Financial Reporting Standards

Financial Reporting Standards are guidelines that dictate how companies should prepare and present their financial statements, ensuring consistency and transparency in financial reporting. These standards help investors, regulators, and the public understand a company's financial health and performance. By following these rules, businesses ensure their financial reports are accurate and comparable, making it easier to assess their profitability and stability. Common sets of standards include Generally Accepted Accounting Principles (GAAP) in the U.S. and International Financial Reporting Standards (IFRS) used in many other countries.