Question

• How do you standardize statements of financial position and statements of comprehensive income and why is standardization useful?

Answer 1

Standardization of financial statement will mean that preparation of the financial statement in accordance with the International standard and Generally accepted Accounting principles and it will mean that these financial statements will be reported in a way that is a standard by inclusion of all kind of balance sheet along with income statement and cash flow statement and it will also include original financial statement along with the restated financial statement and it will be including the footnotes at the end which has been explained by the auditors clearly.

Statement of comprehensive income can also be standardized in addition to the financial statement because standard of comprehensive income will be representing the position of the company's Net Asset Value given period of time and it will be at adjusting the quality of companies are set over a period of time so it will be prepared in accordance with Generally accepted Accounting principles and it will be standardized according to the International standard of accounting so these standardization are useful because they will be providing an uniformity and much more public disclosure norms and transparency and the fixation of responsibility on the management as well.