It is a requirement of the Companies Acts that the accounts of limited companies must show a true and fair view of the state of affairs at the end of a period and the profit or loss for the period.

Requirement

(i) Explain the role that the Companies Acts have in the preparation and presentation of published accounts;

(ii) explain the relationship between accounting standards, the Companies Acts and European Union Directives; and

(iii) provide two examples of how accounting standards extend the requirements of the Companies Acts and one example of an accounting standard that differs from the Companies Acts.

ICAEW, Financial Reporting, September 2002 (15 marks)