A01_ELLI3325_13_SE_FM.

QXD 13/7/09 11:24 Page ix

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Full Contents • ix

5.5 Structure of regulatory framework 107

5.6 The Operating and Financial Review (OFR) 110
5.7 The Financial Reporting Review Panel 116
5.8 The Financial Services Authority 119
5.9 The Revised Combined Code ( June 2008) 119
5.10 Interim reports following Cadbury 122
5.11 Developments for small companies 125
5.12 Evaluation of effectiveness of mandatory regulations 132
Summary 134
Review questions 134
Exercises 135
References 135

6 Financial reporting – evolution of international standards 137

6.1 Introduction 137
6.2 National differences 137
6.3 Reasons for differences in financial reporting 138
6.4 Classification of national accounting systems 142
6.5 Attempts to reduce national differences 143
6.6 The work of international bodies in harmonising and standardising
financial reporting 144
6.7 US GAAP 151
Summary 155
Review questions 155
Exercises 155
References 156

7 Conceptual framework 158

7.1 Introduction 158
7.2 Historical overview of the evolution of financial accounting theory 159
7.3 IASC Framework for the Presentation and Preparation of Financial
Statements 162
7.4 ASB Statement of Principles 1999 164
7.5 FASB Statements of Financial Accounting Concepts 174
7.6 Conceptual Framework developments 177
Summary 178
Review questions 180
Exercises 181
References 182

8 Published accounts of companies 184

8.1 Introduction 184
8.2 Introduction to published accounts 184
8.3 A public company’s financial calendar 186
8.4 Criteria for information appearing in a statement of comprehensive
income and statement of financial position 186
8.5 The prescribed formats – the statement of comprehensive income 187
8.6 What information is required to be disclosed in Format 1 and
Format 2? 188
8.7 Cost of sales 189