Single Set Of Accounting Standards

bill standards be principles that guides and standardizes account statement practices. Harvey & Keer defined carte du jour standards as: A method or an approach to preparing accounts which has been chosen and realised by bodies everyplaceseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that ar widely authentic as appropriate to the field of story. Accounting standards ar requirement so that pecuniary statements are meaningful crossways a wide variety of businesses; if not, the accounting determines of diverse companies would produce relative analysis almost impossible. Standards are a fount of rule and order and generate consistency. In failing to purpose, 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 incompatible situations. There are several usefulnesss that could be accrued from the development of a wizard set of accounting standards that could be applied to all countries. nearly of the benefits are as follows:- One of the benefits of developing a single 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 go forth benefit from enhanced comparability of financial statements; that is properly compared over metre beca use the accounts are treated the said(preno! minal) 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 leave aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the contradictory investors stupefy to incur costs of becoming familiar with...If you insufficiency to get a full essay, order it on our website: OrderCustomPaper.com

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