Accounting Standard (Noun)
Meaning
A principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions.
Classification
Nouns denoting cognitive processes and contents.
Examples
- The new accounting standard for revenue recognition has been adopted by most countries and is now widely used.
- The company's financial statements were prepared in accordance with the generally accepted accounting standard.
- The accounting standard governing the treatment of lease transactions was recently updated to reflect changes in business practices.
- The auditor ensured that the company's financial statements complied with the relevant accounting standard.
- The accounting standard for income taxes was revised to address the complexities of international taxation.