The United Kingdom and the United States have a common accounting heritage and are linked by history and language. The term Anglo-American accounting is sometimes used to denote their accounting styles because of the similarities in orientation, purpose, and approach. Nonetheless, accounting differences still exist between these two countries.

Required:
a. Identify the major differences between U.K. and U.S. accounting that are discussed in Chapter 3 and this chapter.
b. Which country is likely to be systematically more conservative in measuring reported earnings? Why do you think so?