According to Investopedia, accounting standards committee (ASC) is a
former organization in the United Kingdom that developed standards for
financial reporting and accounting, recording these standards and communicating
them through press releases and publications. It existed between 1976 and 1990
when its duties were assumed by the Accounting Standards Board (ASB). The
committee was preceded by the Accounting Standards Steering Committee (ASSC).
Icaew.com states that “SSAPs were the previous generation of accounting standards approved and
issued by the ICAEW (Institute of Chartered Accountants in England and Wales) and
other accountancy bodies following recommendations from the ASC. One of the
first decisions of the newly formed ASB was to adopt a number of the SSAPs
issued by the ASC so that they were brought within the legal definition of
accounting standards according to the Companies Act 1985. Consequently some
SSAP’s are still in force today.” This means that SSAP’s are the basis of
the current accounting policies but some of them needed to be changed or
updated and that is the reason why FRS’s were created. Most of FRS’s are
modifications of SSAP’s.
FRS’s (Financial Reporting Standards) are issued by the FRC (Financial
Reporting Council) and SSAP’s (Statements of standard accounting practice) were
issued by the Accounting Standards Committee.
SSAP 9
SSAP 9 refers to the treatment of stock and long-term contracts. The cost of unsold profit is considered to be
recoverable until the stock is sold. On the other hand, completing and
recording the long-term contracts that results in the income statements, does
not reflect a fair view of the activity of a company during the period but only
the results of contracts that have been completed during that time.
SSAP 5
SSAP 5 relates to the correct treatment of Value Added Tax (VAT) in
financial statements such as balance sheet and trading and profit and loss
account.
In the UK and Ireland, VAT is paid by the consumer but it has to be
collected at each state of the production and distribution chain of any product
or service. Therefore, VAT should be reflected in the accounts of a trader.
However, VAT should not be included in income or in expenditure. If the VAT is
not recoverable, it should be included in the cost of the items in the
financial statements.
The standard VAT for goods and services in the UK is 20%. Most food and
children’s clothes have a 0% VAT rate and home energy and some products such as
children’s car seats have a 5% VAT rate.
In conclusion the accounting standards committee ensures that some SEO companies are protected very well from
lawsuits, a various amount of firms set out to seek to ruin a business that
continues to grow due to the fact that the company generates more revenue than
theirs, with these standards set in place the company can focus on its promotional
methods and growth so that they can continue to make more profit.
