Single Set Of Accounting Standards

score standards be principles that guides and standardizes account statement practices. Harvey & Keer defined acme standards as: A method or an approach to preparing accounts which has been elect and realised by bodies everywhereseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that ar astray authentic as appropriate to the field of accountancy. Accounting standards atomic number 18 requirement so that financial statements argon meaningful across a wide variety of businesses; if not, the accounting determines of diverse companies would produce relative analysis almost impossible. Standards are a antecedent of rule and order and generate consistency. In failing to stick out, 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 opposite situations. There are several usefulnesss that could be accrued from the development of a sensation set of accounting standards that could be applied to all countries. some of the benefits are as follows:- One of the benefits of developing a one 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 inter nationwide as well as nationally in order to make sound decision of investing. They leave behind benefit from enhanced comparability of financial statements; that is properly compared over metr e because the accounts are treated the said! (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 pull up stakes aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the unconnected investors stupefy to incur costs of becoming familiar with...If you deficiency to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper