Accounting Standards- Callum Kellas 11066176 Accounting standards are sets of rules specifically layed down by certain numerous organisations that set out the fundamental principles, the definitive meanings of key terms and specify the methods with which accounts should be presented. “ Accounting principles and concepts develop from research, accepted accouting practises and pronouncements of regulators” (Warren, p7,2010) These international standards of international financial reporting standards give symmetry to the financial reports of various institutions across differing industries and make it clear and coherent to anyone wishing to view such information. Any principle or interpretation that is adopted by the International Standards Board can be considered to have a mandate to be a internationally recognised standard. “the convergence in firms’ accounting policies brought about by adopting IAS is positively associated with the reduction in analyst forecast errors” (Ashbaugh, p1,2001). The basic principles used by the IASB are constantly subject to scrutiny and debate and are often altered in conjunction with the changing economic climate. IAS 1 article 10 specifically states the elements that are to be included in a IFRS statement and the sub sections of each document that must be included in this report. The elements that make up a statement of financial position are the assets, liabilities and the equity in the company in question. The income statement (PNL statement) must also be included and the two elements that make up this document are revenues and expenses. In addition to these two reports a statement of cash flows and changes in equity must also be included as set forth by the IAS (International Accounting Standards), just one of many sets of international accounting standards. This set of standards also lays down a set of four