Standard accounting practice
- Standard accounting practice
Publicly-traded companies are required 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.
Some commonly used accounting standards include:
* Generally accepted accounting principles (United States)
* Generally accepted accounting principles (United Kingdom)
* Grundsätze ordnungsmäßiger Buchführung (Germany)
* Chinese Accounting Standards (China)
* International Accounting Standards (international)
The lack of transparent accounting standards in some nations has been cited as increasing the difficulty of doing business in them. In particular. the Asian financial meltdown in the late 1990s has been partially attributed due to the lack of detailed accounting standards.
Giant firms in some Asian countries were able to take advantage of their poorly devised accounting standards to cover up immense debts and losses, which yielded a collective effect that eventually led the whole region into financial crisis.
The accounting scandals of the early 21st century, which affected companies such as Worldcom and Enron, have shown the limitations of accounting standards in the United States.
Look at other dictionaries:
Statements of Standard Accounting Practice — (SSAP) In the UK, the Accounting Standards Board (ASB) issues accounting standards (a set of statements setting out standard accounting practice in relation to certain issues). Standards developed by the ASB are contained in Financial Reporting… … Law dictionary
Statement of Standard Accounting Practice — SSAP Any of the accounting standards prepared by the Accounting Standards Board and issued by the six members of the Consultative Committee of Accountancy Bodies The first SSAP was issued in 1971 and in total 25 SSAPs were issued. Before a SSAP… … Big dictionary of business and management
Statement of Standard Accounting Practice — SSAP Any of the accounting standards prepared by the Accounting Standards Committee (ASC) and issued by the six members of the Consultative Committee of Accountancy Bodies. Starting in 1971, a total of 25 SSAPs were issued up to 1990, when the… … Accounting dictionary
Statement of Standard Accounting Practice — See Accounting Standards. Dresdner Kleinwort Wasserstein financial glossary … Financial and business terms
Statements of Standard Accounting Practice — /ˌsteɪtmənts əv ˌstændəd ə kaυntɪŋ ˌpræktɪs/ plural noun rules laid down by the Accounting Standards Board for the preparation of financial statements. Abbreviation SSAPs … Dictionary of banking and finance
Accounting Standards Board — (ASB) The accounting standards issuing body. The ASB issues accounting standards in the form of Financial Reporting Standards (FRSs) and has adopted those standards developed by its predecessors in the form of Statements of Standard Accounting… … Law dictionary
accounting concepts — accounting principles; fundamental accounting concepts The basic theoretical ideas devised to support the activity of accounting. As accounting developed largely from a practical base, it has been argued that it lacks a theoretical framework.… … Big dictionary of business and management
accounting concepts — accounting principles; = fundamental accounting concepts The basic theoretical ideas devised to support the activity of accounting. As accounting developed largely from a practical base, it has been argued that it lacks a theoretical framework.… … Accounting dictionary
accounting standard — A definitive standard for financial accounting and reporting established in the form of a Statement of Standard Accounting Practice (SSAP) issued by the Accounting Standards Committee or, since 1990, a Financial Reporting Standard (FRS) issued by … Accounting dictionary
Accounting Standards — Statements issued by the Accounting Standards Board, requiring the adoption of certain accounting principles and methods when preparing accounts in the UK. There are currently two forms of Accounting Standards in the UK Financial Reporting… … Financial and business terms