Financial accounting information must be assembled and reported objectively so as to be useful.The data must be free from bias and inconsistency.For this reason，financial accounting relies on certain standards or guides that have proved useful over the years in imparting economic data.These standards are called Generally Accepted Accounting Principle(GAAP).

In 1973 the International Accounting Standard Committee(IASC)was formed by accountancy bodies in Australia，Canada，France，Germany，Japan，Mexico，the Netherlands，the United Kingdom and Ireland，and the United States to create and promote worldwide acceptance and observation of accounting and financial reporting standards.In 2001 the International Accounting Standards Board(IASB)was formed in a restructuring effort and has since assumed all responsibilities previously carried out by the IASC，which has been disbanded.The ISAC is a private organization based in London.Although now supported by more than 100 nations，the development of uniform standards has been an almost impossible objective to achieve.