INTRODUCTION ACCOUNTING STANDARDS

INTRODUCTION

• Accounting Standards (ASs) are written policy documents issued by the Government with the support of other regulatory bodies (e.g., Ministry of Corporate Affairs (MCA) issuing Accounting Standards for corporates in consultation with National Advisory Committee on Accounting Standards (NACAS)) covering the aspects of recognition, measurement, presentation and disclosure of accounting transactions in the financial statements.
•  The ostensible purpose of the standard setting bodies is to promote the dissemination of timely and useful financial information to investors and certain other stakeholders having an interest in the company’s economic performance. 
• Accounting Standards reduce the accounting alternatives in the preparation of financial statements within the bounds of rationality, thereby, ensuring comparability of financial statements of different enterprises.