The Green Climate Fund must determine which accounting standards to follow in accounting for its income and expenditure and in preparing and presenting its financial statements. ‘Accounting standards’ refer to the body of authoritative literature that comprises the accounting and reporting standards to be used by the Fund. Generally the choice is between three standards. These are the International Financial Reporting Standards (IFRS), the International Public Sector Accounting Standards (IPSAS), and US Generally Accepted Accounting Principles (USGAAP).

Annex II contains a paper prepared by the Secretariat with an explanation of each standard and some of the similarities and differences between them.