An accounting standard is an official rule or guideline that explains how financial transactions should be recorded and reported in financial statements.

Accounting standards ensure that:

Accounts are prepared consistently

Financial statements are reliable

Companies follow uniform reporting practices

Examples:

International Financial Reporting Standards (IFRS)

Indian Accounting Standards (Ind AS)

Generally Accepted Accounting Principles (GAAP)

In simple terms, an accounting standard is a set of rules that companies must follow while preparing their accounts.