Accounting standards, Accounting Standards

Along with a view to harmonise varying accounting policies and practices recently utilize in India, the Institute of Chartered Accountants of India (ICAI) created the Accounting Standards Board (ASB) in April, 1977 year that includes representatives from government and industry. In line with the process followed in the other countries, the preliminary drafts prepared through the study groups and approved through ASB are circulated amongst different external agencies, including the representative bodies of commerce, trade and industry. So far, twenty 28 standards have been certified through ASB, a brief explanation of that is provided in further this unit.

The standards are recommendatory in nature in the primary years. They are suggested for use through companies listed on a recognized stock exchange and another large commercial, business and industrial enterprises into the private and public sectors.

We advise you that read all or at least several of these standards so as to get a feel of what such standards are all regarding. What are the procedures and policies of accounting that such standards aim to standardize and why? Do not concern if you are incapable to understand several of the ideas or expressions contained in the standards. You may like to reply to these standards after you have been during all the blocks of this course, so as to have a better grasp of them.

Regarding the position in India, this has been stated that the standards have been growth without initially establishing the necessary theoretical framework. Without such a framework, this has been contended; any accounting standards and principles expanded are likely to lack direction and coherence. This kind of shortcoming also existed in the United Kingdome and USA, but after that it was recognized and remedied a long time ago. In the United States, the initial task that the FASB undertook was to expand a conceptual framework project that aimed at defining the objectives of financial reporting. It was to be followed through the spelling out of concepts and standards establishing what have been often referred to as generally accepted accounting principles (GAAP). Several attempts to develop a conceptual framework about the objectives of reporting will have to take into consideration the answers to the subsequent questions:

i)     Who are the financial reports' users?

ii)    What decisions do these user groups have to receive?

iii)   What information can be given that would help them to take such decisions?

The objectives, as you have previously noted, based on the economic, legal, political and social environment of the country.

Posted Date: 4/3/2013 6:06:28 AM | Location : United States







Related Discussions:- Accounting standards, Assignment Help, Ask Question on Accounting standards, Get Answer, Expert's Help, Accounting standards Discussions

Write discussion on Accounting standards
Your posts are moderated
Related Questions
You must be aware about the most of business are made through cheques these days. It involves the bank whether the firm has opened its own account. Thus when payment is made by che

Currently I can represent my financial position in the subsequent form:                                           Financial Position Statement 1     Amount owned by me

Wise Owls, an NFPO, began operations at the beginning of 20X1 to provide free tutoring and homework assistance, as well as a nutrition program, to low-income immigrant children. T

The main function of accounting is to accumulate accounting data so as to calculate the profit and loss made through the business firm throughout and also to KNOW the financial pos

a.Compute the number of preferred shares that were issued during 20X6, which is Preferred stock, $100 par value, 10% $580,000 $500,000

write short notes on 5 modern accounting techniques

What kinds of risks does a firm like Amazon.com face with respect to safeguarding its assets? What types of controls do you think it already has in place to minimize these risks? G

DOES THE ADOPTION OF IFRS BY DIFFERENT COUNTRIES NECESSARILY MEAN ACCOUNTING PROCEDURES AND PRACTICES THEY ADOPT WILL BE CONSISTENT AND COMPARABLE INTERNATIONALLY

Hi, I work at a non-profit that recently received a $250,000 stock donation which is payment for a $1M pledge. The donor has written in an e-mail that he would like to give us th

Consisting mainly of accounting educators the American Accounting Association (AAA) has sought to encourage research and study at a theoretical level into the concepts or standards