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Accounting Standards Part 2 – Quiz !

Accounting Standards

Accounting Standards have assumed great significance in today’s environment, which is constantly evolving and changing. Accounting Standards act as pillars of sound financial reporting system of a country, which is an  integral and important part of good corporate governance and provides the shareholders and other stakeholders’ useful information about the entity to make their economic and financial decisions. To strengthen the financial reporting system existing in the country, Accounting Standards are formulated or revised from time to time.

Accounting Standards (ASs) are written policy documents issued by expert accounting body or by government or any other regulatory body. Accounting Standards covers the aspects of recognition, measurements, treatment,  presentation and disclosure of accounting transactions in the financial statements. Thus, accounting standards are guidelines for financial accounting, as how firms prepare and present its business income and expense,
assets and liabilities.
According to section 2(2) of the Companies Act 2013 “accounting standards” means the standards of accounting
or any addendum thereto for companies or class of companies referred to in section 133.

The Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by
the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority.

Here is an another quiz on Accounting Standards.

Comment ( 1 )

  1. […] Cost accounting is the identifying, recording as well as appropriate allocation of expenditure for the decision of the costs of services or products, as well as for the discussion of accordingly organized information for functions of control and support of management. It consists of the ascertainment of the cost of every order, job, contract, process, solution or system as may be appropriate. It handles the cost of production, selling and distribution. Click here for Quiz on Accounting Standards […]

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