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
QUESTION An important function of Environmental Accounting is to bring environmental costs to the attention of corporate stakeholders who may be motivated to identify ways of r


Make a new information system for this company. Your solution should contain the following items: 1.  An overview of the primary features of the new system, describing why this

Organize the Trading Account from the subsequent details: Office Rent Rs. 5,000;Purchases Rs. 80,100; Opening stock Rs.25, 000; Stock at the end Rs. 15,000; Carriage Inward Rs.

To establish and implement an accounting system  for  Trigon  Corporation, using MYOB accounting software. Needed: 1.  Make and print a  suitable chart of accounts in MYOB

Hello, I am interested in help on an ACCO 310 case which is due on Tuesday the 13th at 12 PM. Please contact me at your earliest convenience and hopefully we can work something ou

Dear Sir, I am an accountant working in a company with limited liability (WLL), one of the partners (A) will withdraw from our company. One of the existing partner (B) of the comp

If I sold aan asset before its matured perid what will be it''s Depreciation schedule?

are exploration costs assets to Mining companies?

When is working capital most likely to increase? A when the business increases its selling prices B when the credit period allowed to customers is reduced C when the credit pe