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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.
