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applicable accounting standards 
or, 
alternatively, giving details of material departures from those standards, with reasons. The Review Panel 
and the Secretary of State for Trade and Industry have the power to apply to the court for revision of the 
accounts where non-compliance is not justified.
These provisions mean that accounting standards now have the force of law, whereas previously they 
had no legal standing in statute. 
3.5 The European Union 
Since the United Kingdom became a member of the European Union (EU) it has been obliged to comply 
with legal requirements decided on by the EU. It does this by enacting UK laws to implement EU 
directives. For example, all companies listed on an EU Stock Exchange are required to use International 
Financial Reporting Standards (IFRSs) when preparing their consolidated financial statements.
3.6 International Accounting Standards Board 
One important influence on financial accounting is the 
International Accounting Standards Board 
(IASB). The forerunner of the IASB was set up in 1973 to work for the improvement and harmonisation 
of financial reporting. Its members are the professional accounting bodies.
 EXAM FOCUS POINT 
Although your syllabus does not require you to be an expert on EU procedure, you should be aware 
that the form and content of company accounts can be influenced by international developments.
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PART C: ACCOUNTING AND REPORTING SYSTEMS, CONTROLS AND COMPLIANCE 
 
210
 
The objectives of the IASB are: 
(a) To 
develop
, in the public interest, a single set of high quality, understandable and enforceable 
global accounting standards
that require high quality, transparent and comparable information in 
financial statements and other financial reporting to help participants in the world's capital 
markets and other users make economic decisions 
(b) 
To promote the use and