The European Union

The framework serves as a guide for the standard-setting bodies to develop International Accounting Standards and how to effectively enforce the use of each standard (IAS, 2010). These IASs were first issued by the International Accounting Standards council (IASC) and later on approved and amended by the International Accounting Standards Board (IASB). These standards are crucial for sustaining high level of financial reporting and also assure that the financial statements are comparable to prior years for the same entity and various other entities around the world. The financial statements must be presented in accordance with the standards and among these standards is the essential IAS 1, that lays down the basis for presenting the financial statements.

Accounting standard set has become debatable topics in regards its function in real business. The standards of accounting have been developed throughout years and many countries has applied different accounting standard. However, as business world has become interconnected, there is an urged in need to have one stand-alone of accounting standards that could use worldwide. Therefore, many countries developed convergence of their accounting standard into International Financial reporting standard (IFRS) by International Accounting Standard Boards (IASB). According to Barth et al (2008) International Accounting Standards Committee (IASC) and the next follower the International Accounting Standards Board (IASB) have a goal to develop an International standard of High quality financial reporting standards. The standard is become important in regards to financial statement users that should enhance the transparency and integrity of each account in the statement. The transparency and integrity have crucial roles towards the effectiveness of capital markets functions, allocation of capital efficiency, and global financial stability and economic growth stability (IASB, 2013).

The European Union (E.U.) is a political and economic union that contains 28 member states that are located primarily in Europe. The European Union was formed with the aim of ending recurring and bloody wars between neighbors, which culminated into the Second World War. In 1950, the European Coal and steel community began to unite European countries economically and politically to secure lasting peace. It started out with six countries in what was called the European Economic Community (EEC). Then in the 1970’s, three countries, including Great Britain, joined the EEC. Great Britain joined the EU to strengthen their economy which wasn’t recovering as quickly as other countries in the EEC after World War II. In 1992 the EEC changed their

EU stands for the European Union which was invented after the Second World War. The EU is a special economic and political partnership between 28 European countries together which covers more than half of the continent. EU purpose was to unite the european countries economically and politically and to bring peace to Europe (Europa.eu, N/A). EU was formed on April of 1951 by six countries which were France, Italy, Belgium, West Germany, Luxembourg and Netherlands. United Kingdom joined the EU on January 1973. On this year the United Kingdom started to follow EU law. Therefore, UK has three main sources of law which are statutory law (Act of Parliament), Case law and EU law. All of them could affect any business in various ways depend on business type, size, policies and etc. New countries which want to join EU must sign a treaty to become a member and to commit to their rules. There are five main bodies in EU: the Act Of Parliament, European Commission, European Council, Court of European Justice and Court of Auditors. Each body has its own specific things to be done (Keenan D. and Riches S., 2005). This report will discuss how United Kingdom’s membership of the European Union affects the business community, especially in the free movements, free trade, competition law and employment law.

. The emergence of the European Union resulted from the wish to stop conflicts among the warring countries within the states which will not only bring about peace and safety but also economic growth and embossed living standards for all of its peoples. European Union is based on the rule of law, individual human rights protection and a common European Union Citizenship. The aspirations of the Union have increased far beyond the indigenous aims of a systematic market for goods and services and now includes customary foreign and safety policy. In the meantime, it is noted that guiding concepts of the EU are set forth in the TEU (Treaty in the European Union). The Union is established on the merits of respect for human eminence, freedom, elective government and fairness. These ethics are said to be usual in the member states. The EU Council is made up of political representatives of the member states, each being a minister who is consented to execute to the regime of their state. The committee meets in nine different layouts based on the conclusion as to the nature of these configurations taken by a qualified greater part of council members. For example, if the matters being talked over is on education, then United Kingdom representative will be the Minister of Education.

In 1973, the private sector International Accounting Standards Board (IASB) was formed. The IASB is a natural extension of a global market that has been evolving over the last three decades. The IASB formulates and publishes accounting standards to be observed when presenting financial statements and promote their global acceptance. As an overarching mission, the IASB works to improve and harmonize accounting standards, regulations, and procedures as it relates to financial statements. IASB standards provide a reference model and set of examples for financial reporting in developing countries. The IASB has no authority with the Financial Accounting Standards Board (FASB) or the Securities and

reason, the common citizens of Briton believe that exiting the EU is the only way they can solve their economic problems.

One of the main objectives of the European Union (EU) is the establishment of the internal market, which shall consist of “area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. The internal market is based upon a customs union achieved through the abolition of the imposition of customs duties and charges having an equivalent effect and the prohibition of discriminatory taxes on intra-EU imports. The internal market is enhanced by the provisions on free movement of workers, freedom of establishment, free movement of services, and free movement of capital. Whereas Articles 28 to 30 of the Treaty on the Functioning of the European Union (TFEU) provide for the establishment of an EU common external tariff and the elimination of customs duties, Articles 34 and 35 of the TFEU (with exceptions under Article 36) go further, and prohibit quantitative restrictions and measures having equivalent effect. Taken together, Articles 28 to 32 and 34 to 36 serve to ensure the free movement of goods within the EU and to facilitate the operation of the internal market.

Human dignity, democracy, freedom, equality, rule of law and respect for human rights, these are the core values that comprise the organization: the European Union. From economics to politics, the organization has grown to include most of the European countries. Their policies emphasize the rule of law; meaning every action executed within the organization is founded on treaties, along with the agreement of the participating countries. Its focus continues to promote human rights, as well as making their institution more transparent and democratic. The European Union is constantly growing and refining itself into a world-renowned organization.

Brexit is the abbreviation nickname given to the 2016 referendum in which the United Kingdom voted to leave their membership in the European Union. In order for the vote to be official they must use a little known provision in their membership clause with the European Union called the Article 50 or the Lisbon Treaty. The European Union was a political and economic cooperation where participating countries used their collective financial and social practices to strengthen social and economic stability. “The European Union began in 1951 as the European Coal and Steel Community, an effort by six nations to heal the fissures of World War II through duty-free trade. In 1957, the Treaty of Rome created the European Economic Community, or Common Market” (Erlanger 2015). On February 20th 2016 David Cameron Britain’s Prime Minister proposed the Referendum for England that would allow a vote to remain or leave the European Union. While David Cameron is in favor of staying in the European his actions prompted many including London’s Mayor Boris Johnson and Justice Secretary Boris Johnson to pledge their support for the Leave campaign. Many Britons who voted to leave were worried about increasing strain of European Markets including those found in Greece who were under incredible financial strain from internal economic policies that threatened the entire region. However “This didn 't affect the UK directly, as it uses the pound rather than the Euro. But some Britons

Brexiters are desperate and angry with everything and everyone that suggests that the British people should vote to remain in the European Union in the 23 June 2016 referendum. The recent victim of their desperation and ire has been no less a personage than the US President Barrack Obama himself.

Since 2005, the International Accounting Standards Board (IASB) have encouraged countries to adopt a set of accounting standards that is internationally recognised in order to improve transparency between users and providers of financial reports. The understandability and interpretation are also important factors behind the driving forces of implementing such a standard.

Without the trailblazing of the IASC, there would be no IASB today(Stephen 2012) . IASC was launched in 1973 and played a role of first international standard setter. After several years ' operation. Its accounting standards were followed by majority of organizations around world. And in 2001 International Accounting Standards

International Accounting standard Board (IASB) is ‘responsible for the development of high quality global accounting standards for use in the world’s capital markets and by other users.’ It is the standard-setting body of the International Accounting Standards Committee (IASC) Foundation. It was formed in 2001 to replace IASC. The objectives of IASC foundation are to develop a single set of global financial reporting standard and to encourage the use of those standard.

IASB aims to develop in the public interest by setting a high quality accounting standards which are understandable and enforceable worldwide. The accounting standard is transparent and comparable information in the financial statements. IASB also operate to work actively with the national standard setters to bring union of national accounting standards and International Financial Reporting Standards (IFRS). These aims are set based on the consideration on providing important, reliable information which is easily accessible by the users of the IAS and to look for future development in the quality of the standards to restrain resources. In the consideration process, the staffs of the IASB are asked to identify, review and raise issues that might warrant the IASB’s attention. (IFRS, 2014, Online)