Define Accounting standard

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.