Accounting principles refer to a set of guidelines, standards and rules that govern how financial transactions and events are recorded, measured, presented and communicated in financial statements. These principles are designed to ensure consistency, transparency and accuracy in financial reporting, enabling users of the financial statements (such as investors, creditors, regulators) to make informed decisions based on the information provided. Accounting principles are typically established by professional bodies such as the International Accounting Standards Board or national accounting standards setters, and may be influenced by legal requirements, industry practices and international convergence efforts.