4.2 Regulatory Framework

• The regulatory framework in accounting ensures financial reporting is transparent, accurate, and consistent
• Which regulatory body develops International Financial Reporting Standards (IFRS)?

  IASB
• The regulatory framework helps maintain the credibility and integrity of financial markets.
• The International Accounting Standards Board (IASB) develops International Financial Reporting Standards (IFRS) to promote consistent financial reporting globally
• Match the regulatory body with its role:

  International Accounting Standards Board (IASB) ↔️ Develops International Financial Reporting Standards (IFRS)

  Financial Reporting Council (FRC) ↔️ Oversees accounting and auditing in the UK

  Companies House ↔️ Registers and stores company information
• Accounting standards provide rules for recognizing, measuring, and presenting financial information
• The International Accounting Standards Board (IASB) develops IFRS to ensure global consistency in financial reporting.
• International Accounting Standards (IAS) enhance the comparability of financial statements across different companies and countries
• What is one key benefit of Financial Reporting Standards (FRS)?

  Comparability
• The Financial Reporting Council (FRC) oversees accounting and auditing practices in the UK.
• Which regulatory body ensures accounting and auditing meet standards in the UK?

  FRC
• IAS improves the transparency of financial information, ensuring it is clear and accessible to all stakeholders
• What is one primary goal of Financial Reporting Standards (FRS)?

  Comparability
• Regulatory compliance in financial accounting increases transparency but may raise costs.