Accounting Standards

Accounting standards are established guidelines and rules that organizations follow when preparing their financial statements. They ensure consistency, transparency, and fairness in reporting financial information, making it easier for investors, regulators, and the public to understand a company’s financial health. These standards help prevent fraud and misrepresentation by providing a framework for measuring and reporting profits, expenses, assets, and liabilities. Different countries may have their own standards, like the Generally Accepted Accounting Principles (GAAP) in the United States or the International Financial Reporting Standards (IFRS) used globally, but the goal remains the same: reliable and comparable financial reporting.