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 Assets: Cash, Accounts Receivable, Inventory, Equipment

 Liabilities: Accounts Payable, Short-term borrowings, Long-term Debt

 Shareholder’s Equity: Share Capital, Retained Earnings

Regulatory framework of accounting (regulatory bodies such ICPAK, IFAC, IASB, IPSASB, IAESB)

Accounting standards set out the rules for accounting in a country and say what should be reported in a

company’s accounts in that territory. Their purpose is to ensure that consistent approaches to

accounting are adopted nationally. They minimize the risk of misstatement in accounts and help

investors make decisions by ensuring they can get comparable information. Accounting standards, as

laid down by a country’s law, apply to all companies registered within its territory.

Accounting standards (IASs/IFRSs) (Importance and limitations)

Importance of IASs/IFRSs:

 It would create a single set of accounting standards around the world.

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