Accounting standards are prepared by regulators in order to assist both
preparers and users of financial statements. They usually set out rules, for
example, over what may or may not be treated as an asset in the BS, or
they restrict the choice of accounting policy to very few, or even just one,
acceptable accounting basis. Accounting standards in the UK have to be
applied by companies, and by some other entities such as charities, where
there is a public interest in the financial statements. However, sole traders
and partnerships do not need to follow accounting standards
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