Financial Reporting Standards (FRS) refer to a set of regulations and guidelines that companies and organizations adhere to when preparing their financial statements. These standards aim to ensure that financial reporting is consistent, transparent, and comparable, facilitating stakeholders such as investors, regulators, and management to make informed decisions.

For instance, if a company needs to present its year-end balance sheet, it must follow the specific FRS applicable in its jurisdiction to ensure the representation of assets, liabilities, and equity accurately and consistently. Examples of widely known Financial Reporting Standards include the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP). Different jurisdictions may have their own set of FRS, or they may adopt and adapt international standards like IFRS.

By complying with FRS, organizations can achieve uniformity in financial reporting, which is advantageous not only for internal performance assessment but also for external comparability with industry peers. This standardization plays a pivotal role in financial planning, performance analysis, and transparency.