Accounting principles are rule-based understanding that aids in recording financial transactions, reporting financial results and valuing assets and liabilities. The accounting principles support the mission of GAAP. Accounting principles are essential for comparing the financial statements. Entity, consistency, measurement, period, objectivity, full disclosure, materiality, and prudence are examples of accounting principles. Accounting principles are the basic rules for the transactions. Accounting standards are a set of specific rules for accounting transactions. The blog intrigues the readers with a detailed discussion on the difference between accounting standards and principles and 2024 changes in accounting standards.

Difference between accounting principles and standards:

ICAI constituted the accounting standards board in 1977. The board formulated the standards to maintain quality in the accounting, auditing and financial reporting. The accounting standards board frame the new standards and publishes relevant study materials, notes and technical guidance to implement the accounting standards. The International Accounting Standards Board works under the IFRS Foundation. The board is a private-sector body that approves the international standards. ASB implement regional principle-based standards in the accounting process. GAAP helps maintain the credibility of the business. Every year, ICAI issues the accounting standards. The following points explain the difference between accounting principles and standards.

Changes in accounting principles and standards in 2024:

Bottom Line:

At the school level, the commerce students learn about the accounting principles. The accounting principles create the judgemental perspective of the accountancy subject. In the college and professional course level, the commerce students learn the accounting standards. The accounting standards are proof-based and experience-based. The accounting standards enhance the application knowledge of the students. Accounting principles are the basic pillars of the subject. Accounting standards are based on the current issues and concurrent accounting operations.