Introduction
Accounting standards are a set of guidelines and rules that are derived from accounting principles. These standards ensure that financial statements are prepared consistently and accurately, allowing users of financial information to make informed decisions. To understand this statement better, let's take a practical example.

Example: Inventory Valuation
One accounting standard that is derived from the accounting principle of "historical cost" is the valuation of inventory. The historical cost principle states that assets should be recorded at their original cost, and this principle is reflected in the accounting standard for inventory valuation.

Explanation
The accounting standard for inventory valuation requires companies to value their inventory at the lower of cost or net realizable value. This means that if the cost of inventory is higher than its expected selling price, the inventory should be written down to its net realizable value.

Illustration
Let's say a company XYZ purchases a certain quantity of raw materials for $10,000. According to the accounting standard, the company should record the inventory at its historical cost of $10,000. However, if the market value of the raw materials decreases to $9,000, the company must write down the inventory to its net realizable value.

Impact
This accounting standard ensures that the financial statements of the company reflect the true value of the inventory. By valuing the inventory at its lower of cost or net realizable value, users of financial information can make more accurate assessments of the company's financial position and performance.

Conclusion
In summary, accounting standards are rules and regulations derived from accounting principles. They provide guidance on how financial transactions should be recorded and reported. The example of inventory valuation illustrates how an accounting standard is applied in practice to ensure consistency and accuracy in financial reporting. Adhering to accounting standards enhances the reliability and comparability of financial statements, benefiting users of financial information.