Question

Write the main objective of Accounting Standards?.​

Answer 1

Answer:

Accounting Standards (AS) are basic policy documents. 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.

Answer 2

ANSWER :

❒ The objective of Accounting Standards are as follows :-

• ➪ To bring harmony and uniformity : To bring harmony and uniformity in the preparation and presentation of financial statements by eliminating diverse accounting policies and practices is the main objective of accounting standards.

• ➪ To set out Disclosure norm : Another objective of accounting standards is to set out the procedure and method for disclosing the accounting events in the financial statements in an all accepted, unbiased and fair manner.

• ➪ To converge accounting standards : To make an effort for convergence of National Accounting Standards and International Accounting Standards to high quality solution is another objective of accounting standard.

• ➪ To prescribe accounting treatment : Accounting standards aim to provide the prescription for treating accounting events in the books of accounts. Hence, prescription of the accounting treatment is another objective of accounting standards.

• ➪ To reduce alternative practices : To reduce alternative practice is another objective of accounting standards. A particular accounting standards aims to reduce the several alternative practices in treatment of particular transaction. These related to accounting rules and procedures applied in measurement, valuation, reporting and disclousre of financial information.