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Accounting Standards
The flexibilities offered by a choice of accounting treatments distinctly diminish, and even distort the comparability of relevant information in the financial statements. Pressures on the accounting profession to establish uniform accounting standards, led to evolution of 'Accounting Standards' (AS) as used in India and as 'Generally Accepted Accounting Principles' (GAAP) in the United States of America.
The International Accounting Standards Committee was formed to develop worldwide accounting standards, called International Accounting Standards (IAS), to alleviate the problems faced by multinational companies having to comply with multiple Accounting Standards.
An Indian company incorporated under the laws of a jurisdiction outside of the United States is called as 'foreign private issuer' in the US. Indian issuers must file an annual report on Form 20-F with the SEC within six months after the end of its fiscal year. Form 20-F contains detailed financial and non-financial disclosure requirements.
Though there is basic similarity in accounting principles throughout the world, Indian Accounting Standards, and International Accounting Standards differ in some respects from USGAAP.
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Credit what comes in. Debit what goes out.
Note: All illegible answers will be marked incorrect, so please write legibly. If you type and submit the print out of your homework (not email), you will receive 5 points extra cr
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