Question

Please be aware of concept fully, while answering the question.(Do not waste my time with non sense)
I will definitely down vote, if essay is inappropriate
3) What are the main accountings reforms needed in india for future growth ?

Answer 1

Solution:

According to me, the following are the main accounting reforms needed in India for future growth.

Areas of changes should be:

1) Valuation of Inventories

a)At present, there are more than 2 methods available in valuation of inventory such as LIFO, Weighted Average , FIFO etc.

b) We can use these methods as per convenience to accommodate our need such as net income increase or decrease.

c) So, in order get uniformity in valuation of Inventories, it is better to standardize a method among available methods.

2) Valuation of Investments

a) In the valuation of investment, it is a better to follow fair value method so as to disclose the investment at possible dispose value.