Accounting Standard

What is Accounting standard?

Accounting standards refer to the set of guidelines, rules, and procedures that companies use to prepare and present their financial statements. These standards provide a framework for the consistent and accurate recording, measurement, and reporting of financial transactions, which enables stakeholders to make informed decisions based on reliable and comparable financial information.

What are types of Accounting standard?

There are several different accounting standards that companies may use, which include:

• GAAP: U.S. standards by the FASB, ensuring consistency in reporting.
• IFRS: Global standards by the IASB, promoting uniformity in financial reporting worldwide.
• Local GAAP: Country-specific standards that companies must adhere to.
• Industry-specific Standards: Tailored guidelines for sectors like banking or healthcare.
• Nonprofit and Governmental Standards:Specific standards for these sectors' unique needs.