Question

Why do we need accounting standard ? Answer in brief

Answer 1

Answer:

Financial Statement Comparability. Accounting standards ensure the financial statements from multiple companies are comparable. ... Accounting standards make the financial statements credible and allow for more economic decisions based on accurate and concise information.

mark as brilliant answer plz plz

Answer 2

Explanation:

Their main aim is to ensure transparency, reliability, consistency, and comparability of the financial statements. They do so by standardizing accounting policies and principles of a nation/economy. So the transactions of all companies will be recorded in a similar manner if they follow these accounting standards.