What is the need, benefits, limitation and role of accounting standards?
Benefit & Role of Accounting, Accounting requirements are written coverage files masking the weather of recognition, measurement, treatment, presentation and disclosure of accounting transactions in monetary statements. Accounting preferred is an authoritative statement issued by using ICAI, an expert physique of accounting in our country. The goal of accounting trendy is to deliver uniformity in several accounting insurance policies to get rid of the non-comparability of monetary statements for improving the reliability of economic statements.
Secondly, the accounting trendy gives a group of stylish accounting policies, valuation norms and disclosure requirements. In addition to enhancing the credibility of data, accounting fashionable enhances the comparability of monetary statements, each intra and inter enterprises. Such comparisons are very effective and broadly used for the evaluation of firms’ overall performance by using the purchasers of accounting.
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