French Accounting

1. Introduction

The system for blocking in and regulation annual accounts in France is more different than in UK.

During the reign of Louis XIV, French accounting was first introduced as a compulsory feature of business in 1673 by a law (known as the Savary Order) that required traders to maintain daybooks of their business transactions and prepare an annual list of assets.

The Ordonnance de Colbert was the first regulation that imposes a form of accountability. It required traders to register their books of account which a designated civil authority.

Napoleonic Commercial Codes incorporated these concepts as part of codifying the law.

The Plan basis for accounting is a part of reorganisation French economy in 1946.

2. National Accounting Plan

It is the most distinctive part of French accounting. It includes definitions of accounting terms, valuation and measurement.

A uniform system requires that government controls the economy well.

The archetypal uniformity method is that typified by France.

PCG (Plan Comptable General) is applied by all business enterprises. It is administered by the CNC (National Accounting Council).

The membership of the CNC, along with that proposed for the CRC (Accounting Regulation Committee) and its urgent issues committee.

3. The Underlying Accounting System

Postulates and Accounting Practices

Introduction French business economy. French firms are required to obtain a registration number.

The accounting and auditing professions are separately organised in France.

Law based on Code Napoleon which sets out rigid and detailed requirements. The accounts should give a true and fair view.

Two major features have dominated French accounting since WW2.

4. Uniformity and Flexible

Uniformity can be applied