TAX Accountant Interview Question:

Please explain what are Accounting Standards?

Submitted by: Muhammad

Currently, GAAP (Generally Accepted Accounting Principles) need to be followed by all companies which need to adhere to the rules of the U.S SEC (Securities & Exchange Commission). These are issued/modified by the International Accounting Standards Board (IASB). On the other hand, IFRS (International Financial Reporting Standards) are also a set of Accounting Standards which are issued by another body known as FASB. There are statutory requirements in each country to follow either of these Accounting standards depending upon the country and their laws.
Submitted by: Muhammad