The 2010 Annual Report of PSA Peugeot Citroen Essay

The 2010 Annual Report of PSA Peugeot Citroen - Essay Example AMF is the French regulator or the counterpart of Securities and Exchange Commission (SEC) in the US. Its role therefore in the development of financial reporting in France would be the same as SEC. It is tasked along with SEC to develop principles on cooperation in the supervision of markets and market participants whose operations cross international borders (Casey, 2010). In the US, SEC adopts the issuance of FASB’s on accounting standards on financial reporting and so with the same reason that AMF will give the legal force by accounting standards set by the standard-setting board in France. The AMF was established with the task of ensuring or protecting public savings invested in financial instruments as well all other investment that would result or metalize in a public offering. It also has supervision of the prepared financial information as conveyed to investors. It has, therefore, is the purpose of effectively promoting the proper running of financial markets. Its contribution to France regulation of these markets extends in European and international level (International Monetary Fund, 2005). The European Union’s Fourth Directive allows four income statements format. Explain the structure of PSA Peugeot Citroen’s income statement on page 204 in terms of the options allowed under the Fourth Directive and IAS 1. In addition to AMF, the European Union’s Fourth Directive can affect how PSA should present is financial report to users. The said directive, in particular, allows four income statements format. Explaining the structure of PSA Peugeot Citroen’s income statement on page 204 in terms of the options allowed under the Fourth Directive and IAS 1 could give an insight how to interpret PSA’ financial statements for 2010. The structure of the company’s income statement on page 204 appears to be consistent with options allowed under Article 25 of the Fourth Directive of the EU (EUR.Lex, 2011). The format under Article 25 starts with turnover, which must be reduced by the cost of sales, to get the gross profit loss.