Question

Write a brief note on Accounting Standards.

Answer 1

Accounting Standards provide the framework and norms to be followed in accounting so that the financial statements of different enterprises become comparable. It is necessary to standardize the accounting principles to ensure consistency, comparability, adequacy, and reliability of financial reporting. Thus, Accounting Standards are written policy documents issued by the expert accounting body or by government or other regulatory bodies covering the aspects of recognition, measurement, treatment, presentation, and disclosure of accounting transactions and events in the financial statements.