Attempts towards standardisation, Accounting Standards

Assignment Help:

Standardization in UK and USA: although the Institute of Chartered Accountants in England and Wales began creating recommendations as 1942, real progress started along with the establishment of the Accounting Statements Committee (ASC) via the Institute in the year 1969 in the wake of public criticism of financial reporting methods that permitted various practices. As a consequence of diversity in practices some huge investors had suffered heavy losses in their investments in famous companies. The major objective of the ASC has been to narrow regions of difference and in the variety in accounting practices. The procedure utilized for standardization is initiated via the issue of an "Exposure Draft" on an exact topic for discussion through accountants and the public at large. Comments made on exposure draft are taken in consideration while drawing up a formal statement of the accounting methods for dealing along with that exact topic. The statement is termed as a Statement of Standard Accounting Practice (SSAP). One time the statement of standard accounting practice is adopted through the accounting profession, here the fact that, a statement has been issued through the Institute in itself implies the acceptance through the profession, any material departure through any company by the standard practice in presenting its financial reports is to be disclosed in such report. So far, standard accounting practice's nineteen statements, in addition to several exposure drafts in consideration, have been issued through the ASC.

The need for evolving standards in the United States of America was felt along with the establishment of SEC that is Securities Exchange Commission in the year 1933. The Securities Exchange Commission is the Government agency which regulates and controls the issuance of companies and dealings in, securities of the companies. A research oriented organization termed by the Accounting Principles Boards i.e. APB was formed in the 1957 year to spell out the fundamental accounting postulates. FASB i.e. the Financial Accounting Standards Board was formed in the 1973 year. The Financial Accounting Standards Board specified statements from time to time, articulating GAAP i.e. the generally accepted accounting principles. The constant support specified by SEC to Financial Accounting Standards Board pronouncements has specified considerable credibility to its accounting policy statement. The Financial Accounting Standards Board, till the 1985 year, has specified five statements of concepts and eighty-eight statements of financial accounting standards.


Related Discussions:- Attempts towards standardisation

Linear programming, 3. Solve the following Linear Programming Problem usin...

3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Closing stock, The Opening Stock of goods is the stock of goods in hand at ...

The Opening Stock of goods is the stock of goods in hand at the start of an accounting year. It may contain stock of raw material, work-in-progress and finished goods. It appears i

Issue of shares, What take place in a rights issue of shares? 1. Any pre...

What take place in a rights issue of shares? 1. Any premium on issue is added to a capital reserve. 2. Any type of premium on the issue is added to a revenue reserve. 3. A

Accounts receivable, These are amounts owed to the company through debtors....

These are amounts owed to the company through debtors. This is the purpose why we also utilize the term sundry debtors to indicate the amounts owed to the firm. This signifies amou

Retirement, 2. Now assume that you have been asked how to account for the d...

2. Now assume that you have been asked how to account for the destroyed drilling operation in the Gulf of Mexico in terms of the destroyed rig and lost natural resources. For the p

Financial statement, describe why a high stock turnover is considered to be...

describe why a high stock turnover is considered to be a good thing

Accounts, Define Accounting. Briefly explain the accounting concepts which ...

Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage.

IMPACTS OF ACCOUNTING , WHAT ARE THE AIMS AND OBJECTIVES IN STUDYING THE IM...

WHAT ARE THE AIMS AND OBJECTIVES IN STUDYING THE IMPACTS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd