GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The main purpose of accounting standards is to provide information to the user as to the basis on which the accounts have been prepared
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They lay down the norms of accounting policies and practices by way of codes or guidelines
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Accounting standards codify the generally accepted accounting principles
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All of the above
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Detailed explanation-1: -IFRS 1: First-time adoption of international financial reporting standards. IFRS 2: Share-based payment. IFRS 3: Business combinations. IFRS 4: Insurance contracts.
Detailed explanation-2: -Specific examples of accounting standards include revenue recognition, asset classification, allowable methods for depreciation, what is considered depreciable, lease classifications, and outstanding share measurement.
Detailed explanation-3: -Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements.
Detailed explanation-4: -Objectives of accounting standards To adopt a uniform set of accounting principles for financial reporting. To create a single recognised framework of the accounting system. To make international companies understand Indian accounting practices. To ensure transparency in the financial statements of companies.