This document provides an overview of International Financial Reporting Standards (IFRS). It defines IFRS and discusses their meaning and relevance in India. It outlines the objectives and benefits of IFRS, as well as some of the challenges in implementing them, such as differences from Indian GAAP and the costs of transitioning accounting systems. The document also lists the individual IFRS standards issued by the IASB and discusses the process for setting IFRS.
International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.
IFRS were issued by the Board of the International Accounting Standards Committee (IASC), known as International Accounting Standard Board(IASB).
In this ppt i have given Introduction International Accounting which covers approaches in international accounting, importance of ia, introduction international accounting.
Subscribe to Vision Academy for Video assistance https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.
IFRS were issued by the Board of the International Accounting Standards Committee (IASC), known as International Accounting Standard Board(IASB).
In this ppt i have given Introduction International Accounting which covers approaches in international accounting, importance of ia, introduction international accounting.
Subscribe to Vision Academy for Video assistance https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
AS vs IND AS (Old vs New Indian Accounting Standards)sandesh mundra
This presentation takes one through the differences between Indian GAAP (old) vs IND AS (based on IFRS). All major differences have been covered in addition to IFRS carve outs.
International Financial Reporting Standards (IFRS)AbhirajSingh67
Accounting for Managers
International Financial Reporting Standards(IFRS) – Meaning or Definitions
Frameworks for IFRS
Importance
Advantages & Disadvantages
Requirements of the IFRS
AS vs IND AS (Old vs New Indian Accounting Standards)sandesh mundra
This presentation takes one through the differences between Indian GAAP (old) vs IND AS (based on IFRS). All major differences have been covered in addition to IFRS carve outs.
International Financial Reporting Standards (IFRS)AbhirajSingh67
Accounting for Managers
International Financial Reporting Standards(IFRS) – Meaning or Definitions
Frameworks for IFRS
Importance
Advantages & Disadvantages
Requirements of the IFRS
Financial Reporting
Anas Alzadjali
ST10299
Roslin Lazarus
Introduction
Analysis of different regulatory framework and governance applicable GIC’s investment strategies and current market operations.
Based on the published annual report of GIC for the year 2019.
ASSUMPTION
GIC consider establishing a joint stock company as a part of its expansion plan
This presentation analysis different regulatory framework and governance applicable to GIC’s investment strategies and current market operations based on the published annual report of GIC for the year 2019, with the assumption that GIC is seriously considering establishing a joint stock company with majority controlling interest in Singapore and India as a part of its expansion plan.
2
Continuation
Financial reporting is the declaration of the financial details to the divergent stakeholders concerning the financial operation and the financial position of the firm for a specified period of time.
Financial reporting standards are the keys that defines the practice standards and financial accounting policies and performs as its basis.
Enhances the financial reporting openness in an international position.
Performs as the accounting end product.
Definition
Financial reporting : declaration of the financial details to the divergent stakeholders concerning the financial operation and the financial position of the firm for a specified period of time.
Financial reporting standards: keys that defines the practice standards and financial accounting policies and performs as its basis.
Enhances the financial reporting openness in an international position.
Performs as the accounting end product.
Components of the financial reporting include;
The Financial statement
Notes to the Financial statement
The prospectus
The Management discussion and analysis
3
Elements Of Financial Statement
The financial statement elements are;
Income Statement : Expenses, Revenues, Purchases and Sales
Balance Sheet: Assets , Liabilities and Capital
Cashflow statement: cashflow from operating activities, investment and financing.
Change in equity.
And notes
Financial statement comprise the critical report of the business that gives financial information which can be used by the stakeholders.
The financial statement elements are;
Income Statement covering expenses, revenues, purchases and sales
Balance Sheet covering assets , liabilities and capital
Cashflow statement covering cashflow from operating activities, investment and financing.
Change in equity showing any change in equity over the period
And notes that gives explanations to the statements.
4
Financial Reporting Objective
Financial statements have been prepared in accordance with: International Financial Reporting Standards (IFRSs),
Applicable disclosure requirements of the Capital Market Authority (CMA)
Relevant requirements of the Commercial Companies Law.
Their objectives are:
To provide information concerning the financial posi ...
International Financial Reporting Standards- IFRSDipu Thomas joy
International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries
Conversion Ind AS (the converged IFRS standards) in India Dr Biswadev Dash
02/01/2015 when the Press Information Bureau, Government of India, Ministry of Corporate Affairs (MCA) issued a note outlining the various phases in which Indian Accounting Standards converged with IFRS (Ind AS) is proposed to be implemented in India it was a landmark reforms in accounting & reporting sector. With this the Companies other than Banking Companies, Insurance Companies and NBFCs will be covered. Indian Accounting standard is highly precise. Thus Conversion Ind AS (the converged IFRS standards) in India may significantly affect a company’s day-to-day operations and may even impact the reported profitability of the business itself. Of course Conversion brings a one-time opportunity to comprehensively streamline the financial reporting.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Cambridge International AS A Level Biology Coursebook - EBook (MaryFosbery J...
Unit – 1 PPT IFRS.pdf
1. Unit – 1
International Financial Reporting Standards
- Meaning of IFRS
- Relevance of IFRS to India
- Merits and limitations of IFRS
- Process of setting IFRS
- Practical challenges in implementing IFRS
- A brief theoretical study of International financial reporting standards
(IFRS) 1 – 15
- List of International accounting standards issued by IASB.
2. Meaning of IFRS:
IFRS are a set of Accounting Standards developed by the International
Accounting Standards Board(IASB) which helps in becoming the
global standard for the preparation of public company financial
statements.
(OR)
IFRS are a set of international accounting standards, stating how
particular types of transaction and other events should be reported in
financial statements.
3. It is a set of rules and guidelines that every firm has to adhere to ensure their
financial statements are consistent with other firms worldwide.
These rules determine how a company should record a transaction in
the accounting books.
The use of IFRS helps to ensure transparency and credibility of the accounting
statements, this in turn allows third parties to make decisions by going
through these financial records.
4. Objectives of IFRS:
• To establish a universal language for the companies to prepare the
accounting statements.
• To establish accounting rules to make it easier for the stakeholders to
interpret the financial statements, irrespective of the business location.
• Make the accounting statements credible and transparent.
• To assist companies appropriately categorize and report financial data.
• It makes international comparisons and analysis an easy task.
• Synchronization of accounting standards across the globe.
• To create comparable, reliable, and transparent financial statements.
• To facilitate greater cross border capital raising and trade.
• To having company-wide one accounting which has subsidiaries in different
countries.
5. BENEFITS / ADVANTAGES OF IFRS
a) Single Reporting: Convergence with IFRS eliminates multiple reporting
such as Indian GAAP, IFRS, US GAAP.
b) Increase Comparability: IFRS will give more comparability among sectors,
countries and companies. This will result in more transparent financial
reporting of a company’s activities which will benefit investors, customers
and other key stakeholders in India and overseas
c) Access to Global Capital Markets: Convergence with IFRS will enable Indian
entities to have easier access to global capital markets and eliminates
barriers to cross-border listings. It encourages international investing and
thereby leads to more foreign capital flows to the country
d) Benefits for Investors: Financial statements prepared using a common set
of accounting standards help investors better understand investment
opportunities as opposed to financial statements prepared using a
different set of national accounting standards.
6. e) IFRS balance sheet will be closer to economic value: Historical cost will be
substituted by fair values for several balance sheet items, which will enable a
corporate to know its true worth.
f) Benefits to the accounting professional: Convergence to IFRS will increase
the opportunities for Indian professionals in abroad as they will be able to sell
their services as experts in different parts of the world.
g) Benefits for the Industry: Currently companies need to prepare additional
financial statements based on multiple reporting formats to arise capital in
global market. Convergence with IFRS will eliminate the requirement for dual
set of financial statements and thereby reduces the cost of raising funds by
the companies.
7. Problems and Challenges
There are several challenges which India is likely to face in convergence with IFRS.
Variations in GAAP and IFRS: The entire set f financial statement will undergo vast changes on
the adoption of IFRS. The differences are wide and very deep routed. Bringing awareness
about IFRS and its impact is a challenging task.
Training and Development: One of the foremost challenge is lack of training facilities and
academic courses on IFRS. There is a need to impact education and training on application of
IFRS.
Legal and Regulatory consideration: Currently the financial reporting requirements are
regulated by various regulatory authorities and their provision over ride other laws and
provisions. So ,the biggest challenge is to maintain consistency with the legal and regulatory
framework of India.
Taxation: IFRS adoption will not only affect most of the items in the financial statements but
the tax liabilities would also undergo a vast changes.
Fair Value Measurement: IFRS uses fair value as a measurement base for majority of
transaction. This can lead to of flexibility and subjectivity to the financial statements.
Re-negotiation of Contract: The contract would have to be re-negotiated which is also a big
challenge. This is because the financial result under IFRS are likely to be very different from
those under the Indian GAAP.
Reporting System: The corporate houses have to ensure to make necessary amendment to
suit the reporting requirements of IFRS. The IT system should be designed to undertake new
requirement with regards to fixed assets, segment disclosures and related party transactions.
8. NEED OF IFRS IMPLEMENTATION IN INDIA
Following arguments in favor of IFRS implementation in India
1. Reducing Costs and Time: The Indian companies which are operating in two or
more countries of the world are preparing financial statements separately for each
country which is wasting time and money. Thus, the implementation of uniform
accounting practice will reduce time and cost.
2. Quality of Information: Implementation of uniform accounting practice will
provide much better quality of information
3. Globalization impact: The impact of globalization causes spectacular changes of
development of MNC’s in India. This has created the need for a single accounting or
uniform accounting practices bring more accurate, transparent and satisfying the
needs for demanding user.
4. Access of capital from overseas: Major Indian companies raising capital from
foreign investment in the form of FII and FDI. Foreign investors require information
about financial statement. Uniform accounting standard helpful to know about
company’s performance thoroughly though financial statements, but foreign
investors fail to get knowledge about different GAAP system
9. Convergence to IFRS in India
For Accounting period beginning on or after 1st April 2016
- Listed companies with Net worth of Rs 500 Crores or more
- Companies in the process of listing with Net worth of Rs 500 Crores or more
- Holding, subsidiary, JV or associate of the above companies
For Accounting period beginning on or after 1st April 2017
- Listed companies with Net worth of less than Rs 500 Crores,
- Unlisted companies having net worth of Rs 250 crores or more but less than Rs
500 crores.
- Holding, subsidiary, JV or associate of the above companies
The above does not apply to the following companies
Companies listed or in the process of listing on SME exchanges
Insurance, Banking and NBFC’s
10. List of IFRS Issued by IASB
1) IFRS 1- First-time Adoption of International Financial Reporting
Standards: It sets out the procedures that an entity must follow when it
adopts IFRSs for the first time as the basis for preparing its general purpose
financial statements.
2) IFRS 2- Share-Based Payment: It requires an entity to recognize share-
based payment transactions (example: granted shares, share options, or
share appreciation rights) in its financial statements, also including
transactions with employees or other parties to be settled in cash, other
assets, or equity instruments of the entity.
3) IFRS 3- Business Combinations: It outlines the accounting when an
acquirer obtains control of a business (example: an acquisition or merger).
Such business combinations are accounted for using the ‘acquisition method’,
which generally requires assets acquired and liabilities assumed to be
measured at their fair values at the acquisition date.
11. 4) IFRS 4- Insurance Contracts: It applies, with limited exceptions, to all
insurance contracts (including reinsurance contracts) that an entity issues and
to reinsurance contracts that it holds.
5) IFRS 5- Non-current Assets Held for Sale and Discontinued Operations: It
outlines how to account for non-current assets held for sale (or for distribution
to owners). In general terms, assets held for sale are not depreciated, are
measured at the lower of carrying amount and fair value fewer costs to sell,
and are presented separately in the statement of financial position.
6) IFRS 6- Exploration for and Evaluation of Mineral Resources: It has the
effect of allowing entities to adopt the standard for the first time to use
accounting policies for exploration and evaluation assets that were applied
before adopting IFRSs.
7) IFRS 7- Financial Instruments: Disclosures: It requires disclosure of
information about the significance of financial instruments to an entity, and
the nature and extent of risks arising from those financial instruments, both in
qualitative and quantitative terms.
12. 8) IFRS 8- Operating Segments: It requires particular classes of entities
(essentially those with publicly traded securities) to disclose information
about their operating segments, products and services, the geographical
areas in which they operate, and their major customers.
9) IFRS 9- Financial Instruments: It includes requirements for recognition and
measurement, impairment, recognition, and general hedge accounting.
10) IFRS 10– Consolidated Financial Statements: It outlines the requirements
for the preparation and presentation of consolidated financial statements,
requiring entities to consolidate entities it controls.
11) IFRS 11– Joint Arrangements: It outlines the accounting by entities that
jointly control an arrangement. Joint control involves the contractually
agreed sharing of control and arrangements subject to joint control are
classified as either a joint venture; representing a share of net assets and
equity accounted or a joint operation.
13. 12) IFRS 12- Disclosure of Interests in Other Entities: It is a consolidated
disclosure standard requiring a wide range of disclosures about an entity’s
interests in subsidiaries, joint arrangements, associates and unconsolidated
‘structured entities’.
13) IFRS 13-Fair Value Measurement: It applies to IFRSs that require or
permit fair value measurements or disclosures and provides a single IFRS
framework for measuring fair value and requires disclosures about fair value
measurement.
14) IFRS 14-Regulatory Deferral Accounts: It permits an entity which is a
first-time adopter of International Financial Reporting Standards to continue
to account, with some limited changes, for ‘regulatory deferral account
balances’ in accordance with its previous GAAP, both on initial adoption of
IFRS and in subsequent financial statements.
14. 15) IFRS 15 – Revenue From Contract: It specifies how and when an IFRS
reporter will recognize revenue as well as requiring such entities to provide
users of financial statements with more informative, relevant disclosures.
16) IFRS 16 – Lease Accounting: It specifies how an IFRS reporter will
recognize, measure, present, and disclose leases. The standard provides a
single lessee accounting model, requiring lessees to recognize assets and
liabilities for all leases unless the lease term is 12 months or less or the
underlying asset has a low value.
17) IFRS 17 - Insurance Contract: IFRS 17 is applicable for yearly reporting
periods starting on or after 1st January 2021. This must be accommodated
with IFRS 9 and IFRS 15 from the list of IFRS standards, permitted application
earlier.
15. List of IND AS/IAS/IFRS
SL. no IND AS No Particulars Corrsponding IAS/IFRS
1 IND AS 1 Presentation of Financial Statements IAS 1
2 IND AS 2 Inventories IAS 2
3 IND AS 7 Statement of Cash Flows IAS 7
4 IND AS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 8
5 IND AS 10 Events after the Reporting Period IAS 10
6 IND AS 12 Income Taxes IAS 12
7 IND AS 16 Property, Plant and Equipment IAS 16
8 IND AS 19 Employee Benefits IAS 19
9 IND AS 20
Accounting for Government Grants and Disclosure of Government
Assistance IAS 20
10 IND AS 21 The Effects of Changes in Foreign Exchange Rates IAS 21
11 IND AS 23 Borrowing Costs IAS 23
12 IND AS 24 Related Party Disclosures IAS 24
13 IND AS 27 Consolidated and Separate Financial Statements IAS 27
14 IND AS 28 Investments in Associates IAS 28
15 IND AS 29 Financial Reporting in Hyperinflationary Economies IAS 29
16 IND AS 32 Financial Instruments: Presentation IAS 32
17 IND AS 33 Earnings per Share IAS 33
18 IND AS 34 Interim Financial Reporting IAS 34
16. 19 IND AS 36 Impairment of Assets IAS 36
20 IND AS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 37
21 IND AS 38 Intangible Assets IAS 38
22 IND AS 40 Investment Property IAS 40
23 IND AS 41 Agriculture IAS 41
24 IND AS 101 First-time Adoption of Indian Accounting Standards IFRS 1
25 IND AS 102 Share-based Payment IFRS 2
26 IND AS 103 Business Combinations IFRS 3
27 IND AS 104 Insurance Contracts IFRS 4
28 IND AS 105
Non-current Assets Held for Sale and Discontinued
Operations IFRS 5
29 IND AS 106 Exploration for and Evaluation of Mineral Resources IFRS 6
30 IND AS 107 Financial Instruments: Disclosures IFRS 7
31 IND AS 108 Operating Segments IFRS 8
32 Ind AS 109 Financial Instruments IFRS 9
33 Ind AS 110 Consolidated Financial Statements IFRS 10
34 Ind AS 111 Joint Arrangements IFRS 11
35 Ind AS 112 Disclosure of Interests in Other Entities IFRS 12
36 Ind AS 113 Fair Value Measurement IFRS 13
37 Ind AS 114 Regulatory Deferral Accounts IFRS 14
38 Ind AS 115 Revenue from Contracts with Customers IFRS 15
17. Process of Setting IFRS
1. Setting the Agenda: The IASB, by developing high quality financial reporting standards
seeks to address a demand for better quality information that is of value of those users of
financial reports. (The Relevance to users of the information and the reliability of
information that could be provided, Existing guidelines available, The quality of IFRS to be
developed )
2. Planning the Project : When adding an items to it’s active agenda IASB decide whether
to conduct the project alone are jointly with other standard setter similarly Due Process is
followed under both approach.
3. Developing and Publishing the Discussion paper: A Discussion paper includes a
comprehension overview of the issue, possible approaches in addressing the IASB and an
invitation to comment.
4. Developing and Publishing the Exposure Draft : Publishing exposure draft is an
mandatory step in process. An exposure draft is the IASB main vehicle for consulting the
public unlike a discussion paper, an exposure draft set out specific proposal in the form of
proposal IFRS (or Amendment to an IFRS)
5. Developing and Publishing the Standards : The developing of an IFRS carried out during
IASB meeting, then the IASB considers the comments received on the exposure draft.
Changes from the exposure draft are posted on the website.
6. After the standards issue : Standards issued by the IASB carries a Post implementation
review of each new IFRS or major amendment this is normally carried out two years after
the new requirement have become mandatory and being implemented.
18. PRACTICAL CHALLENGES IN IMPLEMENTATION OF IFRS:
1. Change to regulatory environment: For the success of convergence in
India, certain regulatory amendment is required. For example, The
Companies Act (Schedule VI) prescribes the format for presentation of
financial statements for Indian companies, whereas the presentation
requirements are significantly different under IFRS. So, the companies act
needs to be amended in line with IFRS.
2. Lack of Preparedness: Adoption of IFRS by approximately 5000 listed
companies by 2011 would result in a significant demand for IFRS
resources. Corporate India and accounting professionals need to be
trained for effective migration to IFRS. Additionally auditors would need
to train their staff to audit under IFRS environment.
3. Educating Stakeholders: Educating Stakeholders comprising of
investors, lenders, employees, auditors, audit committee and etc would
be a big challenge as this would require a considerable time and effort.
19. 4. Significant cost: Significant one-time costs of converting to IFRS (including
costs of internal personnel time, adapting IT systems, implementing revised
reporting policies and processes, training personnel and educating investors,
analysts and members of the board).
5. Complexity in the financial reporting process: Under IFRS, companies would
need to increasingly use fair value measures in the preparation of financial
statements. Companies, auditors, users and regulators would need to get
familiar with fair value measurement techniques.
6. Impact on financial performance: Due to the significant differences between
Indian GAAP and IFRS, adoption of IFRS is likely to have a significant impact on
the financial position and financial performance of most Indian companies.
7. Communication of Impact of IFRS to investors: Companies also need to
communicate the impact of IFRS convergence to their investors to ensure they
understand the shift from Indian GAAP to IFRS.
8. Conceptual differences: For example, the Indian standard on intangibles is
based on the concept that all intangible assets have a definite life, which
cannot generally exceed 10 years; while IFRS acknowledge that certain
intangible assets may have indefinite lives and useful lives in excess of 10 years
are not unusual.
20. Meaning of Accounting Standard: Accounting standard are the policy documents or
written statement issued by the apex accounting bodies that are to be followed in the
preparation and presentation of financial statements.
Definition of Accounting standards According to IASB, “Accounting standard are to
formulate and publish interest, basic standards to be observed in the presentation of
audited accounts and financial statements and to promote their world wide acceptance
and observance.
Objective of Accounting Standards: The objective of accounting standards are
1. Harmonize: To Harmonize the diversified accounting policies and principles.
2. Comparability: To facilitate inter firm comparison and intra firm comparison.
3. Uniformity: The main objective of accounting standard is to bring uniformity in the
presentation of accounting aspects.
4. Credibility: To make credibility, reliability and acceptability of accounting.
5. Transparency: To improve the transparency in financial statements.
6. Corporate accountability and Managerial effectiveness: To help in determining the
corporate accountability and managerial effectiveness.
7. Helpful: Accounting standards are helpful to auditors in understanding the accounting
treatments.