Accounting Standard

''Accounting Standard  are written policy documents,which are issued by an expert accounting body or Government or other regulatory body, covering the aspect of recognition, measurement, accounting treatment, presentation of disclosure of accounting transaction in financial statement.''
Definition:
      According to international Accounting Standard Committee:
The uniform, definite and universally accepted accounting rules developed by International Accounting Standard Committee(ISAC) are known as Accounting Standard.
Ideal Definition: 
        Standardised Accounting Policy and Terminology issued by a recognised expert accountant body is known as Accounting Standards. These standards are universally accepted. The sole objective of Accounting Standard is to harmonise the diversified policies to make the  system more useful and effective.
Contents of Accounting Standards:
         Following are:

1. A statement of the concepts and fundamentals accounting principles defining to the accounting standard.
2. Definition of the terms used in the accounting standard.
3. The manner of applying accounting principles for formulating the accounting standard.
4. The presentation of disclosure requirements in complying with accounting standard.
5. Class of enterprises to which the accounting standard will apply.
6. Date from which the accounting standard will be effective.
7. Nature of accounting standard- recommendatory or mandatory.

Objectives/Aims/Purposes of Accounting Standards:
   Following are:

1. To ensure direct effect on the working result and financial position of a business.
2. To permit flexibility.
3. To present the financial statement in reliable and compareable form.
4. To disclose accounting policies in case  of  change in accounting process or principles.