Accounting Standards are formal guidelines that govern how financial statements are prepared and presented. They ensure consistency, transparency, and comparability in financial reporting, making it easier for stakeholders to understand a company's financial health. These standards can vary by country, with notable frameworks including Generally Accepted Accounting Principles (GAAP) in the United States and International Financial Reporting Standards (IFRS) used in many other countries. By adhering to these standards, businesses can provide reliable financial information to investors, regulators, and other interested parties.