Accounting standards are accounting standards or rules which need to be followed while presenting financial statements so that readers can easily comprehend the statement, compare different company’s financial results and evaluate the performance compared to other companies. Every country has a statutory body responsible for establishing the accounting standard for their publicly listed and private companies.
In India, Institute of Chartered Accountants of India (ICAI) is the main body to set the accounting standards and in USA, Financial Accounting Standards Board (FASB) is the main body in establishing generally accepted accounting principles (US GAAP). IASB is global standard setting body and their accounting rules and polices are termed as IAS and IFRS. The following list provides some mostly used accounting standards across worldwide and in India.
IFRS (International Financial Reporting Standards) is the most widely accepted accounting standard now among the worldwide companies.