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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

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

BCom Financial Accounting Study Material Notes For Accounting Standards
BCom Financial Accounting Study Material Notes For Accounting Standards

WHAT DO YOU UNDERSTAND BY FINANCIAL ACCOUNTING STANDARDS

Accounting standards are authoritative parameters or measurement units of financial statements or records. When an accountant makes a financial record of any type of trade he follows accounting standards. These standard guides accountants, CA, in making their company’s financial statements. Accounting Standards are the primary source of GAAP.

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

FINANCIAL ACCOUNTING STANDARDS ISSUED BY:

Accounting Standards issued by the Institute of Chartered Accountants of India (ICIA). ICAI has issued 32 Accounting Standards. 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 guides which are work with rules and regulations and provide realistic financial accounting records. We can say that accounting standards work in the accounting field as guides, dictators, service providers.

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 types must prepare income statements, balance sheets, and other financial documents periodically. When their accountants create financial statements or records must have a set of standards to follow.  Accounting principles set those standards.

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

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