What are the recent development in accounting?
Answers
Answer:
Recent developments in accounting and accounting standards
Meaning of Accounting Standards
Accounting Standards are the guidelines laid down by the expert accounting
body as to how business transactions are to be recorded in the books of accounts
and the manner in which business transactions are to be exhibited in the
financial statements
Meaning of Social Responsibility Accounting
It is also known as social accounting or social and environmental accounting.it
is a normal accounting of social responsibilities met by the organization. It is
concerned with measuring and disclosing the cost and benefits to the society as
a result of operating activities of a business enterprise.
1. Briefly explain the need/ significance of international accounting standards?
Standardise the diverse accounting policies and practices
Eliminating the non-comparability of financial statements to the extent
possible
Ensuring reliability of financial statements
A standard must provide a generally understood and accepted measure of the
phenomena of concern
A standard should significantly reduce the amount of manipulation of the
reported numbers that is likely to occur in the absence
They lay down uniform accounting policies and practices that should be
followed by all business organizations, in respect of particular transaction
It enables easy comparability of financial statements of various business
organization as uniform accounting standards Board are more accurate and
more reliable
As accounting standards are formulated and issued by the ape expert
accounting body in the country, they are very scientific and rational
They increase and improve the credibility and reliability of the accounting
information
They curb the unlimited flexibility in the adoption of accounting policies and
practices
The financial statements prepared as per Accounting Standards would be
useful to investors in judging the yield and risk involved in alternative
investments in different companies