Question

Difference between accounting standards and accounting principles

Answer 1

Hey, ✋ there your answer is ______,

▶ Question : Difference between accounting standards and accounting principles.


⏩ Answer : ⭕ Accounting Standards -Accounting Standards is the set of rules that should be applied for measurement, valuation, presentation and disclosure of a subject matter.
↪ For example, measurement of deferred tax, valuation of assets, intangibles and financial instruments etc. and presentation and disclosure of such measurements and valuations.

⭕ Accounting Principles- Accounting Principles however, are the fundamental principles providing a framework within which accounting should be done. These principles also govern the formulation of Accounting Standards.
↪ For example, Accrual accounting, Substance over legal form, prudence etc.

So in short you can say

Accounting Principal are set for conceptual understanding for accountants.

Accounting Standards described the list of rule that should be kept in mind during preparing financial statements.



✔ Hope it may helps u...!!! ☺

Answer 2

Answer:

Explanation:

Accounting standard are define as the guidelines, concepts, postulates and standards according the which the transaction are recorded in the book of accounts. Their nature are rigid .

Accounting principles are defined as rules and principle to be followed while reporting financial data. These are flexible in nature. These are formed  as per practical and theoretical purposes.