The particular features of UK accounting include a gradual development of financial reporting under the impetus of the Industrial Revolution, with Companies Acts prescribing a minimum of rules and the accounting profession developing generally accepted accounting principles (GAAP). European harmonization and the appearance of creative accounting have led to more state regulation since the mid 1980s

The accounting profession is highly organized, with six representative bodies whose examinations are the key to a serious accounting career, whether in audit, business or the public sector. The UK has a new and active standard setter, the Accounting Standards Board (ASB), which is independent of the profession, together with a body for checking compliance, the Financial Reporting Review Panel. Statutory audit is required for all limited liability companies and the audit industry is dominated by the 'Big Six' Anglo-American audit firms and three or four large national firms. The efficacy and independence of auditors has increasingly been questioned in the wake of financial scandals.

Particular features of accounting principles are those that allow for the revaluation of tangible fixed assets, and goodwill arising on consolidation is usually written off directly against reserves. Deferred tax is provided for, but only to the extent that timing differences are likely to crystallize. Assets obtained under finance leases are capitalized in the lessee's accounts. Taxation has a complicated relationship with reported profits but published financial statements are normally the starting point for tax computation. Systematic differences are that tax law fixes depreciation rates, which are applied independently of the company's accounting policies, interest is accounted for on a cash basis for tax, and no general provisions are allowed as an expense for tax purposes.

Public sector accounting has developed independently of commercial accounting and has a tradition of reporting income and expenditure in relation to sources of funds with no distinction between capital and revenue expenditure. Current pressure is towards systems which recognize assets and provide consolidated financial statements.

Accounting in the UK can be characterized as being heavily influenced by the accounting profession and orientated towards the reporting of large, public companies. Accountants operate in an environment where they control entry to their profession, all limited liability companies are subject to statutory audit, and accountants are the main providers of tax advice. Large accounting firms typically provide significant management consulting activity as well. The regulation of accounting has built up around company law and the reporting needs of companies. There are no accounting regulations for unincorporated business, and public sector accounting has until recently been largely ignored by professional firms and educational institutions.