accounting frameworks

Accounting frameworks are standardized sets of rules and principles that guide how financial information is recorded, reported, and interpreted. They ensure consistency, accuracy, and comparability of financial statements across different organizations. Examples include IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles). These frameworks help stakeholders—such as investors, regulators, and management—trust and understand financial data, enabling informed decision-making. Essentially, an accounting framework acts as a common language and guideline for organizations to present their financial performance and position transparently and reliably.