Single Set Of Accounting Standards

news report standards be principles that guides and standardizes account statement practices. Harvey & Keer defined news report standards as: A method or an approach to preparing accounts which has been elect and realised by bodies oerseeing the profession. The Generally Accepted Accounting Principles (GAAP) argon a group of be standards that ar widely authentic as appropriate to the field of accounting. Accounting standards atomic number 18 requirement so that pecuniary statements are meaningful crosswise a wide variety of businesses; if not, the accounting determines of diverse companies would shake relative analysis almost impossible. Standards are a root system of rule and order and generate consistency. In failing to project, 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 distinguishable situations. There are several usefulnesss that could be accrued from the development of a angiotensin-converting enzyme set of accounting standards that could be applied to all countries. more or less of the benefits are as follows:- One of the benefits of developing a angiotensin-converting enzyme 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 across the nation as well as nationally in order to make sound decision of investing. They pull up stakes benefit from enhanced com parability of financial statements; that is ! properly compared over metre because the accounts are treated the aforesaid(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 go forth aline it very hard to compare the results of different entities since different entities ability be applying different accounting standards. This means that the overseas investors stupefy to incur costs of becoming familiar with...If you urgency to get a full essay, order it on our website: OrderCustomPaper.com

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