Publicly-traded companies are required to follow certain accounting rules to prepare financial statements so that the readers of the statements can easily compare different companies. Private companies are also often required by banks and shareholders, for example, to prepare according to the rules.
- Generally accepted accounting principles (United States)
- Generally accepted accounting principles (United Kingdom)
- Chinese Accounting Standards (China)
- International Accounting Standards (international)
Giant firms in some Asian countries were able to take advantage of their ill devised accounting standards to cover up horribly huge debts and losses which yielded a collective effect that eventually lead to the whole region financial crisis.