what is the meaning of accounting standard and explain the main features of the standard AS
Answers
Accounting standards are written statements, issued from time-to-time by institutions of accounting professionals, specifying uniform rules or practices for drawing the financial statements.
Objectives/Features of Accounting Standards-
1.Accounting standards are required to bring uniformity in accounting practices and policies by proposing standard treatment in preparation of financial statements.
2.To improve reliability of the financial statement: Accounts prepared by using accounting standards are reliable for various users, because these standards create a sense of confidence among the users.
3.To prevent frauds and manipulation by codifying the accounting methods and practices.
4.To Help Auditors: Accounting standards provide uniformity in accounting practices, so it helps auditors to audit the books of accounts.