The document discusses International Accounting Standards. It defines accounting standards as policy documents issued by accounting bodies that relate to measuring, treating, and disclosing accounting transactions and events. The standards specify which economic items should be recorded as assets and liabilities, at what values, and when and how changes should be measured. They also determine what financial information should be disclosed and which financial statements should be prepared. The purposes of standards are to standardize accounting policies, make statements comparable, and provide rules for measurement. They promote uniformity, common principles, consistency, and comparability among financial statements.

1. INTERNATIONAL ACCOUNTING STANDARD

2. MEANING
 Accounting standards are referred as
“Generally Accepted Accounting Principles”
(GAAP) GAAP are „building blocks & pillars‟
of accounting language.

3. DEFINITION
 According to t.p ghosh, “accounting
standards are the policy documents issued
by the recognized expert accountancy body
relating to various aspects of
measurement, treatment and disclosure of
accounting transactions and events”

4. GAAP Specifies,
1)Which economic resources and obligations
should be recorded as assets & liabilities.
2)At what amounts.
3)Which changes in assets & liabilities should
be recorded.
4)when, how the assets & liabilities changes
measured.

5. 5)What information should be disclosed.
6)Which financial statement should be
prepared.

6. PURPOSE
 A)To standardize diverse accounting policies
& practices
 B)To provide information to the user on which
accounts have been prepared.
 C)To make financial statement of different
business units or financial statement of same
business unit comparables.
 D)As provide rules and criteria for accounting
measurement

7. NEEDS
 Uniformity
 Preparation & presentation of accounts by diff
orgn can be made uniform with the help of AS.
 Common principles
 AS can ensure that Common principles &
practices are followed to
maintenance, finalisation & presentation of
accounts.

8.  Structural frame work
 AS can create general sense of confidence by
providing „Structural frame work‟. It includes
system of financial measurement and disclosure.
 Consistency
 The presentation of the financial statements and
fair picture of the positions are consistent with
that used in the past by the enterprise.

9.  Comparability
 AS are needed to achieve „Comparability‟ of the
presentation of the financial statements with
those of other similar enterprises.
 Boundaries
 AS are needed to draw „Boundaries‟ within which
conduct and practices are acceptable.

10. FUNCTIONS
 1)To provide rational structural frame work so
that credible financial statement of the
highest quality can be produced.
 2)It provides frame work for preparation of
financial statements.
 3)It draws the boundaries within which
acceptable conduct lies
 4)As is centered around harmonization in
accounting policies and practices in
business.

11. SIGNIFICANCE
 It helps to the investors
 The standard will assist the public
accountants
 It enhance the standard of audit itself in it
task of reporting on the financial statements.
 Government officials and others consider the
accounting reports prepared in accordance
with established standards are reliable and
acceptable.

12.  Financial statements prepared by observing
established standards are found to benefit
for the purpose of analysis and inter-
preparation by analysis, researches and
consultants for economic forecasting and
planning.
 Standards reduce to a reasonable extent or
eliminate the confusion variation in the
accounting treatments used to prepare the
financial statements

13. DISADVANTAGES
 There may be attend towards rigidity and
away from flexibility in applying accounting
standards.
 Differences in the traditions and legal system
from one country to another.
 It can‟t override the law.
 The standards are required to be framed with
in the ambit of prevailing status even though
it is not an acceptable standard.