Pls say in simple language

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kiran

kiran (Querist)
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27 October 2013 what is accounting standard s

Ganeshbabu K

Ganeshbabu K (Expert)
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27 October 2013 Accounting stards means some policy docuemnts issued by expert accounting body,covering accepts of recognition,measurement,treatemnet and presentation of accounting transaction in financial statements
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in india accounting standards are issued by icai

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 October 2013 in simple language, accounting standards are made to remove variations in the treatment of various accounting aspects and related presentations. it further assist in comparison of financial statements of different companies.

For eg, there are atleast 10 methods of calculating depreciation on fixed assets. Now if no standard is devised for computing depreciation, every organization may use its own method of charging depreciation, resulting large scale variations and in-comparability. The accounting standard on depreciation takes care of such variation by clearly stating what methods to be used, how it can be used etc.

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