Accounting Standards and IFRS — Flashcards

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Accounting standards are policy documents issued by a recognized expert accountancy body relating to the measurement, treatment, and disclosure of accounting transactions and events. They guide how fi…

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Accounting standards are "a mode of conduct imposed on accountants by custom, law or professional body." This means accountants must follow accepted rules while preparing accounts.

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Accounting standards reduce different accounting treatments for the same transaction. They help financial statements become comparable, consistent, credible, and fair. They also improve trust among us…

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They lay down common rules for recording and presenting transactions. Because different enterprises follow the same basis, their financial statements can be compared more easily for the same year or a…

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They give auditors a clear basis to check whether financial statements have been prepared correctly. If accounting standards are not followed, the auditor must mention it in the audit report.

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Accounting standards restrict fraud, manipulation, and insufficient disclosure by setting accepted rules for accounting and reporting.

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A true and fair view means the financial statements should present the operating result and financial position honestly and correctly. The term is important in accounting, but it is not defined in the…

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Accounting standards are of two types based on local and abroad conditions: accounting standards in India and International Financial Reporting Standards, or IFRS.