Tag Archives | Accounting Standard

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 […]

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 […]

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. […]

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