Rules that govern the practice of accounting. The standards are legally binding.
Accounting standards referred to in Part 2 of this series are the Australian Accounting Standards (AAS). The Australian Accounting Standards are documents that detail the accounting requirements that will apply for most departments and agencies. Any body registered as a corporate entity under the Commonwealth Corporations Act should refer to the equivalent Australian Accounting Standards Board (AASB) standard(s).
Stipulations on how a company must present its annual or consolidated financial statements. The quotation regulations of the SWX Swiss Exchange recognizes or demands, depending on the sector involved, the Swiss Accounting and Reporting Recommendations (ARR) or IAS. Companies listed in the USA must present their financial statements in accordance with US-GAAP (Generally Accepted Accounting Principles).
Accounting standards are methodologies and disclosure requirements for the preparation and presentation of financial statements. Accounting standards are usually developed within the institutional and professional framework of a country, and promulgated by regulatory or professional accountancy bodies. Standards can also be backed by ethical standards issued by an accountancy body that provide for professional sanctions against members in the event of non-compliance. Accounting standards may also be developed in harmony with, or as an adaptation of, an internationally recognized set of benchmark standards such as International Accounting Standards (as promulgated by the International Accounting Standards Committee), or the U.S. GAAP (General Accepted Accounting Principles as promulgated by the Financial Accounting Standards Board in the United States of America).
Rules and guidelines on different subjects issued by the Accounting Standards Board under its SSAPs. See ‘Statement of Standard Accounting Practice'.
Accounting standards are authoritative statements of how particular types of transaction and other events should be reflected in financial statements. Accordingly, compliance with accounting standards will normally be necessary for financial statements to give a â€œtrue and fair viewâ€. When preparing accounts in the UK, businesses must take account of statements issued by the Accounting Standards Board. These require the adoption of certain accounting principles and methods. There are currently two forms of Accounting Standards in the UK - Financial Reporting Standards (FRSs) and Statements of Standard Accounting Practice (SSAPs). The only difference between these is that SSAPs were issued prior to 1990. Since that date, the name has been changed to FRS. Accounting standards apply to all companies, and other kinds of entities that prepare accounts that are intended to provide a true and fair view.
Statements issued by the Accounting Standards Board, requiring the adoption of certain accounting principles and methods when preparing accounts in the UK. There are currently two forms of Accounting Standards in the UK - Financial Reporting Standards (FRSs) and Statements of Standard Accounting Practice (SSAPs). The only difference between these is that SSAPs were issued prior to 1990. Since that date, the name has been changed to FRS.