Science Fair Project Encyclopedia
Standard accounting practice
Publicly-traded companies are required to follow certain accounting rules to prepare financial statements so that the readers of the statements can easily compare different companies. Private companies are also often required by banks and shareholders, for example, to prepare according to the rules.
- Generally accepted accounting principles (United States)
- Generally accepted accounting principles (United Kingdom)
- Chinese Accounting Standards (China)
- International Accounting Standards (international)
The lack of transparent accounting standards in some nations has been cited as increasing the difficulty of doing business in them. In particular. the Asian financial melt down in the late 1990s has been partially attributed due to the lack of a detailed accounting standards.
Giant firms in some Asian countries were able to take advantage of their ill devised accounting standards to cover up horribly huge debts and losses which yielded a collective effect that eventually led the whole region into financial crisis.
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details