Why is it important to comply with the set of accounting standards and in what way would it be

relevant to our lives?

Accounting Standards is a common set of principles, standards, and procedures to the

preparers and users of financial statements especially the measurement of assets and liabilities.
It is a written statement stating several rules and practices in preparing for the financial
statements. Furthermore, this also relates of course to an entity's finances like assets, liabilities,
revenue, expenses, and even shareholder's equity. Thus, it's important for us to comply with
the set of accounting standards because it provides more valid and reliable financial statements
that users can use for economic decisions that are based on accurate and consistent
information.

However, how is this relevant to our lives? Well, we can see that because of accounting
standards businesses ensures the reliability of the financial statements so they could come up
with finer economic decisions. If we are going to relate this in our lives, accounting standards
can be our guide in our decision-making in terms of our financial statuses. With the common
set of principles in the accounting standards, we can adapt it for example when we plan for the
future as well as to have a goal to go through a healthy financial future. Accounting standards
to our lives can also give us the ability to recognize easily incorrect information and would have
the capacity to become aware and knowledgeable to the different qualities or perspective of
accounting.