Single Set Of Accounting Standards

account statement standards be principles that guides and standardizes account statement practices. Harvey & Keer defined tiptop standards as: A method or an approach to preparing accounts which has been chosen and realised by bodies all overseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that ar wide authentic as appropriate to the field of business relationship. Accounting standards atomic number 18 requirement so that fiscal statements atomic number 18 meaningful crossways a wide variety of businesses; if not, the accounting determines of diverse companies would appoint relative analysis almost impossible. Standards are a solution of rule and order and generate consistency. In failing to platform, 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 disparate situations. There are several usefulnesss t hat could be accrued from the development of a mavin set of accounting standards that could be applied to all countries. any(prenominal) of the benefits are as follows:- One of the benefits of developing a virtuoso 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 interacross the country as well as nationally in order to make sound decision of investing. They exit benefit from enhanced comparability of financial stateme nts; that is properly compared over metre b! ecause the accounts are treated the corresponding 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 result aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the immaterial investors stupefy to incur costs of becoming familiar with...If you penury to get a full essay, order it on our website: OrderCustomPaper.com

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