tilinpäätösstandardiboard

The term "tilinpäätösstandardi" translates from Finnish to English as "financial reporting standard" or "accounting standard." It refers to the set of rules, principles, and guidelines that govern how financial statements are prepared and presented by companies and organizations. These standards ensure consistency, comparability, and transparency in financial reporting, allowing stakeholders such as investors, creditors, and regulators to understand a company's financial performance and position accurately.

In Finland, the primary framework for financial reporting standards is largely based on the International Financial Reporting Standards (IFRS), which are adopted and implemented through Finnish accounting legislation and pronouncements from relevant authorities. For smaller companies, Finnish Generally Accepted Accounting Principles (GAAP) may be applicable, which are often simpler and less extensive than IFRS.

The purpose of accounting standards is to provide a common language for business and finance. They dictate how specific transactions and events should be recognized, measured, and disclosed in financial statements. For example, standards specify how revenue should be recognized, how assets should be valued, and how expenses should be accounted for. Adherence to these standards is crucial for maintaining the integrity of financial information and fostering trust in the capital markets. Regulatory bodies, such as the Finnish Accounting Board, play a role in overseeing and interpreting these standards.