BUACC2606 Financial Accounting Semester 2, 2012 Assessment weight: 25% Due Date: Week 10 Length: 1500 words maximum Group Assignment: 2 people Format: Refer to marking guide attached Research...

accounting standards
ACCOUNTING
STANDARDS
ACCOUNTS
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CONTENTS
1. INTRODUCTION…………………………………………2
2. DISCUSSION & RECOMMENDATIONS………………3-4
3. EXAMPLES………………………………………………..5-6
4. CONSEPTUAL FRAMEWORK: DISCUSSION……….7-8
5. CONCLUSION…………………………………………….9
6. REFERENCES……………………………………………10
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Introduction:
Accounting standards are accounting rules rules and procedures relating to measurement,
valuation and disclosure issued by the Accounting boy of a particular country or issued by an
international accounting body operating on a global basis. Accounting standards are stated to
e the norms of accounting policies and practices by way of guidelines that should be
followed while preparing accounts disclosed in the annual financial statements. The
accounting standards are
ought into existence to apply only to items which are material.
Accounting standards are therefore regarded as the mechanism for resolving conflicts among
various users of accounting information.
The accounting standards apply to the preparation of general purpose financial statements,
i.e., Balance Sheet, Profit and Loss Account, and other statements and statutory notes which
form part of the financial statements. It is necessary to examine whether the mandatory
accounting standards are complied with in the preparation of financial statements. If there is
any deviation, adequate disclosure should be made so that the users of financial statements
ecome aware of such deviations.
(http:
www.investopedia.com/terms/i/ias.asp#axzz26iF519Pk)
http:
www.investopedia.com/terms/i/ias.asp#axzz26iF519Pk
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Discussion & Recommendations:

In order to remove the differential clause over different accounting standards of different
countries, which results in the disclosure of financial statements in different ways making the
task of experts from all over the world difficult in order to compare and evaluate the
country’s overall performance. The need for a single and same set of accounting principles
and standards, has been a major issue over the past decade and has been cu
ently on the list
of hot topics in the category of global issues, but till now it hasn’t been achieved yet. This
adoption of a global set of accounting standards obviously will give some advantages, the
most important one being the cause of comparability. If all the companies across the world
follow a single set of accounting standards then it would be really very easy for experts and
other countries, to compare the figures in financial statements in order to evaluate the
performance of different businesses. Accounting Standards if followed on a global basis will
ush out the performance bias as companies can perform well in a better and more
competitive environment. A unique set of global standards will have a big advantage over the
management of all the companies of the world. It will simplify and make the task of
managers and internal controls of the companies operating on a multinational level. At
present these companies have to prepare their financial statements with compliance of their
own accounting standards issued by the local accounting bodies of different countries. Until
and unless the need for a single set of standards is not achieved all over the world, the
disadvantages of comparison of businesses will still haunt the experts and therefore will make
it a more complex process in today’s competitive environment....