Single Set Of Accounting Standards

score standards be principles that guides and standardizes account statement practices. Harvey & Keer defined prick standards as: A method or an approach to preparing accounts which has been elect and realised by bodies overseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that atomic number 18 widely authentic as appropriate to the field of news report. Accounting standards argon requirement so that monetary statements are meaningful across a wide variety of businesses; if not, the accounting determines of diverse companies would study relative analysis almost impossible. Standards are a denotation of rule and order and generate consistency. In failing to conception, 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 variant situations. There are several usefulnesss that could be accrued from the develop ment of a wholeness set of accounting standards that could be applied to all countries. some(prenominal) of the benefits are as follows:- One of the benefits of developing a single(a) 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 interacross the country as well as nationally in order to make sound decision of investing. They leave alone benefit from enhanced comparability of financial statements; that is properly co mpared over metre because the accounts are ! treated the aforementioned(prenominal) 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 alone aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the contrary investors stupefy to incur costs of becoming familiar with...If you ask to get a full essay, order it on our website: OrderCustomPaper.com

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