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Accounting standards are a set of rules and principles that govern the preparation and presentation of financial statements. They are designed to ensure that financial statements are accurate, reliable, and comparable.

There are two main sets of accounting standards in use today:

  • International Financial Reporting Standards (IFRS): IFRS are a set of global accounting standards that are used by companies in over 140 countries. They are developed by the International Accounting Standards Board (IASB).
  • United States Generally Accepted Accounting Principles (GAAP): GAAP are a set of accounting standards that are used by companies in the United States. They are developed by the Financial Accounting Standards Board (FASB).

Accounting standards cover a wide range of topics, including:

  • Revenue recognition: When revenue should be recognized and how it should be measured.
  • Cost of goods sold: How the cost of goods sold should be determined.
  • Expense recognition: When expenses should be recognized and how they should be measured.
  • Asset valuation: How assets should be valued.
  • Liability valuation: How liabilities should be valued.
  • Owner’s equity: How owner’s equity should be determined.

Accounting standards are important for a number of reasons, including:

  • They help to ensure that financial statements are accurate and reliable. This is important for investors, creditors, and other stakeholders who use financial statements to make decisions.
  • They help to ensure that financial statements are comparable. This is important for investors and creditors who want to compare the financial performance of different companies.
  • They help to reduce the risk of financial statement fraud. By providing clear rules and principles, accounting standards make it more difficult for companies to manipulate their financial statements.

Accounting standards are constantly evolving to meet the changing needs of businesses and the global economy. The IASB and FASB are constantly working to improve accounting standards and ensure that they are relevant and up-to-date.

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GIA SƯ ACCOUNTING

Accounting Regulations

Accounting Standards

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