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Hello
Employment regulations have a direct effect on determination of material amounts and disclosure in F/S or an indirect effect?
It would depend on the specifics of the regulations – employment law is wide-ranging (contracts of employment, minimum wage, dismissals and redundancy, health and safety at work, payroll (tax and social security/national insurance), pensions, discrimination, statutory leave,etc).
If a company does not properly account for tax and insurance contributions (e.g. as in the UK collected through PAYE) that would have a direct effect (liabilities for tax understated). If a company does not follow procedures to make employees redundant that might be regarded as indirect (e.g. if the company will be liable to pay compensation in the event that former employees bring an action against the company to an employment tribunal).
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