Define Accounting standards are
prepared by regulators in order to assist both preparers and users of
financial statements. They usually set out rules, for example, over what
may or may not be treated as an asset in the BS, or they restrict the
choice of accounting policy to very few, or even just one, acceptable
accounting basis. Accounting standards in the UK have to be applied by
companies, and by some other entities such as charities, where there is a
public interest in the financial statements. However, sole traders and
partnerships do not need to follow accounting standards.
