Standard Accounting Practice
Standard accounting practices require publicly traded companies to follow certain accounting rules when presenting financial statements so that the readers of the statements can easily compare different companies. Private companies are also often required by banks and shareholders, for example, to present information according to their specified rules.
Usually, countries practicing civil law system write standards into law and countries with English common law systems have private organizations to set the rules.
Read more about Standard Accounting Practice: Common Accounting Standards, Rationale For Uniform Practices, Limitations
Famous quotes containing the words standard, accounting and/or practice:
“A dwarf who brings a standard along with him to measure his own size—take my word, is a dwarf in more articles than one.”
—Laurence Sterne (1713–1768)
“At the crash of economic collapse of which the rumblings can already be heard, the sleeping soldiers of the proletariat will awake as at the fanfare of the Last Judgment and the corpses of the victims of the struggle will arise and demand an accounting from those who are loaded down with curses.”
—Karl Liebknecht (1871–1919)
“When any practice has become the fixed rule of the society in which we live, it is always wise to adhere to that rule, unless it call upon us to do something that is actually wrong. One should not offend the prejudices of the world, even if one is quite sure that they are prejudices.”
—Anthony Trollope (1815–1882)