The term standard denotes a discipline, which provides both guidelines and yardsticks for evaluation. As guidelines, accounting standard provides uniform practices and common techniques of accounting. As a general rule, accounting standards are applicable to all corporate enterprises. They are made operative from a date specified in the standard. Accounting is the art of recording transactions in the best manner possible, so as to enable the reader to arrive at judgments/come to conclusions, and in this regard it is utmost necessary that there are set guidelines. These guidelines are generally called accounting policies. The intricacies of accounting policies permitted Companies to alter their accounting principles for their benefit. This made it impossible to make comparisons. In order to avoid the above and to have a harmonised accounting principle, Standards needed to be set by recognised accounting bodies. This paved the way for Accounting Standards to come into existence.
what are accounting standards nature
Indian accounting standards are developed by Indian board and only applicable in India while international accounting standards are developed by International Accounting standard board and applicable to all countries.
Here is a link to a great paper by from the SEC , outlining the major differences in International Accounting Standards.
The most common accounting standards are the ones that one can find in the Generally Accepted Accounting Principles (GAAP), those are a group of accounting standards very common and widely accepted.
what are advantages and disadvantages of harmonisation of accounting standards
what are accounting standards nature
accounting standards
The Financial Accounting Standards Board (FASB) is a private organization (within the Financial Accounting Foundation) that issues financial accounting and reporting standards for nongovernmental entities.
Indian accounting standards are developed by Indian board and only applicable in India while international accounting standards are developed by International Accounting standard board and applicable to all countries.
Here is a link to a great paper by from the SEC , outlining the major differences in International Accounting Standards.
The most common accounting standards are the ones that one can find in the Generally Accepted Accounting Principles (GAAP), those are a group of accounting standards very common and widely accepted.
Financial Accounting Standards Board was created in 1973.
what are advantages and disadvantages of harmonisation of accounting standards
Accounting as a "language of business" communication the financial results of an enterprise to various interested parties by means of financial statmetns which have to exhinit a "true and fair" view of its state of affairs. Accounting standards which seek to sugest rules and criteria of accounitng measurements, have to keep the set of rules, social needs, legal requirments and technological developmetns in view. Formulation of proper accounting standards, therefore is a vital step in developing accounting as a business lanuguage.
National Advisory Committee on Accounting Standards
The Financial Accounting Standards Board (FASB) assumed responsibility for accounting standards and principles in 1973. It is authorized to amend existing rules and establish new ones.
The Governmental Accounting Standards Board (GASB) was organized in 1984 under the auspices of the Financial Accounting Foundation.