Accounting standards, and the other related materials that support them, are complex and difficult to interpret and apply in practice. CPA and CA ANZ, with HLB Mann Judd’s assistance, have created a guide to assist preparers of financial statements in better understanding various aspects of accounting standards.

Accounting standards are authoritative standards that specify how transactions, events and other conditions are to be recognised, measured, presented and disclosed in financial statements. They set out accounting criteria to capture certain economic activities, translate them in financial terms and present them in financial statements.

Financial statements provide information about an entity’s financial results, financial position and cash flows. They serve as an important communication tool to stakeholders such as investors and analysts, informing the decisions that such stakeholders make regarding a business.

Compliance with accounting standards ensures that information presented in financial statements is high quality, consistent and comparable. This is necessary to ensure a sound financial reporting system, which is crucial to maintaining investors’ confidence in the economy and capital market, both local and global.

While the guide does not attempt to assist with the interpretation of accounting standards, it does focus on key concepts and principles that underpin accounting standards and financial statements. The content in the guide covers various aspects related to accounting standards including:

  • The fundamental attributes of accounting standards
  • Other bodies of literature that support accounting standards
  • Types of accounting standards
  • Key components of an accounting standard

We hope the guide provides preparers of financial statements with enhanced knowledge that better equips them to read and interpret accounting standards and apply them to their unique facts and circumstances.

Download the guide