An accounting standard is a specification of requirements that defines how economic, fiscal and legal matters that affect the activity of a company or an organization, must be accounted for to be compliant with the principles and their interpretation that prevail in the vision of the regulator that issue those standards.

Different sectors have different regulator: commercial companies, non-profit organizations, states and federal and governmental organizations, public sector entities.

Each country has its own regulators that supervise how companies, organizations, and entities operating in the country must record their accounting.

Regulators also exist at international level:

International regulators were established primarily for commercial companies to have a common accounting language, so businesses and financial statements can be understood from company to company across countries.

In countries that don’t have a long history of national regulation of accounting, or engaged in a simplification of such regulation, the local regulators directly implement, or adapt, the international standards.

Otherwise, most of the international companies must maintain two accounting: one compliant with the local standards, and one compliant with the international standards.

In the United States:

All commercial companies that are listed in stock exchange markets regulated in countries part of the European Union (Paris, Frankfurt, Amsterdam) must apply IFRS for their financial statements, as the European Union fully endorses those standards issued by the IASB.

Besides the regulated accounting standards that support the compliance requirements of our customers, the Planon Lease accounting solution also provides two configurable calculation settings. These settings extend the usability of the solution within customer information systems for specific cases.

With these settings, you can generate postings and journal entries that cancel rent expenses which are straight-lined either over the entire lease term, or over the payment period.

An accounting standard defines rules for recording and reporting financial information. These rules ensure organizations present financial data in a consistent and compliant way.

Standards are issued by regulatory bodies. The responsible regulator depends on the sector and country. Commercial companies, non-profit organizations, and public sector entities often follow different rule sets.

Most countries have national regulators that define local accounting requirements. International regulators also exist to create global consistency.

International standards create a common accounting language. They allow financial statements to be understood across countries.

Some countries adopt international standards directly. Others adapt them into national frameworks. As a result, multinational organizations often maintain two sets of books: one for local compliance and one for international reporting.

Companies listed on stock exchanges within the European Union (Paris, Frankfurt, Amsterdam) must use IFRS for their consolidated financial statements as the European Union fully endorses those standards issued by the IASB.

In addition to supporting regulated accounting standards, the Planon Lease Accounting solution provides configurable calculation settings.

These settings support specific reporting scenarios. They allow organizations to generate postings and journal entries that offset rent expenses that are straight-lined: