Standards and Regulations
Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used. Commonly referred to as Generally Accepted Accounting Principles (GAAP), these set of guidelines provide the basis in the preparation of financial statements, although many companies voluntarily disclose information beyond the scope of such requirements.
Recently there has been a push towards standardizing accounting rules made by the International Accounting Standards Board ("IASB"). IASB develops International Financial Reporting Standards that have been adopted by Australia, Canada and the European Union (for publicly quoted companies only), are under consideration in South Africa and other countries. The United States Financial Accounting Standards Board has made a commitment to converge the U.S. GAAP and IFRS over time.
Read more about this topic: Financial Statement
Famous quotes containing the words standards and, standards and/or regulations:
“A generation which has passed through the shop has absorbed standards and ambitions which are not of those of spaciousness, and cannot get away from them. Everything with them is done as though for sale, and they naturally have in view the greatest possible benefit, profit and that end of the stuff that will make the best show.”
—Alexander Herzen (1812–1870)
“If one doesn’t know one’s own country, one doesn’t have standards for foreign countries.”
—Johann Wolfgang Von Goethe (1749–1832)
“If the veil were withdrawn from the sanctuary of domestic life, and man could look upon the fear, the loathing, the detestations which his tyranny and reckless gratification of self has caused to take the place of confiding love, which placed a woman in his power, he would shudder at the hideous wrong of the present regulations of the domestic abode.”
—Lydia Jane Pierson, U.S. women’s rights activist and corresponding editor of The Woman’s Advocate. The Woman’s Advocate, represented in The Lily, pp. 117-8 (1855-1858 or 1860)