Accounting Standard


    What is an Accounting Standards ?

Accounting standards are standards for financial reporting which is common set of principals, standards and procedure that define the accounting policies. Accounting Standards has been created by GAAP (Generally Accepted Accounting Principles).  

Accounting Standards improve the transparency of financial reporting in all over countries. Non-US companies used the IFRS (International Financial Reporting System) for financial reporting. IFRS's setup by International Accounting Standards Boards. In USA GAAP is used by any other public and private companies. Remaining country follows the IFRS Rules.


In USA, The American Institute of Accountants, which is currently knows as American Institute of certified public accountants and  the New York Exchange have launched its first accounting standards in the 1930s. 

 Important of Accounting Standards: 

1. Accounting standards specify the how transactions will be recorded on financial statements.

2. Accounting standards apply for the all types of companies, whether it's Public, Private, LLC, LLP or any other companies.

3. Accounting standards apply to all types of assets, liabilities, revenue, expenses and shareholders' equity.

4. Bank, investors and regulatory agencies, through the accounting standards to ensure information about a given entity is relevant or accurate.


If you have any other Account related topic then you can suggest me. On my mail id: client@cpacb.com

Location: Texas, USA

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