the horror of the Shark is left to the audience's imagination which is far scarier than anything the most creative special effects department could create. In the second attack, the camera is placed in front of Brody and characters walk in front of the camera, we get an interrupted view of the sea, like Brody does and this creates tension. There is an over the shoulder shot of a girl screaming, this prepares the audience for the attack. There is also digetic sound, such as splashing and the sound of laughter helps to build atmosphere of calm and fun. The close up of the people in the sea and screams build up the tension. The dog owner shouting his dog lets the audience know the shark is around. When we see the stick floating in the sea, that the owner of the dog has thrown, it is confirmed that the dog has been attacked, this builds the fear and tension for the audience as we know the little boy on the lilo is still out at sea. The non-digetic sound is the music and its effect is that we know the music represents the shark, we don't have to see it. The underwater shot also represents the shark with the views of children's legs which creates fear without seeing the shark itself. The climax of the music lets you know the attack will happen. The zoom in on Brody further heightens the fear. The victims are coded, Dog owner wears yellow, boy goes out to sea on yellow lilo and his mother wears a yellow hat. The police chief's nervousness and refusal to go near the water is first seen in comic terms by the islanders, but is gradually vindicated by a slow slippage of menacing imagery- a disappearing dog, an anxious mother and a sudden, gushing fountain of red that signals a fatal attack. This contrast between tension and humour creates a wave-like rollercoaster of emotion for the audience which has the effect of increasing the tension. Overall the film creates a rollercoaster effect, with the humour in the film given the audience a short respite in the tension. Which later further heightens the more tense movements and the attack. This is all done very cleverly because the use of non-digetic sound and shark view camera angles create tension and fear without actually seeing the shark and without seeing the attacks.

The Race Based Affirmative Action - 966 Words

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