Question

The main objective of Accounting Standards is to ___________.

• A. Prepare the accounting reports which is easily understood by common man
• B. Comply with the legal formalities
• C. Harmonise the diversified accounting practices
• D. Comply with the requirements of the International Accounting Standards (IAS)

Answer 1

The correct option is C Harmonise the diversified accounting practices

The primary objective of accounting standards are:

1. To provide a standard for the diverse accounting policies and principles.

2. To put an end to the non-comparability of financial statements.

3. To provide standards which are transparent for users.

4. To provide a suitable starting point for accounting. etc.

The primary objective of accounting standards is to harmonize the different accounting policies. The policies are used in the preparation of financial reports.