Answer to Question #238676 in Management for jovani

Question

Discuss the current accounting standards or principles applicable in Ethiopia as a base for

financial statement preparation and presentation.

Answer 1

Accounting standards is an entity of financial picture since it is a common principle that defines the foundation of financial accounting policies. It helps financial institution to establish reports and ensures information is transparent and useful to the investors. In Ethiopia, the most applicable modern accounting standards or principles are; monetary unit principle, going concern principle, matching principle, Accrual principle which they show a complete and comparable the financial statements.