Question

What are the objectives and scope of all the standards

Answer 1

Accounting Standards (AS):

Accounting standards (AS) are general policy files. Their major goal is to make certain transparency, reliability, consistency, and comparability of the monetary statements. They achieve this through standardizing accounting insurance policies and concepts of a nation/economic system. So, the transactions of all companies will probably be recorded in an identical method in the event that they follow these accounting standards

These Accounting standards (AS) are issued through an accounting body or a regulatory board or many times by means of the federal government straight.

Objective of Accounting Standards-

1- Bringing Uniformity in Accounting Methods.

2-Improving Reliability of Financial Statements.

3-Simplify the Accounting Information.

4-Prevent frauds and manipulations.

5-Help Auditors

6-Accounting Standards provide framework and standard accounting policies so that the financial statements of different enterprises become comparable.

Scope of Accounting Standards-

1-The Accounting Standards which are issued are in conformity with the provisions of the applicable laws, customs, usages and business environment. However, if a particular Accounting Standard is found to be not in conformity with law, the provisions of the said law will prevail and the financial statements should be prepared in conformity with such law.

2-The Accounting Standards by their very nature cannot and do not override the local regulations which govern the preparation and presentation of financial statements in the countrycountry.

3-In formulation of Accounting Standards, the emphasis would be on laying down accounting principles and not detailed rules for application and implementation thereof