Accounting standards are technical pronouncements that set out the required accounting measurements and disclosures for particular types of material transactions and events. The accounting requirements affect the preparation and presentation of an entity's financial statements.
(in relation to financial statements) For Commonwealth entities, accounting standards have the force of law through section 42(2)(a) of the PGPA Act. Further, accounting standards have the force of company law for entities preparing financial reports under that law.
(in relation to budgeting) Section 12(3)(a) of the Charter of Budget Honesty Act requires that the budget is based on accounting standards.
