April 2022
Beginner
535 pages
11h 35m
English
Content preview from The Finance Book, 2nd Edition
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19 Accounting and financial reporting standards
‘There are no accounting issues, no trading issues, no reserve issues, no previously unknown problem issues.’
Kenneth Lay, former chairman, Enron LLC
In a nutshell
Accounting standards, also known as financial reporting standards, are rules and guidelines that set out how transactions should be recorded and presented in financial statements. ‘Standards’ set out the expected or preferred way of accounting and presentation.
To interpret or compare company performance requires an understanding of the accounting treatments used when preparing financial statements. An accounting policy note is included within financial statements to summarise the accounting standards applied in their preparation. ...
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