Why We Need Accounting Standards Accounting Essay

Why We Need business relationship Standards Accounting EssayThis essay talks about Accounting Standards which is important in financial. And it is interesting topic which discusses identified accounting standards which is important to each company. And it is analysis divergent things which relate with Accounting Standards as International Accounting Standards (IAS), Accounting Standards plug-in (ASB), why we need accounting standards? , different accounting standards, and finally advantages and disadvantages of accounting standardsAccounting Standards are authoritative statements of how particular types of transaction 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 only one part of a bigger move towards accounting standards. Standards had been proposed a few years earlier to limit the ext ent for thinker in the facility of accounts.International Accounting Standards (IAS) are lay down by the international Accounting Standards Board. Now these are compulsory for all European listed companies. The US market 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 canful be increased continuously. These have same 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 responsibility for put principles of accounting for the snobby sector.Why do we need accounting standards?Accounting is used in every type of business and organization from big multinational organizations to local shop, from traders and companies. It can cover an unlimited 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 bid 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, detailed regulations that it would make sense to apply to one company would be unsuitable for another company. For example impossible to provide 100% pledge of the validity of the financial statements of every conceivable organization through the creation of a single set of rules and procedures.Accounting is very important to sponsor the indorser to arrive conclusion, and there are important set guidelines to take any thing relate to the a ccounting. These guidelines are called accounting policies. The intricacies of accounting policies allowed companies to change accounting principles for their benefit. This make 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 bureau 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 understand accounting paradigm opens up a wider investment audience. Betsy Willis and Becky Jones, 1998Conceptual FrameworkThe development of a coherent and consistent set of accounting principles which patronise the preparation and presentation of financial statements.First- and fundamental importance- all involved in global financial reporting must have a common mission or documental. At the heart of that mission is a conceptual framework which must focus on the investor, provide decision- usable learning, and assure that capital is allocated in a mien that achieves the lowest cost in our world markets.A conceptual framework is an attempt to create a set of fundamental accounting principles which will help standard-setting. A major 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 second objective is to provide financial information for assessing the stewardship of managers. In order to be useful, this information must be relevant, reliable, comparable and understandable. Although there is general agreement on th e 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 track of transactionIt be used to predict cash flow and maintain a compute and for revenue 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 eliminate to the scope possible the non-comparability of financial statementsDisadvantages of Accounting StandardsAn unfavorable condition or circumstance.Something that places one in an unfavorable conditi on or circumstance. abuse or departure, 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 gain 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, Underlying assumptionsetc. Also it considers an attempt to create group of accounting principles which help to put standards.