What is meant by Accounting Standards? Discuss their nature.
What is meant by Accounting Standards? Discuss their nature.
Accounting standards may be defined as codified generally accepted accounting principles. According to Kohler, "Accounting standard is a mode of conduct imposed on the accountants by custom, Law and a professional body".
Following points highlight the nature of accounting standards:
(1) Accounting standards are the norms of accounting policies and practices to be adopted by the accountants.
(2) Accounting standards make accounting procedures universally acceptable by removing the diverse accounting practices and policies.
(3) Accounting standards serve as guides for solving one or more accounting problems.
(4) Accounting standards provide the basis upon which financial statements are prepared.
(6) Accounting standards are codified principles to be followed by public accountants.
Accounting standards may be defined as codified generally accepted accounting principles. According to Kohler, "Accounting standard is a mode of conduct imposed on the accountants by custom, Law and a professional body".
Following points highlight the nature of accounting standards:
(1) Accounting standards are the norms of accounting policies and practices to be adopted by the accountants.
(2) Accounting standards make accounting procedures universally acceptable by removing the diverse accounting practices and policies.
(3) Accounting standards serve as guides for solving one or more accounting problems.
(4) Accounting standards provide the basis upon which financial statements are prepared.
(6) Accounting standards are codified principles to be followed by public accountants.
