An accounting standard is a guideline for financial accounting, such as how a firm prepares and presents its business income, expenses, assets and liabilities, and may be in accordance to standards set by the International Accounting StandardsBoard (IASB).

THE ACCOUNTING STANDARDS ARE A KEY TO REGULATE THE PRINCIPLE OF ACCOUNTING IN A NATION. IN INDIA THE ACCOUNTING STANDARDS ARE FRAMED BY THE ACCOUNTING STANDARDS BOARD UNDER THE REGULATIONS FRAMED FOR THE PURPOSE FROM TIME TO TIME BY THE ICAI, ICWAI, ICSI UNDER THE NEW LAWS FRAMED BY THE MINISTRY OF COMMERCE IN THE APEX CENTRAL GOVT.THEY ARE BASED AND ARE IN CONSONANCE WITH THE STANDARDS FOLLOWED INTERNATIONALLY.