- Generally Accepted Accounting Principles (UK)
The Generally Accepted Accounting Practice in the UK, or UK GAAP, are the overall body of regulation establishing how company accounts must be prepared in the
United Kingdom. This includes not only accounting standards, but also UK company law.
What is referred to elsewhere as Generally Accepted Accounting Principles is in the UK referred to as Generally Accepted Accounting Practice.
Accounting standards derive from a number of sources. The chief standard-setter is the
Accounting Standards Board(ASB), which issues standards called "Financial Reporting Standards" (FRSs). The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies [http://www.frc.org.uk/about/funding.cfm] , 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 To the extent that the ASC's pronouncements, known as "Statements of Standard Accounting Practice" (SSAPs), have not been replaced by FRSs, they remain in force.
Creation/Revision of Standards
The ASB has a formal exposure process for proposed standards. Early concepts are issued as "Discussion Papers". These are released to the public and comments invited. Where a new standard is to be proposed, a "Financial Reporting Exposure Draft" (FRED) is released for comment. The standard in final form is only issued when comments have been incorporated or addressed. This aims to address the criticisms levelled at the ASC, whose comment process was 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.
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 Companieswho makes them available to the general public.
From 2005, this framework changed as a result of
European lawrequiring that all listed European 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 [http://www.dti.gov.uk/bbf/financial-reporting/standards/page21457.html] . Recently issued UK FRSs have, in any case replicated the wording of corresponding IFRSs, reducing the differences between the two sets of standards significantly.
* [http://www.icaew.com/index.cfm/route/143227 UK GAAP Resources from the Institute of Chartered Accountants in England and Wales (ICAEW)]
Generally Accepted Accounting Principles
Wikimedia Foundation. 2010.
Look at other dictionaries:
Generally Accepted Accounting Principles — (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial… … Wikipedia
generally accepted accounting principles — See UK GAAP and US GAAP. Related links + Generally Accepted Accounting Principles (GAAP) USA Rules and procedures generally accepted wit … Law dictionary
Generally Accepted Accounting Principles — (GAAP) USA Rules and procedures generally accepted within the accounting profession. The Financial Accounting Standards Board (FASB) is the body primarily responsible for developing rules governing US generally accepted accounting principles and… … Law dictionary
Generally Accepted Accounting Principles — ( GAAP) Accounting treatments that fully conform to established rules from the American Institute of Certified Public Accountants ( AICPA). For all nongovernment entities in the United States, GAAP is primarily determined by the Financial… … Financial and business terms
generally accepted accounting principles — ( GAAP) Accounting treatments that fully conform to established rules from the American Institute of Certified Public Accountants ( AICPA). For all nongovernment entities in the United States, GAAP is primarily determined by the Financial… … Financial and business terms
Generally Accepted Accounting Principles — (GAAP). The conventions, rules and procedures necessary to define accepted accounting practices at a particular time; includes both broad and specific guidelines. The source of such principles is the Financial Accounting Standards Board … Black's law dictionary
generally accepted accounting principles — noun a collection of rules and procedures and conventions that define accepted accounting practice; includes broad guidelines as well as detailed procedures • Syn: ↑GAAP • Hypernyms: ↑collection, ↑aggregation, ↑accumulation, ↑assemblage • Member… … Useful english dictionary
Generally accepted accounting principles — (GAAP) Defined by the FASB as the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time, includes both broad guidelines and relatively detailed practices and procedures. U.S. Dept. of Energy … Energy terms
generally accepted accounting principles — GAAP In the USA, the rules, accounting standards, and accounting concepts followed by accountants in measuring, recording, and reporting transactions. There is also a requirement to state whether financial statements conform with GAAP. In the UK… … Accounting dictionary