DK Goel Accountancy Class 11 Solutions Chapter 5 Accounting Standards and International Financial Reporting Standards (IFRS) which are outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required.
DK Goel Accountancy Class 11 Solutions – Chapter 5
Define accounting standard.
Answer- These are written statements specifying uniform rules and practices for preparing the financial statement.
State the objectives of an accounting standard.
Answer- The objectives of an accounting standard are.
- To guarantee evenness in the development and display of financial statements.
- To provide data to the users about the policies used in the formation of a financial statement
- To eliminate the effect of diverse accounting policies and practices.
- To guarantee uniformity, clarity, and comparability of financial statement
- To enhance the safety and of financial statement
Define International Financial Reporting Standards (IFRS).
Answer- International Financial Reporting Standards (IFRS) is defined as a common set rule that helps financial statements to be uniform, clear and similar across the globe. IFRS rules are published by the International Accounting Standards Board (IASB). They designate how a business should manage and record their accounts.
Why International Financial Reporting Standards (IFRS) is important.
Answer– Few points that show that International Financial Reporting Standards (IFRS) is important are.
- Easy Access to Global Capital Market- Investors are now open to invest in different countries and access the fund globally. However, foreign investor fully relies on IFRS based financial statement of the company. Hence, the financial statement prepared according to the IFRS rules helps the company to get the investor and raise the fund.
- Easy to Make Comparison- Foreign investors compare the statement based on the internationally accepted set of accounting goal.
- Uniformity in Financial Reporting- The IFRS rule brings evenness, comparability, and clarity.
- Difficult to engage in duplicity- In the traditional style of accounting it is easy to engage in duplicity, but, in accordance with IFRS it is extremely difficult to manipulate the account.
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