国际会计学第六(4)

Other influences on French accounting rules
Commercial legislation (Code de Commerce)
Tax laws
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France (contin)
Accounting regulation and enforcement CNC – National Accounting Board
Keeps plan current Makes rulings and recommendations on
accounting issues
CRC – Accounting Regulation Committee
Converts CNC rulings and recommendations into binding regulations
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AMF – Financial Markets Authority Supervises securities markets
OEC – Institute of Public Accountants Represents the accounting profession Members prepare financial statements, and provide tax, information systems, and management advisory services
Accounting regulation and enforcement German Commercial Code (HGB)
Applies to all business entities
German Accounting Standards Board
Develops recommendations for consolidated financial statements
Reports aimed at preventing bankruptcies Social report
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Germany
Overview
Creditor protection
Conservative balance sheet valuations
Reserves as protection against unforeseen risks and insolvency
International Accounting, 6/e
Frederick D.S. Choi Gary K. Meek
Chapter 3: Comparative Accounting: Europe
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Learning Objectives
Understand how financial reporting is regulated and enforced in five European countries: France, Germany, the Czech Republic, the Netherlands, and the U.K.
Describe the audit-oversight mechanisms in these five countries.
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IFRS in the European Union
Starting in 2005, all EU-listed companies must follow IFRS in their consolidated financial statements.
Chamber of Auditors
Oversees auditors
Unusual features of Czech financial reporting
Form over substance still applies in some cases
Still implementing accounting practices consistent with EU directives and IFRS
Describe the key similarities and differences between the accounting systems of these five countries.
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Identify the use of International Financial Reporting Standards at the levels of the individual company and the consolidated financial statements in these five countries.
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CNCC – National Institute of Statutory Auditors
Members audit and give an opinion on financial statements
பைடு நூலகம்
Must report criminal acts to the High Council of External Auditors
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Accounting regulation and enforcement
Ministry of Finance
Oversees Commercial Code (modeled on German commercial law)
Oversees Accountancy Act (based on EU directives)
Determination principle: taxable income is determined by what is booked in a company’s financial records
Reliance on statutes and court decisions
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Germany (contin)
Accounting is designed to compute a prudent income amount that leaves creditors unharmed after distributions are made to owners
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Influence of tax law
Business combinations – purchase accounting
Goodwill – annual impairments test
Investments in associates – equity method
Translation of financial statements of foreign
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The Netherlands
Overview
Accounting paradoxes
Permissive requirements, but high professional practice standards
Code law country whose accounting is oriented toward fair presentation
Substantial overlap in OEC and CNCC membership
Statutory auditors not allowed to provide accounting services to the same client
AMF oversees audits of listed companies, but
prospects
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Czech Republic
Overview
Accounting changed directions several times in 20th century, reflecting the country’s political history
Until end of World War II – German influences After World War II – Soviet influences After 1989 – EU influences (market orientation)
Generally, IFRS consolidated statements are permitted for non-listed companies.
Requirements for individual company financial statements vary – IFRS may be required, allowed, or prohibited.
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Financial Reporting Enforcement Panel
Enforces compliance with German financial reporting requirements and IFRS by listed companies
Chamber of Accountants
Oversees WPs (“enterprise examiners”)
Unusual features of German
financial reporting
Auditor’s private report to board of directors
and supervisory board on company’s future
operations – functional currency concept
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Assets valued at historical cost or fair value
Research costs – expensed; development costs – capitalized
LIFO （Last in, First out ）not allowed
relies on a committee of the CNCC to conduct
audit-quality reviews .
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France (contin)
Unusual features of French financial reporting
Must report results of environmental activities
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France
Overview
“The Plan” – national uniform chart of accounts (national accounting code)
Objectives and principles of financial reporting Definitions of elements Recognition and valuation rules Standardized chart of accounts Model financial statements
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IFRS (contin)
IFRS are based on fair presentation principles
IFRS may be overridden in rare circumstances to achieve fair presentation
Accounting measurements
Finance leases – capitalized; operating leases – expensed
Provisions – recognized when probable and estimable
Deferred taxes – recognized in full, using the liability method, for temporary differences between the carrying amount and tax base