INTERNATIONAL ACCOUNTING

International Accounting

International Accounting

The Autorité des Marchés Financiers is an independent public body which is endowed with legal personality and financial autonomy. It was established by Act No. 2003-706 of financial security on 1 August 2003 to enhance the effectiveness and visibility of the regulation of French financial market.

The Autorité des Marchés Financiers has played a great role in the development of financial reporting. It has developed and regulated the operations of financial reporting disseminated by listed companies. These companies are obliged to inform the public of their activities, their results and their financial transactions. The Autorité des Marchés Financiers supervises and controls the finance reports delivered, ensuring that it is accurate, truthful, precise, and then broadcast it to the entire financial community (Ball, 2006).

(b)The income identifies all flows that affect positively or negatively on the company's assets during a given period: products that generate wealth, and liabilities that destroy.

The balance shows the profit when the value of the assets of the company has increased or loss when the value of the assets of the company declined.

The income statement describes the success of the operation of the business. The main objective is to make profit and the financial statement shows to what extent this was successful.

The Income statement that PSA Peugeot Citroën follows is different from the formal income statement that is usually followed by the companies. The way of showing Gross profit Margin in the company's income statement is different. It has shown all the items of sales, cost and profit accounts in the straight line without specifying each account separately (Hull, 2005).

Another significant difference in the structure of the company's income statement is it has shown its entire business units financial data in the same income statement. Usually, companies records it's each business unit's profit and loss statement individually so that each can be analyzed in the detailed form.

The company has adopted different International Accounting Standards such as IAS 1, IAS 23 and IAS 39. The IAS 1 adopted by the company is revised version which requires the comprehensive presentation of income either in one statement or two statements.

(c)The legal reserve concept can be used to appoint the assets that a financial institution must deposit with the central bank as guarantee of their liabilities. The amount of their reserve varies according to the law, but usually it is a percentage applied to a particular concept. Due to the legal reserve, the customers of banks have increased protection. If a bank cannot meet its obligations because of their liability, the legal reserve is a passport for bank users can access their money. The legal reserve is also one that must be a corporation in accordance with current regulations. In some countries, companies records it's each business unit's profit and loss statement individually so that each legal reserve should correspond to 10% of income for the last year of the company until it reaches atleast 20% of its share ...