CIMA F1 Syllabus A. Regulatory Environment Of Financial Reporting - Financial Statements & Accounting Standards - Notes ^{1 / 8}

The form and content of these accounts are primarily regulated by national legislation, accounting standards and markets (exchange) rules

(Many countries use International accounting standards (IFRS); others use their own national standards)

Accounting standards

The latest International Financial Reporting Standards are called IFRSs. Old ones were called International Accounting Standards (IASs). Both are still used.

They provide guidance as to how items should be shown in a set of financial statements both in terms of their monetary value and any other disclosures.

They are a single set of high quality, understandable and enforceable global standards.

Accounting standards are developed for two main reasons

• To reduce subjectivity

• To achieve comparability between different organisations

Financial statements may not be described as complying with IFRSs unless they comply with all of the requirements of each applicable standard and each applicable interpretation.