Accounting standards

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 “true and fair view”. 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.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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