Accounting Standards and Their Importance - 2255 Words

Accounting Standards and Their Importance AS-1: DISCLOSURE OF ACCOUNTING POLICIES The following is the text of the Accounting Standard (AS) 1 issued by the Accounting Standards Board, the Institute of Chartered Accountants of India on Disclosure of Accounting Policies. The Standard deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements. AS-2: VALUATION OF INVENTORIES A primary issue in accounting for inventories is the determination of the value at which inventories are carried in the financial statements until the related revenues are recognized. This Statement deals with the determination of such value, including the ascertainment of cost of inventories and any write-down†¦show more content†¦Financial statements disclose certain information relating to fixed assets. This statement deals with accounting for such fixed assets. AS-11: ACCOUNTING FOR EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES The following is the text of Accounting Standard 11, Accounting for the Effects of Changes in Foreign Exchange Rates, issued by the Council of the Institute of Chartered Accountants of India. An enterprise may have transactions in foreign currencies or it may have foreign branches. Foreign currency transactions should be expressed in the enterprises reporting currency and the financial statements of foreign branches should be translated into the enterprises reporting currency in order to include them in the financial statements of the enterprise. AS-12: ACCOUNTING FOR GOVERNMENT GRANTS The following is the text of the Accounting Standard 12 issued by the Council of the Institute of Chartered Accountants of India on Accounting for Government Grants. This Statement deals with accounting for government grants. AS-13: ACCOUNTING FOR INVESTMENTS The following is the text of Accounting Standard 13, Accounting for Investments, issued by the Council of the Institute of Chartered Accountants of India. This Statement deals with accounting for investments in the financial statements of enterprises and related disclosure requirements. AS-14: ACCOUNTING FORShow MoreRelatedImportance Of Accounting Standards For Business Standards951 Words   |  4 PagesImportance of Accounting Standards In this assignment I want to explain the importance of the Accounting standards. As the world economy is becoming integrated and globalization is becoming a universal phenomenon, more and more businesses are getting out of the nationalistic perspective. Today one company have subsidiary companies and plants in many other countries. One of the dilemmas that enterprises face is the increased complexity of financial reporting practices. The lack of comparability ofRead MoreThe Importance Of Accounting Standards For Business Affairs1049 Words   |  5 Pagesthat’s understandable globally and comparable across the international boundaries. IFRS initially was formed to harmonize accounting across European Union, but the value of harmonization was so overwhelming and attractive around the world that became a benchmark globally. Importance of Accounting Standards In this assignment I want to explain the importance of the Accounting standards. As the world economy is becoming integrated and globalization is becoming a universal phenomenon, more and more businessesRead MoreInternational Accounting Standard 27 : A Great Deal Of Importance On The Perception Of Control Within Group Accounts1547 Words   |  7 PagesInternational accounting standard 27 illustrates a great deal of importance on the perception of control within group accounts. This report focuses on evaluating how important the notion of control is in deciphering whether or not group accounts have to be initially created. Throughout this report the concept of control, within group accounting, will be evaluated and critically analysed to gain a wider understanding thus resulting in a relevant interpretation being produced. The advantages and disadvantagesRead MoreIntroduction. Keeping The Day-To-Day Business Accounting1588 Words   |  7 PagesIntroduction Keeping the day-to-day business accounting is not just a necessity but rather, and above all, an obligation. Financial accounting seeks to find answers to recurring questions in a business such as, how much was sold last month, how many people have used the services, and how much to produce to meet the needs of the customers. The financial accounting is a method that helps better organize and manage any business. Accounting is the science that serves to organize all the numeric recordsRead MoreCritical Review : Determination Of Accounting Standards1678 Words   |  7 PagesCritical Review Determination of Accounting Standards Ross L Watts Jerold L Zimmerman have put together this article on accounting standards and on the basis of moderately relative accounting theories and interpretations- tried exploring various factors that persuade business entities in lobbying on accounting standards. The size of the companies is also researched and concluded upon their approach towards certain accounting standards. The Data used in the article is derived from FASB’s discussionRead MoreComparing the Gaap and Ifrs1051 Words   |  5 PagesIntroduction There have been proposals that have been working on with regard to the replacement of GAAP (Generally Accepted Accounting Principles) with IFRS (International Financial Reporting Standards) as used in the accounting and financial reporting aspects. Such convergence requires that the functions of the GAAP standards be added to the IFRS. The International Accounting Standards Board (IASB) developed the IFRS which is a less-detailed financial reporting system. This paper seeks to analyze theRead MoreCertified Public Accountants ( Cpa ) All Over The World Follow Company Policies And Regulations1279 Words   |  6 Pagesand regulations. The Generally Accepted Accounting Principles (GAAP) is a standard accounting system used by accounts in the United States of America. CPAs who work for international companies use the International Financial Reporting Standards (IFRS). â€Å"The accounting standards developed, established by the Financial Accounting Foundation’s (FAF) standard-setting Boards—the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB)—determine how those financialRead MoreImportance of Ethics in Accounting1065 Words   |  5 PagesRunning head: IMPORTANCE OF ETHICS IN ACCOUNTING Importance of Ethics in Accounting Everest University Importance of Ethics in Accounting Accounting fraud is common but is not as trivial as the common cold; a typical organization loses annual revenues of nearly 5 percent to fraud. In addition, almost one-quarter of reported fraud is exceeding $1 million dollars. The accounting industry is constantly growing and changing. Consequently, difficult decisions have to be made every day. Read MoreThe Uniformity Of The Accounting Standards Essay1535 Words   |  7 PagesThe thought of introducing a uniformity in the accounting standards has been discussed for a long time in the world of accounting. In fact, a quote from Financial Times stated â€Å"The goal of single worldwide accounting language has been a dream. Today it is fast becoming a reality- and the pace is picking up.† (Carmona and Marco 2008, p.456). There have been a lot of studies done all over the world about the differences standards implement around the world. Why is it there is still no uniformity claimedRead MoreWhat Are The Impact Of Human Capita l Accounting On ShareholdersValue Of Oil And Gas Companies?1405 Words   |  6 PagesHUMAN CAPITAL ACCOUNTING AND SHAREHOLDERS’ VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA Abstract This study evaluated the effect of human capital accounting on shareholders’ value in oil and gas companies in Nigeria. This is with a view to providing information on how costs incurred on personnel could be identified, measured and disclosed on the statement of financial position of companies as an asset which is the key factor to the successful operation in oil and gas industry. The study made