Edumarz

Accounting standards

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Kishore V, SME and ACW  at Edumarz


Accounting Standards:


  • Accounting standards establish a framework and set of rules for accountants to follow so that financial statements from various businesses may be compared. 

  • To maintain uniformity, the accounting concept must be standardised. comparability financial reporting sufficiency and trustworthiness.

  • Accounting standards provide a framework and set of norms for accountants to follow in order to compare financial statements from different organisations. 

  • The accounting concept must be standardised in order to ensure uniformity. 

  • Comparability reporting on finances sufficiency and dependability.


Need for accounting standards:


  1. To help accountants to follow consistent methods and practises to permit. 

  2. Meaningful comparison of financial statements of two or more organisations. 

  3. To improve the dependability of financial accounts. 

  4. To satisfy legal requirements

  5. To encourage a better understanding of financial statements effectively.



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