A set of principles and directions that govern a specific aspect of accounting for an entity, product, instrument, transaction, event, etc. Guidance is provided to clarify accounting in terms of recognition, measurement, derecognition, disclosure and presentation, etc.

Guidance can help an entity meet its reporting requirements in a consistent and cost-effective manner. It may take many forms including: framework (CFW), standards, guidance notes, technical releases, illustrative financials, etc.