CCA - The ASC Plays It Along
Article Abstract:
The development of an alternative standard for current cost accounting in the United Kingdom from SSAP 16 has been an extensive and long drawn out discussion. The new Statement of Intent from the Accounting Standards Committe (ASC) confines current cost accounting to a few, very large organizations. Current cost data is stated as essential to a true and fair view. The method of disclosure is simplified to a note historical cost data, in most cases. Some situations, cost of sales, depreciation, monetary working capital, the current cost of fixed assets and stock, require current cost adjustments. The Statement of Intent passed with little majority which puts all on shaky footing. Universality appears to be the main issue. Cost-benefit appears to be the primary motivation for the standard since it limits requirements by size. This is not an appropriate basis for a standard. The complexity of the issue needs to be recognized and further research done.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1984
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True and Fair: The Opinion of Scottish Counsel
Article Abstract:
The English Counsel, in reviewing the 'true and fair' requirement in Companies Acts of the United Kingdom since 1947, determined the concept is dynamic and not static. In other words, as accounting practices develop, Generally Accepted Accounting Principles (GAAP) need to be adjusted to reflect present expectations. This is due to the fact that the law states that the accounts must have been prepared with 'reasonable care'. The Scottish Counsel supports the view of the English Counsel and deems it a correct interpretation in Scotland.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1984
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