Question

What is the main purpose of international accounting standards?

Answer 1

International accounting standards

The international accounting standard is a common character that everyone associated with the commerce field (accountant, charted accountant, etc..) should be followed. The international accounting standard in short known as IAS. It was issued by the International Accounting Standards Committee. Thus the main theme was to bring uniform character for the accounting

The main purpose of the International Accounting Standards Committee

The main purpose of international accounting standards is that brings uniform in accounting methods and techniques and also to bring accountability, and efficiency in financial markets all over the world. This can make a comparison between different companies very easily because the same method is followed. Economic decision making makes better. As it is globally accepted we can do the accounting in any part of the world

For example, we can outsource our accounting calculating to India because we can do it very cheaply.

Thus it is universal everyone will be using the same method. Also not only this purpose as it only one method the fraud and other illegal activity will be reduced or it happened we can find it quickly. it also increase the trust in financial reporting and improves trade and investment.