Single Set Of Accounting Standards

accountancy standards be principles that guides and standardizes account statement practices. Harvey & Keer defined nozzle standards as: A method or an approach to preparing accounts which has been chosen and realised by bodies everywhereseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that argon wide authentic as appropriate to the field of be. Accounting standards ar requirement so that fiscal statements be meaningful across a wide variety of businesses; if not, the accounting determines of diverse companies would come upon relative analysis almost impossible. Standards are a semen of rule and order and generate consistency. In failing to cast, 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 various situations. There are several usefulnesss that could be accrued from the development of a unity set of accounting standards that could be applied to all countries. several(prenominal) of the benefits are as follows:- One of the benefits of developing a mavin 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 nationwide as well as nationally in order to make sound decision of investing. They go out benefit from enhanced comparability of financial statements; that is properly compared over metre because the accounts are treated the alike 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 th e irrelevant investors stupefy to incur co! sts of becoming familiar with...If you deficiency to get a full essay, order it on our website: OrderEssay.net

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