Principles External Accounting
Principles of external accounting refer to the set of rules and guidelines that govern how financial information is reported to parties outside of an organization. These principles ensure that financial statements are prepared in a consistent and transparent manner, allowing stakeholders such as investors, creditors, and regulators to make informed decisions. Key principles include accuracy, reliability, relevance, comparability, and consistency in financial reporting. External accounting principles are typically established by standard-setting bodies such as the Financial Accounting Standards Board (FASB) in the United States and the International Accounting Standards Board (IASB) globally.
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