Accounting Principles are also referred to as Generally Accepted Accounting Principles. This means these principles are recognised by the Accounting Profession all over the world. Why these principles are recognised all over the word? The reason is very simple. . Accounting Statements to be of use must be reliable and comparable Accounting Statements made by different organisations cannot be reliable unless every organisation follows the same accounting principles and policies year after year. Similarly the Financial Statements of various organisations cannot be comparable unless they follow the same accounting principles and policies. This is the reason that these Accounting Principles are followed strictly by the Accounting Profession while preparing Financial Statements.