What is the primary purpose of accounting standards?

To ensure transparency, consistency, comparability, adequacy, and reliability in financial reporting.

The Accounting Standards Board (ASB) was established by which organization in India?

The Institute of Chartered Accountants of India (ICAI).

Fill in the blank: Accounting standards aim to eliminate ___ by standardizing accounting practices.

Non-comparability

True or False: Accounting standards can override statutory requirements.

False. Accounting standards must operate within the framework of existing laws and regulations.

What is the role of the ASB in the formulation of accounting standards?

To independently formulate accounting standards while considering inputs from various stakeholders.

What are Indian Accounting Standards (Ind AS) designed to do?

Align Indian accounting practices with International Financial Reporting Standards (IFRS).

Which body approves the final draft of accounting standards in India?

The ICAI Council.

True or False: The ASB can modify its draft standards without consulting the ICAI Council.

True. The ASB operates independently in formulating standards.

What key issues do accounting standards address?

Recognition, measurement, presentation, and disclosure of accounting transactions.

Fill in the blank: Accounting standards help in enhancing ___ by making financial statements comparable across different entities.

Comparability

What is one limitation of accounting standards mentioned in the overview?

Difficulties in choosing between treatments due to multiple viable solutions.

Explain the significance of stakeholder consultation in the formulation of Ind AS.

Stakeholder consultation ensures that the standards reflect the unique economic environment of India and address the needs of various users.