Accounting Standards Definition Concept and Objective
Accounting Standards Definition – “Written statement consisting of rules and guidelines issued by Institute of Chartered Accountant of India for preparing the financial statement and financial reporting”
These rules and regulations provides a way to prepare a consistent method for preparing the important statements like Balance Sheet, Income Statement and Cash Flow Statement. So basically the accounting standards guide the accountant or any person related to accounting for preparing the necessary accounts. In addition to this, it also discusses the various codes for presenting the accounting information to the end users.
Accounting Standards Example
To get a clear understanding of accounting standards definition, let’s have a look over various accounting standards. These are the mandatory accounting standards that organisation have to keep in mind while preparing the important books of accounts.
AS1 – Disclosure of Accounting Policies
AS2 – Valuation of Inventories
AS3 – Cash Flow Statements
AS4 – Contingencies and Events Occuring after the Balance Sheet Date
AS5 – Net Profit or Loss for the period,Prior Period Items and Changes in Accounting Policies
AS6 – Depreciation Accounting
AS7 – Construction Contracts (revised 2002)
AS9 – Revenue Recognition
AS10 – Accounting for Fixed Assets
AS11 – The Effects of Changes in Foreign Exchange Rates (revised 2003),
AS12 – Accounting for Government Grants
AS13 – Accounting for Investments
AS14 – Accounting for Amalgamations
AS15 – Employee Benefits (revised 2005)
AS16 – Borrowing Costs
AS17 – Segment Reporting
AS18 – Related Party Disclosures
AS19 – Leases
AS20 – Earnings Per Share
AS21 – Consolidated Financial Statements
AS22 – Accounting for Taxes on Income.
AS23 – Accounting for Investments in Associates in Financial Statements
AS24 – Discontinuing Operations
AS25 – Interim Financial Reporting
AS26 – Intangible Assets
AS27 – Financial Reporting of Interests in Joint Ventures
AS28 – Impairment of Assets
Related Financial Terms of Accounting Standards
Accounting Standards Objective
- It brings uniformity and consistency for the preparation of important statements of finance as well as communicating the result to the users.
- To improve the authenticity and reliability of the financial accounts and information.
- Prevents misleading the frauds and forgery.
- To Guide auditors and accountants.