Single Set Of Accounting Standards

account statement standards be principles that guides and standardizes account statement practices. Harvey & Keer defined prick standards as: A method or an approach to preparing accounts which has been chosen and realised by bodies oerseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that atomic number 18 astray authentic as appropriate to the field of accounting. Accounting standards be requirement so that pecuniary statements ar meaningful crossways a wide variety of businesses; if not, the accounting determines of diverse companies would retrace relative analysis almost impossible. Standards are a ejaculate of rule and order and generate consistency. In failing to excogitation, we plan to fail. lack of rule and order be stuns chaos and destruction. Therefore, accounting standards and regulations states how one target deal with diverse situations. There are several usefulnesss that could be accrued f rom the development of a superstar set of accounting standards that could be applied to all countries. just about of the benefits are as follows:- One of the benefits of developing a ace set of accounting standards is that it enables investors to compare financial result of companies in different countries.

Investors, both(prenominal) individual and corporate would like to compare the financial results of different companies inter across the nation as well as nationally in order to make sound decision of investing. They allow foring benefit from enhanced comparability of financial statements; that is proper ly compared over metre because the accounts! are treated the equal way and the same methods are applied. They can only compare if the accounting standards are similar. When accounting standards keep on changing that is they are flexible, investors will aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the external investors stupefy to incur costs of becoming familiar with...If you insufficiency to get a full essay, order it on our website: OrderCustomPaper.com

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