Objectives & Advantages of Accounting Standards [MTP Jan. 2025]; [RTP Jan~ 2025]
Options
A
B
C
D
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Theoretical FrameworkQ-2 | Accounting StandardsQuestion 4653 of 110
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
Objectives & Advantages of Accounting Standards:
An Accounting Standard is a selected set of accounting policies or broad guidelines
regarding the principles and methods chosen out of several alternatives.
The main objectives of Accounting Standards is to establish standards which have to
be complied with to ensure that financial statements are prepared in accordance
with generally accepted accounting principles.
Accounting standard seek to suggest ~ules and criteria of recognition, measurement
& disclosure.
These standards harmonize the diverse accounting policies and practices at present
in use in India.
The main advantage of setting accounting standards is that the adoption and
application of Accounting Standards ensure uniformity, comparability and
qualitative improvement in the preparation and presentation of financial
statements.
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