9 Most Important Differences between Accounting Standards and Accounting Principles/Concepts are as follows:
Accounting Standards:
1. Accounting Standards are uniform rules.
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2. All the assesses (individuals, business firms) should follow the Accounting Standards.
3. The State is the important body of standard setter, having its own interests.
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4. Accounting Standards are the new innovation started since 1950s.
5. These have been statutorily, uniformly and vigorously enforced.
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6. These are rigid in nature.
7. The primary object of the accounting standards is correct measurement and disclosure.
8. The word ‘Standards’ itself is more descriptive in nature. It implies a great bulk of its ongoing efforts.
9. Accounting Standards create more responsibility in the business circle, accountants, chartered accountants and auditors.
Accounting Principles/Concepts:
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1. Accounting Principles and Concepts are various.
2. The assesses are at liberty to follow various methods of accounting principles and concepts.
3. The State has not paid much interest in the accounting principles and concepts.
4. Accounting principles and concepts are old- fashioned and are customary in nature.
5. These are being followed traditionally and in different ways.
6. These are flexible in nature.
7. These have multi-faceted objects, and practical and theoretical purposes.
8. Accounting Principles/Concepts are extraordinary elusive terms. They are in no way dependent upon changing fashions in business or the evolving needs of the investment community.
9. These are less responsible.