In accountancy, standards are used to ensure consistency throughout the industry. They also exist to promote transparency and to ensure the information provided is consistent, relevant, and useable – saving time and resource for the provider as well as the party under scrutiny. Accounting standards are critical so that companies working in tax and accountancy can deliver clear, coherent details to both their clients and the authorities.
When these accounting standards are applied, independent observers can gather and review the information they are seeking with full clarity and make informed decisions about their business.
In the UK, this is enforced by following a system of Generally Accepted Accounting Principles (GAAP), which involves a series of measures that preserve transparency and encourage consistency.
They bring benefit to shareholders and investors by keeping them up to date with how a business is performing.
Click HERE to get details of all current UK financial reporting standards from ACCA.