Why We Need Accounting Standards Accounting Essay

Why We Need write up Standards account EssayThis essay talks approximately Accounting Standards which is important in financial. And it is interesting topic which discusses identified report standards which is important to each company. And it is analysis different subjects which relate with Accounting Standards as International Accounting Standards (IAS), Accounting Standards display panel (ASB), why we quest accounting standards? , different accounting standards, and finally advantages and disadvantages of accounting standardsAccounting Standards are authoritative statements of how particular types of accomplishment and other events should be reflected in financial statements and accordingly compliance with accounting standards will normally be necessary for financial statements to give a true and fair view. Aidan, (1971)In fact, Inflation accounting was appendd iodin part of a bigger move towards accounting standards. Standards had been proposed a few years originally to limit the extent for judgment in the preparation of accounts.International Accounting Standards (IAS) are lay buck by the international Accounting Standards Board. Now these are compulsory for all European listed companies. The US commercialize rejects IAS without reconciliation to US GAAP. UK non-listed companies still follow UK accounting standards. Mellett, (1995)Accounting Standards BoardThe connection among the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) is one that can be increased continuously. These have said(prenominal) task which able to improve continuously and make rules to preparation financial reports.Financial Accounting Standards Board (FASB) is considered one branch of the financial statements. This company based in Norwalk and Connecticut and its non-profit. In financial accounting, the (FASB) has tariff for put principles of accounting for the private sector.Why do we need accounting standards?Account ing is used in every type of business and organization from big multinational organizations to local shop, from traders and companies. It can cover an untrammelled range of activities as different for example charities, doctors, lawyers, mines, betting shops, banks, cinemas, circuses, farms, airlines, estate agents and so on.People invest in organizations of all kinds and they would all like types have faith and trust in the figures reported in their financial statements. But this variety of kind of business, and of size, means that, while general principles can be laid down, exact regulations that it would make sense to apply to one company would be unsuitable for other company. For example impracticable to provide 100% assurance of the validity of the financial statements of every conceivable organization through the introduction of a single roofy of rules and procedures.Accounting is very important to help the reader to arrive conclusion, and on that point are important c onform guidelines to take any thing relate to the accounting. These guidelines are called accounting policies. The intricacies of accounting policies allowed companies to change accounting principles for their benefit. This made it impossible to make comparisons. For example Accounting Standards in India are issued by the Institute of Chartered Accountant of India (ICAI). At present there are 30 Accounting Standards issued by ICAI.Different Accounting StandardsDifferent accounting standers are a drag on improvement in much the same way as different languages are an inconvenience. Unlike creating a world language, crating one set of standards is achievable. Apart from the possible saving for companies with different international structure, complying with an internationally understood accounting image opens up a wider investment audience. Betsy Willis and Becky Jones, 1998Conceptual FrameworkThe development of a coherent and consistent set of accounting principles which underpin the preparation and presentation of financial statements.First- and fundamental importance- all involved in international financial reporting must have a common mission or objective. At the centerfield of that mission is a conceptual simulation which must focus on the investor, provide decision-useful information, and assure that nifty is allocated in a manner that achieves the lowest cost in our world markets.A conceptual textile is an attempt to create a set of fundamental accounting principles which will help standard-setting. A study achievement of the search for a conceptual framework has been the emergence of the decision-making model. The essence of this is that the objective of financial statements is to provide financial information useful to a wide range of users for making economic decision. A minute of arc objective is to provide financial information for assessing the stewardship of managers. In order to be useful, this information must be relevant, reliable, compar able and understandable. Although there is general agreement on the essentials of a decision- making model, there is little consensus on which measurement model should underpin the decision-making process.Conceptual Frameworkhttp//sqarra.wordpress.com/concept/Advantages of Accounting StandardsAccounting standards is keeping chase after of transactionIt be used to predict cash flow and maintain a budget and for taxation expectedIt has facilities for offer uniform reports to financial statementIt is useful to investors and to foreign groups to evaluate the development of another investment in different companies in different countriesStandards helps accountant to contact with their customers through the offer set of laws of authority to which the accountants can appealIt is use to regulate the different accounting policies and practices with a view to pull off to the scope possible the non-comparability of financial statementsDisadvantages of Accounting StandardsAn reproachful con dition or circumstance.Something that places one in an unfavorable condition or circumstance.Damage or loss, especially to reputation or finances detriment.ConclusionAccounting standards is important for any company in the world. It is help companies to know how much is loss or establish monthly and yearly. So its must be careful when do its account to be all thing correct. It is necessary to keeps a budget and revenue for the company. Also it is important in accounting standards show framework of any project the company will does such as know the objective of financial statement, rudimentary assumptionsetc. Also it considers an attempt to create group of accounting principles which help to put standards.