‘At their simplest, accounts comprise a summary of cash receipts and payments. Concepts such as accruals and substance over form lead to increased complexity and may make it dif- ficult for a user to interpret the results and financial position of a company. The key focus of future accounting standards and legislation should be simplification, not increased disclo- sure and more complex rules.'

Using examples, illustrate the complexities which may make it difficult for the various users to understand published accounts. Comment on any recent action taken by the Accounting Standards Board or the Government which has affected the complexity of accounts and discuss, reaching a conclusion, whether simplification of company accounts should be a key objective for the Accounting Standards Board and the Department of Trade and Industry.