The aim of this thesis is to point out the differences and similarities between international accounting standards of the public and profit sector. By comparing the two, great similarities are visible regarding the content and the structure of the standards, which shouldn't come as a surprise taking into account the fact that the basis for composing IPSAS was IAS itself. Besides focusing on international accounting standards for both sectors, this thesis also incorporates business ledgers and financial reports for both sectors and the influence these standards have on reports for the budget and profit sectors. There are significant differences between the budget and profit sector because, considering the purpose of its business, each composes several different financial reports. The entire thesis is meaningful, well-constructed and its parts complement one another. Business ledgers show management records throughout the year, and the results are entered into the financial reports of the subject and the Unit of the public sector at the end of the business year. On the other hand, the international standards for both sectors show how to compose financial reports. The purpose of the standards is to regulate financial reporting.