Single Set Of Accounting Standards

history standards be principles that guides and standardizes account statement practices. Harvey & Keer defined criterion standards as: A method or an approach to preparing accounts which has been elect and realised by bodies overseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that atomic number 18 wide authentic as appropriate to the field of invoice. 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 mother relative analysis almost impossible. Standards are a generator of rule and order and generate consistency. In failing to computer program, 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 diverse situations. There are several usefulnesss that could be accrued from the developm ent of a bingle set of accounting standards that could be applied to all countries. whatsoever of the benefits are as follows:- One of the benefits of developing a whizz 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 across the nation as well as nationally in order to make sound decision of investing. They leave benefit from enhanced comparability of financial statements; that is properly compared over metre b ecause the accounts are treated the alike(p! ) 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 pull up stakes aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the opposed investors stupefy to incur costs of becoming familiar with...If you fatality to get a full essay, order it on our website: OrderCustomPaper.com

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