BCom Financial Accounting Study Material Notes For Accounting Standards

BCom Financial Accounting Study Material Notes For Accounting Standards

BCom Financial Accounting Study Material Notes For Accounting Standards : provide to you information of accounting standards. In this topic you know about characteristics of accounting, need and purpose of accounting standards, advantage of accounting standards. You also get information about type accounting standards.

B.Com. Financial Accounting Study Material Notes For Accounting Standards

B.Com. Financial Accounting Study Material Notes For Accounting Standards

WHAT DO YOU UNDERSTAND BY FINANCIAL ACCOUNTING STANDARDS

Accounting standards are authoritative parameter or measurement unit of financial statement or record. When accountant makes financial record of any type of trade he follows accounting standards. These standard guides to accountant, CA, for making their companies financial statement. Accounting Standards are primary source of GAAP.

Accounting standards makes for public interest for providing full financial information. Transparency is important part of accounting statement. Transparency in financial accounting statement of any company/trade comes by following accounting principle and accounting standards 

FINANCIAL ACCOUNTING STANDARDS ISSUED BY:

Accounting Standards issued by the Institute of Chartered Accountants of India (ICIA). ICAI has issued 32 Accounnting Stadards. These are AS-1 to AS-7 and AS-9 to AS-32 (AS-8 is merged with AS-26).

Nature of Financial Accounting Standards:

Accounting standards like guide which is work with rules and regulation and provide realistic financial accounting record. We can say that accounting standards work on accounting field as guide, dictator, service provider.

Need of Financial Accounting Standards:

For the following purposes, accounting standards are needed:

  • For bringing uniformity in accounting methods:
  • For improving the reliability of the financial statements:
  • Simplify the accounting information:
  • Prevents frauds and manipulations:
  • Helps auditors:

Companies of different sizes or type must prepare income statements, balance sheets and other financial documents periodically. When their accountants creating financial statement or record must have a set of standards to follow.  Accounting principles sets those standards.

See Also : Complete Topic/Chapter Wise Study Material for BCom 1st Year

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