The role of SSAP Accounting is being discussed here.There was a need for the accounting profession to enforce the application of uniform accounting policies if there was not to be intervention by the government. The ASC was set up in 1970 to achieve this.
It produced Statements of Standard Accounting Practice (SSAP) such as SSAP 2 Disclosure of Accounting Policies aimed at achieving uniformity. SSAP 2 illustrates one of the key elements which was that there should be adequate disclosure to the users of the accounting policy that was being implements which was that there should be adequate disclosure to the users of the accounting policy that was being applied.
SSAP Accounting;10 Principles You Must Know
In its Statement of Intent published in 1977 the ASC stated that it saw the role of SSAP as the means of narrowing the areas of difference and variety in accounting practice by promulgating uniform accounting policies. This was to be achieved by formulating standards that had consensus support after consultation with interested parties, just as with the government, it also recognized the need for flexibility and there was provision for directors to depart from a standard, subject to explaining their reasons.
SSAP Accounting principles have been published and they can be classified by their subject matter into three categories:
1 Disclosure standards SSAPs , such as SSAP 2
2 Presentation standards, such as SSAP 3 Earnings per Share
3 Measurement standards, such as SSAP 13 Research and Development. SSAP 1(> Current Cost Accounting and SSAP
The first two categories do not affect the size of the reported income or total assets and are non-controvorsial. These have posed little difficulty in agreeing and enforcing.
The measurement standards however have an impact on the size of the earnings and capital employed. Consequently, there has been greater difficulty in obtaining agreement and compliance. For example. SSAP 11 was withdrawn; SSAP 13 was revised; SSAP lf was made non-mandatory and SSAP 22 has been revised once and will be again.
SSAP Accounting Policies You Must Know
- SSAP 1 Accounting for Associated Companies (revised) 1990
- SSAP 2 Disclosure of Accounting Policies 1972
- SSAP 3 Earnings per Share (revised] 1975
- SSAP 4 The Accounting Treatment of Government Grants (revised) 1990
- SSAP 5 Accounting for Value Added ‘lax 1974
- SSAP 8 The Treatment of Tax under the Imputation System 1975
- SSAP 9 Stocks and Work-in-Progress (revised] 1988
- SSAP 12 Accounting for Depreciation (revised) 1987
- SSAP 13 Accounting for Research and Development (revised] 1989
- SSAP 15 Accounting for Deferred Taxation (revised] 1985
- SSAP 17 Accounting for Post Balance Sheet Events 1980
- SSAP 18 Accounting for Contingencies 1980
- SSAP 19 Accounting for investment Properties 1981
- SSAP 20 Foreign Currency Translation 1983
- SSAP 21 Accounting for Louses nnl Hire Purchase Contracts 1984
- SSAP 22 Accounting for Goodwill (revised] 1989
- SSAP 23 Accounting for Acquisitions and Mergers 1985
- SSAP 24 Accounting for Pension Costs 1988
- SSAP 25 Segmental Reporting 1990