Archive | Accounting Standards

Accounting Standard: Definition, Benefits and Types

In this article we will discuss about Accounting Standard:- 1. Definition of Accounting Standard 2. Benefits of Accounting Standards 3. Types. Definition of Accounting Standard: The term ‘Accounting Standard’ may be defined as written statements issued from time to time by institutions of the accounting profession or institutions in which it has sufficient involvement and […]

Analysis of Different Arguments for Standard Setting

In this article we will analyse different arguments for standard setting. 1. Government as Standard Setter: The following arguments are generally given for standard setting by the government: (1) A government would be free of conflicts of interest—more impartial and more responsive to all interests; it would not become a tool of business interests or […]

Reasons for Slow Progress of ASB in Standards Setting

In this article we will discuss about the reasons for slow progress ASB in standard setting in India with suggestions to improve it. Reasons for Slow Progress: The Indian ASB’s efforts in respect of accounting standards, although commendable, are not very satisfactory taking into account the work done in this area in USA, UK and […]

Corporate Management and Accounting Standards

In this article we will discuss about the role of corporate management in determination of accounting standards. Corporate managements play a central role in the determination of accounting standards. Corporate management is central to any discussion of financial reporting, whether at the statutory, or regulatory level or at the level of official pronouncements of accounting […]

4 Major Difficulties in Setting up Accounting Standard

The following points highlight the four major difficulties faced in setting up accounting standard. The difficulties are: 1. Difficulties in Definition 2. Political Bargaining in Standard Setting 3. Conflict in Accounting Theories 4. Pluralism. Difficulty # 1. Difficulties in Definition: To agree on the scope of accounting and of principles or standards, is admittedly most […]

Compliance with Accounting Standards

Compliance with accounting standards has been made mandatory. Sub-section (3A) to Section 211 (inserted by the Companies Amendment Act, 1999) requires that every profit and loss account and balance sheet shall comply with the accounting standards. Accounting standards means the standards of accounting recommended by the Institute of Chartered Accountants of India (ICAI) and prescribed […]

Process of Setting Accounting Standard in UK and USA

In this article we will discuss about the process of setting accounting standard in UK and USA. Setting Accounting Standard in United Kingdom: The first substantial British interest in the area of accounting policy making seems to have been seen in the 1940s. The underlying cause of this concern was discontent with the accounting establishment. […]

Standard Setting in India: An Overview

Standards Setting Bodies in India: In India, we have standard setting bodies which are, in practice, the national regulators, who have the legal authority to set and implement regulatory rules and procedures in the financial sector. For example, the Reserve Bank of India (RBI) is responsible for regulation and supervision of banks and other financial […]

Impact of IASs on Indian Accounting Standards

In this article we will discuss about the impact of International Accounting Standards (IAS) on Indian Accounting Standards. Accounting Standards Board of the ICAI is engaged in the task of formulating and issuing accounting standards since 1977. The accounting standards issued by ASB of the ICAI are primarily based on International Accounting Standards (IAS) issued […]

Harmonization of Accounting Standards

In this article we will discuss about the difficulties in harmonization of accounting standards with suggestions. Difficulties in Harmonization of Accounting Standards: Many difficulties have been faced in the harmonization programmes commenced by international agencies, especially by IASC (now IASB) which are as follows:  1. Difficulties in the Development of Standards: The main difficulties in […]

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