2 the objective of setting accountancy standards is

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2. The objective of setting Accountancy Standards is to bring uniformity in accounting practices and to ensure transparency, consistency and comparability. 3. Accounting Standards are prepared keeping in view the business environment and laws of the country.
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21 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , 4. Accounting Standards are mandatory in nature. 5. Accounting Standards have also been made flexible in the sense that where alternative accounting principles are acceptable, an enterprise is free to adopt any of the practices with a suitable disclosure. Q.5. What is the concpt of Accounting Standards and its objectives ? Ans. Accounting Standards prescribe the accounting rules and procedures for recognition, measurement, treatment, presentation and discloser of accounting transactions in financial statements. OBJECTIVES OF ACCOUNTING STANDARDS Objectives of Accounting Standards are: 1. Minimise the diverse accounting policies and practices with the aim to eliminate them to the extent possible. 2. Promote better understanding of financial statements. 3. Understand singnificant Accounting Policies adopted and applied. 4. Facilitating meaningful comparison of financial statements of two or more entities. 5. Enhancing reliability of financial statements. Q.6. What is International Financing Reporting Standards (IFRS) ? Ans. International Financial Reporting Standards (IFRS) are a set of accounting standards issued by IASB, which came into existence in the year 2001. IASB adopted existing International Accounting Standards (IAS) and SIC as their standards. Out of 41 IAS, 12 IAS stand withdrawn and in effect 29 IAS are still applicable. IFRS comliant financial statements are: 1. Statement of Financial Position, 2. Comprehensive Income Statement, 3. Statement of Changes in Equity, 4. Statement of Cash Flow, and 5. Notes and Summary of Accounting Policies. Q.7. What are the objectives of IASB ? Ans. The objectives of IASB are:-
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22 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , 1. To develop, in the public interest, a single set of high-quality, understandable, and enforceable global accounting standards that require high-quality, transparent, and comparable information in financial statements and other financial reporting to help participants in the various capital markets of the world and other users of the information to make economic decisions; 2. To promote the use and rigorous application of those standards; and 3. In fulfilling the objectives associated with (1) and (2), to take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies; and 4. To bring about convergence of national accounting standards and International Financial Reporting Standards to high-quality solutions.
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