Need for Accounting Standards
Accounting Standards are needed due to the following reasons:
- These standards ensure uniformity in financial statements across the firms so that the investors can understand them easily and clearly, and can take appropriate decisions about the investment.
- If the same accounting standards are followed throughout the world, anyone can explore career opportunities in accounting in any part of the world.
- Accounting standards guide businesses on how to create and maintain their account reports, which establish a common accounting language across the globe.
- It lets everyone have a single framework for recording all the business transactions.
Accounting Standards : Need, Benefits, Limitations and Applicability
Accounting is a process of recording an organisation’s financial exchanges in order to retain data that can be referred to in the ,future to make important decisions. But it is very necessary that the records are maintained in a proper format and all the firms follow some specific rules to maintain the records for ease and to create uniformity in the format of records all over the country.
Table of Content
- What are Indian Accounting Standards?
- Need for Accounting Standards
- Benefits of Accounting Standards
- Limitations of Accounting Standards
- Applicability of Accounting Standards
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