In the Maldives, the accounting standards primarily used are the International Financial Reporting Standards (IFRS), which are adopted by many companies and financial institutions for financial reporting. The Maldives Accounting and Auditing Organization (MAAO) oversees the implementation of these standards. Additionally, smaller entities may use the Maldives Financial Reporting Standards (MFRS), which are simplified versions aligned with IFRS. The adoption of these standards aims to enhance transparency and accountability in financial reporting within the country.
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.
The term used to refer to creating one set of financial accounting standards throughout the world is "International Financial Reporting Standards" (IFRS). These standards aim to provide a common accounting language for businesses and organizations globally, enhancing transparency and comparability of financial statements across different countries. The International Accounting Standards Board (IASB) is responsible for developing and maintaining IFRS.
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
These are set of guidelines & principles formulated by an authorised body for preparation & presentation of Financial statements. AS are the detailed guides for interpretations of issues,terms,Accounting treatments of specific items on uniform base to be used by organisations,accounting people and auditors.
National Advisory Committee on Accounting Standards
The relevance of Indian accounting standards in IT firms is that it helps in business computations. This will be used to measure the profits of IT firms and keep proper records among other things.