Accounting Standards are essentially a rulebook for how companies report their finances, ensuring consistency and reliability. 📚

Just like you need rules to play a board game fairly, companies follow accounting standards to report their financial activities accurately. 🎲

Accounting Standards let you compare different companies’ finances without worrying about bias.

There’s 2 major standards: GAAP (Generally Accepted Accounting Principles) for the U.S., and IFRS (International Financial Reporting Standards) globally. 🌍

GAAP is the financial reporting language used by companies in the United States. 🇺🇸

IFRS is the international dialect of accounting, followed by companies in about 90 countries. 🌐

When comparing financial statements from companies in different countries, remember they might use different accounting standards which result in slightly different ways to measure profit, assets, and more. 🔍

Understanding these Accounting Standards can help you interpret financial statements accurately!