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Unformatted text preview: ecific accounting laws
and chapters in laws for different corporate forms (the most important being Companies
Acts). A specific feature of Scandinavian accounting legislation is the reference to “good 32 accounting practice”. By using this concept the legislator leaves preparers with a
comparatively important role in the development of accounting.
It is necessary to distinguish clearly between two periods, before and after the adoption of the
European accounting directives. The old accounting system was mainly based on
conservatism, which results from the concern for the protection of creditors, and the
interaction of taxation rules with accounting rules. A full-scale revamping of the financial
reporting system followed membership of the European Union, with new statutes, a new
accounting plan and extensive reform of audit. However, as far as the accounting system is
concerned, prudence is still the overriding principle.
The creation in 1973 of the accounting plan and in 1979 of a professional body, Asociacion
Espanola de Contabilitad y Administracion de...
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land