Familiarity with various accounting standards
As you know, nowadays almost most businesses and companies in various fields should use accounting principles for more accurate financial planning because neglecting this may cause heavy losses to large and small companies. One of the factors that helps an accountant to perform accounting related matters in the best way and progress in his work is the mastery of accounting standards, so in this article we want to introduce these types of standards. You also intend to make significant progress in your work, do not miss the content that will follow.
Introduction of accounting standard
Introduction of accounting standards and its importance
If we want to define accounting standards in a simple language, we must say that a set of rules, as well as principles and procedures that accountants should pay attention to and follow during their work, accounting standards are called in other words this It fully determines the standards, principles, and methods of doing accounting affairs so that the accountant can do his work well, such as reporting financial statements, in accordance with those principles.
The full familiarity and implementation of such standards is very important in financial reporting, so that only reports that comply with these standards are acceptable in order to create unity and integrity in all financial reports of the country and easily They can be evaluated.
The importance of knowing the standards
If you are working as an accountant, be aware that not knowing these standards can be a problem for you, because in this case you will no longer be able to refer to your financial reports, in addition to not complying with these standards in the affairs of companies. And evaluating the results will cause many problems.
Based on the above, it can be safely said that if you do not have enough knowledge about accounting standards, it is better not to continue the accounting job and look for another job.
Parts of accounting standards
These types of standards usually consist of three main parts, which we will refer to below.
The different parts of accounting standards are:
Explanation of the problem: In this section, the problems that exist in accounting are fully explained so that you can get to know the basic problem and the existing problems. This section can be considered the most important and basic part of the standards.
Argued discussion: The argument section tells you different ways and methods with the help of which you can face the problems in this profession, i.e. accounting, note that these methods are all presented in the form of arguments for you. It will be fully explained.
Providing the right solution: You must be familiar with the solutions to deal with the problems, so in this section, you will be presented with the right solution for better decision making and performance.
The important thing in this section is that you should fully master these three main areas mentioned above so that you can shine in your career and achieve high grades. So if you have not yet learned the accounting standards well. Don’t waste time and learn it as soon as possible.
Types of accounting standards
The number of existing accounting standards now reaches 33 standards, which are as follows:
Standard cash flow statement
Operating income standard
The standard of presentation of financial statements
Standard events after the balance sheet date
Accounting standard for reserves, liabilities and contingent assets
Accounting standard for research and development expenses
Financial Performance Reporting Standard
Legitimate Fixed Assets Standard
Standard inventory of materials and goods
Financial accounting standard
Capital accounting standard
Accounting standard for government grants
Investment accounting standard
Accounting standard for long-term contracts
Information disclosure standard regarding related parties
Standard employee retirement benefits
Accounting standard on how to present liabilities and current assets
General insurance activity standard
Standard agricultural activities
Reporting standard according to different departments
Standard profit per share
Asset depreciation standard
Accounting standard for special partnerships
Interim reporting standard
Standard for non-current assets held for sale and discontinued operations
Accounting standard for rents
Property rental standard
Financial reporting standards related to business units in the pre-operation phase
Exchange rate standard
Accounting standard for intangible assets
Accounting standard for the combination of business units
Investment standard in the combination of affiliated business units
Consolidated Financial Statements Standard
The main purpose of accounting standards
The purpose of accounting standards can be summarized as follows:
Unifying the special forms for financial statement reports: If there is no general principle and standard, each accountant will prepare the financial statement report according to his taste, which will cause chaos and lack of uniformity.
Acquainting others with the principles and working methods of accountants: To evaluate and draw conclusions from reports, etc., you must be aware of the methods used by accountants.
These two objectives are among the main objectives of the accounting standard that was explained to you.
Now that you are familiar with the types and also the importance of these types of standards, it is better to try to master them more and starting today.