Generally Accepted Accounting Principles (UK)
Encyclopedia
{y of regulation establishing how company accounts must be prepared in the United Kingdom
. This includes not only accounting standards, but also UK company law.
Generally accepted accounting practice is a statutory
term in the UK Taxes Acts. The abbreviation "UK GAAP" is also accepted as an abbreviation for the term used in other jurisdictions, Generally Accepted Accounting Principles, or Generally Accepted Accounting Policies.
(ASB), which issues standards called Financial Reporting Standards (FRS). The ASB is part of the Financial Reporting Council
, an independent regulator funded by a levy on listed companies, and it replaced the Accounting Standards Committee (ASC), which was disbanded in 1990 following a number of criticisms of its work. To the extent that the ASC's pronouncements, known as Statements of Standard Accounting Practice (SSAPs), have not been replaced by FRS, they remain in force.
less rigorous.
Issues that require an immediate solution are considered by the Urgent Issues Task Force (UITF). The UITF comprises a number of senior figures from industry and accounting firms. It meets as necessary to consider pressing issues and issues Abstracts which become binding immediately.
Legislation
The principal legislation governing reporting in the UK is laid down in the Companies Act 2006
, which incorporates the requirements of European law. The Companies Act sets out certain minimum reporting requirements for companies and, for example, requires limited companies to file their accounts with the Registrar of Companies
who makes them available to the general public.
From 2005, this framework changed as a result of European law requiring that all listed Europe
an companies report under International Financial Reporting Standards
(IFRSs). In the UK, companies which are not listed have the option to report either under IFRSs or under UK GAAP. Recently issued UK FRSs have, in any case replicated the wording of corresponding IFRSs, reducing the differences between the two sets of standards significantly.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. This includes not only accounting standards, but also UK company law.
Generally accepted accounting practice is a statutory
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
term in the UK Taxes Acts. The abbreviation "UK GAAP" is also accepted as an abbreviation for the term used in other jurisdictions, Generally Accepted Accounting Principles, or Generally Accepted Accounting Policies.
History
Accounting standards derive from a number of sources. The chief standard-setter is the Accounting Standards BoardAccounting Standards Board
The role of the Accounting Standards Board is to issue accounting standards in the United Kingdom. It is recognised for that purpose under the Companies Act 1985...
(ASB), which issues standards called Financial Reporting Standards (FRS). The ASB is part of the Financial Reporting Council
Financial Reporting Council
The Financial Reporting Council is the UK's independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.-Structure:...
, an independent regulator funded by a levy on listed companies, and it replaced the Accounting Standards Committee (ASC), which was disbanded in 1990 following a number of criticisms of its work. To the extent that the ASC's pronouncements, known as Statements of Standard Accounting Practice (SSAPs), have not been replaced by FRS, they remain in force.
less rigorous.
Issues that require an immediate solution are considered by the Urgent Issues Task Force (UITF). The UITF comprises a number of senior figures from industry and accounting firms. It meets as necessary to consider pressing issues and issues Abstracts which become binding immediately.
Legislation
The principal legislation governing reporting in the UK is laid down in the Companies Act 2006
Companies Act 2006
The Companies Act 2006 is an Act of the Parliament of the United Kingdom which forms the primary source of UK company law. It had the distinction of being the longest in British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing 16 schedules but it has since...
, which incorporates the requirements of European law. The Companies Act sets out certain minimum reporting requirements for companies and, for example, requires limited companies to file their accounts with the Registrar of Companies
Registrar of Companies
The Registrar of Companies for England, Wales & Scotland is the official responsible for Companies House, which deals with all filings relating to the Companies Act 1985 to 2006, ensuring the document filings are kept up-to-date and deals with any breaches of the Companies Act.The Registrar Of...
who makes them available to the general public.
From 2005, this framework changed as a result of European law requiring that all listed Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an companies report under International Financial Reporting Standards
International Financial Reporting Standards
International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....
(IFRSs). In the UK, companies which are not listed have the option to report either under IFRSs or under UK GAAP. Recently issued UK FRSs have, in any case replicated the wording of corresponding IFRSs, reducing the differences between the two sets of standards significantly.