What are accounting standards? What are its objectives.
Answers
Answer:
Accounting standards (AS) are general policy files. Their major goal is to make certain transparency, reliability, consistency, and comparability of the monetary statements. They achieve this through standardizing accounting insurance policies and concepts of a nation/economic system.
HOPE IT HELPED YOU PLEASE MARK AS BRAINLIST AND FOLLOW ME
Accounting Standards (AS):
Accounting standards (AS) are general policy files. Their major goal is to make certain transparency, reliability, consistency, and comparability of the monetary statements. They achieve this through standardizing accounting insurance policies and concepts of a nation/economic system. So, the transactions of all companies will probably be recorded in an identical method in the event that they follow these accounting standards.
These Accounting standards (AS) are issued through an accounting body or a regulatory board or many times by means of the federal government straight. In India, the Indian Accounting specifications are issued by way of the Institute of Chartered Accountants of India (ICAI).
Accounting specifications most commonly take care of four main problems of accounting, particularly
1.Realization of economic activities
2.Size of fiscal transactions
3.Presentation of fiscal statements in a reasonable manner
4.Disclosure requirement of companies to ensure stakeholders aren't misinformed
Objectives of Accounting standards:
Accounting is most of the time viewed the language of trade, as it communicates to others the monetary role of the company. And like every language has specified syntax and grammar principles the identical is right here. These principles in the case of accounting are the Accounting requirements. They're the framework of principles and laws for accounting and reporting in a nation. Let us see the essential goals of forming these necessities.
The foremost goal is to fortify the reliability of financial statements. Now considering that the financial statements ought to be made following the requisites the customers can rely on them. They recognize that now not conforming to those specifications can have severe consequences for the businesses.
Then there is comparability. Following these standards will allow for inter-company and intra-corporation comparisons. This enables us to investigate the growth of the company and its function in the market.
It additionally appears to provide one set of accounting policies that comprise the indispensable disclosure standards and the valuation methods of quite a lot of fiscal transactions.
HOPE THIS HELPS!!!